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ICT 2024 Mentorship Lecture #10 August 16_ 2024

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e e

good morning folks how are

you give me a second

here stupid OBS is

uh for the folks that use OBS for live

streaming the window captured that I try

to use it never it never populates the

chart so I'm not

sure why it doesn't do it but fights me

I'll go over these levels in a moment

just give me a second make sure the

audio is coming

[Music]

through audio

check audio check audio

check all

right all right so anyway good morning

hope you're all doing well

so yesterday we had a a short

session and I had the a meeting and my

wife texted me don't forget to do this

and don't forget to do that so it was

kind of distracting yesterday but uh

I'll have a

review with my

son most likely this evening that'll go

up on his YouTube channel

tonight all right so we have the NASDAQ

we've had a really nice run

up for this week you can't hardly see it

here but that is the uh it's two levels

it's the upper quadrant of yesterday's

opening range

Gap I'm sorry opening range it's the

upper quadrant of that and then this is

the opening range Gap High uh yesterday

because I was doing too many things at

the same time during the live stream and

trying to communicate with my wife and

text above above

me she was running out the house so uh

had I had a lot of things going on that

distracted me so in in advance so that

way we know going forward If Ever I have

something going on during the times that

I would normally be live streaming I'm

not going to live stream it's it's just

not enough uh bandwidth for me to work

with in when it's such a sh uh span of

time very distracting but nonetheless uh

the this level is it's actually two

levels here it's the upper quadrant of

yesterday or Thursday's opening range

okay and I'll show you what that is in a

second but it's also 20% of the weekly

range so that's TGIF so we have the

market trade and reach

down over

here all the way down

into this level here which is both the

upper quadrant of yesterday's opening

range that means it's the 9:30 to 10:00

range whatever that is you measure that

you get the midpoint upper lower

quadrants and then you

have the uh 20% retracement of total

weekly range okay and you can take a

second and load up your weekly chart for

NQ for September's contract take your

FIB draw it across the highest high and

the lowest low

and uh mark it with the the Fibonacci

levels

here it would look like

this

okay 0.75

0.25 that's for quadrants and if you

want to do it on the TGIF I always just

toggle the the F the five here off

in there and that way it'll show the 20

and 30% respectively so it would look

like this that's what your fit would

look like not that it's not that I'm

anchoring it to anything right now but

you draw that from the low up to the

high because it's an up close it's an up

we so you draw from low to high that'll

give you your 20 and your 30%

respectively I'll do it tonight as part

of the exercise that way Caleb

can learn how to do with this as well

and you'll have the benefit of seeing

what it's what it's like and what it

looks

like but there was two levels there it's

the upper quadrant and it's the 20% TGIF

or 20% of the total weekly range thus

far not to say that it can't make a

higher high on the week I'm just saying

that usually as I mentioned on

Monday this will also be in the review

as well Monday's trading I mentioned how

we can use the previous week if TGIF

doesn't form on the

Friday of week of

then when you carry over to the next

week on Monday's trading you can look

for it to 20 to 30% and you'll see that

it did that very thing on Monday as

well but just your nurses know that that

that's what will be part of the review

also some of the technical things my

son he asked to show what it is that I'm

asking him specifically to do so that

way he can more or less mimic it each

day and and at the end of the week so

you'll also have the benefit I've seen

as in addition to

him and there's the TGF 30% of the range

so if I was to take it like

this I did

this you can see it's the TGF 20% it's

just me drawing a line it's not it's not

an indicator I'm sure somebody over at

Lux algo will probably create

it make sure you put my three letters in

the name of it so the uh

the uh the Confluence of that and then

trading down to it at uh almost N9 o'

it's inside the

macro so I'm looking at how we are

behaving here so far it's a little

unorganized at 10 o'clock we have a

medium impact news

driver so there's been a lot of upside

delivery so it's reasonable for it to be

trading down like

this I'm going to maximize this just

this chart here

you may be asking yourself wow this is

stuff that you look at on a day-by-day

basis yes every time there's an opening

range or opening range Gap there're two

different

things the um if those levels have not

been completely used that means at least

explored tested traded to repriced

to I carry them over to the previous day

from the previous day I do that for

three days okay so that's for your notes

as well so every opening range Gap if

there is one I carry that one three days

in the future and I use it as a look

back as a as a means of key

levels very very very influential in

terms of uh price delivery how it reacts

and the wonderful setups form around

them the uh the portion of yesterday's

opening range Gap

is below all of this this is the opening

range Gap

high in other words where

we settled the previous day not

yesterday so that would be Wednesday and

then when we opened up trading on

Thursday that's these two levels here so

that in itself also has a range that you

can do quadrants on so you're going to

do this level to that level and again

that's not ERS Theory okay not going to

see anybody talking about opening ranges

and quad quadrants

within soon as soon as I start saying

things like you know a quarter level a

quadrant you know dividing into fours oh

right away oh yeah that's that thing

quarters Theory go and go and explore it

you'll see that that is not what this is

but because we're we're not even near

this at all right now I'm not interested

in it but should we happen to trade down

there should it happen then I'll I'll

plot the uh the quadrants on that and

they will be at that time pertinent but

right now they're not so where we opened

yesterday and where we traded to in this

in this case the opening

range is the first 30 minutes that's

9:30 a.m. eastern time to 10 a.m.

