okay folks welcome back this is price action model number two short-term trading plan 50 to 100 Pips per trade all right so ICT price action model number two short-term trading model and again the objective is 50 to 100 Pips per trade TR as I warned in the first price action model uh majority of the slides you see in these trade plans are going to be repetitive so please avoid sending me emails there are differences you just have to pay attention to the logic that's being sub submitted in each one the process obviously for every trade plan is we go through a preparation stage an opportunity discovery the trade planning trade execution and trade Management in the preparation uh we always refer to the economic calendar for the coming week noting all medium and high impact news events for the markets that we intend to follow uh we studi the events on the week to come and consider how the current market structure and the calendar events may suggest a specific weekly profile for that week's range in a simplest way of describing this process what we're doing is we're looking for an a collection out of the weekly templates that I outline that are bullish when we're anticipating the market to go higher and by comparing the bullish templates with that of the calendar you can match up what the likely weekly profile is going to be now it's not going to be 100% based on just that because there's always a variable but that's what I do I go in I look at if I see a high impact news event that's really centered on Tuesday London open then I'm going to be looking at the Tuesday low the week weekly profile and or the Wednesday low the week weekly profile all right so we're going to be looking at the preparation we're going to be determining the epod data range for the last 20 days we do not count Sundays we note the highest high and the lowest low of the past 20 days and this is going to be your current dealing range so if today is whatever date it is we're going to look back 20 days from today and whatever that trading day is that is your 20-day ago look back we're determining the highest high and the lowest low and that is our dealing range now you're going to sometimes encounter periods where you may require Looking Back 40 days or 60 days when you have really no PD arrays to choose from in the last 20 days in other words if we've already worked inside of the last 20 days dealing range both up and down then you would use the look back of 40 days and if the same thing if we have nothing in there we worked both directions we go back to 60 if you can't find anything in the 60-day look back that's clear and logical then you're going to have to choose another Market to trade or sit on your hands inside this dealing range we look for the next draw in liquidity where is Price likely to trade to next and old High low fair value Gap or liquidity pool we look for a PD array in the direction of the weekly range bias premium PD arrays when bullish and discounts arrays when bearish we anticipate price to move to a PD array that would support our weekly bias on a day and economic calendar event found on the economic calendar with the current or next trading week this is what we're waiting for every time we sit down in front of the charts we have that in mind we're not looking for something to magically pop up we're going in looking for something that would fit that narrative if it doesn't present itself then we have no trade now this can either be a runon liquidity or rebalancing of inefficiency in price opportunity Discovery identifying the discount arates under Tuesday's European opening price price inside the 20-day IPA data range when the bias is bullish we identify the premium arrays of a Tuesday's European open inside the 20-day if the data range when the bias is bearish we identify the discount arrays under the Wednesday's European opening price inside the 20-day if the data range when the bias is bullish and we identify the premium arrays above the Wednesday's European opening price inside the 20-day I to data range when the bias is bearish now what am I stating here if the signal or setup doesn't form on a Tuesday we still would consider it on a Wednesday all right trade planning when the market is primed we want to look for a convergence of both man manipulation in price opposite to our trade bias at a time that the economic Cal suggest a volatility injection will luckily unfold what we're looking for is some Snappy sharp price movement that would be in the opposite direction trading into our predetermined level of Entry basically a Judah swing okay so we're going through a period of Market protraction that's opposed to our trade Direction moving in profit so in other words we want to see it shoot up when we're looking to go short and we want to see it shoot down when we want to go long we're not chasing price we will short above the European opening price and buy below the European opening price when we are bearish we will frame a short entry when the price has moved up into a 15minute premium PD that converges with a standard deviation of no more than three standard deviations now the plus three there indicates that if you're using the Asian range if you're using the Central Bank dealers range or if you're using flout you're only going up three standard deviations nothing higher than that for your entry during London open or New York open the setup will typically form the market will likely create the weekly low during the Thursday New York session for a Time filter and targeting purposes we will anticipate the trade to pan out until that time when we are bullish we will frame a long entry when price has moved