Transcript for:
Insights on Wyckoff Theory in Trading

wait [Music] [Music] so [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] so [Music] do [Music] [Music] [Music] do [Music] [Music] you're listening said chill your mind radio [Music] [Music] so so [Music] [Music] [Music] do [Music] do [Music] [Music] [Music] oh hello what's going on everybody happy saturday good morning afternoon evening wherever you are it's a beautiful morning here in sunny south florida so we're going to get started um i do have some stuff i'm doing this afternoon so the weather's pretty nice so i'm going to take the kids out but um i did want to do this you know it was kind of last minute i know a bunch of people had asked me so i went ahead and give me a second here i went ahead and there we go um threw a quick powerpoint together just uh just so that i have a like a reference point so i don't go off on a tangent all right um first and foremost just a disclaimer you know read it uh i'm i'm not a expert at the mark market whatsoever um i can just uh speak from what i have learned and through my journey in trading um you know so just uh take everything with a grain of salt do your due diligence like i have and uh and we'll go from there alrighty let me i'm going to try to keep up with the chat um i do have it on my third screen so if i miss it you know i'll kind of keep going back to it here but uh let's let's do it uh bear with me here let me get a new screen all right bear with me come on right i'm gonna move that up there and can you guys hear me i just want to make sure my mic is working because it wasn't working earlier anybody any uh perfect perfect awesome alrighty let's get this thing on on the road here all right um i would definitely suggest if you have a pen and paper get it out um write down whatever notes you have that way you can um you know if there's something later on that you need um you can ask it and we'll uh you know we'll go from there all right um this is this is gonna be the way i tailored this this is definitely a crash course for wyck-off theory and analytics um it's not like a beginner trading call right i i would expect that everybody on here has some sort of knowledge of trading already and you know this is kind of just a an enhancement on it right hopefully for the most part um everyone does have a a basic understanding of uh some smart money concepts as well and uh you know if not we'll touch a little bit on it but this is definitely just going to be straight up like off all right um there's really not to my knowledge i know uh most of us are in i am there's not really anyone other than zach mcdonald who really has a really thorough understanding of it um and then i would say that mike navarette does a pretty decent job with it as well um you know but i don't think anyone else really does so with that in mind let's just let's hit it off all right a little bit about myself real quick all right um for most of you that don't know me right i've only been trading uh for it's gonna be two years right um like i've actually been trading all right um and what i mean by that is you know i started in february of 2019 i retired from my full-time job um i am a full-time trader um oh hold on bear with me there we go uh i am a full-time trader i don't do anything but this now i originally learned harmonix obviously like most of us and i did some pitchforks i went to break and retest i was pretty successful with that um i actually as a break and retest trader i did get to six figures um you know i started learning smart money concepts in november uh through the you know bounce back in the trade house guys and then in february of this year's where i really started diving into uh wyckoff um you know i started learning it from zach mcdonald and from there i've devoted the last six months um of and i would say on average probably 40 to 60 hours a week in the last six months of diving into courses and publications that i've come across between books um journals and um you know i i did take a uh i did get a course from a you know if you want to call him a white cough expert um but he uh he was an institutional traitor um for one of the big u.s firms um and uh that definitely gave me a leg up on it all right um like i said i've spent hundreds of hours and and i do have over a thousand charts because i have it all saved on my hard drive and there i can see exactly how many charts there's over a thousand charts that i've spent back testing to understand this concept all right it's a very intricate uh concept and such you know i developed a very intricate trading plan uh with very specific guidelines and confirmations that i need to ensure that i'm successful at what i'm doing okay um and then you know like i said from the beginning i don't consider myself an expert at this at all all right and that's why every day i continue to educate myself on something if i can pick something up from someone else i'll do it you know i there is no ego there is no you know i am greater than thou kind of thing it's um all i care about is one increasing my equity pot and two um you know getting the knowledge that i can share with others all right there there are some things you know definitely that um i would steer people in the right direction and kind of give them a leg up but i think there's some stuff that you just have to develop on your own right um i know a lot of people have asked about like my personal confirmations well my personal confirmations might not be your personal confirmations so i mean i i'll give you my kind of thought on what i'm looking at stuff uh you know like what i need to happen you know but at the end of the day it's it's ultimately um you know your um your confirmations that you need to develop through your own back testing and a great example is my trading partner and i trade the exact same way um he has a little more stringent of a of a confirmation checklist so he may not get into the same trades i do um but he you know we essentially what i'm trying to say is you know they're there we we trade the same way um we have different confirmations and we take different trades you know so you you have to understand what you're going to be comfortable with okay um so wyckoff theory right it all comes from richard wyckoff um not a history lesson or anything but you know he is in my eyes probably one of the best resources that i've been able to come across uh him and jesse livermore all right um so richard wyckoff if you haven't uh and we'll get to like some of the resources that i've used um but if you haven't gone into that wyckoff methodology book by ruben villarrosa um i really suggest you do that that was my starting point zack mcdonald turned me on to that once i got a hold of that book and digested it and printed it out and really dove into what the understanding was and i know it's a difficult read because it was translated from spanish to english but that definitely gave me the basis of what i needed okay um so real quick what is wyckoff theory right um it's it's simply a method of detecting market behavior by analyzing the structure and the uh of the actual market at the time right the current price action and then understanding what the major market participants are doing and what do i mean by that the institutions right i know i've said it before and this is something that i got from from the actual institutional trader that i learned from is and specifically on euro usd because that's what he traded he was on the euro usd for one of the major banks it takes one billion dollars to move euro usd one pip okay so you have to understand that when we're talking about schematics and what is happening to a particular currency or asset that retail traders hedge funds um you know even people with millions of dollars are not moving the market okay it is specifically the institutions okay so when we see a schematic being played out on whatever time frame it is nothing other than what an institution is attempting to do all right um which is the epitome of institutional order flow okay um and that's something you just really have to understand all right it's it's not um you know and i know like learning smart money concepts um you know we talk about like these are the stop losses right and and the institutions are gunning for those stop losses they're gunning for stop losses no doubt but they're not gunning for retail trade or stop losses okay they're not coming from my stop loss on a on a six or seven standard lot account right that i'm throwing on they're not coming for yours right they're coming for another institutions stop loss okay because they need to get those orders filled and if you haven't unders if you don't understand about like the order books and how they they fill their orders i mean i'll do a little crash course on that but you know essentially they're not putting on their mt4 you know a a lot a buy limit lot for you know a particular price point they actually have to get filled at multiple ticks right um and it's all based on you know for every buy position there has to be an equal opposite sell position at that price point all right so that's why wyckoff is is such an interesting theory and concept all right it also it's an early identification of trend changes and when um when they're just corrections within the trend and what i mean by that is obviously in an accumulation or distribution phase those are trend changes right and then those redistribution and reaccumulation are just continuations they're just simply the pullback the correction that was needed and then the continuation move all right it can predict and anticipate that change in the market if you understand what you're seeing on whatever particular time frame okay now what white cough is not right and this is this is one of those things that people have a little a difficulty right it's not a it doesn't predict the future price action right you can't predict what exactly the market is going to do you can only um essentially you can have an idea of where it's going to go right you can have an idea of a a potential change coming but ultimately price action and structure is going to dictate you know what you need to do all right it's not a formula or algorithm right it's it's you can't uh you can't create an indicator that's why there's on trading view there's no indicator for wycof or or stuff you know i've seen indicators that show accumulation and distribution um and i'll be honest like i i don't even know how people can use it like um you know i i just happened to be on there one day and i looked at it and it made no sense um this isn't this is also not a strategy right it's a theory okay um you know it's not a an end-all be-all you have to incorporate uh you know institutional order flow some smart money concepts you have to incorporate a lot and i'll kind of kind of give you an idea of what i mean by you have to incorporate a lot into it when i show you a couple more slides all right um but it it in my opinion it gives the most complete understanding of the market okay um and it on the utmost here it's not an easy concept to learn by no means okay you can't just read the book you know wyckoff methodology and say okay that's it i'm going to be a seven figure trader based on wyckoff theory okay um there's a lot of hours and a lot of time especially those that are just starting to learn it that that are in our group and you can see um just the progression maybe in like the last 60 or 30 days you know um i know i definitely know but you know i've learned my progression in the last six months you know where um you know my training partner can tell you he he actually learned wyckoff before me and uh you know he he used to tell me that you know i have no idea what the names are of these you know the nomenclature of wyckoff you know the the different points of like you know secondary test or a spring but i understood with what they were doing right um so obviously now i have a pretty good handle on on what all that stuff is actually you know some of the resources that i personally used right for wyckoff are these three books all right um you know if you want you can write them down i personally got them all on amazon each book i think i know for a fact it was under 20 bucks each um the you know i would definitely recommend uh also trying to find the pdf versions of them um because what i did was i was able to highlight them and um and print them out and i have a binder that i use that you know i constantly use as a resource and go back to when i have an under you know need some clarification on something all right so let's let's get into the keys right the key techniques of y cough all right there's there's essentially three basis for understanding wyckoff right it's the schematics themselves the four schematics right the phases of structure okay and structure is key in wyckoff everything comes back to structure if you don't have a thorough understanding of market structure that's the first place you need to start all right don't don't even worry about learning what all these points are until you have an understanding of what actual market structure is and on whatever time frame that's something i struggled with in the beginning i under you know i started to learn that when i would take losses it was because i i didn't understand or i misread structure all right with structure you have to also understand the market cycles and i'll get into that and then lastly are the key indicators now um you know some of you use an rsi right the relative strength index some use the volume indicator um but there's other options that you can use as well and i'll talk about them when when i get to it all right um so the first thing is on the schematic side right we talk about you know the two the two main schematics are accumulation distribution those are those are identifying the market um a market change is coming as far as trend goes okay um there are technically five different accumulation schematics and i'm going to show you them all right i don't trade all five um i honestly typically only trade two of them okay but what we have here and i'm gonna i'm gonna notate on them right what we have here is obviously our our two main ones right we have our type one and our type two type one right has a spring type two does not have a spring right does not have a spring um now the you know and we'll get into all what they what they all are but the key things here is understanding what the market is actually doing okay the first thing and i know a lot of people have the very first issue is identifying our preliminary support that's what pes stands for right our preliminary support now our preliminary support is essentially um the the the key ingredient in identifying the first part of the schematic right the the way the way that i describe um type three before we recognize um yeah we'll talk about it don't worry about it um the the preliminary support and the way i the analogy i always use is this picture yourself driving your car and you're coming to a stop sign right you don't stop exactly at the stop sign right because of physics okay you have a lot of kinetic energy a lot of uh hold on you need this bear with me okay perfect there we go um and actually hold on bear with me one sec let me i'm just going to move this over to a different screen okay hold on hold on sorry guys my neck was hurting looking over to the left and we are on accumulation perfect okay so okay perfect there we go let me just move let me get the chat back up there we go okay okay so essentially like like i was saying our very first thing is our preliminary support okay um this is on an accumulation side right this is when we are looking uh the market has been selling off and this is where there's a a substantial um amount of buying now starts to enter the market okay and one of the key the key things like i said you know i talk about is when you're when you're coming to a stop sign you don't stop you know right at the stop sign right you start to stop prior to coming to that stop sign and then you know the the momentum of your vehicle the physics behind it then allows you to come to a stop at wherever that stop bar is okay so the preliminary support is our very first um point as you know into where we're going to start to come into our schematic now this is a preliminary support right up here you may have multiple preliminary supports um and it's just very important that you understand that it's not the end-all be-all right you can't we can't just um we can't just start throwing a box on it and say okay that's the schematic all right so our preliminary support is essentially where the very first part uh portion where real buying starts to begin all right now on the volume right for those that use the volume indicator and i i i'll tell you right now i don't use it as an end all be all if it's present you know when i see it there's just one more area of confluence that i use right but the key thing that we're looking at is right here okay is you'll you'll notice that the preliminary support is the biggest volume spike okay out of the entire schematic right because that is where essentially buyers came in and and stood their ground right that is where they came and said okay this is where we have a substantial amount of orders and this is where we are going to uh start to buy the market okay so that that is the very first port portion of this schematic that we start to look for all right now the next thing that we need to do is we look and another major um another major identification of the preliminary support not only is it the highest spike in volume okay but you also need to have from the previous high okay this right here where that retracement comes to okay previous high and previous low this retracement right here must be a minimum of 38.2 retracement all right it has to be if it's not a 38.2 it does not qualify as a preliminary support now you may ask well what happens if we don't have a preliminary a preliminary