Elliot Wave Street Volume Profile Plus Elliot Wafer Blocks - Part One

[Music] thank you hello Traders welcome to this Elliot wave Street volume profile plus alien wafer Blocks part one as always is a pleasure to share with you these new knowledge that I have been working on and we are going to cover this topic today with a lot of examples and I'm sure you're gonna love it and this technique is gonna work for any market for any time frame if you are swing trading if you are scalping if you are day trading whatever is gonna work and on any Market so the the plan to tonight is working with volume profile at the beginning then we are going to combine the volume profile with alien wave and then I will present the alien wave blocks that is a technique based on the order blocks a technique so that's the plan uh tomorrow the the second class we are going to work with more examples and more ways of applying the technique and these are going to be the two free classes the two free sessions of course you are going to get a recording I'm gonna post this video in my in our YouTube channel as well so you are going to have it there these two classes and then we are gonna continue just for members on Elliot Wafer Street with additional lessons about this topic all right so let's start the plan tonight is explaining the volume profile in an easy way in a practical way so the the volume profile is coming from the Gauss Bell the gospel is a tool to organize data so you can think on any set of data that you need to organize so we're going to make some examples today with could be the housing market and and different type of examples but something easy right something easy is that this Bell is gonna show us where most of the data is at and that's the average so if I'm I am selling ice creams and I can tell that the strawberry flavor is the one that I'm selling more that's gonna be the average right um if I have a class of students and I have the grades of those 100 students in my class I can say if the grade is from let's say 1 to 10 that the average is seven and I also can tell that with one standard deviation that is the 68 of the data those grades are going to be between let's say a four uh and on the other side well maybe not forward let's go with six and on the other side with eight will be the standard deviation so that means that the average is 7 but 70 percent roughly of the students have grades between six and eight and two standard deviations will be this area right here and don't worry we're gonna make some other examples but two standard deviations of the data is the 95 of the data and we can see that those student students the grades from 95 of the students is going to be between five and nine right so that's it it's just to organize a set of data with the average with the 68 of the data and that's it that's the only thing we need to understand here but let's make another example um let's suppose that I want to buy a new home a new house so I want to buy this new house and I'm going to start checking prices of other houses and some historical prices on the neighborhood and after collecting the data of let's say 10 years or the last five years I came with all this data and I can tell that my the the the price of the of the of the houses of any of a housing in this neighborhood the average is 350k let's say so that's the average and I come here to the to the house that I want to buy in that neighborhood and I check the price of that house and I see that two years ago that price was at 250. and let's say this was two years ago okay so I said wow that was cheap because it was cheaper than the fair price than the average price of the neighborhood so two years ago that house that I wanna that I want to buy today was cheaper I asked the price today and the price is 500K so clearly is expensive related to what to the fair price so the fair price here is the reference point of price for my new home it's the reference point so 350k if I buy my house above these 350k I'm buying expensive if I'm buying below I'm buying cheap and let's say that I'm saying no I'm gonna wait and two months later I ask the price again and he said 800k and I say what but two months before was it 500k and the average price of the area is at 350k yeah spec is because the demand is increasing whatever right so of course if I wanted for because I really want it I can buy it but of course he's not a good business it's not a good deal let's say that I wait one year and one and one year I ask again and they say oh the the the the housing market collapse and now the price of that house is at 150k I say what really but you were asking a year ago 800. now it's at 150 and the average of the areas at 350k wow that's fantastic I want to buy it actually I'm gonna buy a couple of more more of of houses here on the area because seems that they are cheap so traders in terms of Market valuation the fair price the fair value if we want to buy anything we want to buy the Apple stock if we want to buy the Euro the s p anything we need to buy somewhere here in this area and if the if we are at a really good discount we have a better chance of making money if we buy when it's expensive so remember on the right side buying is expensive is unfair for buyers at this area on the right of the average price so if I buy here is going to be hard because the average price was here if I buy below the average price on the left I have better chances of making a profit now what if we start talking about the stock or any Market the SMP the oil whatever let's say the s p if the SMP is at 350 and tomorrow is at 2 50 is a discount because this is the average price so I can I can buy if I have a signal let's say but if the s p is at 800 and I know that the average price is at 350 I can't buy I should be trying to sell so as Traders we need to buy cheap that means on the left of the fair price and we need to sell at expensive levels at the right of the of the fair price you can see how important is to find the fair price and that's what we are going to work today I'm going to teach you how to find the fair price of the market that fair price in the volume profile we are gonna call it point of control point of control the 70 percent of the one standard deviation of the data we are going to call it the value area wait the one standard deviation that is 70 percent is 68 but we can work with 70 most charting platforms are going to uh by default show you the 70 percent in that volume profile tool so we know that if we want to short any Market we need to short as far as possible from the fair price or the point of control if we want to go long we we need to buy as far as possible from the fair price right because we are Traders we buy cheap and we sell expensive so the point of control is something absolutely important to think about and to learn in the technical analysis so babe the thing here is that when we are working with Elliot wave we have a lot of subjectivity right Elliott wave is subjective alien wave a can have different outputs and of course it can be frustrating for some Traders but look when we add tools to Elite wave we can start moving a theory that is extremely subjective to something more objective and that's the plan so how we can incorporate the volume profile technique the the gospel into a chart like this one that is the complete alien wave Market cycle so look if I if I bring the chart it's going to look like that so this will be the average price this will be my point of control this will be the 70 percent of the data and if this is let me change color here for the point of control so we can see it better make it a little bit bigger here uh there we go so if we want to go long let's say we need to to try to find the trade far from the point of control so if we already have the point of control we need to buy here we need to buy here we need to buy here as far as we can from the point of control once the price moves back to the point of control we have to be careful because it's too late for buying and it's too early for selling so when the price moves far from the point of control is good for sellers so we can short or we can book profits from something that that we triggered before so remember the point of control is where we have the most data in any any series of data the the average and is a fair price and we call it point of control in the volume profile when we want to go long we need to buy below the point of control when we want to go short when we want to sell we need to do it above the point of control that's it never the other way because that's something basic when we are trading when we are trading we have to buy cheap and we have to sell expensive that's it so let's have a look how how the the the volume profile looks in a real chart and and we can apply volume profile on any Market on any time frame it's a actually a pretty pretty easy to to apply it and in this class you are going to learn how to apply it also in them inside the members Academy in a little Wafer Street in the education area I have a complete course of on volume profile if you want to learn a little bit more about this technique but um we are starting here with this chart and look the 70 percent the one standard deviation on this profile is going to be this area that's the 70 of the entire entire data um the point of control will be this red line that you have that that I have here on this chart but let's be more specific what it actually makes the the volume profile a point of control and why it acts like that because there is something key to to highlight for example in the Forex Market in the crypto Market we don't have volume we don't have access to volume it's only in the in the uh exchanges the CME for example from the CME we can get volume but even from that type of source probably is not the real volume there are dark pools the institutions they do a lot of things that don't go through the The Exchange and yes we can have volume on on the Futures Market but we have to be careful maybe it's not going to be that precise so the volume profile is a good solution because the volume profile is not being made by the volume of the market is not by the number of shares or the number of contracts is just by the time that the price is spent in a level for example in this chart you can see that right here from here from this low to this high that I'm doing the study from from that cycle you can see that the price traded the most time in this area so the logic behind the volume profile is that actually measures the the point of control actually will be the level where the price is spent more time in the cycle so we are saying here that from here to here we have the price trading most of the time at this area and that's why and that's how the volume profile shows that the market has the strongest volume let's call it like that because it was taking more time there the price to develop or whatever so it's where the data was more time that's the point of control and that's the fair price and make sense because we have a balanced Market so that's the strongest volume accordingly to the volume profile of course when you add volume to a chart that again in the Forex Market is impossible of course if you add the indicator is going to show you some bars here of volume right but it's going to be just the broker volume and that's it or the tick volume that of course is completely different to the real volume and you're going to have some bars here on a below each candle right and that type of volume is not related with volume profile volume profile just shows how much time the price was at an area that's it so of course is extremely extreme extremely useful because we can use it on any Market we don't care the the volume coming from the exchange or from the broker or whatever because it's not using that type of volume is just showing where the price was trading at the most in terms of time so of course that is extremely extremely extremely important all right so now let's have a look at the important parts of the volume profile first of all the value area that is the 70 is one standard deviation most trading platforms are going to calculate this this area for you if not in the settings you can select colors you can customize it a I'm using here trading view it's important that the platform that you are using for this tool comes with tick data so you can use it on ninjatrader on trading view on Trader station and think or Swim um motive wave but I believe mt5 but mt4 for mt4 is not going to work right for mt4 isn't going to work so you have to be careful and that's the 70 again the point of control is the level where the price spent more time and the whole area that we're studying of course is the from where from where where we started like a Fibonacci tool we'll start the the the tool from here to here so of course I'm going to show you how to pick those levels so what is volume profile so boiling profile displays the volume of Trades at specific Levels by measuring the amount of time that price trades in the area we can identify areas of high liquidity of course that's when the when the volume is stronger um and and also is going to help us to find key support and resistance levels so the value value Area High the value area low of the 70 are important levels and of course the point of control it helps to understand the market behavior and sentiment by analyzing the distribution of the volume and shows where most of the trading activity takes place and this is extremely important to understand from volume profile indicating the value area or price range where the market spends most of its time can be used in conjunction with other technical analysis tools like moving average trendlines whatever you like Elliot wave whatever but it's also important to understand what is what is not volume profile volume profile is not a tool for predicting or forecasting the future price movements or having trades and you are going to see why but it's extremely useful to find them at the end with other tools it does not display the total volume of the trades that is not the right tool if you want to check the real volume this is not a tool to use of course it does not provide buy or sell signals on its own but we are going to create here a trading system where we can use it to to trade with this technique and of course it's not a measure of the market depth or the number of pending buy and sell orders at different price levels like the book is not related with the book at all and it does not directly measure the strength or or weakness of a trend or momentum right for that we can use other tools so it's important to understand that so let's start working with a case this is the s p uh blank chart so what I'm going to do here I'm going to add a volume profile tool starting from here to here right so I'm going to to add this study to the whole link down on the s p to the whole link down without adding the tool I want I want