down into a 15-minute discount PD that converges with a standard deviation of no more than three standard deviations lower so in other words we would look at nothing lower then three Asian range standard deviations projected lower or three Central Bank dealers range projected lower or three flout levels lower during London open or New York open the market will likely create the weekly High during the Thursday New York session for time filter and targeting purposes we will anticipate the trade to pan out until that time when we are bearish we will Target the sells side liquidity below an old daily low or fair value Gap inside the 20-day if the data range converging with a negative or projected lower standard deviation what am I saying there if we're short or if we're getting ready to take a short what is our targets we're trying to predict the Thursday or sooner range that would offer 50 to 100 Pips our target has to be in the form of a discount array if we're bearish and we're looking for a standard deviation lower that converges both with standard deviation level and the discount array within a five pip variance the immediate or next logical discount array will be the initial objective there will likely be multiple old daily lows inside the ifed data range but we will use the one that frames the potential for at least 50 to 100 Pips when we are bullish we will Target the buy side liquidity above an old daily high or fair value Gap inside of the 20-day if data range converging with a stand deviation above in other words we're looking for a premium standard deviation the immediate or next logical premium array will be the initial objective there will likely be multiple daily highs inside of the ID data range but we will use the one that that frames the potential for at least 50 to 100 Pips trade executions when we are bullish we will note the European opening price on Tuesday and filter all Longs at or below this price level we will anticipate a 15-minute optimal trade entry to form inside of a retracement lower during London open and or New York open kill zones or a sell stop raid when we are bullish we will note the Asian Range High on Tuesday and place a buy stop at this level plus one pip after 2 a.m. eastern standard time now this is an alternative trade execution this is basically buying strength so in essence you aren't technically chasing price because what we're doing is after 2:00 in the morning the assumption is that we've already seen price Dro down instead of waiting for price to potentially go lower and give us a loss by trying to catch the low we can just simply use the Asian Range High put a buy stop there and let it go let it buy us into the move with strength but it has to be done after 2: a.m. so at 2 a.m. when price starts to drop down if you're still learning how to project the low of the day you can get your order in in the event once it turns around starts to go higher the market you'll let the market seek its own low and then you'll buy the breakout of the Asian Range High we will anticipate price to have made the low of the day after price starts its decline under the Asian range low and or european opening price when we are bearish we will note the European opening price on Tuesday and filter all shorts at at or above this price level we will anticipate a 15minute chart optimal trade entry to form inside of the retracement higher during London open and or New York open kill zones or a buy stop raid okay the alternative trade execution for bearish we will note the Asian range low on Tuesday and place a sell stop at this level minus one pip after 2 a.m. eastern standard time we will anticipate a price to have made a high of the day after price starts its Ascent above the Asian Range High and or european opening price now if we do not get a set up on Tuesday the things that I've mentioned here for alternative trade executions for both bullish and in this slide here bearish would be the same thing for Wednesday so we will be using Wednesday's European opening price so everything we would see here that says Tuesday we would just replace Tuesday with Wednesday and just repeat the same process short trade management when we are entering a short we will place a sell limit order on all positions we will execute on with our demo account we will use the standard deviation and PD array convergence minus 5 Pips as our entry price when using the sell limit order if multiple orders are used all use the same entry price in the sales limit orders when we're entering a short we will place a limit order to take 50 Pips as our objective on one position we will place a second limit order to take 75 Pips as our second objective we will use multiple orders to manage the trade idea if you capture a 100 pip objective close the trade and be content when we are entering a short we will note the premium array and standard deviation convergence we aim to enter at we will place our stop loss Above This High plus 25 Pips we will not re-enter if the trade stops out we can monitor it for experience but no re-entry is taken one and done long trade management when we are entering a long we will place a by limit order on all positions we will execute on a demo account we will use standard deviation and PD array convergence plus 5 Pips as our entry price when using the B limit order if multiple orders are used all use the same entry price in the B limit order when we are entering along we will place a limit order to take 50 Pips out as our objective on one position we will place a second limit order to take 75 Pips out our second objective we we use multiple orders to manage the trade idea if you capture 100 