eastern

time in my haste yesterday in my

distraction I typed out these levels

here and you watched me do that in the

recording uh I did not include the word

gap okay um um The Gap is the difference

between the previous day's settlement

price and where regular trading or

regular session hours begin trading

that's the the Gap the opening

range is how far price travels after it

opens at 9:30 to 10 o'cl so if it's up

or down movement whatever that is you

measure that and the same thing you do

quadrants on that that's not quarters

Theory okay

so it's not it's not pivots it's not

anything like that it's not W off it's

not Elliot weave it's none of those

things so so far like I said we're a

little unorganized in here and I think

the the cleaner price action will start

probably maybe 15 minutes going into

uh 10:00 and then into that macro 950

10 10

so I'm just relaxing trying not to have

too much of a an opinion right away as I

want to see what we're doing ahead of

that Medium impact driver consumer uh

confidence or whatever it is sentiment

isn't it interesting to see how it

reacts off that previous days opening

Range

High see it King off of it

here and King off of it

here and the upper quadrant it's king

off that also in addition to it being

the TGIF 20% level okay so these are all

levels that are written on my notepad

Okay so I have a

notepad the pages that

flapping that is what I have written

down if I don't have a notepad with me I

will have a screenshot of my notepad so

that I can pull that up on my phone next

to me so one of the other I'm looking at

that or I'm looking at the actual pen

comment and they're just simply the

levels and I'm abbreviating everything

you see here I don't write all that out

I just write down like number eight 15

know what year I'm trading in and then o

r that means the opening range CE

consequent cement it's the midpoint

that's the highest high and the lowest

low of the first 30 minutes of trading

yesterday don't be confused it has

nothing to do with today's TR trading

because the price hasn't booked in these

levels yet not all of them it's done

this one and this one but they have not

explored or delivered to the consequent

encroachment or the lower quadrant or

yes today's opening price okay

so I'm looking to see if we can make an

attempt to get down into that at the

very minimum consequent encroachment

which was which is here okay so all of

these things here and the actual levels

that you see highlighted with the

annotations on my chart and the new day

opening Gap from yesterday's formation

at 600m and the differences of 5 PM's

closing settlement price which you know

is New Day opening Gap those levels are

on my notepad but teaching my son and

you having the benefit of learning this

these are the things that I have on my

chart or not on my chart but on my uh

price list of key levels that's on my

pad so that way I can work with a naked

chart so when I have a naked

chart I know what levels I'm looking for

but in the beginning you're not going to

you're not going to fully appreciate or

understand neither will he unless he

starts putting them on the chart now you

may never want to go to

um keeping a a chart completely naked

with nothing annotated on it I prefer it

because it's it allows me to be flexible

that way my eye won't let's be real I

mean I'm I'm a human being like anybody

else and if I see something on the chart

and his price is moving to it the

natural order of things is is it going

to go to that level and trade through it

or is it going to react and give a a

response and you know retrace away from

and if I don't have that line on the

chart it keeps my focus on what is price

actually doing and then I'm constantly

referring to like when you're driving

your car hopefully you check your side

mirrors and your rearview mirror you

know periodically every every now and

then as a commercial driver they tell

you to keep checking your mirrors and

you don't have a rearview mirror but you

check your side mirrors all the time

because you got to keep a view of what's

around you you're driving the vehicles

outside of your own vehicle as a a

commercial driver well as a Trader and

watching price action if you're only

looking at one thing okay or if you have

a distraction like I don't like when my

wife talks when we're driving because

she'll talk with her hands and my eye

goes to her hands it's very distracting

or she has this little flash on the back

of her phone when there's a a text or a

phone call it flashes and I every time I

see it I want to throw it out the window

so I have to have very very few things

on my chart so it's very hard for me to

try to communicate clear-headed

when there's a whole lot of these types

of annotations on my chart when I'm

teaching or showing examples but I get

so many times a reference to hey you

know can you show us what's on your

notes like what are the levels that you

have on there what are you what are you

writing down it's just this kind of

information okay and it's a couple other

things that I'm never going to talk

about but they're not going to be a Make

It or Break It or a success thing for

you okay it's just personal things for

me that I want to have you as a reminder

to myself for this individual trading

day that individual week that are not

even that important for you they're not

they're not secret recipe ingredients

that causes you to Make It or Break It

okay this is I'm not making them known

to you and that's me being honest I

could tell you that this is all I have

on there and I would be lying then but

there are other things in there that

don't have any bearing on what's going

to make price go up or

down so that's the reason why I tell you

I don't want to show you my notepad

because there's a few things on there

that I want to keep private to

me so we've had a return back into this

small little Gap in here all of this is

efficient because it's back and forth

overlapping each previous range then we

have this small little Gap right there

see

that I'll annotate it with just the

lines because I don't want to be

monkeying around with the

uh the rectangles they usually fight me

when I'm on live stream so I'm just

going to draw it out like this it's uh

less

[Music]

painless so as you recall on Tuesday

when the market was trading one-sided

and it wasn't giving very much

retracements it just kept pumping and

pumping and pumping uh and I tell in

that live stream I say that you know

when it's like this can I trade it yes

but it's going to require a whole lot

more things that are going to be

plaguing me with new questions and

people worrying me and it's going to

cause confusion for my son because

they're too advanced but there are

things that I can do obviously as you

watched yesterday there was small little

fluctuations both up and down that were

tradable

okay neither of them or any of them

yesterday were things that I'm trying to

teach him to focus on and to prevent him

from having a lot of

hardships trying to do things that you

know he doesn't have the skill set to do

yet and most of you as viewers don't

know

either when I'm promoting some

participation in the day and if it

starts running in

one-sidedness then I'm not going to try

to push that for him because it's

outside the boundaries of of a skill set

I did take a short yesterday I will

include that in the review so that way

you can see it I did a turtle suit I

traded like one and a half handles away

from the high and short and I took one

partial and then it came back and

stopped me out on the balance so on 15

contracts I was able to peel off five

and then Trail the stop and then it came

back and and took that out but it was

engaging with the things I was leaving

you with yesterday looking for some kind

of an afternoon retracement the the

lunch macro so uh you'll have that also

in the

review you're looking at this over here

probably wonder what that is and

essentially this an inversion fair value

right in

there

I'm I'm watching this Gap here I'd like

to see that stay open not even retrade

back

to if it does that and we start to break

below this low here the liquidity

resting below here and maybe an

exploration down into the consequent

encroachment or midpoint of yesterday's

opening range notice it's not the Gap

what we're measuring here is let me let

me annotate it like

this so you can for this purpose you can

take a screenshot of this this is for

your notes it'll be easier for you to

see

it that range in other words I'm

annotating the high level the lower

midpoint lower quadrant and then the

opening price yesterday at

930 this is the highest high it Formed

at 10:00 yesterday so this range is the

opening range there is no 15minute

opening range I know it's being banded

about by

uh another YouTuber but uh I can assure

you there's no 15minute opening range

it's the first 30 minutes so this

is opening

range

or first 30 minutes

[Music]

trading

9:30 a.m. eastern time to 10:00

a.m. eastern

time okay so that way you can take a

take a screenshot of that that we have

reference of what that is and why I'm

annotating it and you want to have these

levels going back you you want to have

three days worth of it basically what

I'm saying so what you're saying is

today's yesterdays and the previous days

I'm not so concerned about the other

levels I'm not I don't have them on my

notepad but you can clearly see great

away how fast if you're doing this you

could have a very very busy chart so

that's why I keep be clean I like to

keep it you know on my notepad so that

way I know what levels it's probably

gravitating to and then I don't have to

have all the stuff on my chart because

right away it would look like you

know just think of someone that has all

kinds of stuff all over their charts and

that's the that's a retails uh Quagmire

all right so we came back over to

without the Gap here I don't I didn't

want to see that so we're not the not in

any position of and expecting a

directional run

yet

951 so we're inside the macro

touch the Fe got there once

more while we're waiting for that 10:00

number I'm going to do the same thing

here that I did here so that way you can

take notes as well on

this this is where we settled on

Wednesday on day session and this level

here is the opening price yesterday so

the difference between that

is that is your opening range Gap

[Music]

okay and you can run you know quadrants

on that as well but we're not needing to

do that at the

moment so that way there's two two

frames of reference there and they're

very specific elements in ranges one's

an inefficiency as a gap one's an

actual traveling from an opening price

at 9:30 to whatever the extreme high or

low is words if it opens at 9:30 and

starts trading

up the highest high formed at 10 o'clock

to the 9:30 opening that is your opening

range if it opens at 9:30 and trades

down the lowest low it forms at 10: a.m.