to show you something interesting we can start a guessing where the point of control is going to be remember the point of control is the place where most price was traded in terms of time so for example this area is important right this is a key area a lot of price was trading there um this area here seems to be extremely important look all the price that we have on this area we have a lot of price on this area so so the point of control is likely to be somewhere here before we add the tool to understand how the tool works I'm probably here as well right so let's have a look where is the point of control okay so of course with the tool we can know precisely where the price was most traded was most traded in terms of time that's the point of control so in general terms of course we are going to check this on Lower time frames we're going to make exercises on a one minute chart so don't worry it's just a a an educational example so this is a daily chart and we know that buying below the point of control is a good idea and selling above the point of control is a good idea not the other way right so if the price is already above the point of control I'm not going to buy if the price is already below the point of control and far from the point of control like here I'm not going to sell right so this is extremely important because this is basic Market valuation look this is this the 70 percent of of the profile so this is a discount because the price is far from the point of control of course we can start working with price action entries this rejection for example that we work with that type of narrative on the on the on the membership uh this rejection here these rejection right so of course we need to combine the b b area with another tool to trigger the trade but we know that it's a good idea to trade far from the point of control I'm not going to short here at the worst price possible the same with the home example I'm not going to buy my home at the most expensive price from years I'm gonna wait for a discount I know the average price I know the fair price that is this one here this is a fair price so if I'm a good Trader I'm going to buy far from the good price from far from the fair price to the downside right so that's important but also Traders this is a big cycle but I also can start um analyzing leg by leg so for example I can measure this leg I can measure this leg I can measure this leg I can measure this leg individually I can make the study of each leg so let's do it look so now be on the previous chart we have the we were doing the study from the high to the load the entire cycle now I'm doing individually each of the swings to the downside each of the swings to the downside each of the swings right so look we can do a lot of things with with this information here is the value area let's start with this first one here is the point of control if I want to go long I'm going to wait for the price to move far from the point of control and when I have rejection or they have rejection or I have rejection I can buy because the point of control is a fair price and is going to act like a magnet when the prices starts moving far away from the point of control again now I'm gonna try to sell right now let's draw the next one will be this this leg down right here is the fair price so if I'm going to short I have to do it above that area and if I'm going to buy I have to do it below with a good signal so right here is the 70 percent and I know that this area the price is going to have something soon it's gonna have a retrace or it's gonna have a change of trend of course Elite wave is going to help us with that we are going to get here in a second to the live market and look here we have another one the point of control is right here the fair price so you can start seeing the different cases look at this one this one is a special right the fair price is here and let's say that we are here we can see a huge distance between the price and the fair price so we know that the that the market is extremely cheap and we need to focus on finding a signal to go long that said we can't sell let's say that we are trading on the daily chart we can't sell if we are here because we are far from the point of control the point of control is up here so we need to to start looking for for a Buy trade we can go to lower time frames we can find the Divergence we can look for a rejection here we can look for a wave one and two and and start trying to go long whatever back to the point of control the point of control is going to act as a magnet for the price because it's the fair price let's have a look at this next profile so I'm taking the profile from here to here here is the point of control the price comes down here and rejects let's extend here the point of control to the right rejects moves back to the point of control and looks looks here look here we have price sideways playing around with the point of control so when we are trading we need to find setups far from the point of control if we want to go long we have to buy far from the point of control if we want to sell we want to sell far from the point of control right so let's now make let's make the the profiles now for the corrective legs and and that's how we can get to the to the real-time market look so now with the corrective waves so I'm taking the tool from this low to this high of course a we can we can measure cycle by cycle is actually simple right and here is the point of control of that cycle so when I'm live right there and I'm above the 70 from here I'm above the 70 percent I know that all I can think is ways of trying to sell this thing because he's far from the point of control so I wait for a good rejection I can add distribution areas I can add other tools to my narrative but I can't go long because I know that sooner than later the price is moving back to the point of control so this is a selling area the price moves back to the point of control drops here creates another corrective lag here is the point of control price moves far from the point of control of control and returns look at this one here the point of control on this one is higher than the others so here the discount is not that good let's say right this one is a little bit more difficult to trade let's have a look at the actual one so the actual I'm taking this low and I'm including the actual price because I just take this chart before the class so it's fresh so we can see that this is the the value area on the daily chart on the s p and when the price tries to get far from the point of control is getting rejected right this is getting rejected and moves back to the point of control as we are seeing in this example so if I'm trading on the daily chart the only thing I can do here is selling right I can't buy according to the to the auction process to the volume profile tool logic I can't go long at that area so that's where I can start using Elliot wave so I can say okay this is one this is two this is three the this seems to be for active I'm looking for five under the rejection I know that I can sell and I know that we are likely to go back to the point of control from there the price can move a little bit lower or sideways whatever reject them probably then we can have a wave three let's say right or the price can move lower whatever but at this extreme the only thing I can I can think about is selling if I'm trading on the daily chart but let's move to a lower time frame because this is just an example of course we're not going to trigger trades on the daily chart when I move to lower time frames and let's say that I'm in front of this pattern this is like a a p shape right the letter p as a Peter right so if you're in front of this scenario where the fair price is where the market is actually Trading you know that if you want to Short you have to wait for the price to extend a little bit for far far from from the point of control you are not going to sell here right so the the next chart look the price moves far from the point of control moves above the the 70 percent the the value Area High and from there we have a rejection so we know with a high probability that the market is gonna move back to its point of control at this area and on the next slide right here we have the price moving to the point of control right and this is just the the live market today so we have the price coming down here today in my daily analysis I was expecting that the price was going to build another high here to complete the pattern and then they move down to the point of control right like uh to complete a a an alien wave that we were talking in the membership I was I was looking for a heart high and from there the the bigger the the bigger leg down well sometimes it kind of start the process before right that's happened today so it comes back to the to the fair price so let's now a check here the the elite wave cycle and look we can add the tool for wave 1. so wave 1 is going to have a profile Wave 2 can have its profile as well so remember if you have wave one and you want to sell you need to sell above point of control if you want to buy you buy below point of control if you if you are in the Wave 2 so you are gonna buy below point of control and you're gonna sell above point of control of course if you believe is a second wave you are going to buy at the rejection whatever and the same is true for all the waves so we can individually add the tool for each leg for one for two for three four four five for the corrective wave as well look that the B wave is going to be where the area where the the the value area is gonna is gonna develop right and and the Sea Lake if this is a this is B and this is C the C is going to be far away from the point of control and that's where we are gonna buy always thinking in this auction process we buy cheap we sell expensive we buy cheap we sell expensive always at the same time the entire Market cycle is going to have a volume profile itself so we can have either or both if we like to make the study like that the whole volume profile for for the complete cycle or individually for each cycle so here is the actual SMP a plan a lead wave plan so as you can see the price today did a big sell-off as I mentioned before this morning I was looking for at least one more one more like app before the the corrective the bigger corrective so sometimes that happen but look we have this love and without adding the tool without adding the tool just with the class that we are having today without the tool now you can know where is the is the fair price if we are checking this area think about where is the fair price remember the third price is where the price has been spending more time so from this area clearly is this area when the market is sideways of course when you have several candles moving overlapping moving sideways that's going to be your point of control so even without adding the tool just having by having this training you know that that's the point of control and we are going to add the tool in a second of course so you know that this area that the price here is building point of control let's suppose that you are bearish let's suppose that you are bearish and you believe that the s p is gonna crash right right like in social media and some reports some some analysts are saying the SMP is gonna crash we are going to the 3000 area right let's say that you are thinking on that a type of SNR you now with the auction process that we have in the chart how you will trade it well you will need to have the price moving apart from the point of control and you are you're going to find a sell trade right here probably at this rejection where the B finish by after the ABC six again the candle close we have a candle close below a let's say a rejection here it's going to be your sell trade because you are above the point of control and again I'm going to add the tool in a second but we know that that's the point of control of course because it's where the price is spending more time and if you if you have the bias that the s p is going to move down and do you believe that that's the SNR you know because you are having that wave counter because you like to use a technical analysis tool that is telling that or because you like fundamentals whatever reason but your entry for a short will be there using this technique right let's suppose that you are that you are bullish I'm bullish let's suppose that you are bullish so of course you are not going to sell here unless you are a scalping or day trading of course if if you are you want just a short-term trade you can sell it there and book profits here but the Buy trade if this is the point of control again this area here let me change the color so we can be on the same page that's the point of control and the price travels far now below the point of control we can wait for the price to reject this area below the point of control and we can go long right there because we buy below the point of control so the seller the trader that believes that the s p is going to move lower whatever will be finding the sell trade here and the buyer will be finding this the Buy trade here if each Trader waits for the signal and manages and is managing the properly the risk the one that is wrong he's not going to lose money right or if he loses money it's going to be a small small loss and that's trading right but look how important is to understand the market valuation now let's bring the the tool and here we have the wave count and here we have the the the the profile right so you can see that as we were mentioning that area right here is where we have the point of control easy because the price is sideways right so you can do that exercise on your chart look here you have a a value area because the price was sideways uh here you have a value area right without using even the tool now you understand that here you have a value area as well when the price is overlapping when the price is choppy when the price is sideways whatever name you want to call them is a value area when you have candles just moving directionally the market is in an imbalance which means that there is no value that there is no a volume that there is no fair price but when the price transitions from trading for from trending to sideways is when the point of control is going to start building up so that's simple right that simple just to keep it simple so so you can see that of course at the beginning you need to use that type of tool to understand the technique to play around with the tool but once you understand how it works then you don't need to use it you know it's like a reading price momentum you you can use a macd you can use an osmosis later on RSI a stochastic when you are learning but once you master the technique just with price action you can see when the price is losing momentum right so that type of thing is is my point that of course is extremely extremely important to