support all right well if you don't have a preliminary support it's okay right it's not don't don't just discount the schematic um i can just say that from my back testing when we have a preliminary support we are going to get a major reversal change and what do i mean by that is on a on its schematics where we we don't have a valid preliminary support and i'll show you some examples later we may only get a schematic that takes us up to this portion right here right so whatever this is you know say say our entry was off of this lps and say this is only 40 pips right with a five pip stop loss that's it that's all we're going to get out of it but when we do have a preliminary support okay um the the likelihood of a major change trend reversal you know essentially calling the bottom you may get this is where you may get those 100 200 pip moves all right so that's just something that i have in my notes that's something that i've back tested and i've looked at um it's not like i said it's not the end-all be-all um you know it just means that if you don't have a preliminary support don't expect to get you know a a you know a 300 pip move on a on a pair okay uh take what the market's going to give you um look for and we'll talk about that when we talk about a little bit of the trade management side of it um but you know have some realistic goals okay um so that is hold on there we go so the selling climax right the selling climax right here okay is the very first part of where we're going to identify and um and create our trading range okay um essentially the selling climax is that point at which the um the pressure has climaxed um and you've heard if you've heard the term you know weak hands and strong hands okay weekends are referring to essentially retail traders okay hedge funds um you know the smaller institutions and then strong hands are the the major financial institutions okay this is at that point where we're going to start to identify where we're going to change hands okay and if you've ever heard that the market works off fear and greed just just use that in in the analogy okay this is where fear and greed start to take hold okay um the the selling climax is again the uh is the first point uh part of the schematic where you're going to develop your trading range okay the after that selling climax comes in and at this point we haven't done anything in the market this is just identifying where we're coming okay once we do that we now trade up and this is our ar which is our automatic rally right our automatic rally all right again all we're doing at this point is just boxing it off okay um once the market trades back down into our st which is our secondary test and the st does not have to be above the selling climax right do not look at these schematics as they always have to line up your st can actually come below the selling climax okay the only thing that we are looking for on this st is to develop a trading range okay obviously if the selling uh if the secondary test comes all the way down here this is just a continuation right so just like probably this was our automatic rally and then the market just continuing down this potentially could have been our selling climax now we just switch it down and move it we continue to move it down okay and this is why it's very important to have these points of interest on larger time frames because if not you can be on a one minute chart and get extremely exhausted by trying to find schematics all right and and i will go over that as well okay i'm just kind of going over what all of these terms actually mean all right um but again the automatic rally um is the where the selling pressure has greatly diminished um there is a small amount of buying that uh or interest in buying right that's essentially what this this secondary test is doing it's um at this point here buyers entered the market to bring the market up okay an institution that is now uh initiating the buy here is closing their buy and entering a cell to push the market down because essentially what they're doing is they want to test this area they want to just keep coming up and test this area to see if there's enough orders right enough orders from other institutions and in a conglomerate of you know larger hedge funds to take it higher all right that's that's essentially what we're doing we're dealing with supply and demand right supply being um you know when the market is selling short off of a you know a a higher area and demand being a buying area right where essentially if there's more demand than supply we're going to go up if there's more supply than demand we're going down all right okay there we go all right um okay so what's happening here is the institution activates their buys to take the market up they activate a cell right to take it down and wherever they take it to to develop if there's enough buying pressure to take it higher okay that's what they're looking for right that's exactly what is trying to happen here all right um after the secondary test okay the market needs to trade back up to the trading range ideally we would want a ua which is an up thrust action right does does the market essentially need to have that up thrust action no it doesn't okay the market could trade right we could trade just up to the top of the trading range and that would be sufficient all right at this point we have now created our change of character right this is this first point right here this first phase and it's called phase a of the schematic all right this first phase is ident uh you know ideally where we start to put alerts down and start to box off the market all right this is where i am starting to gather interest in potentially taking a position all right i need to now get more confirmations but this is what i'd like to see all right so after the up thrust action we are now in phase b of the schematic and we need to trade down back to the bottom of the trading range right whether we trade below it or right to it really doesn't matter okay ideally what you want to get is that sign of weakness or the secondary test in phase b okay you'll see it on my charts i just label it stb all right we're looking for that sign of weakness okay does that does it mean that the trade is invalid if we do not trade below the sc no it doesn't okay no it doesn't all right um in my experience if we do not trade below the selling climax and we we start to gather some liquidity it just means that we potentially are now going to have more reason to have a spring okay you know if we if we have a really deep uh push as a sign of weakness those often typically don't create a spring because there's really no liquidity there's no agenda for the institution to uh sweep those lows before taking the market higher okay so that's our secondary test in phase b okay um now for me one and this is just one of my confirmations that i need okay after the secondary test in phase b i would like to see it trade back up to the top of the range okay now my personal requirement is i measure the trading range and i need at least 50 of the trading range to be tested from the secondary test in phase b if i don't get that that is immediately a disqualification for me doesn't mean the schematic won't play out but it means that i am no longer interested in taking a position okay i'm not i'm not willing to risk any of my equity um and the reason is just because in all of my back testing there's a higher percentage uh of trades that do not um actually accumulate properly and it will be a failed accumulation so for me it's not worth the risk i want high probability setups okay um so after that secondary test and phase b and then we test up to the top of the trading range the next thing that i would need okay is and this is where the schematics differ right between one and two i would need that spring right now essentially what that spring is and there's there's realistically there's two types of springs okay you have just a regular spring and then you have a terminal shakeout right a terminal spring that is a very very deep um uh shakeout and a great example is usd cad from friday or actually from thursday when it did it okay now understanding what a spring is doing right what is that spring doing that spring is trying to accomplish a multitude of things right the first thing it's trying to do is and this is where understanding what the actual strategies of of traders are doing is where it's going to benefit you right we've been taught especially those that did break and retest right before you have a break and re-test you have a break right so there are those traders that simply trade a breakout okay so when people have their zones marked up right wherever that zone is and the market trades below it that's a breakout there will be buy stops sitting right here so this spring is now activating buy stops right for i'm sorry sell stops for people that are trying to sell the market when the market breaks out and closes below right closes below the zone and then trades back up that is where the break and retest traders get in and now they are selling the market here all right so the market has now enticed sellers to get into the market because we have sold below a consolidated area or a a sideways market supposedly right because i was one of those traders that used to do that the other thing that is happening is traders that were using this as support right as support obviously have their stop losses just below here right wherever this would be whether it's 10 pips or 30 pips depending on what time what time uh time frame we're dealing with what this spring does is now takes those stop losses right and essentially takes these buyers out of the market all right because remember in order for an institution to fill the orders that they want to do they need to have an equivalent opposite trader right so if they want to buy the market just hypothetically a hundred lots at this price point they need to have a hundred lots worth of orders in cells okay so when you take a stop loss you are taking the opposite end right just because buyers were in the market at that support level um it doesn't mean that uh you know an institution is going to try and take their buy orders no they're taking their sell orders right because you know when you think about it the your if you have a buy order right your stop loss is a sell order okay and that's something you really have to understand so that's why the institutions are actually doing this spring all right um when you're looking at a schematic you have to ask yourself you know did this entice sellers did it entice buyers right um you know now obviously when we're dealing on a really small time frame like a one minute and you only get like a three pip move no that's really not enticing a lot right but it's it's still you know getting whatever minimum orders that they're trying to accomplish to get the market in their direction that they want to travel okay um you also have to remember uh and this is just from my personal knowledge institutional traders typically are trading off the four hour in the daily okay the reason that we're going on these smaller time frames is because remember they have to get orders filled on every tick so every now we're not even talking about pips we're talking about pit pets on some on some pairs there are orders getting filled on those okay so that's essentially what your um what your spring is okay now once the spring is done and we trade back into the trading range the next thing is a secondary test or i just call it a test of the spring and essentially you are testing that demand right to ensure okay the the orders now have been sold the market buys up right buys up and now if there is enough interest at this test point this is where the institutions now hedge their position they close out of their cell right the cell that they took up here they close out of their cell and now continue with the buy to take it up all right that's essentially what that secondary test is all right they are testing that market um for the the interest to take it up higher okay after that the next point that you are looking for right is that sign of strength right this sign of strength you want to see us now clear out of this trading range all right now this is where break and re-test traders actually work okay because we get that break out of the training range the retest of the trading range and what we call it is just the back up or the lps the last point of support all right this is where break and retest works all right after this breakout it retests the trading range and then now we are continuing up and it's just a continuation of sign and strength last point of support signs of strength last point of support and at this point this is where people that trade on retracements like fib traders you know you get the impulse the pullback the impulse the pullback the impulse okay how does it look for orders getting filled what do you mean by that yeah if you can just i don't know elaborate on that question because i honestly i i don't know what you mean by it um but essentially on a schematic while i'm waiting on that on a schematic this is right here this is phase c this is the only time that i'm actually entering the market how to spot it on the charts you can't spot where an institution actually gets into orders um you you would need the order book and we are we don't get uh we don't have the um the ability to get those order books like you can look on you know you can go on crypto uh order books those are available for you to look at but you cannot look at any asset or any currency um because we don't trade enough volume for it yeah absolutely no no you i'll tell you right now you're not gonna find a forex order book um those are direct links through the actual exchanges and in order to have a direct link you are you are required to i want to say uh i don't know if it's 100 billion um or if it was 50 billion i can't remember what i was told but you would need a couple bill you you need several billion dollars of order flow to have that link um to the actual exchanges uh but yeah on crypto you can definitely see it all right where they're getting filled yeah yeah exactly that's that's even bigger than the big boy club you know um but essentially phase c is where we are getting our entry right the entry is off that test that is the one and only entry so all of this that happened here is the waiting game right it's just patience but this is the test this is our entry this is where the bread and butter is made all right and this is especially on on these lower time frames this is where you can get those sub five pip stop losses and really get into the market all right um and then our second entry like you could see where i have it noted is on that backup lps that one that one entry that when the market clears right clears out of the training range and then trades back into whatever price action we're looking at needs to be either mitigated or responded from that's our second entry you know so on a type one schematic uh essentially you're getting you know a really nice entry and then um obviously this right here that backup lps isn't uh isn't as great as that test because there's a lot of unknowns right and what i mean by that is you you have a lot of price action that you have to cover okay uh essentially everything in here right everything from the test in here is unknown all right now the second schematic obviously the same thing right all the same nomenclature the only difference is we don't have a spring right so it's difficult to really see it now one of the key indicators for me that we're not going to get a spring is after the secondary test in phase b if we trade above the ua or above the trading range if we don't have a ua the likelihood of getting a spring is very very diminished so what i would be looking for is an lps entry um in somewhere of the secondary test in b so looking for a down candle looking for some voluminous candle in here would be where i would be looking for my lps entry all right so i would be taking lps entry last point of support and then once we create that sign of strength my second entry is going to be that last backup lps entry all right so those are the two entries i'm looking for now we could trade this on a one-minute chart you could trade it on a four-hour chart right um i actually traded usd canadian uh maybe last month or the month before off a four-hour schematic all right wasn't the greatest roi because i had to hold it for i think something like 40 days um you know but at the end of the day it was still a schematic all right so this is accumulation right we'll go over the different types of of accumulation but the the major two that we trade that are the the easiest and the most highest probability of trade are these two right here okay um so now right let me show you why it's important to understand what the institute or what retail traders if you will are doing right these are the five schematics right these are the five schematics this is out of a book that i you know i i got a hold of but this is essentially your type one right this is where you have that spring all right um these are all different types of schematics now the reason why a lot of these retail traders have some profitability with them is simply because of this right i don't know if you guys can see all of this right but these are those patterns that you learned as a retail trader right these are those patterns that you learned these are your cup and handle right that teacup this is the head and shoulders this is the double bottom or the w the descending wedge right the flag patterns if you will these are what all of those are but understanding what you are seeing now in a schematic form as opposed to just trading a cup and handle is definitely more advantageous to gathering or to winning on a high probability trade okay um now distribution is just the opposite right distribution is simply just the opposite all right um in a distribution