pip objective collapse the trade and be content when we are entering along we will note the discount array and stand deviation convergence we aim to enter at we will place a stop loss below this low minus 25 Pips we will not re-enter if the trade stops out we can monitor it for experience but no re-entry is taken one and done when we are in profit 25% of our expected objective stop loss can be reduced by 25% when we are in profit 50% of our expected objective stop- loss can be reduced by 50% when the position is at 75% of the expected profit objective stop must be at break even or above it money management position size calculation formula now to determine your position position size it's the account Equity times r% divided by stop loss and Pips now position size is the amount of Leverage your trade assumes account Equity is the total amount in your trading account R percent is the percentage of risk you're willing to take on per trade and the difference between the entry price and your stop loss is the number of Pips you'll use to divide for the result of the equity times r% okay as an example account Equity $20,000 risk per trade 1.5% or $20,000 time 1.5% = $300 the stop required for the trade in this case would be 20 Pips in micro Lots 1K each is 10 cents per pip 20 Pips time 10 cents is $2 and $300 total risk divided by $2 per pip would give us the ability to trade 150 micro Lots per trade or 1 and a half% of the account Equity always round down okay same Equity size $20,000 in the risk per trade 1 half% or 20,000 Time 1 half% $300 stock required for this is 20 Pips in many Lots it's 10K each or $1 per pip so our 20 pip stop time $1 per pip it means $20 is our total risk exposure using 20 Pips with $1 per pip leverage so if our total risk assumption is $300 we're dividing that $20 which would give us 15 mini Lots per trade or 1 and a half% risk of the account Equity always round down in Lots 100K each is $10 per pip so if we have a 20 pip stop loss in expectation we would have 20 Pips at $10 or $200 total risk so if we had total of $200 per Risk divid by $300 we can only do one and a half standard Lots or one lot per trade always round down many lots are more flexible now right away you can see with the model that I've outlined here in the in the trade plan we're using a stoploss suggestion of 25 Pips so you would change the stop required to 25 Pips and all of the math here would change it's not complicated math this is you're changing to 20 in in this example here to 25 and everything would work out for your math to determine what your exposure would be if your demo account takes a loss on a trade and it is a full R per that you assumed drop the r perc by 50% and when the loss is recovered by 50% you are permitted to return to the maximum R per per trade if the reduced R perent trade assumes a loss reduce the r per by 50% again until the previous trade loss is recovered by 50% if you take a series of five winning trades in a row drop your R perc by 50% you are likely to assume a loss eventually and this will build in equity leveling and reduce the likelihood of a large draw down you want a smooth Equity curve that slopes and or stair steps higher not a jagged roller coaster with deep declines all right so what you're going to be doing is same thing you did in model number one going to be collecting a month or two of sample sets with this trade plan it's not hard to go through your price action and to see where these price moves have occurred and if you're unclear about some of the process here rewatch The lessons on this price action model and the supportive lessons in the core content all right folks welcome back this is model number two algorithmic Theory and I'm going to be changing gears a little bit uh obviously I removed a lot of people over the years and in recent months because of either selling being disruptive or breaking our terms of use so naturally their way of trying to get back at me is leaking my content but that's okay um it's not going to hurt me so uh the change the gears that I'm going to be doing is instead of spending all my time typing out slides and making it easy for everybody just to go out and share that or or sell it or whatever they do or put them in books and they try to sell them on Amazon and I've already taken down five or six of those books it's unbelievable the blatant disregard for copyright infringement and intellectual property rights and things but hey you know I understand things around the world right now rough but I'm going to be I'm going to be teaching basically like a college professor so I'm going to be speaking and it's your job to write it all down I'm going to show you visually in the chart walking you through the steps and these steps can be reduced down to the back of a business card okay the logic that goes into these models when it's spelled out obviously every minute detail wouldn't fit on the back of a business card but the processes and procedures that get you to the main points of focus application and where you utilize certain things and what you're looking for those are obviously understood because of your experience and understanding with the teachings and the core content but I'm literally going to go into this euro dollar chart and walk you through something I outlined beforehand so that way it's not me going back and form fitting it so that way it sounds and looks pretty for you it is the very basis of what I was utilizing for the analysis that I gave in the commentary this past Monday okay so that way you know what I'm looking at in regards to the tools because I'm going to spell it out for you I'm using the algorithm that's