understand right so so you can see that that's the area so we will need to have the price getting apart from that area and then when it rejects below the point of control we can buy it or if we are looking for a sell trade because we believe and could be right why not this is a wave one and this is a wave two and here comes a huge wave three right can happen of course remember that anything can happen in these markets but if that's our bias the the way to apply this tool will be by looking for the rejection right here as far as possible from the point of control because that's the fair price if you didn't sell above the point of control and let's say that tomorrow the price is here and you say oh I don't want to miss the trade I'm gonna sell here you are too late you're too late you have to sell somewhere above the point of control because if you sell here it's an area where buyers is fair for buyers and they are going to try to do something clearly right so it doesn't have any sense to try to do something there if if it's too late right okay so in trading view you can pick the tool so manually you pick from where to where so you can you can select the cycle that you want to measure right so that's the the trading view tool now Traders uh and again we we have inside the Elliot Wafer Street members Academy a complete a volume volume profile course this is the way to apply it but in case that you want to learn a little bit more inside the Adobe Street membership you you are going to get more details about the volume profile now let's talk about the order blocks so an ordered block Traders is an area is is the is the value area is the is the point of control most of the times because the institutional Traders they don't trade as we trade they don't trade with a small orders you know we trade let's say we are trading Futures we can trade with a 5 10 mini e e mini contracts a 30 40 micro contracts right with this with a relatively small account and the big guy the institution they trade with huge orders and it's not something new right of course from the beginning the institutions from the 1800s 1900s they were trading huge so the the problem with the problem that they face is that let's say that they want to short or they want to go long let's say they want to buy Apple stock or the SMP or the Euro or the Bitcoin or anything any any instrument for all the instruments it works the same and let's uh say something crazy they need to place 100 k e-mini contracts today during the New York session imagine if that institutional Trader that needs to place that order makes one click and fills the order the whole order in in one in one uh position well if the SMP price is here is gonna jump a lot of points and it's going to create a gap and the execution of this order is going to be terrible for the institution right so of course they can't place the whole order at once so they need to create order blocks and that's a splitting what they want to go long short whatever in a smaller size orders during the session so let's say that the price is moving down and they just are buying so there's a bind when the price continues lower they buy a little bit more when the price continues moving lower they buy more when the price continues lower they buy more right so they are doing accumulation and they are slowly adding um their position to the market because they don't want to create a crash or or or or a huge gap to the upside to the downside whatever so they have to do it as a lowly is lowly so they create orders of course at the lows right so they say I'm gonna buy Here a thousand I I'm gonna hear I'm gonna buy here another thousand I'm gonna here by another thousand those areas are also creating liquidity because there some Traders are going long and are leaving their stops under the low right so of course if the price moves under the load they are going to take them out so more money for the big guy so it's fantastic for them and there are different theories about why they need to go back to those order blocks so there are some theories that they need to con they like to push the price back to the order block because they can continue filling their order at that price so they have their algorithms have a to continue buying at that area um could be because they were trying to manipulate the market and you can imagine all the theories that are around these order blocks so look when we have the the price let's say that the price was moving down and eventually turns up right here and I'm going to show you in a second how to draw the order block right here was the order block just at the end of the cycle of course you're gonna draw the the order block after the fact so when you have your order block the next step in the process is that you wait for the price to move back to that area if gets rejected could be on the five minute chart or the hourly chart when the price hits the area and moves back above the the order block so moving below moving and moving at the other side don't worry we're going to see examples today that's your entry point that's your entry and your stop is going to be below the order block sometimes as in this example price can cross the order block to take out liquidity and reject the entry is going to be the same is not going to to change anything if the price moves under the low and the only only thing that could damage the the order block is if the price breaks the order block and doesn't reject right that's another scenario so the price breaks down and continues so we are going to see examples don't worry about it and here is the definition if you already read it if not then you can watch the recording and read the definition but it's what I just explained so how we can incorporate that theory into the early wave cycle because the elite wave cycle is fantastic you know the elbow theory is something that I believe every Trader should at least learn the basics but it's extremely subjective imagine this a scenario we have a new student and we are going to ask the student to read the Proctor Elliot Wave book and we are going to give that new student a month to read the book and then one month later that student let's say that was reading the book several times 10 times and he is an expert in the yellow Theory because he knows all the guidelines and rules maybe he doesn't have experience but he knows all the rules and guidelines of the alleyway Theory and we are in a nice place in Manhattan in in New York City in near the near Wall Street in a nice conference room and we are all together and we ask the new student to come into the room and we say okay new student make your magic okay so what I learned is that when you have a wave one after the wave one is coming the wave two so you are going to buy and the invalidation for the Wave 2 is the previous low so you are gonna buy because is the second wave so you have wave one and you have wave two and you're gonna buy because you have a wave 2. and you are going to capture the Wave 3 right here is going to explain the theory from the book and we say okay that's interesting makes sense okay so how you can tell that this is a wave 2 oh that's easy because on the left you are going to have a five wave sequence for wave one and then you are going to have a retrace that actually at the end it doesn't matter how much it retrace because you have the five and you can go long anywhere oh okay really and why are you saying that because the alleyway Theory says that the second wave can retrace from one percent to 99 oh yes you can use some Fibonacci levels you can use some Fibonacci levels here to to as a reference to find the word the second the wave is going to finish but the book says that it can finish on any of these levels okay so you are saying that you are buying because it's the Wave 2 because you have a five wave sequence on the left yes that's right and the and the and in the in the real life Traders when when that happens when the trader goes to the real life and starts trading like that it's gonna lose their is going to lose the the entire account right he's going to lose his entire account because actually that's not the proper way to use the alleyway Theory and I understand that any person in this world that reads the book or learns the aliway theory is gonna think like that and that's completely wrong right so first of all Traders I believe then that that a key thing to understand in technical analysis is that technical analysis is not a crystal ball you know technical analysis is not something to read the future I believe that that doesn't exist you know so some people think that is studying technical analysis is having like a time travel machine that they can go to the Future and see what's happening in the future and come back and make money and that's completely wrong that's completely wrong Traders technical analysis is not going to work in that way of thinking it's crazy right is is crazy so so it's if we think like that if we think that technical analysis is a forecasting tool alien wave a movie now brush system a Candlestick patterns whatever it's it's their job is to read the future that's crazy because there is no way of reading the future we don't know what is going to happen tomorrow in our lives good things bad things whatever it's impossible Nobody Knows the future so why Fibonacci tools or alien way Theory or whatever are going to to to read the future for us so technical analysis doesn't work yes it works but not for for reading the future or for forecasting the future that's a huge mistake and it doesn't have any sense Traders you know so using technical I can tell them 99 of of Traders are using technical analysis like that to forecast the future and that's a huge huge mistake is the same as going to to I don't know someone to read our hand or to read the cards or the crystal ball is exactly the same it's crazy right it's crazy of course if I hire someone to read my hand that that person maybe could say things that at the end happen because he he was lucky that's it right so we have to to be careful with that so technical analysis Traders measures or give us the tools to understand what is happening right now what is happening today that's it and of course we can check what happened before that's it and by knowing what is happening today for example with the profile exercises that we were doing we have an edge because we can know if the price is cheap or expensive we can see what the big guy is trying to do we can see what they are trying to develop so let's let's go back here to this example if we are here at the wave 1 and we look for a corrective wave a second wave the thing is that if the price is moving down slowly is because someone is buying and that someone is the big guy so while the price is moving down he's using order blocks to go long and pushes the price higher right and the price moves down is lower Lee as lowly and the price rejects so when we read the present that's when what we can see that is happening and we are not forecasting the future we are trading the present we are reading supply and demand so that's why I believe there is something crazy to use Fibonacci levels that's absolutely crazy doesn't have any sense to use Fibonacci levels the 38 2 percent the 50 percent the sixty one eight percent the 786 the crazy Traders that's a distraction but something that is real is that it will look to the left in each turning point we are going to have order blocks from the big guy so that's where the price is gonna re react and that's fantastic when we combine it with the profile and with Elliot wave because now we can have an objective approach to know where the price can turn without using a crystal ball or crazy Fibonacci levels that clearly don't work so that's why Traders I call this technique the Elliot wave blocks because I'm using the order blocks with Elliot wave so let's make examples this is a bar chart a for this part of the training I'm using a bar chart because I want to explain how to draw the order block and it's extremely easy first step find a turning point so this is a turning point you can find a turning point when when already happened when you are here when you are here when you are here when you are here right so it's not something that you are going to find in real time because you don't know that that's a turning point you see there is a turning point after right the same here once you see that that you have a a turning point a low whatever you are going to find the last candle that was making a low on the trend so you have low low low find the last one find the candle that did the lower low from that sequence okay so clearly is this candle okay so we have our first part of the order block second part look for the second candle after that candle okay will be this one great find the low this one here find the high of the two candles okay this will be the same candle because the other is an inside candle project that box to the left that's an order block huh we found that the big guy was doing something there that's the big guy order block how to use it each time that the price comes inside or hits or would Rejects we go long for example first one will be this one here the price moves inside the Elliot wave block let's say that this is our wave one and the wave two the price moves inside Rejects great here we have another rejection then we wait and here we have another rejection so those are entries bullish entries now let's draw the earlier the wave blocks from the other side from here you can draw all the ones that you like so last candle that was able to make a high this one and the next candle draw a box of the range of the whole range from high to low of those two candles if the second candle is lower draw a lot lower if it's inside well you have to use the first candle great so look the price tries to break the order block the alien wave block it was successful nope it rejected in this case the end the short entry was here that is too far of course but that's a signal probably if you were long from here you can book profits and you say okay this is my wave one let's say or my wave a or any wave that you're looking and this is my second wave now you have an objective area where you are looking where you are waiting your second wave to have the price come in there if the price doesn't come there you don't trade but you are not adding crazy Fibonacci levels you can add a profile you will say okay look here is where the market was sideways in this area so that's my fair value right here is my fair value I'm below value I can go long at the rejection right so that's the entry point that's it right let's have other example this is a one minute chart of course you can do do it on the daily chart and of course you are going to have a lot of fun and finding these these these levels oops this is a four hour chart and again it could be the s p it could be the Bitcoin it could be a Apple stock it could be anything