to the 9:30 opening that is your opening

range

Gap I'm sorry that's your opening range

rather the Gap is the actual difference

between previous regular trading day

session hours that's determined down

here you're going to be using that

okay you get the settlement price on

that and then where you open at 9:30

first tick first print and then that's

your opening range Gap because there's

no trading when you're looking at like

that perspective and I'll show you what

mean this is where we're trading here

and we started trading at

930

there so that opening Price Right There

is the first trade first print on that

down close

candle watch how the chart

changes see the Gap that's that opening

candle

here let me take this vertical one it's

not

helping I use it just to uh frame a

local point for matching all these lines

up annotate so that we can follow along

but this right here that closing price

would be

called the opening range Gap

High because that's yesterday's regular

session settlement

price and then where we opened down here

that would be your

opening range Gap low because it's lower

than the previous day's settlement price

but I'm not including it here because I

went I wanted to go through it this way

and annotate it and audibly talk about

it but if I add those levels it's just

going to be much more it's going to be

harder for you to file along for what I

had in the charts here so you can

clearly see how fast this can become a

nightmare for managing levels and and

referring to certain things but having

them on a notepad next to you keeps

everything nice and organiz

and when price is trading above it above

what any one of these particular levels

remember you're going to have some

levels from the previous day and the

previous day so you're managing a whole

lot of levels that when they match with

time and the market structure what it's

implying and if you have a narrative

what it's likely to do um as I mentioned

yesterday my interest is I want to see

it get down to the opening range Gap

high that was that was what I was

wanting to see some kind of a an attempt

to do that and even trade higher after

that as I said I mean we we talked about

it on Tuesday how the Market's likely to

go higher we looked at on the daily

chart but that doesn't mean get in any

anual time intraday you got to have some

kind of a a frame of

reference let's go back to electronic

trading hours

this is a very busy week and yesterday

was like everything coming together all

at one time I have both my nieces living

with me one's getting ready to go off to

college next week and we have a lot of

things going on and the younger one my

wife and I are in the process of getting

custody of her so that way she can be

enrolled in school and it's just so many

things all at one time yesterday was

just I should have said no I'm not going

to live stream that's what I should have

done but you'll see that

uh the things I mentioned on Tuesday's

live session where it's just one-sided

and doesn't have much of a fluctuation

in price up and

down I prefer not to trade those days I

mean obviously if I'm in it I'm G to try

to M you maximize and milk it okay but

there isn't anything I can do once we

start looking at the marketplace and the

830 news driver had already passed for

like an hour so and I don't expect Caleb

to know how to trade those reports I in

fact I've told him they avoid

them wait until after those uh those

reports hit the

market let's look at 60 Minute chart

this was yesterday's trading 7 a.m. all

one-sided okay this is exactly what I'm

referring to on Tuesday's lecture very

very very very difficult for a new

Trader to see how to navigate that and

to avoid the inevitable um if you try to

always chase it or engage those days you

don't know how far it's going to retrace

you don't know if it's going to retrace

you don't know how far they're going to

keep pressing and higher

or lower if it's going the other

direction so when it's like this this is

exactly what I was referring to on

Tuesday it's better for me to try to

just sit still because Caleb's not going

to know how to do what I'm going to show

tonight uh you can see the executions

you can see where I'm getting in it was

very close to the the high not the high

of the day but the high in the lunch

hour getting ready go into the U the PM

session during the lunch hour which is

classically a 2our period so when I say

lunch hour it's not just 60 minutes it's

11:30 a.m. eastern time this is the

stuff you write down in your notes by

the way 11:30 a.m. eastern standard time

to 1:30 p.m. Eastern Standard time so

whenever there's a run

higher whether it's protracted in one

big move like this with no or little

retracements or if it's staggered it

goes up a little bit comes down a little

bit but this keeps going up into the

lunch hour of 11:30 it's reasonable to

to anticipate a measure of retracement

so identify the easiest relative equal

low or single low in the run up after

10: a.m. that that that has to be after

10: a.m. so you're not really always

looking for something before 10: a.m. so

10:00 a.m. or later whatever relative

equal lows or singular low the lunch

macro will repic back to that even if it

wants to go higher don't take my word

for it go back through your charts

you'll see it's there every single day

and the reverse that same logic if you

didn't catch it you can Rec you can

rewind it when you watch the

recording those elements is just simply

reversed if the market has dropped

whether it's staggered and you know

where it goes up down up down up down

but just keeps making lower lows into

11:30 at 11:30 start hunting setups that

would take us up to the short-term high

or relative equal highs that formed

after 10:00 a.m. and that's the lunch

macro okay it'll retrace back that to a

minimum there's other little subtleties

that I'll add into the book but that's

enough because a lot of people don't

understand what the lunch macro is so

I've I've now taught that to you um but

there are other ones that you can use to

capture larger retracements or reversal

days and or where you pyramid make it a

bigger

position but uh yeah this is just one

one one directional movement and I would

rather not try to participate in that

teaching my son but just to put my thumb

in the eye of everybody that was in

other people's live stream are saying

ICT really blew it it was painful

watching that you have you have no idea

what I was managing I was managing three

people texting me and uh looking at the

clock saying okay I'm I'm G to wait for

this and wait for that and plus it's a

one it's a oneway ride on the outside so

if if I'm aiming to teach my son you

know I'm not trying to get him in on a

day like this this is this is the stuff

that is going to hurt him but it's the

thing that attracts everybody that's the

flame and if you're a moth and you want

to try to fly real close to that you're

asking for

it all right so here it

is 10 o'clock we have really a just a

big block of short-term highs and lows

so we're running the relative equal

highs if you don't mind I'm going to

take this off now you

been showing what that is now

if you can if you watch yesterday's

recording it's not a long one it's

rather short but there are small little

fluctuations in there that were referred

to as key points to see watching where

price would draw to how to react off of

them and when we do live streams next

week I'm going to be talking a little

bit more about entries

not for the sake of Caleb pressing the

demo entry not to inspire him to trade

for a combine yet it's to get him

thinking about how

to well if we know where the market

could potentially draw

to and then now what should we be

looking for for practicing tap reading

like how

to how to look at certain elements of

price action and and determine whether

or not there's something there that

would present a catalyst for Price

moving higher or lower and once we go

through next week the following week

will be things that are are predominant

focusing on barriers to where the market

May struggle where the market may have

difficulty passing through and what

would cause a deeper retracement on an

underlying directional bias or a draw in

liquidity so it'll help you frame this

form of uh of normaly that doesn't feel

normal when you're in a trade especially

if it's one with real money any tiny

little retracement against your

underlying position if you don't have a

lot of experience if you haven't been

doing it very long or if you're trading

with

overleveraged uh size like you're doing

the maximum that you can afford not that

you should be able to afford that much

but if you're panicky or if you're

anxious about every tick that goes

against you or if it's if it stalls a

little bit and stops moving in your

favor but it has moved in your favor you

have open profit

that sensation of oh please let this

thing just get me out of it like I want

to get out of it it's very exhausting so

knowing what to look for and anticipate

that and that way when you're watching

price action those are the things you

want to annotate in your chart after the

fact or as they happen so you want to

fill in those

those gaps of just between screenshots

for your Journal you want to really

record your observations of what it felt

like for you I mean if it was

very hard for you to trust that a move

was going to pan out based on something

you see in the chart the quickest way

for you to desensitize yourself to that

is to annotate it screenshot it and

record it because what you'll see is is

you're referring back to something that

many times that you started believing or

had a concern about that was outside of

what was taught so you're just bringing

in your own irrational fear you're not

you're not really you're not looking at

at at things objectively and it's your

infancy or your inexperience that's

leading you by emotion and

fear so that'll be two weeks from now so

we'll talk about those and then that

should finish our month of August and

then we can go into actual um entry like

what it looks like to put orders in

so what we're seeing is it's retracing

back into previous days trading so the

difference between where we

opened here and where we settled here

that is your opening range

Gap okay so it would look like

this for those of you watch me do this

before in live streams and recordings

that's your opening range Gap okay so

we're trading up into that off of

previous day's opening Range

High now opening range for today is this

low up

to that candle's high right there that's

opening range so that would look like

this by

contrast a sec

okay that's the time and that's the

high okay so it's the low up to the

highest high inside of the time

measurement of 9:30

opening to

10 see the bottom month chart 10: a.m.

and the highest high and the lowest low

is what you're marking there low and

high so this is your opening

range and your opening range Gap is that

opening price here at

9:30 to previous days regular session

settlement price that's the

close you get that by the rth that's the

regular trading hours that's what you're

using that information for but because I

already know these rang just they're

they're next to me like I'm looking at

them I didn't want to draw everything

out because it's too many things on the

chart and I know some of you are just

you're highly critical you're impatient

and you're going to look at it it's

going to be confusing to you and you're

like okay I don't know what I'm doing

here and this stuff doesn't work I'm

going to go watch somebody else and if

that's how you feel I really want you to

do that like I don't want I don't want

anybody here that has that

mentality because frankly you don't

deserve to learn

it oh listen to him

you'll see or maybe you

won't so we have relative equal Highs at

the

opening we swept that into just about

the opening range Gap

high so these two highs here relative

equal highs lower to the right than the

one to the left trading up into that Gap

here

and we're going to drop back into

electronic trading

hours notice you don't see any of that

information here like how do you frame

that you have to use the regular trading

hours to see it it's just a way of

determining this is what you have to

have now if let's say for instance you

didn't have this function down here

electronic trading hours and regular

trading hours because for some platforms

it's not available it wasn't available

it wasn't anything that people would be

able to talk too okay but understanding

that element of time because it's time

then

price you would have those levels on

your chart

anyway so this here this line here that

I just annotated with the regular

trading hours for previous regular

session trading settlement

price goes all the way back over to the

previous day and where we settled

[Music]