outlined for model number two and I'm going to incorporate the alternative approaches as well that I outlined in the trading plan version okay so you're going to see how looking at it from the video production and typing it out it's it gets real easy to get lost in all those details and I know it's hard okay but I think you'll like this approach better because it's literally me going in using what was already described and you'll get to see whether or not this stuff really works because I've had people you shake their fist at me and say these models don't work they absolutely work but unfortunately I think laziness plagues a lot of individuals that have that mindset okay so I'm going to dispel all that today and again bring you more evidence to the fact that these things Abol do work all right so right away this model really hinges on what the majority of the models do is what is the weekly range going to do so the first thing we're doing is looking at a weekly chart so we're just going to zoom in here in the most recent time frame here of candles scrub back here now obviously this is the week that just closed and today is the 9th of April 2022 so it's a Saturday I'm producing this video and this was last week's trading all right so the question is going to be is the very next candle which is obviously right here now before we go any further okay just remember what I have been stating in live commentaries before it happens we have been bullish dollar and bearish Euro dollar now I do not take you into the weekly charts in the commentaries that's your job okay I'm not going to do everything for you I'm not going to lay it in your lap I'm not going to spoon feed you because that builds codependency but I want you to understand what the backdrop was behind the scenes why I'm calling these moves and opinions if you will in the commentary on Monday in the commentary for euro dollar I gave a very specific expectation and we were bearish we'll revisit that as we get to that point in this lecture but I want you to watch what I'm doing and listen take notes all right so the very next candle here obviously with the benefit of hindsight it was bearish which is what we were looking for why was this candle in my mind and proof with the commentaries expected to be a lower candle or expand lower well Dollar's been bullish obviously we've been looking for it to go to the full 100 level but look what we have here volume of balance see that we have all of this range here is just on a tail of that candle and all of this here is the wick of this candle so there's really no bodies up there so we traded up into it once more here when bearish on Euro when bullish on dollar and I've been trying to take everyone's attention down into that shortterm low right there so this is where we've been focusing so now the way you use model 2 is you start by going back so you look at the 20-day IPA data range look back period of 20 days to find your discount arrays all right so this is the candle that you would be doing the analysis because this is the week that hasn't really formed yet so we're using using a hypothetical but it was rud and actually me calling it before it happen so let's make sure we understand that but you would be looking at everything on this calendar week before the new week begins on Sunday so in other words we're imagining if you will the candle hasn't formed yet so it would look like that so you would go back obviously this is 5 days 10 15 20 so what's the lowest low in the last 20 days right here so that's why I'm focusing your attention there it's why I've been talking about it in the commentaries and I mentioned that we were looking for lower prices now we traded up into this volume imbalance it's a premium array from this Range High to this range low why am I referring to that because this is the most recent decline this is where it stopped and started retracing we're bearish so it's retracing back up into this range where's it retracing two it's retracing back up into the volume of balance TR it up into it and we're expecting higher prices in dollar and we're expecting lower prices in foreign currency Euro cable respectively so we're expecting lower prices and the next weekly candle to exp to expand rather lower and work towards this low okay now there are several discount arrays that we're going to be looking for so we have to look for with this model model it's engineered for capturing 50 to 100 Pips once you get 100 Pips you're done okay absolutely done it also has time elements to a specific day of the week and we'll talk about that when we get to it but we're looking at this swing low down here so right away we're going to go through and mark off there is the rejection block here and we're going to get a measurement on the consequent encroachment of that tail okay and what I'm doing is I'm measuring the 50 level between the open of that candle and the low all right and I'll change this to be a slightly different color right and obviously the very low I'll use that down there and we'll make that just dark blue and the rejection block we'll make that a dashed line with that much weight to the level so that be before I drop down to the daily chart I want you to take a second look at what these levels are okay these are our discount arrays it's the old low rejection block it is the consequent encouragment of the lowest candles tail that little line that makes the you know not these are called Tails they're Wicks above the candle but it's Tails underneath them so that price level at the open to the low we're measuring that range and getting 50% of that that's the Gap and this is the old low here so there's