any time frame and you are going to see that from now on this is so simple and from now on you are going to you are always going to understand why the market reacted at that level look at this one this is an interesting example the last candle let's let's find the swing the last candle High the last candle High well this red one here and and the next candle look at the next candle so when you have a huge candle as the second candle only use the first one because if you use the both candles as the order block is going to be a huge area right later on on another session we are going to talk about the multiple a a order block or LDL wave block analysis so in this particular case when you have that the second candle the second bar is huge just use the first one right that's it because you know that the the beaker is not selling here of course right so so those are little little tricks look the price comes here rejects this candle is going to be your entry this stop could be either at the high of that candle or the high of the of the order block area in this case is a four hour chart we need to use just the high of the candle if we take us out we have to trigger again right on the next one the plan is to find the rejection booking profits taking profits so we look at the next alien wave block that will be here and right there we can book profits from the sell trade if our bias is to the upside for some reason we can buy here or we can buy here right of course if we start using the profile those are not going to be good buy trades but anyway could be right we can think okay those are by traits yes of course right the price in this particular case comes under the a load by block but then Rejects let's have a look at another example the s p you are going to start seeing all these Elite wave blocks everywhere so look at this example here we have these as our alien wave block price moves far returns rejects moves far returns Rejects that CC right it's extremely easy it's extremely objective of course then we can add a wave count and we can add the bias look at this example now linking together putting together the volume profile and the a block so this is a profile there is the point of control let's let's add the the price okay good and we know that the point of control of our previous cycle is going to be important for the next cycle okay now let's draw the alien wave block of this area here that's the in the next slide so I'm drawing this one by taking the last candle high with the next candle low if we believe that this one is too big the next candle right that's of course you are going to start picking your favorites and let's say that you draw it here well in that in that case you didn't execute your trade it's a one minute chart it's a scalp so you if you were waiting for for something to reject there you will miss this one if you're using this case two candles I don't think that these are huge huge distance in this case right look beautiful the price comes there and rejects if we were looking for the straight so we look to the left let's draw the elude wave block on the left so the high candle the the high candle of the previous cycle high with the low of the second candle oops let's let me try to draw it more precisely there there we go all rejection so that's a signal as well right oh no my my bias was bullish okay so you draw it here on the previous low candle and here will be your Buy trade probably you get enough to have a uh a one to one or a safe trade with this distance if not you you have a loss in that particular case right okay let's draw the next one let's let's have let's have a look at this area as well right so of course you have to be careful drawing and we're going to check that in the in the other in the other lessons because sometimes when we start doing with this technique we start drawing tiny tiny tiny blocks right and it's important to keep it like bigger especially on these lower time frames right but you can start drawing all of them look at this example here one minute chart SMP so yeah and this technique is fantastic for scalping so you draw your let's say that you're starting your trading session whatever and you do you have time to draw the elude wave block when the price comes to the area and rejects it's a buy trade and I'm going to add the profile in a second that area that turning point is going to be a new Elite wave block then the next trade when the price and if the price returns to the area could be here that didn't work and if we have a tiny stop if we have a bigger stop on there under the alien wave block that first trade will be active then was another entry that actually was better look the price moves inside the alien wave block and then we have the candle closing at the other side fantastic right and from there the price moves up of course there are going to be home runs of course there are going to be trades that don't work right of course now let's add the profile into the narrative so for the first trade the the one here we are far from the fair price from the point of control and we are on a one minute chart so I'm measuring the profile from the high to the low and this is the and this is the this is the fair price I'm buying below the fair price second example the fair prices is is closer to the price uh not as good as the first one but we are buying below the fair price still a good deal that's it that's it right if you have these valued wave block here and the price crosses the elite wave block and doesn't reject you are not going to sell it that means that they were not in a bearish narrative when the price just crosses up the area if you are long from before you are not doing anything you are not going to book profits you are going to wait if you are looking for a short let's say that you start your session and you're saying oh this is my wave one I'm looking for a second wave and I'm going to capture a Wave 3 down let's say that that's your bias because some tax is going to happen like that but the price comes to the Elliot wave block where you are looking for a sell trade you are not going to act right let's see an example that you will be acting if you were looking for the sell trade so right here is the Elliot wave block so let's suppose that you have here the wave one and you think that this is the wave two of course you are not going to sell this one because look at the slope of that price you don't have any Divergence you don't have anything of course but let's suppose that you are just using the technique as a robot so you sell here right of course we can start adding the process of the ABCs and all the things that we cover in the membership to filter out some trades this is too fast but anyway let's say we sell it there we leave a protective establish here or here where is scalping so those distances are tiny or two three points okay take us out huh okay I sell it again here at the next rejection and on this one I was able to have a good trade until it rejects here or here I have to be careful because in case that I was looking here for a wave tree should cross down easily and didn't cross down here so have a look at another example look at this one here in a video and again we can apply this technique on any Market on any time frame right of course this is just the first class from I think we we're going to have around six six sessions about this topic because there are some other details that are important as well this is just the introduction and but but everything is going to be related with with this technique right of course we're gonna start mixing this up with a little wave and of course in the membership we are going to continue doing exercises every day during the week in the in all the markets that we're covering the live markets right but anyway um look at this example so we have the cellular wave block right here so we can say that this one was the one this swing was the one that was building the Elliot wave block so this is entry entry number one right Works nicely if the stop is here this is a one minute chart it's a great technique for for scalping the price moves here to the other way block moves up so it's close in short maybe going long if that's the bias moves back to the elude wave block bounces so you know there is time to close any byte rate if you like the short you sell it moves on here Rejects moves up here Rejects this time doesn't move back to the to the Elevate block returns move moves back here and we have three rejections moves down nicely and has a signal here to close the trade or to go long if we go long this this is the first one that didn't work from the whole narrative the price breaks down the a little bit block never validates up again never closes above again continuous moves to this preview solid wave block crosses down and rejects and that's a life Market so it's bullish it's bullish okay so we we are now seeing things too little let's go back for a second let's understand the profile here without the tool where is the profile here what is the fair value here somewhere here in this area right if you were training here inside you will be selling above point of control this will be the point of control this black line right point of control so you will be selling above buy and Below right but here this one is fantastic because you are far from the point of control so and this is a live chart we will check later tomorrow whatever and what happened here because this was the the live Mark is the live market right so so so the the plan here is is going back to the point of control and there is a signal on the one minute chart right which other big level is important here of course this area so that say hi will be somewhere here right so the the first task you need to start doing and no matter the the instrument that you're doing this uh could be anything right is to draw the bracket the market is going to trade in that bracket if you are scalping you act here in the one minute chart 15 second chart 10 second chart whatever time frame that you'd like to scalp your day trading go to a five minute chart 15 minute chart if you are swing trading use the hourly the four hour chart and the daily chart maybe just for analysis because it's too big we are not trading on on those time frames just to understand what's going on right so we start understanding that when the price is overlapping is the fair value remember when the price is overlapping when you draw a line in a chart and you see that many candles are there touching the line hitting the line that's a fair value even if you don't have the tool oh I don't have a platform that comes with the tool it doesn't matter that's the fair value that's it right this is unfair unfair for who unfair for buyers fair for sellers is far from point of control right under the point of control is fair for buyers on fur for sellers same here so you are here are only thinking you're not going to sell here you are not going to sell below the point of control we're only going to buy that's it is the auction process using the profile tool or the profile understanding of the action process and the Elliot wave blocks that is a completely objective way of trading the markets not all the trades are going to work I have bad news for you this is not a 100 technique but it's a technique that you are buying at cheaper prices that you are having a small stop loss that you have potential for easily getting to the one-to-one risk reward ratio is not a forecasting tool is not telling if the price is going to move a 100 200 points to the upside it doesn't exist that type of tool to forecast the market right doesn't exist the day that someone finds out exactly what the market is always going to do next the day that someone finds the way to travel in time and travel to imagine that thing you know I will travel you know if I I have I I have the time machine that will be the first thing I will do you know I will travel to for two weeks from today and I will take pictures or whatever I can or notes whatever of the s p i will come back to to my present and I will sell my car my house everything and I will trade heavily during those two weeks and I will I will probably take out all the liquidity of the market and the FED in order to sustain the market will need to print money to give me the money because I will take all the money from the world in the financial markets so of course it doesn't exist remember Traders our job is not to forecast the future our job is to make money our job as Traders is to understand the present and when we understand the present we can make money that's it sometimes it's gonna work fantastic the trade and it's going to be a home run and we can do 10 of the account and sometimes we can just to barely have a break even that's it that's the reality of the market yeah or right Traders so that's it for today tomorrow we are going to continue with more examples if you have any questions you can contact me here I'm gonna publish the video in the YouTube channel so later tonight you're gonna see it there once it gets ready take some time processing also a we're going to send you an email with them with the link and if you are subscribed to the elude Wafer Street membership you are going to have this video in the members Academy the second video tomorrow that we have these two free classes this week and then you are going to have the whole course because we're going to continue meeting just for members after that so let me show you if you haven't activate your alien wave Street access yet you can visit us on elliottwave street.com then click on the membership and pick your plan that's it this week on The Daily market analysis videos we are going to cover a lot of Elliott wave blocks in the real markets so pick your plan start your trial and you will get immediate access to these lessons and also to the live market analysis with real time um analysis with education and a lot of fantastic things we have inside the alien Wafer Street membership so thank you very much for being here Traders please have a fantastic rest of your day or your night and I'll see you tomorrow take care bye bye