415 so it's a matter of managing what

you're looking for what what makes a key

level

key what time is important what are you

trying to derive from that time that

makes that level key so all those things

are the beginning building blocks Caleb

for you to

determine your obvious draw draw on

liquidity it means the thing that's so

overwhelmingly obvious when it's like

that that's when you're anticipating a

price run that's when you would

eventually push a demo button that's

when you would eventually press a button

that would contribute to a trade for

your funded account combine and then

eventually when you get funded what

you're focusing on to take a trade with

that funded account and then eventually

get to the point where you can take out

a withdrawal and there it is you take

out money you fund your Live account

with a real brokerage

firm leave the funded account

entirely and then you've done it on your

own that's what that expects that's what

I want that's what I'm aiming

for take that off because I don't need

it and we have endg new opening Gap so

we just saw let me put it back on here

that's the that's the previous

settlement price but it can we it can

Wick through that so if it's going to

Wick through that it could go right up

into New Day opening Gap because it's

just about that you see that which is

the reason why you have to have these

levels either in a notepad referring

back to them periodically throughout the

morning or the afternoon session while

you're watching price anticipating

certain elements measuring whether or

not it has the ability to maintain once

it books to these levels or does it want

to just keep powering through and if it

just rips through them all then you got

to go out to a high time frame 15 60

Minute 4H hour daily what is it reaching

for what is it reaching for so there's

an old daily High we talked about on

Tuesday if you watch that you know what

I'm referring to I'm not going to De it

here but it's not necessary for that to

be there because if it's like this and

it has the endg right there that I'm

just going to observe and study the end

offg it doesn't need to touch it but if

it if it goes above pre settlement

price it's going to reach to that which

is we're basically you know St stating

the same thing it's just going to go up

just to another level

here I'm going to be with you all until

11:30 today

so no hurry for anything

very sloppy Ming so

far now when you say that ICT what what

do you mean when you say it's sloppy or

unor organized usually when I'm saying

it's either disorganized it's

unorganized or it's sloppy meaning that

it's really not showing a great deal of

conviction one way or the other even

though there's movement I'm not going to

I'm not going to argue and say there

isn't price movement here there isn't

anything clean that's so overwhelmingly

obvious which is the whole point of me

doing these lectures for

Caleb you're benefiting from seeing the

stark contrast between when you'll hear

me say this is really clean price action

and then when I do

that or in this case when I say this is

very unorganized or it's disorganized or

it's sloppy you want to take a

screenshot of this and the things I'm

about to refer to that kind of

differentiates it between that being

something that is not a very easy

navigation where you can get in clearly

see what it wants to react off of and

immediately run away from that go to a

specific level that's so obvious in the

chart you have so many things here that

are conflicting so

if if I have a u if I have a a barrel or

a bucket of of apples okay and I reach

into that bucket of apples and then my

sons each grab an apple and we all throw

the Apple up in the A and I tell my wife

grab an

apple which

apple or impulsively just going to grab

any one of them okay but what happens if

one of those apples are a granny smith

they're green and then all the other

ones are just a regular red one so if I

say when we throw these apples up you

can't open your eyes up until I say open

your eyes after we've done released them

in the air but your job is to only reach

and grab the green

apple we all throw the apples on the air

and then I say open your eyes and then

my wife opens her eyes up and the first

thing she's going to go to is look at

all these green I mean look at all these

red apples and then let's find the green

or she's going to see the green one but

her eyes are going to jump to the other

red

ones so what do you what do you have

there it's chaff you have you have

things that are drawing your attention

that aren't obvious versus okay close

your eyes I'm going to take the singular

singular green apple I'm going to pick

it up and when I throw it up in the air

in front of you I want you to open your

eyes and catch it you see how easy that

is that's the benefit of looking at

Price action that's

clean it's very very clean there's only

a few elements that are in the present

price action not that there is that

characteristic right now that's not what

I'm saying I'm saying by contrast when

you have a lot of this in

here okay back and forth like

that there are levels that I've shown

you here that it's respecting it's

drawing to the levels that we have here

but is it obvious which one it wants to

respect next and where it's going to go

to next that's what's missing right now

it may clear up once we get through the

first 30 minutes of 10:00 hour so post

10:30 we might get something entirely

different in terms of the delivery price

but right now nothing in here is

terribly exciting whether you made money

or not if you've lost that's the reason

why if you made money I wouldn't build

too much around that

we did in fact trade down to 20% of the

weekly range when we traded here which

overlap with the upper quadrant of

yesterday's opening range so when

there's a Confluence of those types of

levels what happens if you

have the

previous two days ago opening range or

opening range Gap level in addition to

one or two of these elements here and

there's a PD and it's happening to form

in a macro time first 10 minutes before

the top of the hour to 10 minutes after

the top of the hour then you probably

have a really really good reaction

coming so then all you have to know at

that time is where is the smooth are in

price where is it likely to draw to on

the very short term and that's the

beginning block building blocks of

reading and and tape reading reading

price not for setups but to build this

Rapport between watching candlesticks

form removing the concern about the

chaos that you're watching and thinking

how am I going to be able to read this

how am I going to be able to determine

this you're just looking for the obvious

and if

it's a lot of filtering in your part to

do that you're going to see not in the

beginning because there's going to be

days where like for instance like

yesterday okay I had people watching me

I'm quite certain that they were like

man you know why isn't he part of this

why why he why he doing this and why he

doing that you're forgetting that I'm

trying to teach my son how to go in and

look for easy obvious setups that his

scale level that's what he's supposed to

be focusing on now not me getting out

here and just trying to impress people

that's not what this is you'll be

impressed in a little while a couple

months but right now we're just focusing

on what my son needs to focus on and

you're just being invited to the launch

and some of you don't deserve to be

here so here we have what I was

referring to it's a lot of

back and forth back and forth back and

forth but what is it working off

of the previous opening Range High see

that down into 20% of the weekly

range rallied come back down

in rallied at

930 trades back down in Touching one

more time opening Range High once more

here relative equal highs everything's

jaing here trades back up into today's

opening range Gap that I highlighted and

showed you but is not annotated on the

chart here and the draw up into the new

day opening gap which it can sweep

through we do have relative equal highs

notice that right

here see that so there's a little bit of

liquidity

there and with all of this action here

the only thing that really stands out is

that volume and balce which we just

traded to on that candle and my eyes

I don't trust it I don't think that one

touched it again but right in here so we

could see it potentially expand up and

engage the liquidity right there so you

can have your chart look like

this and these are all the the simple

things that you're doing while learning

how to read where price is going to go

because if you don't have this part of

it down nothing anybody tells you in

terms of buying and selling what

indicators buy and sell none of that

stuff's going to help you have to know

with practice it could potentially trade

to this level for what reason real

orders that are resting in the

marketplace what I would have liked to

see I would have liked to seen it keep

the Gap open like we had yesterday run

lower for a little while down into the

consequent encroachment and had it gone

down here this is the actual level I was

going to point your attention to there

because it would have been like here's

con validation drop and then drop once

more so that'd be second stage

distribution and then down here would be

smart money reversal then something low

risk buy accumulation reaccumulation and

then send us up into that so that' be a

market maker buy model but we had this

uh all this business in

here

[Music]