are three discount arrays that we're aiming for or utilizing with the weekly range where could it expand down to this is what we're looking for okay so now we're going to drop into a daily chart now obviously it's going to take me more time to talk about everything I'm doing then it would be for you to actually just go through the process of actually doing all these things so there's rejection block consequent encouragment of the weekly candle tail and then the old love which is what we're aiming for that's always what best case scenario but do we need best case scenario to be profitable no okay so now what we're looking for is the logic behind all these moves lower here so here's Friday's trading Thursday's trading Wednesday Tuesday and Monday okay so April 4th 2022 Tuesday Wednesday Thursday and then Friday right so there were several things that I looked at and outlined for you but before we get into this this is Thursday just remember that Thursday is the day of the week that we have to close based on time it doesn't matter where you are with the trade okay if it's more than 50 Pips you close it okay if you ever get to 100 Pips even if you do not have time to hold till Thursday New York open New York open is where you close the trade for this model so it will leave Pips on the table it will you know unfortunately sometimes get you out before a bigger move that takes place on Thursday and maybe into Friday but the point of this model is for you to have a short-term trading approach to build on because you can obviously tweet this and work with that Thursday time element and remove it if it works for you to hold on to it until Friday New York open something that effect it's something for you to figure out on your own so there's that flexibility that makes it unique for you but I don't want to talk about the fact that we mentioned that it could trade up into that area here and then sell off again I mentioned that and it delivered what I'm showing you here is this model which is framed on Tuesday and Wednesday okay so we're going to be using Tuesday and Wednesday's approach so we'll drop down into an hourly chart all right and here is the Monday April 4th 2022 right here and I mentioned in the recording Monday night's commentary go back and watch the commentary for April 4th 201 22 you'll hear me talk about how it's likely to go up into this imbalance here and then sell off and we're looking for it to run towards that old daily low now your objective is when I give you these commentaries is to go through and do what I'm about to do right here and if you haven't been doing it like this hopefully this will inspire you to do it because you'll see what you've been missing all this time all right so it's stretch this out a little bit all right so we have on the hourly chart going top down there is our imbalance I'll I'll shade this that right there it didn't get dark enough for my liking so there you go and that is Tuesday's trading April 5th okay so right away we have an imbalance here so now we got to drop down into 15 minute time frame I'm not going to edit any of this out you're going to have to suffer through it if I got to suffer to get get this thing lined up you're going to suffer watching me do it cuz this is what you got to go through all right so we have the imbalance here now as it was outlined on Monday night before it happened before it runs up into that okay once it starts having its Market protraction on the upside on the 5th you're going to be looking at the dealing range between that high here why that high why not something higher back there because this this is the one just before the imbalance this is the one that starts the decline and this is the lowest low prior to it running back up into that imbalance okay so the fair value Gap balance by efficiency that's being shown on the hourly chart here the dealing range that's parent to that is this High to that low okay so we have optimal trade entry levels in here not sure why I don't have the 60 level in that I'm going to change that 70 level right here there you go so 62 to 7% retracement level there's your optimal trade entry so here we have another element of price this one drive me NS okay that'll be good enough for government work right there and we'll shade that now I'm only doing this so that way you can visually see it's probably not the best of that's good yeah all right so this is optimal trade entry in terms of price range and inside of that hourly imbalance so overlapping elements of price but now we have to go into the most important factor which is time so we're going to drop down into the 5 minute chart okay so here is the midnight candle at April 5th transition from Monday into Tuesday's trading we're going to delineate make this different color here and then drop this back to 8:00 okay so there is our our Asian range and with this model obviously we're bearish we are looking at a selling opportunity on Tuesday and or Wednesday so if we get a trade on Tuesday we don't trade on Wednesday but if we don't get a trade on Tuesday we look to do it on Wednesday but there has to be consolidation on Tuesday and it hasn't yet moved lower before that be considered okay so we have some filtering there as well but we have the Asian range here and I'm going to show you standard deviation here I'm going do both on the Wicks and Tails Wicks and Tails that's the largest range that's been utilized for Asian range and I know it looks busy right now but I promise it'll make a whole lot more sense in a second once you do this a few times you'll know what you're looking for and it's not that big of a deal all right so this model has a filter