[Music] thank you hello Traders welcome to this Elliot wave Street volume profile plus alien wafer Blocks part one as always is a pleasure to share with you these new knowledge that I have been working on and we are going to cover this topic today with a lot of examples and I&#39;m sure you&#39;re gonna love it and this technique is gonna work for any market for any time frame if you are swing trading if you are scalping if you are day trading whatever is gonna work and on any Market so the the plan to tonight is working with volume profile at the beginning then we are going to combine the volume profile with alien wave and then I will present the alien wave blocks that is a technique based on the order blocks a technique so that&#39;s the plan uh tomorrow the the second class we are going to work with more examples and more ways of applying the technique and these are going to be the two free classes the two free sessions of course you are going to get a recording I&#39;m gonna post this video in my in our YouTube channel as well so you are going to have it there these two classes and then we are gonna continue just for members on Elliot Wafer Street with additional lessons about this topic all right so let&#39;s start the plan tonight is explaining the volume profile in an easy way in a practical way so the the volume profile is coming from the Gauss Bell the gospel is a tool to organize data so you can think on any set of data that you need to organize so we&#39;re going to make some examples today with could be the housing market and and different type of examples but something easy right something easy is that this Bell is gonna show us where most of the data is at and that&#39;s the average so if I&#39;m I am selling ice creams and I can tell that the strawberry flavor is the one that I&#39;m selling more that&#39;s gonna be the average right um if I have a class of students and I have the grades of those 100 students in my class I can say if the grade is from let&#39;s say 1 to 10 that the average is seven and I also can tell that with one standard deviation that is the 68 of the data those grades are going to be between let&#39;s say a four uh and on the other side well maybe not forward let&#39;s go with six and on the other side with eight will be the standard deviation so that means that the average is 7 but 70 percent roughly of the students have grades between six and eight and two standard deviations will be this area right here and don&#39;t worry we&#39;re gonna make some other examples but two standard deviations of the data is the 95 of the data and we can see that those student students the grades from 95 of the students is going to be between five and nine right so that&#39;s it it&#39;s just to organize a set of data with the average with the 68 of the data and that&#39;s it that&#39;s the only thing we need to understand here but let&#39;s make another example um let&#39;s suppose that I want to buy a new home a new house so I want to buy this new house and I&#39;m going to start checking prices of other houses and some historical prices on the neighborhood and after collecting the data of let&#39;s say 10 years or the last five years I came with all this data and I can tell that my the the the price of the of the of the houses of any of a housing in this neighborhood the average is 350k let&#39;s say so that&#39;s the average and I come here to the to the house that I want to buy in that neighborhood and I check the price of that house and I see that two years ago that price was at 250. and let&#39;s say this was two years ago okay so I said wow that was cheap because it was cheaper than the fair price than the average price of the neighborhood so two years ago that house that I wanna that I want to buy today was cheaper I asked the price today and the price is 500K so clearly is expensive related to what to the fair price so the fair price here is the reference point of price for my new home it&#39;s the reference point so 350k if I buy my house above these 350k I&#39;m buying expensive if I&#39;m buying below I&#39;m buying cheap and let&#39;s say that I&#39;m saying no I&#39;m gonna wait and two months later I ask the price again and he said 800k and I say what but two months before was it 500k and the average price of the area is at 350k yeah spec is because the demand is increasing whatever right so of course if I wanted for because I really want it I can buy it but of course he&#39;s not a good business it&#39;s not a good deal let&#39;s say that I wait one year and one and one year I ask again and they say oh the the the the housing market collapse and now the price of that house is at 150k I say what really but you were asking a year ago 800. now it&#39;s at 150 and the average of the areas at 350k wow that&#39;s fantastic I want to buy it actually I&#39;m gonna buy a couple of more more of of houses here on the area because seems that they are cheap so traders in terms of Market valuation the fair price the fair value if we want to buy anything we want to buy the Apple stock if we want to buy the Euro the s p anything we need to buy somewhere here in this area and if the if we are at a really good discount we have a better chance of making money if we buy when it&#39;s expensive so remember on the right side buying is expensive is unfair for buyers at this area on the right of the average price so if I buy here is going to be hard because the average price was here if I buy below the average price on the left I have better chances of making a profit now what if we start talking about the stock or any Market the SMP the oil whatever let&#39;s say the s p if the SMP is at 350 and tomorrow is at 2 50 is a discount because this is the average price so I can I can buy if I have a signal let&#39;s say but if the s p is at 800 and I know that the average price is at 350 I can&#39;t buy I should be trying to sell so as Traders we need to buy cheap that means on the left of the fair price and we need to sell at expensive levels at the right of the of the fair price you can see how important is to find the fair price and that&#39;s what we are going to work today I&#39;m going to teach you how to find the fair price of the market that fair price in the volume profile we are gonna call it point of control point of control the 70 percent of the one standard deviation of the data we are going to call it the value area wait the one standard deviation that is 70 percent is 68 but we can work with 70 most charting platforms are going to uh by default show you the 70 percent in that volume profile tool so we know that if we want to short any Market we need to short as far as possible from the fair price or the point of control if we want to go long we we need to buy as far as possible from the fair price right because we are Traders we buy cheap and we sell expensive so the point of control is something absolutely important to think about and to learn in the technical analysis so babe the thing here is that when we are working with Elliot wave we have a lot of subjectivity right Elliott wave is subjective alien wave a can have different outputs and of course it can be frustrating for some Traders but look when we add tools to Elite wave we can start moving a theory that is extremely subjective to something more objective and that&#39;s the plan so how we can incorporate the volume profile technique the the gospel into a chart like this one that is the complete alien wave Market cycle so look if I if I bring the chart it&#39;s going to look like that so this will be the average price this will be my point of control this will be the 70 percent of the data and if this is let me change color here for the point of control so we can see it better make it a little bit bigger here uh there we go so if we want to go long let&#39;s say we need to to try to find the trade far from the point of control so if we already have the point of control we need to buy here we need to buy here we need to buy here as far as we can from the point of control once the price moves back to the point of control we have to be careful because it&#39;s too late for buying and it&#39;s too early for selling so when the price moves far from the point of control is good for sellers so we can short or we can book profits from something that that we triggered before so remember the point of control is where we have the most data in any any series of data the the average and is a fair price and we call it point of control in the volume profile when we want to go long we need to buy below the point of control when we want to go short when we want to sell we need to do it above the point of control that&#39;s it never the other way because that&#39;s something basic when we are trading when we are trading we have to buy cheap and we have to sell expensive that&#39;s it so let&#39;s have a look how how the the the volume profile looks in a real chart and and we can apply volume profile on any Market on any time frame it&#39;s a actually a pretty pretty easy to to apply it and in this class you are going to learn how to apply it also in them inside the members Academy in a little Wafer Street in the education area I have a complete course of on volume profile if you want to learn a little bit more about this technique but um we are starting here with this chart and look the 70 percent the one standard deviation on this profile is going to be this area that&#39;s the 70 of the entire entire data um the point of control will be this red line that you have that that I have here on this chart but let&#39;s be more specific what it actually makes the the volume profile a point of control and why it acts like that because there is something key to to highlight for example in the Forex Market in the crypto Market we don&#39;t have volume we don&#39;t have access to volume it&#39;s only in the in the uh exchanges the CME for example from the CME we can get volume but even from that type of source probably is not the real volume there are dark pools the institutions they do a lot of things that don&#39;t go through the The Exchange and yes we can have volume on on the Futures Market but we have to be careful maybe it&#39;s not going to be that precise so the volume profile is a good solution because the volume profile is not being made by the volume of the market is not by the number of shares or the number of contracts is just by the time that the price is spent in a level for example in this chart you can see that right here from here from this low to this high that I&#39;m doing the study from from that cycle you can see that the price traded the most time in this area so the logic behind the volume profile is that actually measures the the point of control actually will be the level where the price is spent more time in the cycle so we are saying here that from here to here we have the price trading most of the time at this area and that&#39;s why and that&#39;s how the volume profile shows that the market has the strongest volume let&#39;s call it like that because it was taking more time there the price to develop or whatever so it&#39;s where the data was more time that&#39;s the point of control and that&#39;s the fair price and make sense because we have a balanced Market so that&#39;s the strongest volume accordingly to the volume profile of course when you add volume to a chart that again in the Forex Market is impossible of course if you add the indicator is going to show you some bars here of volume right but it&#39;s going to be just the broker volume and that&#39;s it or the tick volume that of course is completely different to the real volume and you&#39;re going to have some bars here on a below each candle right and that type of volume is not related with volume profile volume profile just shows how much time the price was at an area that&#39;s it so of course is extremely extreme extremely useful because we can use it on any Market we don&#39;t care the the volume coming from the exchange or from the broker or whatever because it&#39;s not using that type of volume is just showing where the price was trading at the most in terms of time so of course that is extremely extremely extremely important all right so now let&#39;s have a look at the important parts of the volume profile first of all the value area that is the 70 is one standard deviation most trading platforms are going to calculate this this area for you if not in the settings you can select colors you can customize it a I&#39;m using here trading view it&#39;s important that the platform that you are using for this tool comes with tick data so you can use it on ninjatrader on trading view on Trader station and think or Swim um motive wave but I believe mt5 but mt4 for mt4 is not going to work right for mt4 isn&#39;t going to work so you have to be careful and that&#39;s the 70 again the point of control is the level where the price spent more time and the whole area that we&#39;re studying of course is the from where from where where we started like a Fibonacci tool we&#39;ll start the the the tool from here to here so of course I&#39;m going to show you how to pick those levels so what is volume profile so boiling profile displays the volume of Trades at specific Levels by measuring the amount of time that price trades in the area we can identify areas of high liquidity of course that&#39;s when the when the volume is stronger um and and also is going to help us to find key support and resistance levels so the value value Area High the value area low of the 70 are important levels and of course the point of control it helps to understand the market behavior and sentiment by analyzing the distribution of the volume and shows where most of the trading activity takes place and this is extremely important to understand from volume profile indicating the value area or price range where the market spends most of its time can be used in conjunction with other technical analysis tools like moving average trendlines whatever you like Elliot wave whatever but it&#39;s also important to understand what is what is not volume profile volume profile is not a tool for predicting or forecasting the future price movements or having trades and you are going to see why but it&#39;s extremely useful to find them at the end with other tools it does not display the total volume of the trades that is not the right tool if you want to check the real volume this is not a tool to use of course it does not provide buy or sell signals on its own but we are going to create here a trading system where we can use it to to trade with this technique and of course it&#39;s not a measure of the market depth or the number of pending buy and sell orders at different price levels like the book is not related with the book at all and it does not directly measure the strength or or weakness of a trend or momentum right for that we can use other tools so it&#39;s important to understand that so let&#39;s start working with a case this is the s p uh blank chart so what I&#39;m going to do here I&#39;m going to add a volume profile tool starting from here to here right so I&#39;m going to to add this study to the whole link down on the s p to the whole link down without adding the tool I want I want to show you something interesting we can start a guessing where the point of control is going to be remember the point of control is the place where most price was traded in terms of time so for example this area is important right this is a key area a lot of price was trading there um this area here seems to be extremely important look all the price that we have on this area we have a lot of price on this area so so the point of control is likely to be somewhere here before we add the tool to understand how