phase right essentially we have the same thing just the opposite the psy is our preliminary supply point that is where sellers are getting into the market our bc is our buying climax ar okay is an automatic reaction secondary test right our minor sign of weakness which trades just below and then where we would have on an accumulation our secondary test in phase b we have an up thrust it is the exact same thing all right again for me i need that up thrust to trade to at least 50 percent of the trading range for it to be a valid um set up for me to be willing to trade okay um so you know you measure your trading range all right and i just throw a fib i have a 50 fib and i need this to come to at least 50 now after that the next step where i am looking for my entry right is in phase c here and it is that up thrust after distribution and this is just what the spring is doing it is enticing buyers to get in the market because look we have a breakout it is then after that up thrust it comes back down so the breakout and retest traders are getting into the market and then we've also activated any buy stops that we're attempting to you know for for a breakout to get into the market all right it's taken anybody that was selling from here that had their stop losses at break even or slightly above it out of the market so it's done it's essentially taking both markets you know both traders out of the market this is what we call it the spring and the utah are what we call our fu candles right it's taking liquidity all right yeah yeah sure so the stb right which if on accumulation would be down here right and then our up thrust in order for me and this is just what i've back tested this is one of my confirmations right i need these to trade back right we have our you can see our trading range right we have our trading range identified from our bc ar right this is our trading range i need the up thrust to trade into 50 of the trading range okay so i just put a fib i put a fib here with the you know it's the 50 fib i need it to trade down and then if we create our our up thrust after distribution now i am willing uh to potentially get into a trade off of the test of that if it does not trade to 50 then i do not take it because the likelihood or the probability of this being a winning trade for me is not very high okay and what i mean by that is if um if all of this price action here doesn't happen and this just trades to like just say we'll say right here which is not 50 of the trading range and now comes up to a utad okay i'm not going to get into this market right i'm not going to get into this market all right i would need 50 right i need this to come to 50 and that's just something i've back tested right um not saying that it won't work out but it's nowhere near the high probability that if it does trade at 50 okay um hold on let me catch up real quick what's the difference with auto automatic rally auto okay so automatic rep there's no difference uh it's just on a automatic rally is on accumulation and an automatic reaction is off a distribution okay so on a accumulation schematic right we have our selling climax our automatic rally right that now comes back to our cell our secondary test in phase b right and then our spring our test and then up right so this would be our automatic rally this is our automatic reaction okay so it's it's it's essentially doing the same thing just the opposite ends of the market okay um yes exactly just the reaction from the climax okay um do i does that include some sort of breakup structure yes on the smaller time frame yeah and i'll show you where the test is i don't care about a breakup structure off the ut or the stmb that to me is not important right the the key that i need is when we when i'll show you some setups is off the utad or the spring i need a break of structure for me to get into the test okay gold did on friday uh we'll look at gold we can sure would you look at an exception on your video if you're looking at a higher temperature and say four then you see another schematic forum on a smaller time frame so okay let me let me let me see if i get it right brendan all right so let's just say hypothetically that this is an h4 schematic right and we're doing this right but we do not come to fifty percent and we come up to create a u tag now say up in this u tab we have a five minute distribution schematic that plays out yes because i am taking my entry off of that schematic i am not taking it off of the four hour if that makes sense okay so my targets off of this schematic my targets will be if this is a if this is a skip a four hour schematic to the bottom in this trading range okay yeah absolutely absolutely and that's that's one of the things i i that's why i say if you can identify where you are in the higher time frame schematic um and you can get and you always see me put it right and if you can get into a really small time frame schematic here you're great you know but for me to actually get into the trade right i whatever time frame on that schematic i'm playing i need to get that confirmation okay um so again phase c is where we're taking our entry right phase c and it's off of that test right the test of the utad we want to see that change and this is essentially where the change of hands is happening between uh weekends and strong hands right this is where fear and greed this is where you know when you were when you were trading uh in i'm sure in the early parts of your trading career uh this is where you know had you ever been in drawdown you know and then as soon as it goes to break even uh you close it out and then the market just shoots off in your direction this is where that fear and greed and that change of weak hands to strong hands happens right it's on that test all right and if you can if you can just visualize that right you know just hypothetically say let's let's let's say we're back in those days where we were supporting resistance traders right and you know just say our secondary test came to here right and then we had that up thrust but off that up thrust you were like well look we have a triple top i'm gonna sell from the triple tops right and now the market comes up you're in profit a little bit and then boom you get that fu candle well what do you do with that fu candle if you had a really huge stop loss where those guys that don't trade with stop losses you're in significant drawdown right now the market trades back to break even and you're like oh i dodged a close one let me close out at break even the market comes back to test and then drops right then drops that is what's happening right um so if you can visualize that you know that's that's exactly you know where the psychology of training and wyckoff really mesh okay um and then obviously after that test you want to see the market now trade out of the trading range okay the lpsy right is our next entry the last point of supply and that's only after we break structure and out of the trading range we create that msow and the big m stands for a major sign of weakness where the little m is a minor right so you really want to see that market crash out of this trading range right um and then one of the things here i always i always just label it creek but on a distribution this is the ice right you're falling through the ice and then you're going to retest it this is where break and retest works on accumulation it's called a creek and it's just the opposite right when we have that accumulation right we jump the creek and then we go higher all right the ice is on distribution so i always just label a creek just because i have the the creek um on a trend line already predetermined so i just put it on there but um yes absolutely good good very good okay um now uh so this is a type one a type two is obviously without the utad right and again for me to get into a type 2 schematic i need after the up thrust i need us now to trade below our minor sign of weakness all right i need us to do that and then where i would be looking is at some sort of price action in here whether it be an up candle that took the liquidity or whether um you know there's some other kind of confluence that i can find that's where i'm taking my lpsy entry if i cannot so in this case where this did not trade below we did not break structure i'm not taking this entry my entry that i am taking is once we break structure i'm going to be taking this entry here okay if that makes sense all right um you know will this play out absolutely if if it comes down here and doesn't break structure you know sure absolutely it can do that but it's not worth the risk right if if this happens where we have not broken structure or below the msow i would put i'm potentially just waiting for our utad right and if we don't get the utad i'm getting an entry here all right everyone good so far we're good uh let's see yes yeah yeah yep yeah i've seen it before um okay so right retail traders this is our five schematics right these are our five schematics actually six my bad this is our our six schematics for distribution all right um i personally only trade three of them the other three on in my opinion aren't worth it okay they're not worth it because the risk to reward is is honestly just not worth it but you can see okay we have you know the the the teacup if you will right the double tops the m formations the ascending wedges the you know where it breaks out the flag patterns head and shoulders um this is just a very extreme um and this would be considered our terminal shakeout right this hypodermic top this is our terminal shakeout okay but this is where retail works but if you if you're just honestly trading off of patterns you're never going to be truly successful because you're just not the risk to reward isn't gonna be there okay um all right so there's three laws in wyckoff that you have to understand okay supply and demand is the first all right and it's simple right supply is on the top demand is on the bottom all right think of supply as resistance demand is support okay when there is more demand okay then supply is going to take over and when there's more supply demand is going to take over if that if that if you understand that okay and you can think about it just just think of like oil right just think of it like oil right when there and especially with this covered thing going on right oil what happened to oil right was the supply up the supply was high as crap right because nobody was using it what did the price of oil do it dropped all right so when there's more supply of something and less demand prices drop when there's more demand and less supply right what happens price goes up okay now the thing you have to understand too is effort versus result okay and what do i mean by that so this is where i know a lot of people trade with like divergences um this is where divergence and disharmony between um you know what's going on with volume and what's going and you know one of the things i've talked about is the reason i personally don't use a volume indicator is when you just hypothetically go on a chart and you go to fxcm and look at the volume and then go on forex.com there's no volume because forex.com does not provide volume but you can go to awanda and the volume will be different from what you see on fxcm and the reason behind that is that is the only that is only volume that that broker is giving okay so think about how many brokers there are in the world all right and you're only looking at a wanda's broker you know owanda's price fee okay so if it's present i'll i'll use it and what i mean by present if i see you know the the you know the preliminary support the the volume spike if i see a decrease in volume during phase b you know those are just area you know more confluence but if it's not there i'm not going to discredit it okay but we use divergence whether it's on an rsi or whether it's uh comparing like a comparative divergence you know say you're looking at the s p and the us 30 or say you're looking at odd use uh usd and kiwi usd right we use these divergences to you know determine that there is going to be a change coming right how many times have you seen where on the rsi you know uh you're starting to make a lower low on the rsi but price is still going up right absolutely it's a divergence it's telling you that there is a change coming and that's something that you can use in wyckoff uh specifically in that you know that phase c where price has created an up thrust and now you're looking for that utah that utad essentially on volume you want to see a drop in volume and typically on the rsi you want to see a divergence right because it's that's what it's telling you there's the the the market's being purposely manipulated all right to entice those buyers and sellers so that the market can turn around and go in the direction that the market wants to go okay and i'll dive a little more into it but um you know and i have some examples i'll show you all right so cause and effect is the last right um cause and effect what is the reason that the market is going in in a certain direction right it's all structure and the phases of the market and this is something that i stress to a lot of people you know um you know don't look for an accumulation when you should be looking for a distribution right don't look for a distribution when you should be looking for accumulation okay we're not looking to right we're not looking to sell from the bottom and we're not looking to buy from the top all right so understanding where in the trading range you are and where you are in structure is key okay also when you're in that schematic right the push to exit the training range that changing of hands between weak hands and strong hands right the changing between that fear and greed into what the institutions want to do is the cause and effect right that is the reason behind the utad in the spring all right is the cause and effect so when i talk about market cycles right this is what i'm talking about and this is just the chart that i did um you know for for a presentation right we have you know essentially a an accumulation right we have a re-accumulation we have a distribution right after we distribute would would we look for more distribution no we would look for redistribution right and then obviously we would be looking for accumulation in here right this is how the market moves in cycles right everyone should have seen like the whole this thing here right the cycles you know um you have to understand where you are in the market cycle on any time frame right this is the four hour time frame all right so on this time frame i wouldn't you know i wouldn't expect the market you know at this point here you know say say the market had traded up here okay i wouldn't be expecting an accumulation schematic to print here okay i would expect a distribution all right when we were down here as the market sold off right i'm not looking i'd be looking for redistribution but i'm not looking for distribution here i would be looking for accumulation right so understanding how the market is actually moving is very key all right sometimes if i'm if i'm confused i just walk away and i'll come back and take a look at it right with with maybe like a an unbiased approach i'll clean out you know sometimes that's why i like to go to a different broker this is like one of those new brokers i don't even know what it was like saxo or something um i deleted everything off this chart and i just stood back and looked at it from a bigger perspective and like okay all right look at that i could see the accumulation the re-accumulation the distribution you know so what do i need to see now well i'd be looking for continuation down for a redistribution and potentially an accumulation okay now again with market cycle the most important thing right uh what are your thoughts on eu right now based off higher time frame um i mean we'll look at it but i mean realistically for eu i am looking for the continuation of the distribution you know i'm just off the top of my head i mean this was done back in october 10th i i'm still waiting there's a four-hour candle right there right i am still waiting for the market to come up to there you know before we continue to continue down um can we get multiple reaccumulations in a row or is it just no no you you can right so i mean remember this is off of a four hour time frame okay so you can have um you know hypothetically let's just say that this was an accumulation on a 30 minute this was the re-accumulation right this was re-accumulation this was re-accumulation react well this may have been the accumulation on a smaller time frame right on the smaller time frames absolutely you can get multiple re-accumulations going up and you can get multiple re-accumulations coming down right there's really and and if this distribution schematic hadn't printed you could have this could have been a reaccumulation going up right it's only until you start to see the actual schematic come through fruition that you could like the the the confirmation that this was distribution for me is when we left the trading range okay this wasn't confirmed until right here okay when we left the trading range as distribution okay um so you know again you know just just trade what you see right if you don't see distribution then you just keep going with it okay um okay so like i was saying the the key to all of this is structure right market structure if you don't understand structure right you're gonna have a very very difficult time okay um well no no i mean we'll talk about eu yeah i personally right now i'm i'm i'm just going to kind of let let it sit for a second because it's it's for me it's it's not it's indecisive but let's talk about structure right so you can see clearly you know i've marked up structure on here okay where a lot of people get confused okay where a lot of people get confused is you know potentially um you know someone may argue that okay when price did that this was the