for for

back into New Day opening gap for

today I saw a few people leave comments

yesterday about the the volume and my

advice is to listen to it through

headphones because I can hear it fine

and I don't need to the volume all the

way up so I if you're working in a Jiffy

Lube and you hear the impact wrench you

behind you or he you your surrounding

noise at your workplace I can't I can't

fix that for you get yourself some

headphones all right so we have

institutional order for entry drill

there the wick over top of new day

opening Gap so study that Caleb and see

if it wants a send price from what we

just seen here leaving this portion open

and see if it can push up in there and

engage that liquidity there

when you're watching

this observations things that you're

looking at every time you do a

measurement on delivery what does that

mean like we this outline there if we're

looking at something that might be a

catalyst for price to react off of and

where it may reach to you're not trying

to be right you're not trying to you

nail it down to the very perfect Turning

Point you're just trying to recognize

just like when someone takes you hunting

you've never been hunting before or how

do you track well they take you out

through the snow or in the mud and I say

look down here you see that and you'll

see a footprint you don't know what

you're looking at sometimes but the

person that understands it will say yeah

this is a raccoon footprint this is a

bare footprint this is a deer

hoof it's teaching you initially this is

what it looks like so that way every

time we pass one I'll point that out to

you because you start seeing it being

pointed out to you you recognize it

certain characteristics repeat not all

of them are going to look identical but

every single time you do it you're

getting another measurement of increased

understanding because you're being

exposed to it so when you have a

observation and it doesn't have to be

the ones I point

out whenever you're looking for price to

behave a certain way or you think it

might behave a certain way you want to

write down the

time the time you observed it and the

time it took to either trade where you

thought it was or completely close over

now the observation I pointed out here

buy B sell sign efficiency in that one

single little candle we're studying to

see if this Gap stays open any small

little portion of it is all it's

referred to it's better for it not to

completely close down to that it can but

it's better if it doesn't for what

purpose to leave some of that open and

then explore whether or not they're they

want to take this liquidity they don't

have to it doesn't have to be traded to

right now but every time you do this

you're getting a measurement on price

delivery so you want to see how much

time it takes from your point of

identifying it how fast it runs in your

favor or how fast it runs against you

and then how much time

it took to deliver where you thought it

was going to go and what that does it

gives you a baseline of how many

observations are you seeing each session

and in the beginning you're not going to

see very many of them Caleb you don't

know what you're looking for but because

of natural progression of just simply

doing it over and over and over again

each day not trying to press the button

not trying to be right you're not trying

to be profitable in your your

observations you're trying to build a

recognition

and repetition builds that recognition

you can't recognize the situps until you

look for them and don't be afraid of

Doing It Wrong looking at observations

and price and measuring all of these

data points will give you a Baseline and

you will see progress based on that

because in your journal every day when

you're done you want to have a little

tally of how many opportunities did you

watched real

time how many times did you do a

measurement on price delivery and again

in the beginning you're not going to

have very many of them and that's not a

bad thing that's not a it's not a knock

against you it's not some kind of a a

concern but it's a baseline beginning

point and in weeks from now you'll start

seeing maybe three or four each session

and then you by the end of the year

you'll probably see all kinds of them

and then what that does is when you have

a a collection of a dozen or so that you

can see real time forming you're to see

because of experience the things that

you don't have yet right now that you

haven't really focused on or hasn't been

made apparent to you that are more

critical to your understanding than the

things that you're holding on to right

now you're thinking certain things are

much more important and you're

constantly looking to satisfy those

concerns versus just simply letting go

of the necessity of being right or

wrong forget that that's that's not what

this this stage of your development is

about it's for you to Simply look at

Price observe elements and

characteristics that tend to do certain

things and if it's likely to do these

types of things how often can you

observe them without being proded and

pointed to saying here's watch this

watch this thing right here and if you

keep record of how many you're doing

each

time the experience Factor will kick in

and you will have a me it won't feel

like you've gained much understanding at

all because you won't be pushing buttons

and trading with money yet not even in a

demo but you'll be

observing that your ability the skill

set of finding the opportunity of seeing

when price should start at one place and

travel to the

next that's navigating price action

that's you understanding how price has

the likelihood not guarantee the

likelihood of performing a certain

delivery in price High higher or

lower and because you have no Baseline

to start with to determine how far along

you should measure your your progress

you have to start somewhere right and by

having a a documentation of how many

observations that you're recognizing

while watching price action just simply

tape reading and then weeks from now

when it won't technically feel like

you've gained much of an understanding

which is what most of my students feel

like because they're impatient and the

way you stem and Stave off that

impatience factor is that you're

measuring your opportunities that you

can observe in real-time price action

without any kind of help or

prodding and removing the element of I

have to be right to impress that or I

have to be right every single day or

it's failure it's that's not how that's

not how you're doing it okay you're

looking at how you will be able to

measure with data how many opportunities

are available and that you have

available by your own skill set that

will increase as you go further along

each time making a little bit more

deposit in your

understanding and then when you see the

data even if it doesn't feel like you've

gained much in terms of experience or

understanding when you start looking at

your first week of doing it and say well

I couldn't see much at all dad had to

point it all out and then a couple weeks

after that you're like oh I can see one

or two each session but I had five wrong

but I saw two of them that were right

don't look at the five you had wrong and

say I'm failing look at the two you did

right what is there that you saw because

that is your very first multiplier

that's your PD that's the thing that

your eyes seeing the other ones maybe

you just simply forcing because either

impatience or you just didn't see it and

that's that's okay there's going to be

moves that's going to move without you

it's not a big

deal but you correctly manage your

expectations

and the assumptions of what your