the tool works I&#39;m probably here as well right so let&#39;s have a look where is the point of control okay so of course with the tool we can know precisely where the price was most traded was most traded in terms of time that&#39;s the point of control so in general terms of course we are going to check this on Lower time frames we&#39;re going to make exercises on a one minute chart so don&#39;t worry it&#39;s just a a an educational example so this is a daily chart and we know that buying below the point of control is a good idea and selling above the point of control is a good idea not the other way right so if the price is already above the point of control I&#39;m not going to buy if the price is already below the point of control and far from the point of control like here I&#39;m not going to sell right so this is extremely important because this is basic Market valuation look this is this the 70 percent of of the profile so this is a discount because the price is far from the point of control of course we can start working with price action entries this rejection for example that we work with that type of narrative on the on the on the membership uh this rejection here these rejection right so of course we need to combine the b b area with another tool to trigger the trade but we know that it&#39;s a good idea to trade far from the point of control I&#39;m not going to short here at the worst price possible the same with the home example I&#39;m not going to buy my home at the most expensive price from years I&#39;m gonna wait for a discount I know the average price I know the fair price that is this one here this is a fair price so if I&#39;m a good Trader I&#39;m going to buy far from the good price from far from the fair price to the downside right so that&#39;s important but also Traders this is a big cycle but I also can start um analyzing leg by leg so for example I can measure this leg I can measure this leg I can measure this leg I can measure this leg individually I can make the study of each leg so let&#39;s do it look so now be on the previous chart we have the we were doing the study from the high to the load the entire cycle now I&#39;m doing individually each of the swings to the downside each of the swings to the downside each of the swings right so look we can do a lot of things with with this information here is the value area let&#39;s start with this first one here is the point of control if I want to go long I&#39;m going to wait for the price to move far from the point of control and when I have rejection or they have rejection or I have rejection I can buy because the point of control is a fair price and is going to act like a magnet when the prices starts moving far away from the point of control again now I&#39;m gonna try to sell right now let&#39;s draw the next one will be this this leg down right here is the fair price so if I&#39;m going to short I have to do it above that area and if I&#39;m going to buy I have to do it below with a good signal so right here is the 70 percent and I know that this area the price is going to have something soon it&#39;s gonna have a retrace or it&#39;s gonna have a change of trend of course Elite wave is going to help us with that we are going to get here in a second to the live market and look here we have another one the point of control is right here the fair price so you can start seeing the different cases look at this one this one is a special right the fair price is here and let&#39;s say that we are here we can see a huge distance between the price and the fair price so we know that the that the market is extremely cheap and we need to focus on finding a signal to go long that said we can&#39;t sell let&#39;s say that we are trading on the daily chart we can&#39;t sell if we are here because we are far from the point of control the point of control is up here so we need to to start looking for for a Buy trade we can go to lower time frames we can find the Divergence we can look for a rejection here we can look for a wave one and two and and start trying to go long whatever back to the point of control the point of control is going to act as a magnet for the price because it&#39;s the fair price let&#39;s have a look at this next profile so I&#39;m taking the profile from here to here here is the point of control the price comes down here and rejects let&#39;s extend here the point of control to the right rejects moves back to the point of control and looks looks here look here we have price sideways playing around with the point of control so when we are trading we need to find setups far from the point of control if we want to go long we have to buy far from the point of control if we want to sell we want to sell far from the point of control right so let&#39;s now make let&#39;s make the the profiles now for the corrective legs and and that&#39;s how we can get to the to the real-time market look so now with the corrective waves so I&#39;m taking the tool from this low to this high of course a we can we can measure cycle by cycle is actually simple right and here is the point of control of that cycle so when I&#39;m live right there and I&#39;m above the 70 from here I&#39;m above the 70 percent I know that all I can think is ways of trying to sell this thing because he&#39;s far from the point of control so I wait for a good rejection I can add distribution areas I can add other tools to my narrative but I can&#39;t go long because I know that sooner than later the price is moving back to the point of control so this is a selling area the price moves back to the point of control drops here creates another corrective lag here is the point of control price moves far from the point of control of control and returns look at this one here the point of control on this one is higher than the others so here the discount is not that good let&#39;s say right this one is a little bit more difficult to trade let&#39;s have a look at the actual one so the actual I&#39;m taking this low and I&#39;m including the actual price because I just take this chart before the class so it&#39;s fresh so we can see that this is the the value area on the daily chart on the s p and when the price tries to get far from the point of control is getting rejected right this is getting rejected and moves back to the point of control as we are seeing in this example so if I&#39;m trading on the daily chart the only thing I can do here is selling right I can&#39;t buy according to the to the auction process to the volume profile tool logic I can&#39;t go long at that area so that&#39;s where I can start using Elliot wave so I can say okay this is one this is two this is three the this seems to be for active I&#39;m looking for five under the rejection I know that I can sell and I know that we are likely to go back to the point of control from there the price can move a little bit lower or sideways whatever reject them probably then we can have a wave three let&#39;s say right or the price can move lower whatever but at this extreme the only thing I can I can think about is selling if I&#39;m trading on the daily chart but let&#39;s move to a lower time frame because this is just an example of course we&#39;re not going to trigger trades on the daily chart when I move to lower time frames and let&#39;s say that I&#39;m in front of this pattern this is like a a p shape right the letter p as a Peter right so if you&#39;re in front of this scenario where the fair price is where the market is actually Trading you know that if you want to Short you have to wait for the price to extend a little bit for far far from from the point of control you are not going to sell here right so the the next chart look the price moves far from the point of control moves above the the 70 percent the the value Area High and from there we have a rejection so we know with a high probability that the market is gonna move back to its point of control at this area and on the next slide right here we have the price moving to the point of control right and this is just the the live market today so we have the price coming down here today in my daily analysis I was expecting that the price was going to build another high here to complete the pattern and then they move down to the point of control right like uh to complete a a an alien wave that we were talking in the membership I was I was looking for a heart high and from there the the bigger the the bigger leg down well sometimes it kind of start the process before right that&#39;s happened today so it comes back to the to the fair price so let&#39;s now a check here the the elite wave cycle and look we can add the tool for wave 1. so wave 1 is going to have a profile Wave 2 can have its profile as well so remember if you have wave one and you want to sell you need to sell above point of control if you want to buy you buy below point of control if you if you are in the Wave 2 so you are gonna buy below point of control and you&#39;re gonna sell above point of control of course if you believe is a second wave you are going to buy at the rejection whatever and the same is true for all the waves so we can individually add the tool for each leg for one for two for three four four five for the corrective wave as well look that the B wave is going to be where the area where the the the value area is gonna is gonna develop right and and the Sea Lake if this is a this is B and this is C the C is going to be far away from the point of control and that&#39;s where we are gonna buy always thinking in this auction process we buy cheap we sell expensive we buy cheap we sell expensive always at the same time the entire Market cycle is going to have a volume profile itself so we can have either or both if we like to make the study like that the whole volume profile for for the complete cycle or individually for each cycle so here is the actual SMP a plan a lead wave plan so as you can see the price today did a big sell-off as I mentioned before this morning I was looking for at least one more one more like app before the the corrective the bigger corrective so sometimes that happen but look we have this love and without adding the tool without adding the tool just with the class that we are having today without the tool now you can know where is the is the fair price if we are checking this area think about where is the fair price remember the third price is where the price has been spending more time so from this area clearly is this area when the market is sideways of course when you have several candles moving overlapping moving sideways that&#39;s going to be your point of control so even without adding the tool just having by having this training you know that that&#39;s the point of control and we are going to add the tool in a second of course so you know that this area that the price here is building point of control let&#39;s suppose that you are bearish let&#39;s suppose that you are bearish and you believe that the s p is gonna crash right right like in social media and some reports some some analysts are saying the SMP is gonna crash we are going to the 3000 area right let&#39;s say that you are thinking on that a type of SNR you now with the auction process that we have in the chart how you will trade it well you will need to have the price moving apart from the point of control and you are you&#39;re going to find a sell trade right here probably at this rejection where the B finish by after the ABC six again the candle close we have a candle close below a let&#39;s say a rejection here it&#39;s going to be your sell trade because you are above the point of control and again I&#39;m going to add the tool in a second but we know that that&#39;s the point of control of course because it&#39;s where the price is spending more time and if you if you have the bias that the s p is going to move down and do you believe that that&#39;s the SNR you know because you are having that wave counter because you like to use a technical analysis tool that is telling that or because you like fundamentals whatever reason but your entry for a short will be there using this technique right let&#39;s suppose that you are that you are bullish I&#39;m bullish let&#39;s suppose that you are bullish so of course you are not going to sell here unless you are a scalping or day trading of course if if you are you want just a short-term trade you can sell it there and book profits here but the Buy trade if this is the point of control again this area here let me change the color so we can be on the same page that&#39;s the point of control and the price travels far now below the point of control we can wait for the price to reject this area below the point of control and we can go long right there because we buy below the point of control so the seller the trader that believes that the s p is going to move lower whatever will be finding the sell trade here and the buyer will be finding this the Buy trade here if each Trader waits for the signal and manages and is managing the properly the risk the one that is wrong he&#39;s not going to lose money right or if he loses money it&#39;s going to be a small small loss and that&#39;s trading right but look how important is to understand the market valuation now let&#39;s bring the the tool and here we have the wave count and here we have the the the the profile right so you can see that as we were mentioning that area right here is where we have the point of control easy because the price is sideways right so you can do that exercise on your chart look here you have a a value area because the price was sideways uh here you have a value area right without using even the tool now you understand that here you have a value area as well when the price is overlapping when the price is choppy when the price is sideways whatever name you want to call them is a value area when you have candles just moving directionally the market is in an imbalance which means that there is no value that there is no a volume that there is no fair price but when the price transitions from trading for from trending to sideways is when the point of control is going to start building up so that&#39;s simple right that simple just to keep it simple so so you can see that of course at the beginning you need to use that type of tool to understand the technique to play around with the tool but once you understand how it works then you don&#39;t need to use it you know it&#39;s like a reading price momentum you you can use a macd you can use an osmosis later on RSI a stochastic when you are learning but once you master the technique just with price action you can see when the price is losing momentum right so that type of thing is is my point that of course is extremely extremely important to understand right so so you can see that that&#39;s the area so we will need to have the price getting apart from that area and then when it rejects below the point of control