break of structure and that is not the break of structure right this is the previous lower low right here so as we come down and create a lower low lower high right now was this a lower low at some point absolutely but because the market never gave a lower high now this is the lower low this is the lower high all of this right all of this is garbage right it is noise there is nothing in there of structure okay um you know realistically what was this this was a redistribution schematic right here okay that's redistribution now until we take this low right we are consolidating we made a low we made a high made a low a high right now this is where we get into our schematic right and understanding the structure point of it now um let's see hold on uh what makes the lower high is there a percentage of pullback like a 38 to minimum to count as a pullback um so here's how you you know that's entirely up to you right i mean i know some people that i think use like a 23 or 24 as a as a valid pullback all right um i could tell you for me for my personal uh training i need a 50 pullback now if it's a 38.2 it still counts as a lower high sure um but for my personal training for me to even think about getting into a market on a retracement it needs to at least pull back 50 but you know you know it's it's a in my in my personal trading uh a 38.2 suffices as a as a pullback okay but yeah it's it's you have to ask yourself right um you know when when price when price made this low or low right would you consider that the lower high or would you i mean and this is the hour candle so you don't even know if that happened after this spike so would you consider that as a pullback you know you have to you have to ask yourself is is it logical right is does that does that to me look like a lower high and the answer for me is no right so you know always just just take a step back and think about it you're correct yep you never you you can never you know so a great example would have been in this right here right i don't know what structure is doing obviously we're bearish going into all of this we're bearish right but until we either break the low or break the high right we we don't have a change in in uh in trend okay but now when we come into a schematic right and this is a great example of not having a um a preliminary support right i mean we can argue if you really want to argue it you can say that this right here oh i'm over oh my bad my bad i was on the wrong screen okay so we can argue right we can argue that essentially this right here is our preliminary support right here okay um so what i would be expecting is on a volume indicator i would be expecting a very large bar compared to everything else all right so potentially you know maybe volume is doing this and then i want to see volume start to break off all right and then potentially on the rsi right on the rsi i would be looking for as prices trailing down i want the rsi to maybe make higher highs and higher lows okay in this area right here so that's the preliminary support now this right here is our selling climax right and then this is our automatic rally all right so we've we've identified our trading range right this is our trading range price now comes and makes a secondary test right this is a secondary test and i bet if i threw a fib that this is 50 it looks pretty close to being 50 this is now our secondary test in phase b or our minor sign of weakness right that's sign of weakness and you can see again i would need a 50 retracement which it did it never created a ua now this is our spring right our spring the spring happens what do we do we trade and break structure so for me when we're looking at structure right this is the lower high do you see now how we broke structure right and we made a higher high this was the break of structure price comes back into the spring to test it here's our spring and immediately this is the this is the um the confirmation that institutions have now entered the market okay because we immediately are just testing the waters testing the waters and then bam you get the impulse that a lot of volume a lot of orders came into the market so i'll be honest like this right here is an lps a last point of support all right we get the sign of strength you know obviously this was a sunday because we gapped this right here is our next lps sign of strength lps and we just keep going and obviously you can see reaccumulation here all right but understanding the structure is is so important you know i i and you'll see it sometimes on my charts like i have to do it very quickly i'm just you know i have to do stuff like this to kind of get an idea of what is happening on structure all right because i'll look at it very quickly and sometimes i have to make a you know i make a mistake so i have to get i i'm very visual i have to see where it's at all right um but you can see right we made that lower low and then we made the lower high and boom spring break of structure right this is this is the key the break of structure come back and then we tr we essentially this right here is where we we began to change hands okay this is this is what caused fear okay um all of this you know people especially um those that thought of support right what what are most people doing right and i do it as well just to protect my trades but what are most people doing after a huge impulse right they're going to break even or they're going they're putting their stops in profit and that's essentially what's happening is that test is not taking everybody out uh okay good i'm all caught up very good very good all right so let's clear this up all right so any questions on structure i mean i know it's very simple but it's yet very confusing because it is very subjective right um you know you you really have to like analyze it and you know there's sometimes and this is one of the things that i would definitely recommend is is definitely have a trading partner um you know whether you uh and i and i have i have a couple uh i have one that i trade with very religiously and then i have a a few others that i share ideas with and they understand that i want them to be very blunt you know because sometimes i'll share an idea and they're like no it didn't break structure and i'm like really because i think it did and you have you can have a dialogue about it and having that person give you feedback definitely allows you uh to really look at it um you know have someone else look at look at it from a subjective standpoint and give you some feedback so that's that's definitely a very very key uh success uh or key to to my success was having a trading partner okay um wick or body for break of structure so there's there's obviously two thoughts to this right uh some people want a full body closure okay um for me this is how i look at it okay i am not i am not a position trader okay so i am not looking to say um you know this is the higher low right and this is the higher high i'm not looking to put a fib here and then take an entry like say off 61.8 right which that looks like if that's what it was was a 61.8 i'm not looking to do that okay for me my structure points are from the highs and lows so if we come on the one hour chart if we go to a one-minute chart okay if we go to a one-minute chart that wick is a full-body closure this wick is a full-body closure so for me i personally use wix all right i know a lot of people that don't but for me that is still a high and that is still a low okay and that's all i really care about all right most of my trading i i'll tell you right now i i can't tell you the last time i actually entered a trade off of a one-hour time frame all right so when i'm on the one two three five minute charts um those are full body closures okay um you know even even on a on a one minute if i get a wick like this on a one minute okay for me that still shows intent all right so it still tells me that if that was the break of structure that is valid for me okay uh do you ever check on a bar chart to make sure um so brenda yeah i know what you mean and yeah like um yeah the line chart i know what you meant yeah yeah um so i do right but like i said if if you go right if you go to the one minute chart this right here the one minute line chart will be down here because that's where essentially or or somewhere near that right but on the one hour it would be right here right that would be the line because it only the line chart only goes off of the candle closures um so and again i'm not i'm not personally i'm not trading a position right so i'm not going off of a fib retracement for me the breaks of structure um are only for confirmations on the schematic all right so you know realistically if this was a long wick right here and not a body closure this wouldn't be a break of structure on the um on the line chart but the fact that we did that shows me the intent and i'm willing to take that as a breakup structure because i understand that we're going to test and come back up so i guess my my answer would be you know i i yeah wix for me count because it shows the intent and for my for for wyckoff theory the intent is what i need okay yeah yeah um you know like i'm not i'm not trading now occasionally i might i may take a position you know off of you know like a a retracement and sure i understand definitely the the the candle bodies are important because that's where the volume is actually present um but yeah i i most definitely go with the wix okay okay so that that's market structure all right um now the divergence part right comparative divergence is one that i use often uh and this is comparing the odd us dollar and new zealand us dollar right so you know this is just something very key you know when you com comparing assets or cur or pairs that are correlated to each other so things like au and nu things like e u and g u right things like uh e n and g n or um you know if you're doing indices the us 30 and the s p um you know these are things that um you know that you want to see now the the other thing that i do is if i'm looking at eu i invert the dxy and i want to see them lined up comparative to each other and i want to see if they're making higher highs or higher lows right that that will give me that comparative divergence so what do we do with the comparative divergence right well you know a u is in blue nu is an orange you could see that at this point here a u made a higher high but nu made a lower low so you know some people will teach you that you want to go and trade the higher strength currency right which is great and absolutely you can that without a doubt absolutely but if i wanted to trade nu if i know that au has now made a higher high and is looking to push higher what would i be looking in here for nu right what would i be doing what would i how would i how would i take the trade on nu the answer is i would be looking for accumulation now on nu because i have the confirmation through comparative strength that au is going higher right so same thing like um you know if i'm looking at the s p 500 and the us 30 right us 30 and nasdaq have printed higher highs and smp made a lower low when we were at the bottom of of the market cycle right i would be looking for now an accumulation schematic to play out on s p to take it higher all right same thing on the reverse side okay you can see we're at the top end of the range right a you made a lower low and you made a higher high i'd be looking for a distribution schematic on n on n u to take it lower all right so that's how i use comparative strength so understanding you know your correlated pairs is very very key all right um you know that's that's uh something that i personally look for in wyck off right and that's how i determine which currency i'm going to trade a great example so this week um i was trading uh the australian canadian um for a distribution cell right now nzd cad uh which is correlated to oddcad right um essentially made a an ncd cad was just ugly but it did make a lower low on the higher time frame so that's why i decided to go with oncad all right same thing why i decided i wanted to trade nasdaq this week is because it made where us 30 and s p made lower lows at the top end of the trading range nasdaq was going higher so i wanted to wait for that really nice distribution and i'll show it to you guys in a minute um you know which which i eventually got all right so comparative strength is one of the key things that you want to really incorporate into wyckoff all right the other one you know and this is something i really don't use a lot but it's the it's the relative strength right um so relative strength typically you know we would be looking for and all this is telling you is it's predicting a change is coming right a change is coming so if i know that the change is coming what am i going to be looking for here on a on a schematic i'm going to be looking for a distribution schematic um and and that's essentially what i did you know i caught on uh on uj whatever this was september 29th right it did print out a distribution schematic right this is our our buying climax automatic reaction our secondary test this made our minor sign of weakness this did come back up and create a utad right dropped created an lpsy and then came down right i unfortunately did not catch the lpsy because it happened while i was sleeping so but this you know this gave me okay let me let me start to look this is this is when i start to look at currency pairs or assets is when i get confirmation through either an rsi that a change is coming or through a comparative strength right or through volume like we start to see a decline in volume right if we start to see a decline in volume means that there is a change coming there's a lack of interest in the current trend that's moving uh which one tends to be the leader so uh nasdaq always tends to be the leader um and us 30 always always is the laggard right so honestly that's why i tend to trade us 30 a lot more um but you know you know it's it's honestly i i don't have it set in stone you know but yeah us 30 is typically always the laggard all right and i know a lot of people you know especially in our group here they trade off the rsi which i mean it's still a valuable tool but the only thing i like i know a lot of people that when it gets overbought they sell and when it gets oversold they buy and you know for me a great example is this right look at that right here okay and then look what happened right look what happened fear and greed right so you bought here you went in profit and what happened f you right that came out and took you out all right this potentially could have been a schematic that could have been the spring but we never came back to test it you know uh but yeah that's that's typically why i don't use the rsi to trade other than to just find things that i i really want to look at how do you have two lines on one chart for comparative strength um okay i'll show you that all it is is when you go into trading view just there's a plus sign up here in your thing that says compare and you just type in when it asks you what you want to put in you can you know if this is uj and say you want to look at um you know like um like gold right because i would compare uj gold you know you could type in xau usd and it'll be over here in your indicators you'll see xau so you can go to the settings and you can change the color and then i just go to lines right the the easiest thing to do is go to the line chart because you can really see you know the uh the divergence off the line chart all right so if if you can't figure it out yeah i'll show it to you um yes so if the if a spring or a utad were never tested yes um i would look for me that would be a point of interest right so let's just say hypothetically this right is our our spring so fast forward say hypothetically this just took off to the moon right i would label this i would have this labeled you know and actually i did at some point look there was a line here for something but i would label this as a point of interest so if the market did ever come back to this point right this would be a key focus area where i would potentially be looking for an accumulation schematic here because this needs to be tested uh off this institution remember what what is what is happening right you know there is no doubt in my mind right there is no skepticism okay this right here this move left an institution in drawdown okay think about it right uh if this was euro usd right and just say hypothetically and you could see the volume where where an institution got in whether it was at four five or four seven but this came all the way to three five okay so for price to move ten pips a minimum of ten billion dollars in order flow was was engineered all right and then immediately somewhere around here they entered a buy to take it up well they never came back down to close out or hedge out of this cell so they are in drawdown so potentially there is a need for it to come back to close out of that cell right the sell to buy candle so that continue can go up all right okay so that is relative strength um and this is where i use relative strength a lot right so you can see just going back to it right the reason i screenshotted this is because i was in the trade down here uh actually i was in the trade a little lower but um i was uh and i'll show you the trade but i started to see divergence right so divergence indicates to me that we are going to see a a change right there there's a change coming so when i took this position here on uj okay when i took this trade this is re-accumulation right so when i entered off of here all right obviously my targets you know obviously i had higher targets but a logical target are the liquidity sitting right here these equal highs okay it's also near a very key area right of the h4 open that price reacted off of on the first time so you could see a note right so i use this as a trained trade management as well i i ended up closing my buy