that you cannot take anything as a short greater than three standard deviations above if you're going short okay so Asian range we're using that as our basis for standard devation uh projections so this is one standard deviation two and three so right away we have this level here I know it's one pip off that's going to be enough for me though CU it's going to drive me crazy so we're looking for a premium array no higher than that if we're using the Asian range using the tails to Wicks now if we do it with the bodies of the candles which is generally what I like to prefer over the uh Wicks and Tails because it's a little bit trer in terms of the volume right away we can see that there's three standard deviations right there now you can do this two ways the way I just did it which is generally how I usually do it or you can do it the opposite way you can go and do the standard deviations on the Asian range or you can use flout or you can use the since you mic dealers range you know whichever one you prefer whichever one you adopt as your model these standard deviations you don't want to go anything higher than three standard deviations to look for your premium array because we're bearish okay so this is your filter in terms of price you can't go any higher than this so right away now I've done the Wicks the Tails and I've done the bodies highest open or close to lowest open or close that's what's being represented here so I can take this off get some of this busyness off the chart and right away you can see that the optimal trade entry here relative to the dealing range high and low that I outlined that does not violate either the wick to tail or highest open or close to lowest open or close standard deviation of three so notice that so this is in agreement with the rules it's inside the dealing range from here to here it runs Above This short-term High where buy side liquidity be resting so it runs up into that now because we have the elements of price and we fed out what we're looking for in terms of the range where where should we be you know scanning or stalking for this very specific uh price range that we're going to be trying to trade on we've already done that here so now I can take this off and clean the chart up even more here and now it's just a matter of moving this to the Kill Zone which is 2:00 in the morning now obviously this would all be done before the market starts trading and creating all these candles in here this is what you would have beforehand and then you project it up to 5:00 in the morning and again this is rooted on the 62% retracement level and this is 79% retracement level 79 is outside of the imbalance notice that see that so what we could do is go over inside this range what PD array it's a premium array is in agreement with this optimal trade entry price range and inside that time window of the London open what's this you have a Cy in the form of a fair value G right there it breaks lower after running a short-term High it breaks lower we have an imbalance near the upper end of the hourly imbalance which is that pink shaded area so we can take that off that's been Incorporated here and we know that the Market's drawing higher into a optimal trade entry here and also the lowest band or level of that optimal trade entry your 62% retracement level what agrees with that lower end so we have the optimal trade entry a run above a short-term high this candle's High here comes in at 98888 the high on this candle comes in at 988 seven okay so it's one pipet below you're going to be doing five Pips below because you got the factor in the spread if you're looking looking for this level to get in ideally that's the lowest easy objective for a premium array you would be five Pips below that price level so it would be 83.8 so let's do that I know I could just as easily just type that out right 83.8 so that would be your entry on a limit okay now using this once you have the the range you're looking for for optimal trade entry your entry for limit purposes because you want to sell a little bit early because the spread has to be incorporated we're using 5 Pips spread and we're allowing for this much movement here now if you're entering with the premium array when bearish after it's ran up into all the factors that I've went through from top down you're going to use a 25 pip stop loss it'll be a 50 pip stop loss if you use the alternative entry which I'll show you again in a second so 25 Pips plus 83 so 10 would be 93 103 so 108.9 for all right so that would be your risk on the trade there okay so we can take this off we have framed the idea here and that is the risk during the London open Kill Zone entry and what we're going to do now and again this would all be done before the price even trades up here while it's all doing this okay now you're going to take the Asian range and do standard deviations to the downside you're going to get both measurements you're going to get the wick to tail and you're also going to do 100 Pips so this is your entry at that level there so 83.8 83.8 and that should be 100 Pips okay and that's the range that we're looking for for best case scenario on this model okay so 100 Pips from entry this is the rejection ction block remember that dash line from the weekly and notice how it reaches into that old rejection block with 100 Pips right there that by itself my friends and neighbors is very very tight in terms of clustering if we look at the price level here 86 even and it's 83.8 down here that's the low is that less than five Pips yes it is friends and Neighbors so now we're going to go into this measurement on the bodies of the candle the highest