we can buy it or if we are looking for a sell trade because we believe and could be right why not this is a wave one and this is a wave two and here comes a huge wave three right can happen of course remember that anything can happen in these markets but if that&#39;s our bias the the way to apply this tool will be by looking for the rejection right here as far as possible from the point of control because that&#39;s the fair price if you didn&#39;t sell above the point of control and let&#39;s say that tomorrow the price is here and you say oh I don&#39;t want to miss the trade I&#39;m gonna sell here you are too late you&#39;re too late you have to sell somewhere above the point of control because if you sell here it&#39;s an area where buyers is fair for buyers and they are going to try to do something clearly right so it doesn&#39;t have any sense to try to do something there if if it&#39;s too late right okay so in trading view you can pick the tool so manually you pick from where to where so you can you can select the cycle that you want to measure right so that&#39;s the the trading view tool now Traders uh and again we we have inside the Elliot Wafer Street members Academy a complete a volume volume profile course this is the way to apply it but in case that you want to learn a little bit more inside the Adobe Street membership you you are going to get more details about the volume profile now let&#39;s talk about the order blocks so an ordered block Traders is an area is is the is the value area is the is the point of control most of the times because the institutional Traders they don&#39;t trade as we trade they don&#39;t trade with a small orders you know we trade let&#39;s say we are trading Futures we can trade with a 5 10 mini e e mini contracts a 30 40 micro contracts right with this with a relatively small account and the big guy the institution they trade with huge orders and it&#39;s not something new right of course from the beginning the institutions from the 1800s 1900s they were trading huge so the the problem with the problem that they face is that let&#39;s say that they want to short or they want to go long let&#39;s say they want to buy Apple stock or the SMP or the Euro or the Bitcoin or anything any any instrument for all the instruments it works the same and let&#39;s uh say something crazy they need to place 100 k e-mini contracts today during the New York session imagine if that institutional Trader that needs to place that order makes one click and fills the order the whole order in in one in one uh position well if the SMP price is here is gonna jump a lot of points and it&#39;s going to create a gap and the execution of this order is going to be terrible for the institution right so of course they can&#39;t place the whole order at once so they need to create order blocks and that&#39;s a splitting what they want to go long short whatever in a smaller size orders during the session so let&#39;s say that the price is moving down and they just are buying so there&#39;s a bind when the price continues lower they buy a little bit more when the price continues moving lower they buy more when the price continues lower they buy more right so they are doing accumulation and they are slowly adding um their position to the market because they don&#39;t want to create a crash or or or or a huge gap to the upside to the downside whatever so they have to do it as a lowly is lowly so they create orders of course at the lows right so they say I&#39;m gonna buy Here a thousand I I&#39;m gonna hear I&#39;m gonna buy here another thousand I&#39;m gonna here by another thousand those areas are also creating liquidity because there some Traders are going long and are leaving their stops under the low right so of course if the price moves under the load they are going to take them out so more money for the big guy so it&#39;s fantastic for them and there are different theories about why they need to go back to those order blocks so there are some theories that they need to con they like to push the price back to the order block because they can continue filling their order at that price so they have their algorithms have a to continue buying at that area um could be because they were trying to manipulate the market and you can imagine all the theories that are around these order blocks so look when we have the the price let&#39;s say that the price was moving down and eventually turns up right here and I&#39;m going to show you in a second how to draw the order block right here was the order block just at the end of the cycle of course you&#39;re gonna draw the the order block after the fact so when you have your order block the next step in the process is that you wait for the price to move back to that area if gets rejected could be on the five minute chart or the hourly chart when the price hits the area and moves back above the the order block so moving below moving and moving at the other side don&#39;t worry we&#39;re going to see examples today that&#39;s your entry point that&#39;s your entry and your stop is going to be below the order block sometimes as in this example price can cross the order block to take out liquidity and reject the entry is going to be the same is not going to to change anything if the price moves under the low and the only only thing that could damage the the order block is if the price breaks the order block and doesn&#39;t reject right that&#39;s another scenario so the price breaks down and continues so we are going to see examples don&#39;t worry about it and here is the definition if you already read it if not then you can watch the recording and read the definition but it&#39;s what I just explained so how we can incorporate that theory into the early wave cycle because the elite wave cycle is fantastic you know the elbow theory is something that I believe every Trader should at least learn the basics but it&#39;s extremely subjective imagine this a scenario we have a new student and we are going to ask the student to read the Proctor Elliot Wave book and we are going to give that new student a month to read the book and then one month later that student let&#39;s say that was reading the book several times 10 times and he is an expert in the yellow Theory because he knows all the guidelines and rules maybe he doesn&#39;t have experience but he knows all the rules and guidelines of the alleyway Theory and we are in a nice place in Manhattan in in New York City in near the near Wall Street in a nice conference room and we are all together and we ask the new student to come into the room and we say okay new student make your magic okay so what I learned is that when you have a wave one after the wave one is coming the wave two so you are going to buy and the invalidation for the Wave 2 is the previous low so you are gonna buy because is the second wave so you have wave one and you have wave two and you&#39;re gonna buy because you have a wave 2. and you are going to capture the Wave 3 right here is going to explain the theory from the book and we say okay that&#39;s interesting makes sense okay so how you can tell that this is a wave 2 oh that&#39;s easy because on the left you are going to have a five wave sequence for wave one and then you are going to have a retrace that actually at the end it doesn&#39;t matter how much it retrace because you have the five and you can go long anywhere oh okay really and why are you saying that because the alleyway Theory says that the second wave can retrace from one percent to 99 oh yes you can use some Fibonacci levels you can use some Fibonacci levels here to to as a reference to find the word the second the wave is going to finish but the book says that it can finish on any of these levels okay so you are saying that you are buying because it&#39;s the Wave 2 because you have a five wave sequence on the left yes that&#39;s right and the and the and in the in the real life Traders when when that happens when the trader goes to the real life and starts trading like that it&#39;s gonna lose their is going to lose the the entire account right he&#39;s going to lose his entire account because actually that&#39;s not the proper way to use the alleyway Theory and I understand that any person in this world that reads the book or learns the aliway theory is gonna think like that and that&#39;s completely wrong right so first of all Traders I believe then that that a key thing to understand in technical analysis is that technical analysis is not a crystal ball you know technical analysis is not something to read the future I believe that that doesn&#39;t exist you know so some people think that is studying technical analysis is having like a time travel machine that they can go to the Future and see what&#39;s happening in the future and come back and make money and that&#39;s completely wrong that&#39;s completely wrong Traders technical analysis is not going to work in that way of thinking it&#39;s crazy right is is crazy so so it&#39;s if we think like that if we think that technical analysis is a forecasting tool alien wave a movie now brush system a Candlestick patterns whatever it&#39;s it&#39;s their job is to read the future that&#39;s crazy because there is no way of reading the future we don&#39;t know what is going to happen tomorrow in our lives good things bad things whatever it&#39;s impossible Nobody Knows the future so why Fibonacci tools or alien way Theory or whatever are going to to to read the future for us so technical analysis doesn&#39;t work yes it works but not for for reading the future or for forecasting the future that&#39;s a huge mistake and it doesn&#39;t have any sense Traders you know so using technical I can tell them 99 of of Traders are using technical analysis like that to forecast the future and that&#39;s a huge huge mistake is the same as going to to I don&#39;t know someone to read our hand or to read the cards or the crystal ball is exactly the same it&#39;s crazy right it&#39;s crazy of course if I hire someone to read my hand that that person maybe could say things that at the end happen because he he was lucky that&#39;s it right so we have to to be careful with that so technical analysis Traders measures or give us the tools to understand what is happening right now what is happening today that&#39;s it and of course we can check what happened before that&#39;s it and by knowing what is happening today for example with the profile exercises that we were doing we have an edge because we can know if the price is cheap or expensive we can see what the big guy is trying to do we can see what they are trying to develop so let&#39;s let&#39;s go back here to this example if we are here at the wave 1 and we look for a corrective wave a second wave the thing is that if the price is moving down slowly is because someone is buying and that someone is the big guy so while the price is moving down he&#39;s using order blocks to go long and pushes the price higher right and the price moves down is lower Lee as lowly and the price rejects so when we read the present that&#39;s when what we can see that is happening and we are not forecasting the future we are trading the present we are reading supply and demand so that&#39;s why I believe there is something crazy to use Fibonacci levels that&#39;s absolutely crazy doesn&#39;t have any sense to use Fibonacci levels the 38 2 percent the 50 percent the sixty one eight percent the 786 the crazy Traders that&#39;s a distraction but something that is real is that it will look to the left in each turning point we are going to have order blocks from the big guy so that&#39;s where the price is gonna re react and that&#39;s fantastic when we combine it with the profile and with Elliot wave because now we can have an objective approach to know where the price can turn without using a crystal ball or crazy Fibonacci levels that clearly don&#39;t work so that&#39;s why Traders I call this technique the Elliot wave blocks because I&#39;m using the order blocks with Elliot wave so let&#39;s make examples this is a bar chart a for this part of the training I&#39;m using a bar chart because I want to explain how to draw the order block and it&#39;s extremely easy first step find a turning point so this is a turning point you can find a turning point when when already happened when you are here when you are here when you are here when you are here right so it&#39;s not something that you are going to find in real time because you don&#39;t know that that&#39;s a turning point you see there is a turning point after right the same here once you see that that you have a a turning point a low whatever you are going to find the last candle that was making a low on the trend so you have low low low find the last one find the candle that did the lower low from that sequence okay so clearly is this candle okay so we have our first part of the order block second part look for the second candle after that candle okay will be this one great find the low this one here find the high of the two candles okay this will be the same candle because the other is an inside candle project that box to the left that&#39;s an order block huh we found that the big guy was doing something there that&#39;s the big guy order block how to use it each time that the price comes inside or hits or would Rejects we go long for example first one will be this one here the price moves inside the Elliot wave block let&#39;s say that this is our wave one and the wave two the price moves inside Rejects great here we have another rejection then we wait and here we have another rejection so those are entries bullish entries now let&#39;s draw the earlier the wave blocks from the other side from here you can draw all the ones that you like so last candle that was able to make a high this one and the next candle draw a box of the range of the whole range from high to low of those two candles if the second candle is lower draw a lot lower if it&#39;s inside well you have to use the first candle great so look the price tries to break the order block the alien wave block it was successful nope it rejected in this case the end the short entry was here that is too far of course but that&#39;s a signal probably if you were long from here you can book profits and you say okay this is my wave one let&#39;s say or my wave a or any wave that you&#39;re looking and this is my second wave now you have an objective area where you are looking where you are waiting your second wave to have the price come in there if the price doesn&#39;t come there you don&#39;t trade but you are not adding crazy Fibonacci levels you can add a profile you will say okay look here is where the market was sideways in this area so that&#39;s my fair value right here is my fair value I&#39;m below value I can go long at the rejection right so that&#39;s the entry point that&#39;s it right let&#39;s have other example this is a one minute