position all right not only was it because i think this was a friday um or at least it was a thursday night and i was done for the week but i started to see signs of accumulation and you can see it right here the signs of accumulation the rsi is starting to print a lower low and lower highs so why would i keep my position or at least all of my position continuing open right this was only a 38-bit move so the grand scheme of things for for some traders this is nothing right this is probably like a stop loss for them 38 pips but because i got in on a four and a half pip stop loss this i was already up eight to one on this trade all right so i went ahead and just closed the position out so this is how i journaled it obviously you could see my you know how i you know i printed i drew everything out and stuff but uh that's one of the reasons that i use you know the volume indicator or the or the rsi is simply to identify a potential change coming and start looking at pairs or you know when i'm actually managing the trade and what you know what potentially i want to look at you know so the the deciding factor for me to close this trade was because we were already at a key area these equal highs for a take profit all right so you know obviously you could see i i was looking down in here for an lps entry you know and that's essentially what i did so i took i closed it out and then i want to say this was a friday or thursday night and then a sunday is where i got into this trade down here okay um all right let's move on and then here is the volume right so this is just something i'm telling you about on volume so when we look at the volume right our preliminary supply you can see how we immediately get this increase these two areas right here all right this is that one right here and then obviously this candle right here is a second okay so we want to see that increased spike in in the preliminary supply uh i'm sorry preliminary support um and if it was a preliminary supply like in distribution you still want to see that spike right you still want to see the spike during phase a and b right you want to see the decrease in volume right the decrease in volume and when you get this and this is on the five minute chart so on the like i want to say like the 30 minute or the one hour this looked good but this entire thing right here is a terminal shakeout right this is a terminal shakeout you want to see the volume increase and as price goes to create that test you want to see the decrease all right these are the key things that you want to see as you're going into this trade all right if it's not there do i discount the trade absolutely not because this is only volume that is being presented from that particular broker okay but these are key things the the key things i look for i i want to confirm the preliminary support or preliminary supply by the increased volume spike in phase a and b i need to see the volume decrease because that's showing that we have a lack of interest from sellers right and we are now uh you know what the institutions are doing is just hedging right buys themselves or hedging to test to see if there's enough interest to take this higher all right all right so that is the volume all right so next all right identifying the schematic right um we have to the first thing does it make sense for you to take a trade in that schematic off of that area that you're at okay one of the key things i always do is i go to the higher time frames and i look for like the last down candles or the last up candles that took liquidity i also look for some imbalances because those are key areas that i would like to see a reaction in the market all right and then that's where i get down to the lower time frame so you can see this was a s p 500 trade right um i actually did let me go back to it i actually did get a point of interest this was off of i believe like a h1 but there was a one hour candle that was down in here so obviously as the market comes down i box it off and i look for key areas right that i want to take a trade off of and then ask yourself is it in a logical area right so you can see goodness i keep my mouse man my bad my apple mouse it's i don't know if you guys have it it's got the touch thing so every time i touch the mouse it moves so you have to ask yourself is it a logical area right would i be the market has been selling off would i be looking for distribution down here absolutely not i would be looking for accumulation you know um so would i be looking you know would i be looking for re-accumulation or distribution no i wouldn't you know so coming into this you have to understand all right well what do i need to see and that's one of the things that i do is i'm very visual so i have to box it off i have to start labeling and then what i like to do is you know you could say it's like predicting what i want to see but for me it's my confirmations you know i need to see if i if i'm going to get a spring i need to see the spring and i need to see the break of structure and where's my structure point you know then i need to see you know what else i want to look for to get an entry off of this all right and then you have to understand what each point in the schematic is attempting to accomplish right you need to understand you know what what is oh i'm on this thing oh that's why aha there we go hold on you have to understand what is happening right we're playing games here we go all right you have to understand what is being accomplished by this selling climax and then this automatic rally right what is happening there we're developing interest you can see the secondary test trades below the second the selling climax but immediately comes right back up we then get our up thrust action right which comes immediately down so this right here is phase a and b okay we now have that secondary test right we never truly right we never truly got a a spring you know so for me there was no trade you could see my arrow here but we never broke structure above here for me to look to get a trade so my trade came once we created that sign of strength this right up here is that sign of strength there was a candle it looks like a 30 minute candle 30 minute candle uh came back this is my lps entry and you can see i took it off and my target was this gap up here you know logical target i can't even tell what that r uh maybe it's like a 22 22 r but i mean you have to understand what is happening right and does it make sense does it look clean one of the things i tell a lot of people is if the schematic's not clean move on right don't don't waste your time you know this to me may made very clear sense now we didn't create a true secondary our spring off the secondary test so for me you know my confirmations weren't made for me to get into a trade right here okay my confirmations were made for me to get an entry here because we did break structure right and we did create that sign of strength by exiting the trading range all right so for me this was clean right it looked clean um one of the things you know like uh especially for new people that are learning why cough if you ever look at any of my charts you will never see a ugly schematic right because if it's ugly i'm not going to trade it all right you will never see me post an ugly schematic trade uh you know on or put it up on a chart because if it's not clean i just move on i don't waste my time uh trying to [Music] invoke my bias on it right so like i'm not sitting there and saying well this could be the sc this could be the ar for me it's very matter of fact right schematics are black and white to me there's no gray area right if it's not clean i'm moving on you know there's there's a lot of assets in pairs that i can trade um i'm not one of those that limit myself you know listen there there's nothing wrong with people who who have four five six currencies or pairs that they trade that's great you know um i i personally i don't limit myself you know i i can do a quick top to bottom um analysis on structure and then i can quickly get into it and look to see what i'm you know potentially looking for an entry and where my targets would be all right um now confirmations and confluence are very key before i ever get into this trade right um you know just like any trading plan you know you you really want to know what's your entry what's your exit your risk and how are you going to manage this trade right you have to understand that you know so for me you know just looking like at this chart here right um this was xrp but for me you know my confirmations were met right we had that break of structure that i was looking for um you know i took an entry off this test and i took an entry off of this lps right um you know where were my clear signs of take profits right we had some imbalance that i was looking at right i was looking in here as well i was actually looking to buy it from here and hedge but i missed it um you know but understanding you know where your where your targets are and then understanding like i said if you how the schematic actually plays out determines how far you're going gonna take this all right but a very key thing very very key thing is i need a break of structure for me to take any entry right whether it's a one minute or a one hour it doesn't matter but i need a breakup structure if i don't get that break of structure i do not take this trade you know yeah sure this trade could have dropped for you know i don't remember what the rr was but sure this trade could have dropped for a hundred to one but i didn't get the break of structure i didn't get the trade okay i need the break of structure okay um and then like i said understanding the management of your trade is very key you know understanding um that you are to get a lot of break evens on this strategy especially when you're dealing with smaller time frames right um last week i'll tell you right now um i had seven break evens uh the only two trades and i'll cover chef jpy and i'll cover um you know actually i took no i had three trades s p and nasdaq also also won for me but chef jpy and ucad were the only setups that i actually um got some profits out of everything else was non-stop break evens you know and i'm okay with that i'm not even okay with the small losses because you know in some of these trades i'm all i'm i'm risking half of a quarter percent all right uh taking partials at psychological levels and liquidity targets are extremely important all right so i like the 80s 20s and 50 levels and then the whole numbers you know like you know 1.3 100 1.3120 150 380 and then 1.32 are key levels i'm gonna take partials at them all right uh and then most of you know that i love to hedge so i will i i've definitely learned and perfected how to hedge myself into positions um and that kind of protects my my positions because if i say just hypothetically i risk a quarter percent on a trade i'm in a buy right and now i go into a cell to hedge it and i take the loss on the cell but i'm still in the buy the buy covers the loss okay and vice versa um you know and if it doesn't you know say the cell does come through fruition and i go to break even well then that's great you know that sell is now at a point where it's risk-free and i can maximize some profit so instead of you know instead of taking a buy being up 100 pips and you know the buy now has to retrace and you know theoretically taking 50 percent of that off the table you know and profiting from it allow it to retrace while you're in a cell you can you can almost double your profits and i can tell you that once i learned to hedge that's when i was able to really start to see some growth in my profitability okay uh when you hedge do you take partials on one position yes so uh yeah quarter yes quarter theory basically yes um when i hedge yes so like hypothetically let's just look at this um hold on let's look at because this chart was a little easier right um so what i was looking to do right um was i bought there was a two hour candle right here okay so i bought this two hour no my bad two hour candle right here right um when price came down i was looking to buy right obviously i took partials off of the exit of the trading range i took partials and after we cleared this i took partials my goal was to leave the remaining on and take a buy up ultimately we were bullish on xrp right way bullish this was just the cell to buy okay and then ideally what was going to happen was this if this all worked out as planned the remaining cell positions that i had would just break even while the buy was in order okay and it would just protect myself because if the buy ended up not working out and i took this and i and i was in a position where i took the loss my cells that i still have remaining would cover that position that took the loss and i and then i would continue to get get more you know profit out of it because we're continuing down okay if that makes sense all right so we talked about the trade management part of it right all right so real quick any questions on that because now i'm going to look at some charts and i'm going to show you some key things on charts that i do if we have no questions no big deal we can go right into some charts but if there's anything on that that you want to um you want to discuss real quick we can uh yep drop a chart um yeah yeah spring sure we can go over different springs absolutely uh bear with me here let me let me go over to this and we'll pull up yeah absolutely we can do that um bear with me here let me close out of my powerpoint hold on okay uh all right so wait uh examples of redistro and re-accumulation how i hedge them back test the pairs any specific timeframes or pairs okay so to back test um i'll be honest just pick a pair it doesn't matter you could pick oil you could pick uh you could pick gold you could pick uj you could pick whatever you want and just go back and you can find them right uh it's it's without a doubt very easy to uh to find anything to back test on it that's that's ultimately what i did i have a binder with every pair every indices every commodity and every crypto because i personally back tested them all right i went through and back tested them all um all right so let's look at i just want to recap some stuff right let me where did i where did my chat go there we go hold on do i trade solely off schematics um i i would say that 80 of my trades are off schematics um euro chef i saw it distribute then created a redistribution uh yeah i have euro chef just give me a second let's look at it right i just want to show you some some key things that i was looking at right um the first one is obviously youcad right youcad was a beast right a flipping beast so um let me go and pull up all of my ucad ones hold on let's look at it so my personal checklist yeah no i i personally don't give out my personal checklist just because that's that's something that um like it it's tailored just for me you know and i don't i don't want um yeah it's just not something i give out so and brandon this is a good example so this is one thing that i want to oh you know what let me go by time this is one thing that i want to show you right because i was looking at that five minute and i know we had some discussion in our group about it but if you remember what i posted on um in the group chat about the different brokers that's ultimately yes the data feed that is why i checked both data feeds okay um so let's just look at the thought process from the very beginning right from the very beginning so at the very beginning this was a a re-accumulation schematic that we were looking at right uh preliminary support right all the points were there essentially i was looking at is this as a potential spring right as a potential spring and i was going to play off of that um wait a minute hold on let me go back to it because it it opened it in the wrong order i wanted it to open up backwards okay here we go and i laugh man because like all week most of you guys know all week if i i think from sunday's call right sunday's call is where i said i was looking at ucad and um okay here it is right this was sunday's call right sunday's call was november 15th so november 15th i was looking at re-accumulation okay um now why was i looking right november 15th or sunday or maybe this was sad i don't know but i definitely talked about it on sunday's stream so i was looking for re-accumulation the reason i was looking for re-accumulation is simple what are we we've been bearish all along on u-cad now this here is you can see i mean technically it did accumulate right this is just a really ugly accumulation schematic okay selling climax secondary test right secondary test would be a terminal spring right a terminal spring a test of the spring you know lps entry so i mean you can you can say it's just ugly right whether you want to say it's the head and shoulders right um but yeah that was your accumulation so what's the next portion of the market cycle that i'd be looking at right it's the re-accumulation i'm looking for re-accumulation because one i know we need to go higher and two we have some clear some clear targets that i would like to attack okay um it's it's very very you know when you understand the cycles of the market it's very easy to determine what you're going to be looking for so i was looking for re-accumulation all right and you could see i mean not that i'm predicting what i want to see happen but this is this is ultimately gives me a guideline so i have it already in my head what i want to see and if i see those things guess what it gives me the confidence to take this trade so this was on the 15th all right um and you can see what i was you know i had i had some areas of of interest that i was looking at so fast forward now the day later and we start to see some accumulation being built up in this area right this is exactly how i trade i box it off i start throwing down the nomenclature and i want to see now obviously the next portion i want to see i