progress should be or shouldn't be at

that time and you can't argue with the

DAT that says this is where you started

and you had next to zero opportunities

that you identified without help then

one or two but a lot of them you didn't

see pan out and then what'll happen is

that that margin and difference between

the ones that you thought were going to

pan out and the ones that did pan out

they'll start equalizing they'll be half

and half that's progress it doesn't feel

like progress anyone looking outside

that wants to be critical they'll say

you suck you can't do everything or

you're looking at losers still like they

don't take losers okay I take losing

trades you've seen that I I can do it

wrong and you have to give yourself the

the ability to be flexible in the

beginning especially in the beginning

not to have all of this I have to be

right I have to do it correctly each

time because if you have that that

that's going to stunt your growth and

it's going to cause you to have a whole

lot more doubt

every time you do it and you don't seek

a gold medal every time you do it you're

not looking for that you're looking for

measured progress and the only way you

get that is by keeping data on how many

opportunities you study and guess what

if you're not going to study the chart

and watch it real time you're going to

have zero and then then you have no

progress right so that's what happens

when I have students that come to me and

they'll say I've been watching your

stuff I've been studying your stuff I

look at your stuff and I I I I I can't

make it work okay well how how are you

back testing show me your back testing

show me your log show me your Journal

well it's crickets because they know

they have nothing to bring forward to

say here's the proof I went through it

not five pages of scribbled that it was

just done just to say here's our

argument that's not that's not valid

that's not a valid argument we have to

you have to be months of this and you're

studying how many observations you

looked for this certain thing to pan out

in price and does it pan out how how

long did it take what time did it start

what time did it end and then by doing

that you'll be able to look at the data

and say this is how many times I started

learning this and I couldn't find it

then progress over a couple weeks then I

was able to find some but I was still

pick on them wrong and then a month

later you'll have the beginning stages

of Equalization where you have half and

half where you'll still see some that

work and others that don't that's a

really good mile marker for your

progress and then what happens is after

that the the times that you do it

incorrectly they don't pan out for you

they will diminish and you'll have

better

correct price delivery me uh

measurements of every time you see price

behaving a certain way it should do this

and not do that run here but don't go

here and see how long it takes for those

things to pan

out by looking at the progress that you

have doing it that way you have

something that statistic

statistically measured against a

baseline starting point whereas if you

don't start doing it and you're not

consistently trying to do it each day

you won't have progress you won't have

experience building in you and you won't

be able to reassure yourself and

encourage yourself because the data will

support that you are indeed getting

better at it even though emotionally and

psychologically and the fact that you

haven't made money trading yet because

that's what everybody wants that's what

the that's the real report card am I

able to make money with it well it's

unrealistic for you to expect that

you're going to make real money with it

in the first six months I've been very

obvious and and forthright with that I

don't I've never made any kind of

argument against anything less than if

you done any kind of study at all and

it's less than six

months I'm not surprised if you don't

find success in it monetarily MoneyWise

making money because you don't know

enough you haven't done enough

exploration in your own observations

what are you doing wrong because that's

the benefit of having price delivery

measurements where you're looking at

this is what I think price is going to

do right now and you're doing it in the

privacy of your own chart you're not

talking about it on social media you're

not trying to share it okay you're

simply just saying this is what I'm

trying to do I'm OB observing price

right now and I want to see does it

behave this way or not and if it doesn't

wonderful cuz that I can go in and I can

study what did I see wrong what did I do

wrong there do not say well that one

didn't work I'll pretend it never

happened because you know I didn't I

didn't push the button so it doesn't

make a difference that's the wrong

perspective wrong wrong perspective okay

you want to be able to see where you did

it wrong because that's where your best

learning is going to come from obviously

if you do it right you want to Champion

that in your Journal say I feel really

good that I was able to see this one but

I missed on these these didn't perform

as as much as I thought they would but

this is my takeaway from it I didn't

notice this or that this was my

indication that it wasn't going to pan

out and now that I can see it I I have

this information and new experience to

lean on the next time you hear what I

just did there you're not putting

blinders on saying oh I I didn't do it

wrong or if you did it wrong say I ain't

worried about that like people do with

demo accounts they'll open a demo

account press press press press press

and they'll show the 20 trades that they

have in Gold where they're doing 50 Lots

where they don't even have the money to

trade with 50 lots and there's 20 of

them okay and this was before everybody

was doing the 20 funded account you know

linking them together this just that was

every everybody thought that that was

everybody's uh success or

not and they're all

within two or three ticks of the same

price so they're just going in there

just buying buying buying buying buying

because they want to see a screen to

show on social media where all these

trades are making 6,000 8,000 $10,000 a

piece they're absolutely I'm going to

tell you something people that make that

kind of money are not rushing to social

media to show that they're doing that

they don't care they're living their

life and they're doing well so you don't

want to have that

inspiration to to draw your attention to

what is working only and avoiding or

ignoring the time so that it doesn't

work you want to focus in what you're

doing wrong at that

time perfect example right here here's

your fair value Gap that's where your

stop would have been hypothetically it's

not a

trait that would have closed it right

there so it left relative equal

highs it started with this candle right

there so your time would be

1022 it

moved to

1031 so it moved 9 Minutes in favor

other words it moved in the right

direction wasn't able to get above this

High

here and then at 10

37 it would have it would have stopped

out on that trade so that way you can

record that so now you have one piece of

data one data point say if this is your

first one you would record that so right

away you you actually have a very humble

beginning the first one you start with

didn't pan out that's wonderful but if

you don't have the right perspective and

trying to learn you look at that and

think well you know this is very dis

this this is disenchanting I'm not real

encouraged by this and that's the same

thing that happens when people get their

Live account or they pass their funded