up close or opening to the lowest opening or close okay I just want to double check the Clos that candle 679 open here 679 open 67 9 close 67 9 okay so that's the the actual range now we can go back out and see if there's any standard deviation that lines up closest to that 100% projection in terms of the model and a standard deviation within five Pips all right so we have 1.08 91 that one is just in my mind a little not it's not that good cuz it's over five Pips we had the rejection block which by nature is what we look for to trade through that so what are we doing we're expecting it to trade down below the rejection block so what would be the next stand deviation below the rejection block with volatility being what it should be in the direction of our weekly expansion we're looking for it to trade lower we're not trying to limit the weekly range to 100 Pips we're anticipating a Target that all these things I've taught you align with the next objective would be 1.08 81 and a half so that level there we'll use that as our objective and we'll change that to dash line okay and I'll thicken it up cuz I want it to be much more pronounced versus this rejection block now let's go back out to a 15-minute time frame so we have price trading into that level here on the sixth so Tuesday's trading Wednesday's trading it trades into it there and then the rest of the week we consolidate and then once more down in there so we have 100 Pips from entry here clustered with a standard deviation 9 so this particular day right there you're getting your 100 Pips on that move now you're going to aim for this obviously but your target fills sooner because the model says once you get 100 Pips you're out you're done does it move much more than 100 Pips from your entry up here no so you going to lose sleep over that I wouldn't now if we look at that in terms of the day of the week here is Tuesday Wednesday and you have to be out of the market on Thursday at New York open it went a little bit lower there that day but and they had this reversal and it was before New York open see that so let's go back over here and let's assume for a moment that you either missed this entry up here or you want to use this model I'm showing here which is the European open so there's midnight so now we're going to use 2:00 in the morning there's 2 o'clock in the morning the opening price uh yeah I'll just use this one because we're already done with it opening price there so 2:00 in the morning opening price you want to be a seller above that opening price but you have to be a short seller on a stop one pip below the Asian uh Asian range like that sound effects all right so we have what is this here get that out here so midnight Midnight I'm sorry midnight to 8:00 Asian range low right there okay at 2 o'clock in the morning right there your order cannot go in to sell on a stop until after 2 o'clock in the morning so after 2 o'clock in the morning you're looking for the market to create a short-term rally which we're getting here so once it starts the rally and it trades above the Asian Range High over here once that occurs we're having what Market protraction or Judas swing so you may be fearful how far can it go I don't want to get into it and it stops me out okay like if you don't trust this part of it which is in my mind the better way of doing it but I understand some of you want confirmation so after 2:00 in the morning you're waiting for a rally to take out the Asian Range High once it does that after 2:00 this is the the time window element so time is important here you're looking at at 2:00 you're going to wait does it start to Rally above the Asian Range High I don't have the Asian Range High in here but you obviously know it's above the as range low so it starts to Rally so right away we can then put a cell stop one pip below the Asian range low now if you're going to use this as your entry technique there's nothing wrong with it because you're actually you're selling weakness once the move has already established the intraday high so we're going to say that's uh let make sure first it should be 64 and A2 that would be your entry want to stop right there so below the Asian range look so you are not trying to guess how far it's going to go up you don't care but should your stop be filled you have to use a 50 pip stop loss so you'd get in on there and then you would 10 20 30 40 50 should be five right there so here's your 50 pip stop loss so you're selling short scrunch this up so you can get a visual what's actually occurring here hope I haven't lost you it's rallying at 2 o'clock in the morning you're waiting for it to Rally once it takes off the agent Range High and let me just put that in now cuz it'll make better sense now that I have it dressed up like this once you do this on your own charts it'll be much more meaningful to you because you'll be able to put the um price action axis and time you'll put the charts the way it looks nicer nicer to you instead of how I have it I know what I'm looking for but this might not be so aesthetically pleasing to you at the moment but I promise in a second it will that would be nice and then the Asian Range High here after 2:00 right here you're waiting for it to Rally above the Asian Range High once it does that you're putting a stop on to sell stop as the entry so you're not really buying anything and putting a sell stop or to protect anything you're placing a sell stop at that price level once this Asian Range High is taken out once it trades above it it's it so you have to wait post 2 o'clock in the morning here Asian Range High is taken out you can put a sell stop down here that way