want to see is trade down and create a secondary test in phase b all right you could here's the point of interest that i was looking at this 30-minute candle right and look what happens so i know a lot of people that took an entry off of this 30-minute candle right ultimately what did they end up getting they ended up getting 30 pips the market came right back to break even all right so whether you took profits or you closed out of the trade or you hit breakeven it's going to happen all right um the obviously the next step is and this is where i try to get in off this one minute this was a very clean schematic um i thought this was gonna be it i thought we were we were gonna be rolling in the pips um but this was a very goo this was a just a a clean schematic you don't get a cleaner schematic in this now let me point out right our secondary test in phase b do you see how it traded i i put a fib on the bottom and top of the trading do you see how it came exactly to 50 okay that's one of the that's one of my confirmations i need the utad or i'm sorry the the up thrust or the the the secondary test in b i need it to trade to at least 50 all right so i'll give that out right i'll give that up that's that's one of my must-haves uh for my confirmations so this right here is key had this not traded to 50 i would not have taken the test entry off of the spring all right and obviously like just looking at it you know why did i go off of the three minute candle because where where did the market start to sell from right where is the volume of of this cell well it's in these three candles right i'm not going to take an entry off of this because this was already below the liquidity right this was already below the trading range so what i wanted to find was where is the most volume it's in those three candles i took 50 percent of that candle and that's where i got the entry okay now this this was not you know this wasn't it because i ended up taking a break even on it i was extremely upset but you can see it was a 2.3 pip stop loss and i was targeting those equal highs all right um stops went to break even i was seven and a half pips now why this goes to trade management right um could you could you use the fixed range and point of as a confluence yeah absolutely you can and i've used it before um to be honest though like just looking at that i don't even need to waste my time by looking at the fixed range volume on it you know i can tell i mean at the very minimum you could tell that that candle is where selling came in and obviously i got a cover to that candle so that's why i took the three minute and just measured fifty percent okay um you know that's that's honestly it's yeah you can vix fixed range works great um now um obviously stops went to break even the reason stops went to break even what happened we created a higher high right we broke structure so for me there is you know there's no point or there's no reason for the market to come back and break this low right um unless it's going to be a failed accumulation technically this schematic played out because the schematic plays out once it leaves the trading range right so this schematic did play out all right um i mean realistically i risked two and a half and i was up seven and a half so i was already up over two to one okay but a very clean very very picturesque right you don't get a cleaner schematic than that um and for me this was simple you know break even now one of the things that i typically do sometimes is i me move my stop loss to the bottom of that wick so it's not a true break even you know because what if and i'm not i haven't measured it but what if when you measure that high and this low in my entry because you know my entry was right here at 30669 and just say that you go one pip in profit at 307 right 3067 what if that's 88 of the fib and the market now comes back to your 88 and then takes off so i'm okay personally with going right here and taking a small loss right that's just my style of trading you know um you know even on you know i don't remember what lot size i used for this but i know that when it did that i only lost 45 bucks right it was only like 45 or 48 bucks that i lost i'm okay with that because what i won't be okay with is going to here right and taking say i'm doing like whatever it is uh you know 30 bucks a pip and i get my 30 right you know i pop you know it comes back it hits my break even i pocket 30 and then this thing takes off to where i would have made seven thousand dollars right i couldn't live with that you know um yeah i i've i did do ftmo i'm actually a funded trader with them um all right um yes it's easy to be to yes absolutely absolutely um okay so you know just going through it um and obviously you could see what happened right hit my break even right hit absolutely i'm a correction it stops or to break even and my breakeven was right here because i i actually did not get closed out of it my breakeven was right here and look what happened it would have taken me out had i gone to break even okay now i still had hope that we were gonna move up right i still had hope we were gonna move up uh and we ultimately did right obviously you could see right here we did move up and at that point when we failed right when we failed to um to create the newer high all right that's where i went to break even so as soon as the market came back after this impulse um i went to breakeven and i got stopped out of breakeven here and that's you know it is what it is but you can see we we did rally a little higher um and then i i tried again off of this one minute candle to take the entry uh almost stopped me out this was a a 1.7 or a 1.8 pip stop loss okay um you know not going too crazy with it uh there it is right there okay and then boom now at this point i did go to breakeven right and the reason i went to break even is structure-wise um this is where it's very subjective right you can you can say okay here's our high and ultimately right low high low high so this is structure right here okay now we failed to do that but now we made a lower low right so as structure goes we broke below this low so on the one minute we are bearish so in order for me to now continue in a bullish market all right this potentially is either forming the lower high okay or i would need it to break structure so at this point i wanted to protect my equity and i got the impulse that i wanted right this impulse right here is what i wanted so i went to breakeven all right if that makes sense you know one minute we did go bearish i did take the entry but i wanted to see if we would have just skyrocketed and taken structure then i would have been a whole lot happier but i i managed this the way i did because i wasn't 100 convinced that this is going to be the move especially since we broke one minute structure all right um and you could see what happened i went to break even we did break structure right we broke broke beautiful structure uh i was 23 pips in profit off a two pip stop so i was up ten to one um i did take partials right because i do have a rule that if i'm up ten to one i do close 25 percent of the position and then ultimately what happened it came right to break even it took me out during london session all right so at least i took some profit um you know but realistically you know especially for those that are are fairly new to this you know this this move i got in uh i think it was like 10 30 at night and by the time london opened at 3 a.m i was up 10 to 1. you know so one trading session i was up and it was only 24 pips all right so i'm not one to say oh man i caught i love catching thousands of pips or i don't need thousands of pips i don't need 100 pips you know when people say you only need 10 pips a day they're they're right i only need 10 pips a day because i'm catching them on one and two pip stop losses but if you're catching them on a 30 pip stop loss 10 pips a day ain't gonna pay the bills you know um so that was london session right going back now i'm trying another attempt right another attempt uh for this stupid u-cad now for me what i needed was this right i needed i needed us to break above here right for me um i'm sorry i needed us to to break above here for me to go to break even right because it just made sense right when we're talking about structure all right when we're talking about structure this is the low all right um and what i wanted to do was now create a new higher high in order for me to go break even i was targeting this as one of my first targets for 37 pips you know it uh it did not work out as well as i wanted so i ended up i think i ended up taking another break even on this one but now what do we have on the 30 minute now is where we're starting to see some more schematics playing out all right so 30 minutes playing out right you could see i was up 16.6 pips i did go to break even it did come back and take me out at break even um so on the two minute obviously i'm looking we had a break of structure on the two minute so i'd be looking to take it off of this two minute open here's what the 15 minute looks like at the same point it's a 15 minute open as well and one of the things i do have is a 50 ema i don't trade with the 50 ema but a lot of retail traders do and i look to see potentially where i would be looking to get into this market so for me like when i saw this 50 ema being close to here i decided not to take this trade um and simply because it it made too much sense for retail traders to take an entry here and probably their stop losses were going to be this so for me i wasn't willing to take that trade um you know so let's just fast forward um [Music] oh this was that attempt that we took right here all right um so this is one i gave out tuesday night on my call right we had a secondary test we traded out of the trading range on the 15 minutes so i'd be looking for that lps entry right off this 515 where is it bear with me there it is right there so break even hit and the reason i took the break even we did get a nice reaction during london session and then immediately um came right back so for me i like to you know i like to go to break even especially if i'm up you know on this this was a two pip three pip four this was a six pip stop loss with the 12 pip bomb you know with price going 12 pips so i was up two to one um at that point especially with that impulse i i wanted to protect it right because this was especially this falling knife i'm not i'm not huge on taking those losses all right uh let's just keep going through this so here's the 30 minute view again potential spring uh what am i looking at here okay so this is when we were talking about where i wanted to take this entry hold on bear with me here okay um we're going to fast forward here sorry i kind of got confused on it there's so many of these stupid slides on u-cad um all right so this is the schematic the re-accumulation right this was our our top our high end up here obviously the schematic was here and where was i looking to play off of right the first area i wanted to play off was with this 15 minute open and this is why this is how i broke it down all right so price ends up coming down we ended up breaking above the 45 minute and then trading down so this area right here right this area was the last mitigation point all right that is the last mitigation point so my first stab at taking an entry was that the open of this 15-minute candle and i was going to use a stop just below the base of it all right that's where i was going to take the stab all right and then you can see what happened price ended up coming right into that 15 minute open and we broke structure right on the lower time frame this was the previous high so we came down we broke above my stops went to break even um this happened right at new york session close this was a great reaction this was like right at like 4 55. we got that really nice impulse up um which ended up going into london session and coming right back at us into take profit hold on yeah coming right back and taking us out all right um so again on the one minute this is the one minute view another very clean schematic that i was trying to catch um you know i went off the one minute open one minute open was a 2.6 pip stop loss where am i looking i need price to break above this high right and why so structure wise high we'll say that's the low high low high low okay so this is the structure i need in order for me to take this trade i need price to come up above it trade back into it and then we go all right that's what i need to happen okay so here it is and this is again i don't need the candle to close i just need the intent so we did come up right we did trade out of it um i went off of the five minute candle and as i was looking at it right you could see how we did this this is the five minute before we even broke i had that idea of what i was looking at so this five minute candle is where i wanted to take my trade from that's the five minute we got the confirmation price came up right came and then impulsed up again i wanted us to break above to really see that that sign that we were going to go higher um at this point obviously we're a couple of pips in profit and one of the things i said was on the one minute time frame you can just see how we are mitigating right out of every candle and just walking it up you could see the staircase going up right so i really at this point when i saw this price action there isn't any really inefficient price action for price needing to come back down and mitigate out of so once we had this impulse break even it was right break even it was protect the trade oh my bad hold on uh desktop three here we go okay all right um so now let's fast forward to friday right thursday night friday um i was looking at that five minute candle right i was looking at that five minute candle for my entry because we had those those equal lows down here right and it just made sense for us to do that all right um bear with me okay perfect and where's my chat there we go bam okay yeah yeah no i hear you man i hear you uh but something told me something told me to check the data feeds right oh where is it um where the heck did i put him all right you know what here we will we'll just go to the live chart now something told me to check the data feeds all right so what i was looking at let's just do this and i'll show you this is why it's very important let's just go back here so this is 4x.com when we go to 4x.com all right this is key this is the candle that i thought potentially we would be looking to play off of now obviously i was looking at the five minute but when we do this the reasoning behind that is you can see that candle has not been mitigated and we have equal lows right and we have equal lows now let's look let's look at awanda okay awanda now oh wanda where's replay mode let's go to the one minute when we look at a wanda right this is obviously on the five minute right on the five minute this is your cell to buy candle right all of this price volume right here is where they sold and then turned around and bought all right so do you see that same candle how it was perfectly mitigated so at that point from here that is that last point that needs mitigation right then you can see we impulse up and what happens here whatever happened here is now mitigated from whatever that move was when we come here right this is that last point obviously whatever this was is now mitigated right so this is our last point this is our last hurrah all right this is the point of no return so i personally went off that one minute candle my stop-loss was right here all right just below that wick that's where i played it all right and that's why i played it so now let's fast forward and you can see where the entry was right entry was right here and as we're coming into it right as we're coming into it it actually even built a schematic coming into it right you can look and we can say hold on hold on um okay so selling climax automatic rally secondary test right this is our trading range right that's our trading range secondary test in b right we trade up this is where we created our spring right that's where we created our spring right into our point of interest and then off to the races we went all right so now we did not create a test right we technically did not test the spring i mean we can argue and potentially say that maybe we did let me just look at this 15 minute right we can argue potentially if we look at the 30 minute that maybe yeah no we did it so i would i would definitely venture to say that we would need to come back into either this candle here or the 30 minute right so that is why me personally i took off as soon as we broke this high i took off some of the position on youcat and i'll be looking for another entry oh off the 15 minute that's what i got off that 15 minute so when we look at it right we jump the creek and what do we expect we expect now a retracement right so this is where typically i throw my fibs on you know i'll throw a fib on just to see where the you know you know we we all know where the premium fibs are but you know that 15 minute lines up between the 71 and 78 you know that's confluence this candles confluence coming back to test the trend line would be con confluence you know um so yeah you can see i had been tracking this since sunday you know and many of you know that i would tried and tried and tried all week to get in it and i finally caught it so you know obviously target one target two appear and then this is my final target up here you know so from that original position you know i'm i'm looking at a 54 to 1 is what i'm looking at all right so that was that's that's u-cad right so now let me tell you about my beauty of a trade i'm going to tell you about my beauty of a trade um show the correct area for the reaction did the price accident suggest anything that would have showed the correct area for the reaction so um what do you mean as we were going into it like on the smaller