account they're paralyzed because they

don't want to take that first

trade now we have this we have relative

equal lows taken here relative equal

highs here and relative equal highs here

where is it Jagged here what are we

trading into Now new day opening Gap

so now we can look at as an observation

here do we or can we see it trade above

new day opening Gap and then come back

down and touch it if it does then we can

measure that that's another time

delivery measurement where we can simply

study what price does with the

expectation that does it want to trade

above here and grav gravitate back to

here we're not thinking about well if if

I would have had 15 contracts on here

because my funded account company says I

can trade with 15 contracts and I would

have lost on 15 contracts being stopped

out right there that's what you're doing

you're looking at can you see what price

is likely to do and these are what the

opportunities look like can start just

simple things like this this is so much

better and

more profitable for your learning than

just going in and pushing a button or

chasing what price has already been

doing and just trying to get something

to happen because you want to be

inspired by that fake profit you want to

be inspired by the screenshots of

showing that you made XYZ amount of

money but you don't even know why got in

that trade that has to be something you

can observe and repeat and this is the

boring stuff that feels like you're

spinning your wheels it feels like

failing it feels like you're not doing

something productive because you're not

even you're not even entering any orders

but this is exactly what you

do and you spend time watching price

like this and it's on really nice days

it's fun when days that like like we're

having here it's a lot of give and take

back forth price action and price isn't

as clean whereas if you looked at this

run in

here we only have this Gap and that Gap

everything else Watch What Happens we

have this run here then it trades back

down creating that first fair value Gap

then the next candle we trade down a

little bit and then run Above So this

previous candle has a lot of that range

overlapped

here back and forth inside that range

now we're working off of this gap which

became what inversion fair value Gap and

rallies you could have used this one cuz

I was jaw buing about something else you

could have used this one as

a a measurement to see if it can trade

to the new day opening Gap from here to

there and you time okay from here to

there how many candles did it take on a

one minute chart so that's how much time

it took was there any heat on the Move

okay how much movement away once we left

see the bodies once we left it did it

ever come back down to take that low out

there

not before taking the run into that new

day opening

Gap and by observing these things and

don't be afraid to do it after the fact

like if you have no ability to watch it

live go back in and like for instance I

was expecting to have my son sitting

next to me yesterday too so that was

another thing that was irritated by

because he had to work so his job Chang

the schedule on him and we usually are

able to you sit side by side on

Thursdays and I didn't I didn't have

that opportunity so I was a little

perturbed by that it was irritating me

and I had a lot of a lot of other things

on on my mind at the time and a very

abbreviated time that I could spend with

you because I had to be off about

10:30 which I noted at the beginning of

the recording yesterday it wasn't me

saying oh I'm going to rage quit and say

I can't do nothing today it was already

predetermined before we even got into

it all right so now let's play Devil's

ad for a

moment let's say you did an

observation on this one here and you

tried to use institutional order your

drill I want to see if I can get

anything off of that PDA right it

rallies a little bit because you have

taken

uh on this one here could you have taken

10 handles out of that run yeah could

you have gotten 20 probably not 15 yeah

so if you're going to be doing these

examples what is your Thresh

what are you trying to do well if it's

es you're looking for five handles if

you can get five handles and hypo

hypothetically say okay I'm satisfied

with that I would be done and that would

be your observation that's your

measurement that one would be done and

then if it's e if it's NASDAQ you want

to have at least 10

handles 10 handles I prefer 15

personally because that kind of forces

you to look for a range that affords you

20 points or 20 handles from where you

think it's going to react to where it's

going to draw to so if you can get 20

handles out of it it's reasonable to

anticipate being able to capture 15

that's my personal filter like if I can

if I can see 20 I know I got a good

chance of getting 10 minimum or 15 which

is TP you know get a typical second

partial and

then if it can run the 20 great if it

doesn't I don't care because there's

always some kind of an opportunity where

the stop loss can be moved to where it's

not a losing trade per se it covers cost

covers commissions and gives me pizza

money or whatever but you need to have a

threshold of what you're looking for so

don't demand also that it is a setup

that has to pan out to the Target

meaning this where we were watching this

fair value Gap and this right here that

candle that would be institutional order

interal why because it just goes below

these candles here but doesn't close

that Gap in so that would be your marker

to start it and if it can go run 10

handles boom you're out and need not

trade above the relative equal highs

which would have been the draw to see if

we can get that type of

run we did another one in here we

watched and see did it go above the new

day opening Gap touch it it didn't do

that it went above it with a spike with

that Wick but has not created a a candle

that come back down to touch it so the

second one that we're anticipating and

studying has not came to fruition here

we have a fair value Gap

there and now we have this inversion

fair value Gap so you want to study does

this fair value Gap get taken to the

upside if it does if it comes back down

touches again we can treat that as an

inversion fair value Gap like it did

here there and then sent it higher so

this Gap in here study that to see if it

acts as an inversion fair value Gap or

does it respect it here to drop back

down into that Gap

again you're not trying to be right

you're trying to recognize a pattern

that makes sense because there's all

kinds of ways the trade you can be a

Perpetual bull like I was when I first

started or you can be someone that's

going to be flexible that you can say I

can be a buyer and a seller but you also

don't know what you're comfortable with

you don't know if you're trying to

capture a continuation trade you don't

know if you're trying to capture a

reversal and I'm trying not to push that

on you because if I push that on you

that means I'm pushing you into a mold

and it's going to cause you to take a

whole lot more time trying to live up to

that mold versus you organically trying

to learn how to read price on your on

your own

[Music]

watch the wick right

here watch and see if it can touch that

does it react off that and d drop right

in here we have two two gaps in

here we have this

one which is Trading into here and then

we have this one here this is a normal

fair value Gap bearish fair value Gap

this is an inversion fair value Gap

where it's gone below it now let me draw

[Music]

out see

it and then we have inside that one we

had the small one there which is just a

standard be very b

[Music]