you don't have to guess how far it's going to go up and it'll only put you in once it starts to go down once it breaks the Asian range low which it does here you have a 50 pip stoploss you're filled right on that candle right here where you should be let's see let's see what the low is on that 62.3 yeah you should I mean depend on what your broker is and if they're fickle they may not fill you there but you get filled here for sure and and once that fill is done even if you got filled here you're not even getting half of the uh stop exposure with this retracement higher it spends some time in here but you're sleeping you once you put your order in you put your stop in and your limit order in down here at 100 Pips you're done you just let it do what it's going to do it's either going to stop you out or it's going to hit your objective down here now you can put two orders in you can put one short on a stop selling at 10965 4 with a stop loss up to uh 11044 so that would be your your 50 p 50 pip stop loss excuse me and then one that one contract or Lots St or lot whatever you're trading mini micro whatever would come off at 100 Pips and then the second order so you would place two orders CU that's what this model is calling for your second order you're getting out at 50 Pips so you're going to take 50 Pips off on one of the standard lot micro lot mini lot whatever it is you you're using and then you're holding the second one till it gets down to hopefully 100 Pips so both of them would have been bu and you can see this was the result so it fills you here you never even make it to Thursday but had it not filled it on this drop down it would have happened here if it wouldn't have happened at all say it Consolidated longer you would have been filled here on Thursday early morning before New York open and you never would have suffered any of that draw down back into and maybe you know even stopping you out now once you move 25 the way you do your stop loss it's real easy to remember this by the way my stop loss protocol management the trailing stop- loss is 25 5075 okay it's 25% of what you expect to see in profit if it starts to see that like right here your stop loss can drop 25% if it drops down in your favor and you're making 50% of your expected profit objective your stop- loss drops 50% and then once it drops to 75% of what you're expected to make in your profit your stop has to be at break even it never ever ever comes close to break even but that's the protocol for stop- Loss Management okay so I've l L Al taken you through model number two I broke down how you could have applied it to this actual event we called Euro lower I gave you a very specific element of entering on the fifth based on the fourth's commentary this movement up in here that was that hourly imbalance let's go back up to the hourly and this one will be done all right and right here go back and listen to the commentary on the fourth and you'll see me refer to how on the 15-minute time frame I believe it's what I was looking at I said that we were likely to go up into that and it's based on the hourly so one of the things that I know some of you want me to do is be highly highly highly detailed about everything and why I'm outlining it uh the reason why I'm not doing so much of that when I'm giving the commentary number one the videos will be very very long and two there are some of you in here that are just ba basically parting what I'm saying because you're selling my analysis as your own so I'm not providing you all of that stuff to make you look even better and I know some of you might not like that that you aren't doing that but you're like oh but you're you're you're keeping it from us I'm not keeping anything from you these are the things you're supposed to be doing anyway I promised in the commentaries that I was going to point to where the Market's likely to go I hint at where it likely could draw up into or down down into to set up another setup to go where I'm pointing to so I'm already doing all the leg work for you it your job to go in and do the things like I just did here using model number two okay so hopefully this has been insightful to you and until I talk to you in model number three well I can't really say that I mean think about it um I'm going to be doing each one of these once a month so the next one we'll do um we'll do it the second Saturday of May okay so the second Saturday of May let's look at that what that would be here may Saturday the 14th of May that will be when I do model number 3's algorithm lecture okay so I literally walked you through the components what you're doing what it looks like why you're why are you doing it this way um what are you looking for step by step taking you right into the chart it absolutely works it's very very precise it's right out of what I explained and it's it was explained years ago so I there's been some delay you notice that it ain't like oh well you know we're going to find something that works no I just told you something this Monday and if this would have been your approach if you want to be a short-term Trader you don't have to be in front of the charts the whole time monitoring babysitting it you can apply something like this and it doesn't have to be just this you can tweak it and fine-tune it with other things that you have grown accustomed to liking and drawn an affinity for with other tools and other approaches and what you're looking for for targets and such and basically make it your own so this was my submission for model number two for algorithmic Theory and actually taking you into the chart and that's see what we'll do when we do model number three