time frame like in this schematic right here i'll look at you gu in a minute um okay so now again i'm looking forward to test you know whether we test into this 15-minute candle or a 30-minute candle right here because that's where the volume of the spring came in you know but that's why i'm taking off the 15. all right now let's look at let me show you let me show you the trade and before i don't wanna i don't wanna show um okay i don't want to show all of you know the thing because i want to i want to see if you guys can identify it but i took i took two trades um oh you mean on the on the entries that i took earlier in the week um yeah it was just off the smaller time time frame schematics if that makes sense yeah yeah bro patience and persistence man let me tell you dude let me tell you all right so let me show you this right so also on sunday i believe sunday i was looking at chef jpy oh wait i already moved it over here hold on let me move it let me charts accumulate all right so when we're looking at chef jpy can anyone tell me what they see here while i'm pulling up my chart accumulation all right do you guys see an entry because i'll tell you right now this is probably test of the spring very good yes yes absolutely you want to you want to know how crazy of a stop crazy of uh of an entry this was so hold on all right i laugh because a lot of people when i suggested this on other platforms were like no it's consolidating leave it alone and i'll tell you right now i took a one to 25 on it so no was it november 9th hold on no november 18th is when i started looking at it um okay yeah yeah so november 9th so here let's walk it through right let's walk it through it was a it was a test of a spring and an lps entry that i took right so accumulation right this was type 2 accumulation back on november 9th and i had the h1 open candle as my point of interest right um obviously the agenda was clear right we had equal lows so fast forward now to the um to the 18th okay if you look at the chart right if you look at the chart this was the one hour candle right in here and this is just something i wanna that's the one oh come on this is the one hour candle right here okay so you could see price really skyrocketed all right now one of the things that you really need to pay attention to is price had to drop um 200 pips right i'm not going to just have an order limit set there right um what i want to do and you'll see me always do it is i just throw an accumulation on there okay i always throw a box and now i need to see how we react to my point of interest so you can see i'm already starting to develop the the schematic right we we've identified our trading range our selling climax we really don't have like this was a preliminary support a preliminary support preliminary support potentially preliminary support in here but really ugly but these are all preliminary supports our first change of character is easy to see right you can see how we've really just put the brakes on this sell-off all right so now obviously what do i need to see now i i personally at this point was looking as this as a secondary test in b but when i really got into it this uh changed to be the spring for me right change to be the spring for me and this is this is let me just walk you through it right let's um let's go to replay mode and we'll just go here all right so let's go to the one minute candles all right um so when we're looking at this right when we're looking at this um we clearly have our where she at okay so we have our preliminary support i'm sorry our selling climax here's our trading range right um this is our trading range okay originally this is where i was looking for a selling climax and our automatic rally but and then this was going to be our secondary test right um i truly didn't like how that was uh was really playing out hold on give me a sec bear with me one second let me come on there we go okay here we go here we go bear with me come on mouse okay well let me move that out of the way yeah it's consolidating exactly man exactly okay so we'll do this on the five minute because it'll be easier all right so real quick come on it's the top of the range this is our first change of character right first change of character selling climax automatic rally secondary test right from there oh man there it goes okay from there okay my next thing that i was looking at was potentially whether or not this right here is our secondary test in b confirmation was we did trade over 50 this is our spring right this is our spring so now come back whether you wanted to take it off the five minute now the five minute made no sense to me right to take it off of because we could see if this is the five minute candle that you're looking we came up and you see how we mitigated out of the five minute candle all right so for me the five minute was a waste of a candle to take it off of what i wanted to see what i wanted to see was what else do we have in there okay now on the three minute because we can argue that this is like the three minute candle you can see how we came back the one thing that we did not trade from was this one minute candle right here now do you see how we came and immediately traded into that one minute candle right do you see how that happened okay it it wasn't worth me taking um it wasn't worth me even trying to take this right because this was mitigated out of all right bear with me let me go let me go to replay mode here okay here we go all right so the five minute the one minute all of this was evenly traded the only thing right the only thing that i could potentially do on this and this is one of those ones where sometimes i'll put like a really small risk which i did i only risked 125 bucks on my account for this all right so i took it off of the 50 of that one minute candle and my stop loss was right here all right so this was a this was a 1.2 and chef jpy i had a um it was like a five pip pep spread so it was actually like 1.65 1.6 is what it was at at the end of the day all right that's what i was looking to do and then obviously i i would be just taking it to the top end of the trading range right whether i wanted to take it there um you know or you know if i just want to go up to the top end right so like 115 was a nice round number all right um so that's what i would be looking at right off of 50 of that move so now let's fast forward to where the market came right off that 50 move and immediately gave the reaction i wanted okay immediately gave the reaction i wanted all right now i ended up um i ended up closing out okay um in partials right here all right in here but now let's fast forward you know this is stupid hold on this did not this didn't happen let me go to a different feed hold on so a perfect example of feeds uh do you only pad your stop loss with a spread and not entry now i do both i do both but this was a market execution so for me i just executed with the stop stop-loss extra um okay so here's a prime example this is why i stay away from fxcm this crap didn't happen on um on the other brokers yeah that crap didn't happen on the other brokers okay so real quick just going back to it right the first the first play was off 50 percent of this stop loss just below it okay stop loss just below it and you can see that clear move bam so i caught that um during new york session and now this now becomes if this is the spring this now is my next point of interest that i'm looking for an entry we have clear imbalance right clear imbalance and we have this one minute candle that i would be looking at so in this case right entry stop loss at the wick and you can see how that played out right there so my second entry was the lps entry this was about a two and a half pip so with my with my stop loss it was about three uh and again i took it up to um one i took it to the top of the range yeah so what i say like 115 i think 115 is where i closed out so yeah yeah that's that's where i took that one and then this one as well 115. okay i took both to 115. this was 11.9 to 1 and this one was a 21.65 to one all right and then um you could see the oh look at that on friday i did the same thing came right back down into it um i'm curious to see what we're gonna do with that but yeah so those were the two plays those were my two plays uh which candle the first one why i didn't take this one right here the the 50 is that the one you want yup okay so let's look at it right so originally and we'll go to replay mode so you have to ask yourself i always start from a higher candle right because you have to ask do you want to catch a ridiculous risk to reward or do you want to be in the trade all right so if your bias is correct um a perfect example is how many people miss the you cat trade by one pip right by one pip so when i look at the five minute candle right we can say without a doubt that this is the spring candle right we can with without a doubt that is what that is the candle that took whatever liquidity was here this is the candle that entice sellers that five-minute candle right there is the end-all be-all okay but now when we look at the five-minute candle okay price breaks above and let's just go to where it mitigates out okay so this five minute candle if this was the candle that the institution sold to buy this point right here has been mitigated right at this point that mitigated this candle okay so for me for me now let me i just go down the list i go okay well what's the three minute look like well the three minute candle has been mitigated out of because we we bought up and then came back down into it so this three minute candle is ultimately been mitigated out of at this point the two minute was viable right you could see how the two minute really nothing was there um you could have played the two minute off of this right here so this two-minute candle right here all right you could have played a the reason i did the one minute is because the one minute was a marabosa candle this candle had all the volume where the two minute did not right you could see the difference in the wicks oh where is it oh there it is so you could see how that two minute candle you know you could say whatever that's like a spinning top or whatever you know i could care less about the candles but this candle right here you could have played off the two minute obviously you would have been filled no big deal but for me this one minute is where it was at all right this one minute is where it was at all right now um on some feeds do you see how this this wick here did not mitigate out of the candle you could have taken 50 right you could have taken 50 or the open and honestly when it's that close i mean i think it was only a difference of like half of a pip yeah point eight of a pip you know um i mean realistically you would have you would have used instead of like 782 you probably would have used seven nine right but that's why this one minute candle was the end all be all because everything else was mitigated out of and the one minute open is is obviously the two minute candle wherever it's at there it is right there right that two minute open and the one minute open on the the entire candle are the same so that's why i chose that one minute candle does that make sense yes the more volume exactly you you want to go you know like i personally am not going to take like here here's a great example i'm not going to take an entry off that candle right here okay because this isn't the sell to buy candle this is the sell to buy candle if i was gonna take it okay because this is the candle where an institution slam down the price to then buy up okay same thing right here this is that last fu before the takeoff all right um so that's that's that was chef jpy that was the that was the trade i took on chef jpy um those two entries and it looked like it came in for a third but i didn't i didn't trade it on friday so um the other the other thing that i was looking at um was nas all right so let me let me show you nas real quick right so could you check this ge screenshot yeah my bad um all right hold on so this was when was this this was is this like current price action friday all right let me look at friday honestly i didn't even look at him on a friday so um was it right in here this right here this is what you took i think so hold on yeah it looks like that's what you took yep so let me ask you this right um obviously i was looking at it too um but why did you take that entry just out of curiosity okay so all right um the order flow was bullish yeah i mean i agree with you the order flow was bullish um i mean i was looking for buys too the only reason so here let me just take you through my process that i was looking at right um and this is something that i spoke about on thursday to everybody in our group yeah i mean we were we we became bullish back here right right we became bullish down here off of that re-accumulation all right um and one of the things that i wanted to see was trendline traders right we broke the trend line right all the shenanigans this on structure on structure give me a second here high low yeah okay so the fact that we did not take this low right here which on structure really didn't mean much but the fact that we didn't take this low is why i was looking at buys i know a couple people were looking at cells because it broke this low like ideally how they looked at it was this right they said and this is why you just have to like structure is key all right like this was the high it made a low it made a lower high and then it made a lower low for me though this is all noise right this is all noise um so what i ideally was looking at was an entry but i personally yeah i didn't take it because i wanted a higher breaker structure so let me look at so what what time frame yeah no absolutely i agree with you it's bullish i was looking at g for bullishness i was targeting these equal highs right up here um what was the confirmation for your entry though like where why did you you obviously took it off this candle here yeah yeah on the one minute let me see yeah i mean me personally like i i wanted a i wanted a break above this high to confirm that we were gonna go higher and and the only reason that i i wanted it like that was because on the one minute this isn't the schematic right the schematic is on the fifth teen yeah so like when i look at when i look at this this right here is a is a schematic absolutely um that's your trading range right this right here was ugly for me so that's why i didn't take it um and if we're going off the 15 minute right the 15 minute um so i'd have to see what the structure was doing there but just off of this this was the low the high the low so i would have obviously you could see the different structure points i would have needed i would have needed something i'd have to look at the lower time frame hold on that's it alright perfect let me look at it hold on uh wait a spring at demand okay yeah so you just went off of one minute structure i got you yeah yeah so and i agree with you you know i agree for for me though like i didn't i personally didn't take it uh just because the the schematic is on a higher time it's on a 15 minute so even on a five minute right on a five minute when we were building this i was looking actually this is the line i needed right here yeah this this line right here that i have that's where i wanted us to break above and which we did right we broke above there but by that part all of this had been mitigated so like where i was looking for an entry is in here if that makes sense off of the schematic you know because and there's the break of structure right that was our breakup structure yeah yeah yeah so the one minute time frame yeah you're fine because you're following structure but if i'm going off of the schematic um yeah if i'm going off the schematic that's that's the next point that i'm looking at you know um just be and and honestly it's just because of this had this been a quick drop just like this was here had this been a quick drop but the fact that we you know did this in here uh i was i was looking at this as possible accumulation in here and then you know obviously when we came and created that spring you know the entry for me yeah the entry as soon as this happened right here as soon as we broke that um the entry would have been into this yellow candle which happened right here okay no no listen i i i i i catch one minute schematics all the time i l i personally love the one minute schematic but on the one minute you know this this wasn't the cleanest schematic you know um you know this right here this right here the fact that we just chopped up and down testing supply and demand supply and demand gave me gave me not a really nice feeling that i wanted to take you know um yeah like if you look was it this stupid thing yeah yeah here it is right here so i caught this right here this was us 30 and it turned into obviously redistribution um right for anybody that that was looking for redistribution so it just so happened that i closed out um prior to you know this happened when this came into entry was at 348 and the market closed in 12 minutes okay so i personally didn't get it let's see um yeah no no on the one uh yeah i mean on the one minute you you could definitely have seen it like that yep absolutely um it just for me yeah i wasn't i wasn't looking to take gu like that you know um i wanted a little more confirmation you know but yeah no good i mean it was a good catch it was a good catch bear with me here all right yeah so like this was ge or this was us 30 on the one minute same thing right preliminary support we have a really nice clean schematic i caught the entry right here off the one minute right break of structure we broke structure came back tested um my next entry this was a two minute candle and the reason i did the two minute is because that's the candle that had the volume right this candle right here had the volume so i took fifty percent of that two minute took that