chart of course you can do do it on the daily chart and of course you are going to have a lot of fun and finding these these these levels oops this is a four hour chart and again it could be the s p it could be the Bitcoin it could be a Apple stock it could be anything any time frame and you are going to see that from now on this is so simple and from now on you are going to you are always going to understand why the market reacted at that level look at this one this is an interesting example the last candle let&#39;s let&#39;s find the swing the last candle High the last candle High well this red one here and and the next candle look at the next candle so when you have a huge candle as the second candle only use the first one because if you use the both candles as the order block is going to be a huge area right later on on another session we are going to talk about the multiple a a order block or LDL wave block analysis so in this particular case when you have that the second candle the second bar is huge just use the first one right that&#39;s it because you know that the the beaker is not selling here of course right so so those are little little tricks look the price comes here rejects this candle is going to be your entry this stop could be either at the high of that candle or the high of the of the order block area in this case is a four hour chart we need to use just the high of the candle if we take us out we have to trigger again right on the next one the plan is to find the rejection booking profits taking profits so we look at the next alien wave block that will be here and right there we can book profits from the sell trade if our bias is to the upside for some reason we can buy here or we can buy here right of course if we start using the profile those are not going to be good buy trades but anyway could be right we can think okay those are by traits yes of course right the price in this particular case comes under the a load by block but then Rejects let&#39;s have a look at another example the s p you are going to start seeing all these Elite wave blocks everywhere so look at this example here we have these as our alien wave block price moves far returns rejects moves far returns Rejects that CC right it&#39;s extremely easy it&#39;s extremely objective of course then we can add a wave count and we can add the bias look at this example now linking together putting together the volume profile and the a block so this is a profile there is the point of control let&#39;s let&#39;s add the the price okay good and we know that the point of control of our previous cycle is going to be important for the next cycle okay now let&#39;s draw the alien wave block of this area here that&#39;s the in the next slide so I&#39;m drawing this one by taking the last candle high with the next candle low if we believe that this one is too big the next candle right that&#39;s of course you are going to start picking your favorites and let&#39;s say that you draw it here well in that in that case you didn&#39;t execute your trade it&#39;s a one minute chart it&#39;s a scalp so you if you were waiting for for something to reject there you will miss this one if you&#39;re using this case two candles I don&#39;t think that these are huge huge distance in this case right look beautiful the price comes there and rejects if we were looking for the straight so we look to the left let&#39;s draw the elude wave block on the left so the high candle the the high candle of the previous cycle high with the low of the second candle oops let&#39;s let me try to draw it more precisely there there we go all rejection so that&#39;s a signal as well right oh no my my bias was bullish okay so you draw it here on the previous low candle and here will be your Buy trade probably you get enough to have a uh a one to one or a safe trade with this distance if not you you have a loss in that particular case right okay let&#39;s draw the next one let&#39;s let&#39;s have let&#39;s have a look at this area as well right so of course you have to be careful drawing and we&#39;re going to check that in the in the other in the other lessons because sometimes when we start doing with this technique we start drawing tiny tiny tiny blocks right and it&#39;s important to keep it like bigger especially on these lower time frames right but you can start drawing all of them look at this example here one minute chart SMP so yeah and this technique is fantastic for scalping so you draw your let&#39;s say that you&#39;re starting your trading session whatever and you do you have time to draw the elude wave block when the price comes to the area and rejects it&#39;s a buy trade and I&#39;m going to add the profile in a second that area that turning point is going to be a new Elite wave block then the next trade when the price and if the price returns to the area could be here that didn&#39;t work and if we have a tiny stop if we have a bigger stop on there under the alien wave block that first trade will be active then was another entry that actually was better look the price moves inside the alien wave block and then we have the candle closing at the other side fantastic right and from there the price moves up of course there are going to be home runs of course there are going to be trades that don&#39;t work right of course now let&#39;s add the profile into the narrative so for the first trade the the one here we are far from the fair price from the point of control and we are on a one minute chart so I&#39;m measuring the profile from the high to the low and this is the and this is the this is the fair price I&#39;m buying below the fair price second example the fair prices is is closer to the price uh not as good as the first one but we are buying below the fair price still a good deal that&#39;s it that&#39;s it right if you have these valued wave block here and the price crosses the elite wave block and doesn&#39;t reject you are not going to sell it that means that they were not in a bearish narrative when the price just crosses up the area if you are long from before you are not doing anything you are not going to book profits you are going to wait if you are looking for a short let&#39;s say that you start your session and you&#39;re saying oh this is my wave one I&#39;m looking for a second wave and I&#39;m going to capture a Wave 3 down let&#39;s say that that&#39;s your bias because some tax is going to happen like that but the price comes to the Elliot wave block where you are looking for a sell trade you are not going to act right let&#39;s see an example that you will be acting if you were looking for the sell trade so right here is the Elliot wave block so let&#39;s suppose that you have here the wave one and you think that this is the wave two of course you are not going to sell this one because look at the slope of that price you don&#39;t have any Divergence you don&#39;t have anything of course but let&#39;s suppose that you are just using the technique as a robot so you sell here right of course we can start adding the process of the ABCs and all the things that we cover in the membership to filter out some trades this is too fast but anyway let&#39;s say we sell it there we leave a protective establish here or here where is scalping so those distances are tiny or two three points okay take us out huh okay I sell it again here at the next rejection and on this one I was able to have a good trade until it rejects here or here I have to be careful because in case that I was looking here for a wave tree should cross down easily and didn&#39;t cross down here so have a look at another example look at this one here in a video and again we can apply this technique on any Market on any time frame right of course this is just the first class from I think we we&#39;re going to have around six six sessions about this topic because there are some other details that are important as well this is just the introduction and but but everything is going to be related with with this technique right of course we&#39;re gonna start mixing this up with a little wave and of course in the membership we are going to continue doing exercises every day during the week in the in all the markets that we&#39;re covering the live markets right but anyway um look at this example so we have the cellular wave block right here so we can say that this one was the one this swing was the one that was building the Elliot wave block so this is entry entry number one right Works nicely if the stop is here this is a one minute chart it&#39;s a great technique for for scalping the price moves here to the other way block moves up so it&#39;s close in short maybe going long if that&#39;s the bias moves back to the elude wave block bounces so you know there is time to close any byte rate if you like the short you sell it moves on here Rejects moves up here Rejects this time doesn&#39;t move back to the to the Elevate block returns move moves back here and we have three rejections moves down nicely and has a signal here to close the trade or to go long if we go long this this is the first one that didn&#39;t work from the whole narrative the price breaks down the a little bit block never validates up again never closes above again continuous moves to this preview solid wave block crosses down and rejects and that&#39;s a life Market so it&#39;s bullish it&#39;s bullish okay so we we are now seeing things too little let&#39;s go back for a second let&#39;s understand the profile here without the tool where is the profile here what is the fair value here somewhere here in this area right if you were training here inside you will be selling above point of control this will be the point of control this black line right point of control so you will be selling above buy and Below right but here this one is fantastic because you are far from the point of control so and this is a live chart we will check later tomorrow whatever and what happened here because this was the the live Mark is the live market right so so so the the plan here is is going back to the point of control and there is a signal on the one minute chart right which other big level is important here of course this area so that say hi will be somewhere here right so the the first task you need to start doing and no matter the the instrument that you&#39;re doing this uh could be anything right is to draw the bracket the market is going to trade in that bracket if you are scalping you act here in the one minute chart 15 second chart 10 second chart whatever time frame that you&#39;d like to scalp your day trading go to a five minute chart 15 minute chart if you are swing trading use the hourly the four hour chart and the daily chart maybe just for analysis because it&#39;s too big we are not trading on on those time frames just to understand what&#39;s going on right so we start understanding that when the price is overlapping is the fair value remember when the price is overlapping when you draw a line in a chart and you see that many candles are there touching the line hitting the line that&#39;s a fair value even if you don&#39;t have the tool oh I don&#39;t have a platform that comes with the tool it doesn&#39;t matter that&#39;s the fair value that&#39;s it right this is unfair unfair for who unfair for buyers fair for sellers is far from point of control right under the point of control is fair for buyers on fur for sellers same here so you are here are only thinking you&#39;re not going to sell here you are not going to sell below the point of control we&#39;re only going to buy that&#39;s it is the auction process using the profile tool or the profile understanding of the action process and the Elliot wave blocks that is a completely objective way of trading the markets not all the trades are going to work I have bad news for you this is not a 100 technique but it&#39;s a technique that you are buying at cheaper prices that you are having a small stop loss that you have potential for easily getting to the one-to-one risk reward ratio is not a forecasting tool is not telling if the price is going to move a 100 200 points to the upside it doesn&#39;t exist that type of tool to forecast the market right doesn&#39;t exist the day that someone finds out exactly what the market is always going to do next the day that someone finds the way to travel in time and travel to imagine that thing you know I will travel you know if I I have I I have the time machine that will be the first thing I will do you know I will travel to for two weeks from today and I will take pictures or whatever I can or notes whatever of the s p i will come back to to my present and I will sell my car my house everything and I will trade heavily during those two weeks and I will I will probably take out all the liquidity of the market and the FED in order to sustain the market will need to print money to give me the money because I will take all the money from the world in the financial markets so of course it doesn&#39;t exist remember Traders our job is not to forecast the future our job is to make money our job as Traders is to understand the present and when we understand the present we can make money that&#39;s it sometimes it&#39;s gonna work fantastic the trade and it&#39;s going to be a home run and we can do 10 of the account and sometimes we can just to barely have a break even that&#39;s it that&#39;s the reality of the market yeah or right Traders so that&#39;s it for today tomorrow we are going to continue with more examples if you have any questions you can contact me here I&#39;m gonna publish the video in the YouTube channel so later tonight you&#39;re gonna see it there once it gets ready take some time processing also a we&#39;re going to send you an email with them with the link and if you are subscribed to the elude Wafer Street membership you are going to have this video in the members Academy the second video tomorrow that we have these two free classes this week and then you are going to have the whole course because we&#39;re going to continue meeting just for members after that so let me show you if you haven&#39;t activate your alien wave Street access yet you can visit us on elliottwave street.com then click on the membership and pick your plan that&#39;s it this week on The Daily market analysis videos we are going to cover a lot of Elliott wave blocks in the real markets so pick your plan start your trial and you will get immediate access to these lessons and also to the live market analysis with real time um analysis with education and a lot of fantastic things we have inside the alien Wafer Street membership so thank you very much for being here Traders please have a fantastic rest of your day or your night and I&#39;ll see you tomorrow take care bye bye

Transcript for:Elliot Wave Street Volume Profile Plus Elliot Wafer Blocks - Part One

Transcript for:
Elliot Wave Street Volume Profile Plus Elliot Wafer Blocks - Part One