entry right here and then we turned into redistribution right this was that up um i ended up taking partials out of all this then we did the shakeout and came back and i guarantee you we came back into three minute candle yep came back into the three minute candle so this was the test of this three minute candle for redistribution so here's your shakeout here's your test and then the drop you know and the reason i i personally didn't take the the distribution is because i was already in i was already in this so i took this right here uh i was an s p 500 so and i closed out just before the market closed here so um but yeah i mean like you don't have to be in every trade all the time you know but this this was clean you know and i mean this really had nothing to do with the schematic i mean you could see i was i was trying to catch a schematic up here right but it never came through uh yeah you're a chef will get your chef too uh nasdaq was the other one you know this was nasdaq nasdaq on the larger time frame was in distro you know so we fell through the ice uh we came into this five-minute open here we danced around and actually i was looking at distribution in here uh yeah i was looking at distribution in here um right here and you could see clear distribution u tab test the u tab and then the drop so um very clean you know this is pretty clean in here euro chef i do have something on euro chef but yeah that's what i have on your chef i'm waiting for a utad or uh well yeah i'm waiting for a utad um for this on you chef if this makes sense well it could be absolutely and and you know for whoever asked about the hedging right so let's look at it like this right why well let me ask you this why is this re why is this re-accumulation initially you had distribution yeah but you haven't you had a bullish break of structure where's your bullish break of structure here let's let's look at structure right let's look at structure all right so um obviously that's your low this is your high right we'll say that or we'll say this is the low here all right we created a new high a new low a new high we can argue that this is the new low right so i mean right now where this all here is chopped so i mean we're still bullish right we're still bullish but this is all i mean to me this isn't a confirmation of re-accumulation what would be the confirmation of re-accumulation is this right so everything here is going to play out we have our creek right this is our creek when we come down to here at this point when we jump our creek and then test it confirmation of re-accumulation right to take it higher this this would then be our shakeout so if that's going to be the case if that's going to be the case right say everything plays out like like it's it's planned here right so we pop up to shakeout and then we break structure right i would need like a a break of structure for the confirmation of the test so i get into the cell here right i get into the cell as we trade down right and create either we exit the trading range or we jump the creek right say say this plays out and we jump the creek and now i get into a buy i'm obviously at break even here right so i'm protected break even i get into the buy here right off the mitigation of this spring all right and hypothetically the market moves up here i'm now at breakeven on the buy i'll break even on the cell let the best man win okay i'm let the best man win either i'm going to break even on the sell and win the buy or you know vice versa now the reason the reason i think we are going to distribute right is because of this um because of all of this imbalance i think we're going to distribute and then what i would be looking for is an accumulation down here and my point of interest would be because this was a clean accumulation in here so my point of interest would be in this last point of support all right so i personally think we're going to distribute down accumulate to go higher okay if if if that makes sense you know um yeah kind of something like this right you see how we distributed we redistributed accumulated and it went up so i i personally you know and and you could be right this could be re-accumulation you know but in order to protect myself i'm going to still enter the cell on the confirmation and then if this jumps the creek i will enter the buy and take it up okay so i'll hedge i'll head that position all right and that's how you protect yourself on the hedge all right um that's yeah that's euro chef you know um you know a great example here a great example let me just show you nas right so obviously i was looking at the cells right i was looking at cells so what i did was i bought was it a 15 yeah five okay so i bought off of this candle right here up i bought up and then i sold on the break of structure right so i sold um actually no i correction i was already in the cell from up here so i hedged off the distribution right i hedged off this distribution in here off of this five minute i got in off this five minute open and then i bought off of that and went to break even and let the best man win and obviously the sell won okay um you know so that's that's how you you just have to look at it um yeah it's i'll tell you right now the the hedging part is extremely difficult because you have to honest honestly know you know when to do it um you know it's got to be at key points the trying to think at one that i recently did bear with me i wonder if i think it was a cad i think it was somewhere in here on acad where we bought um i think it was something yeah we bought so i was in the cell off this test and then we bought here that's what it was so and maybe like a 15 minute i'd have to look at my charts but uh yeah so we bought something off of here we bought up and um and then i entered in off of the lpsy you could see right here off of that candle is where i entered the cell uh and then closed my buy so i hedged like i was in the cell from the test buy from here uh sell from the lpsy closed out the buy and just let everything ride and then i closed out i think we closed out of this trading range when we came here i closed out of everything all right so hopefully that that kind of gives you an idea or makes sense all right um does that does that kind of like explain a lot of the the whole wyckoff stuff for you i mean i know we've been on here for like going on three hours so i just want to make sure you know if there's any questions or any anything you want clarification now's the time to ask you know uh what with the imbalance distro is more possible yeah yeah so exactly yeah going back to remember does it make sense right just think of it logically step back and and take a a second right when you're looking at euro chef does it make sense for it to come back down here or to go up i mean we're bullish you know absolutely we're bullish you know but it makes sense for us to to at least 50 percent of this right at least 50 okay um and that's what that's the key just is it logical does it make sense you know um you know like ga right ga is another one you know i'm looking at distribution on ga but only short term right only short term to maybe come into this imbalance to go higher you know but nothing's confirmed um a great example you know for anybody in looking at btc right does btc make sense to distribute from up here yeah it does you know i mean that's currently i'm in this right here but it's just playing around right now you know i'm waiting to see if we create an up thrust you know but i took a little risk on this um 1.1 let's see is that where the equilos are uh oh yeah daily open that's that's what i got marked it's the daily open yeah the daily open how do i determine which pairs to um for the week i haven't done it yet i'm going to do it tomorrow but i clean out everything out of my order and my watch list right and then really what i do is i just start in alphabetical order i come on a one hour chart um and i look to see what's going on you know so like acad is at an interesting area because we're back in another supply area so i'm gonna keep this on there uh a chef um you know like obviously i want to buy from here it looks like potential distribution so maybe i'll keep that on there um aj you know uh obviously aj's coming into this imbalance um i potentially would just put an alert at these equal lows and keep that off my watch list i'll you know i mark up every chart and then just if something looks clean right that's that's what i want to see a n right look at the weekly i did this on the weekly so what did i want to see back when i did this i want to see it come all the way down so i'll potentially be looking at a n for like re-accumulation which actually looks like it's doing right there you know so i kind of just do this i'll go through all the pairs it takes me about an hour hour and a half you know potentially accumulation there and i already have it on my watch list so and i just go through every pair you know if um you know if i like to if i want to see something you know happen i'll uh i'll that was a nice trade right there man that was a nice trade um yeah so i just go through every pair you know i don't limit myself and i mean you could see last week my watch list was pretty heavy and my order list was even bigger right obviously a lot of these are duplicate pairs because i have multiple pairs uh you know like multiple feeds that i look at but yeah that's how i do it uh hold on let me catch up here how do you uh do you always mark up no no no no i just for me i don't mark up uh for me the one hour chart is where i look um and then i'll go and do a top-down analysis from the monthly down if i like what i see you know so like there's no point in you know like a perfect example if i would have seen this on the one hour chart say like we we were right here and i started to see double tops then i'm like alright you know what au is interesting potential distribution we're at an area where it would distribute and i'll do a top down and then i start marking up with what makes relevance you know but for me the one hour chart i just find it's easier for me to come to a one-hour chart and i can start to see all right where are we in market cycles you know obviously we're at the top end of this market cycle here we have equal highs you know um potentially i'd like to see you know i have i put an alert up here and you know potentially maybe distribution you know when we get up into this range you know a great example is e a like last week this is what i had right you can see i have an alert down here an alert up here we're in a four this is a four hour accumulation right four hour accumulation or it could be redistribution when we get to phase d but for now re-accumulation so what do i have accumulation distribution appear i could care less what goes on in the middle you know um you know at this point it's not worth me trying to get a re-accum a re-uh a redistribution to come down you know i'll just wait it out and when my alerts go off then i'll i'll look at it again you know i was trying to catch some uh distribution earlier this week when we were up at the top end but it just it didn't do anything right i was looking for some redistribution in here but didn't do it all right yep it mitigated it ran exactly exactly you know so i was looking at it um what do you say i'll look at that could i get a look at eg again if you don't mind i want to compare my schema yeah yeah hold on um ethereum man oh okay i'll look at ethereum i have honestly i haven't looked at ethereum in a while and it's just because my broker the stupid spread on it is stupid um here i'll throw i'll throw this in the chat if you want you could just open it up and save it but yeah um hold on there you go oh i doubled it um xrp is a fly yeah yep yep it has it has um all right let me look at ethereum hold on so before i look at other charts i kind of like to just look take a glance at it first so i'm not biased by it um i did have dash marked up look at this i did have dash for a freaking accumulation man it did it i was looking for an entry right here i was looking for an entry right in here um it just it didn't come into my i wanted a little i wanted this to get mitigated first you know but all right let's look at ethereum um ethereum what time frame were you looking at this is what the three-minute oh there's your re-accumulation right here that is your re-accumulation right there that was the shakeout and you had your creak um i don't know see the only thing that sucks about some of these lower time frames on this is the data feed it's just horrible uh you're in it awesome awesome um i had this don't get me started on xrp man i had you could see i've been trying to catch a buy i had a i still have my buy order sitting right here off this h1 on uh on xrp she left without me that h1 right here that h1 is where i had my order equal lows i wanted i wanted the drop man i wanted the drop and then this was accumulate this was really good re-accumulation in here you can see i had my order or my alert i deleted the the markup because it it it just flew but it never came back to mitigate this was this was the the re-accumulation right here and never came back to mitigate you know so it is what it is you know um all right any other questions because if not i'm going to call it a day it was fun hopefully i answered some questions or shed some light on some stuff um some some advice i can give you is when you're bored just markup charts in white coffee and try to find the schematics right um you know i'll tell you right now like one of the things i did like you can go and you know here go go to btc and there was a really good schematic or oh yeah this was a good schematic that we sold um you know this was a good right in here like this is stuff you can train your eye on if you're on a one hour or four hour this is accumulation go in there and see where the buy was you know obviously look i still have it on there the h4 open that was my buy off that h4 open um you know the just go in there and you can find the schematics you know and then just go into replay mode and see where you would play it off of um no so i'm not going to post this recording um i'm not it's there's some yeah there's some stuff that i don't want get out on like the web and stuff you know but um yeah yeah it's um you know i'll answer any questions no big deal you know but i just i won't post this on on youtube or anything um yeah but i the the one thing i can do is tell you go back and just find anything like you can go on any chart you know just pick a random chart that's what i started doing i went and just picked a random chart and then go on like the one hour because for me it's it's easy now to see on the one hour but obviously here go here box it off go into replay mode right um actually go a little further back go to the start of it this is how i did it go to the first change of character right you come into it box it off mark it up maybe go down like a 15 minute to make it a little cleaner and then just go into play right you know go into play mode um and then just start to back test it you know start to back test where you would mark up and how you would do it um the other thing that i did like i said i i screenshotted um let me let me show you what i did i screenshot it so i have accumulation distribution right um these are all of every trade that i've taken this year you know broken down and then anything that failed uh accumulation you know anything with the dates that i took them and my screenshots as i went through the trades so this is one of the things that's helped me a lot um there are a lot of trades in there you know distribution the same thing every pair that i've traded you know uh the dates that i've traded them um oh that one's ugly hold on you know and uh and just that's that's that's one of the things that uh you know that i did which time frame is best to back test on so you know like i i can't tell you that because i don't know the real answer um i can tell you that what i did was um i would go back and find a particular you know entry like right here like you could possibly come in here and then go to a one minute time frame and i guarantee you there's some some accumulation that occurred oh man i don't even know what i did in there look at that um there's some accumula oh i can't go that far you know obviously when you get to the smaller time frames the data feed is really limited on some of the stuff you know um but yeah i i can i can tell you that um you know start on the higher time frame because it's easier to spot a higher time frame you know um schematic you usd swiss franc very easy like you can come back here and you can see the h4 accumulation that happened here right um you know you can go and you know you can see these accumulations and play them out on the h4 you know obviously the the stop losses that you would use are going to be higher but the schematic is still what you're looking at okay it's still what you're looking at so um but yeah like i said hopefully that answers some questions um you know i'll i'll try to do another one of these you know maybe like next week or the week after you know i'm i'm you know i'm kind of winding down my trading for the year so i'll have a little extra time um but yeah if there's no other questions you know i will uh you know reach out to me on the discord um you know if you're not in the discord you know definitely uh reach out to somebody on it and we'll throw you in it you know and like i said you can find me on instagram at fibs and profits um just message me i'll be happy to answer any questions um you know and that being said man i'll i will definitely see everybody later yeah i'll wait a couple minutes but yeah if there's no if there's no other questions um i will i will definitely be i'll be enjoying my saturday so awesome awesome right well like i said you guys have a very good day enjoy and uh you know hopefully this week brings out some awesome trades for everybody okay you