g excuse

me and if you look right here I was

taking your attention to this

Wick trading up into that we want to see

does it have an ability to trade down

into this old Gap

here okay so you would screenshot

that right

there so what we had is inversion fair

value Gap here and then a bearish fair

value Gap

that is a very very nice model when you

have a directional bias that leads to

that

directional

run we have a bearish order block that

candle here because it had the highest

up close versus this one don't look at

this and think that that's the bearish

order Block it's this one it's inside of

the fair value Gap here and it also

traded into the inversion Fair B Gap

there the key is watching this Wick

trade up into it here if it's

bearish what would it do or specifically

what would it not do it would not

touch the midpoint of that Gap or Wick

which is what we have right

here see

that trades up but doesn't touch the

midpoint so is that weak or strong weak

to next you can open if it trades up

volume in balance that could be an entry

here see that so all these little

observations these are this is what

you're doing while you're watching price

you you probably have been if you're the

other people that that's not my son I'm

referring to now other students or

casual viewers or people that listen to

say you know I It's tap read what is

tape reading this is tape reading these

are the things that you do while you're

watching price you should not be

watching live streamers if you don't

know how to trade if you know how to

trade then sure you know watch them and

and enjoy watching it but you're

literally wasting your time if you're

not watching my videos to learn these

types of things and that you want to put

them to work

yourself you're wasting your time you're

not going to learn it by watching my

videos okay I promise you I don't care

how many times you watch them you're not

going to know how to do it because you

don't know what you're doing because you

haven't done any lab work you haven't

gone in there and and put yourself in

front of the charts and tested the

things and looked for it because you

don't want to see it fail or you're

afraid it's going to fail so you don't

even bother bother to do it it's like

you you let everything else around you

influence you and it keeps you from

doing the very work and this is the work

this is the stuff that you're supposed

to be

doing this is probably more money than

you ever made in a trade if you would

have took it with a real money and it's

because it's something that you you

don't want to do it that's all it's just

laziness

if you believe other other people's

opinions about me or whatever I teach

well that then why are you watching the

videos why

bother because you're waiting for

something to make it real easy that's

why and this is the part that makes it

easy you got to be in the charts got be

in there doing it tear down into this

inefficiency here getting reaction back

and if we overtake this inversion fair

value Gap this could become a reclaim

bullish got but it would have to trade

above it come back down and touch it and

then we can look for

here and

here but then you're waiting okay so

it's it's a matter of simply looking for

certain things

that could you don't need them to you

don't demand that they do but they could

deliver a certain response in price that

can be reasonably expected but you want

to start with a lowest threshold of what

you're aiming for what you're trying to

do well this candle into that Wick right

there to here that that's 10

handles and that's a real easy low

threshold OBS observation and then what

you do is when you see this Caleb you

say okay now if this would have been a

trade that you would have trusted

because it becomes part of your model

because something that you have seen

enough examples of that I know that it

could potentially traded these levels

here but what happens if I'm on side and

it gives me just a little bit more juice

out of that lemon well then you use this

as a partial and you aim for something

in this price run over

here I was talking about this

uh I don't know if it was yesterday now

but I was talking about the market maker

buy and sell models and when you're

trading inside the range you look for

all the short-term lows in here anything

singular or relatively equal and or any

inefficiency and that's what you have

here and the market trades down into it

on that run so you can take

this and that would be a Terminus for

you any one of these levels top

consequent encouragement or the

low which one's the easiest one to get

to the high so that's the one you use

Caleb you don't demand that it goes

halfway you don't demand that it goes

all way to the low you don't demand that

it trades through it you simp simply

just look for the easiest threshold of

being profitable if it were a trade that

you were in and if you start like that

and you just let it build up and build

up and build up look at that response

right off of that bottom of that with

the bodies that's

pretty the U it's also again tapping

into that that Gap in here let me draw

it with the lines that way it's

stays visual

[Music]

okay

[Music]

that's the wrong color I apologize if

that's throwing off I just want to

highlight it because that was a gap let

just keep it uh like

this it's been used already so it's dimm

down a little bit so now we're below

that old Gap remember this one over

here here let's see if it wants to touch

that one more time and does it react off

that and make an attempt to go below

this low or does it trade back above it

and trade as support and then rally back

and engage this area as

well now if it if you haven't already

thought about this and since we're

watching a one minute chart there will

be a time in the future that you'll be

able to sit down in this time frame and

capture 10 or 15 handles going up 10 or

15 handles going down 10 or 15 handles

going up maybe lose one one or two Catch

10 or 15 handles going down maybe lose

one more 10 or 15 handles up 10 or 15

handles up 10 or 15 handles loss 10 or

15 handles loss not that you lose that

much but you you have the ability to

trade five six eight maybe 10 times in a

day and on a one minute time frame

that's not overtrading because there's

so many opportunities that you can trade

and then you can be making 100

points 100 Handles in a single day even

if the range doesn't move 100 handles

from the highest high and the lowest

low and you want confidence that's

confidence because if you can do

something like that any s any given time

where you sit down and say okay um I

don't care about what the volatility

going to be today it might not be a very

large range day so I'm just going to go

in and I'm going to scout so I'll look

for little tiny little setups that give

me fluctuations in price that are

reasonable put a limit order in at 10 or

15 handles based on the things that

we're looking for and then bang take

it then when it's done move to the

sidelines relax and wait for another one

it's very fun but if you look at it like

I have to do it or I want to do lots

more than what's reasonable for my skill

level you're inviting all these external

stimuli in here and because the natur

progression of going through these

things there're not always immediate

feedback that's positive and that

tickles you doesn't make you always feel

good because sometimes it's like okay I

thought I saw something there and it

wasn't there so what do I do now you go

to the next one you go to the next one

you go to the next one and you're you're

completely desensitizing yourself to the

outcome if you're afraid if you're

afraid to lose you have to go out and

you have to lose you have to do it wrong

and you don't want to do that with a

live account not even with a $10000

account not even with a $250 account I

had to learn with a real account okay

you learned all the wrong lessons and

now they're going to be problematic to

you and you can lie and tell to the

public that follow you on your social

media account and say oh I don't have

those problems trade live do it in front

of everybody and you'll show everybody

that you do have those problems okay so

to avoid all that stuff is don't have it

in the beginning

don't hold yourself to a standard that

you have to have high strike rate if you

just started learning or if you just now

became serious let's say it that way if

you just started learning how to become

serious about studying price and you

were using me as a as a means of helping

you do

that then remind yourself that you don't

have to have a high strike rate that's a

Hallmark for someone that's been doing

it a long long time doing what their one

model that they Trust TR the most that

they can they they can see it forming

every

day what is a model that can form every

single day like what what is a trade

setup for Life what would something like

that look like Well when the market has

made a very obvious run to a key level

you were anticipating and then it starts

to break down and there's a very clear

inefficiency or relative equally low

that's in play and there's time in the

day that affords the market to perform

and deliver on that

basis that that setup that criteria is

there every single day and you can find

it on a one minute chart you can find it

on a 30 second chart you can find it on

a 15-second

chart so there there is an opportunity

for you when you know your model to

trade every single day but it's a

mistake and anyone that pretends to be a

mentor that tells you that you should be

trying to make money every single day

wrong that's not a lesson that a new

trators should be given that you're not

trying to make money you don't even know

what the hell you're doing you don't

know what you're expecting to see you

have no idea no idea and you don't know

what the person that's pretending to be

a mentor is really trying to

communicate they'll talk about it

afterwards they'll point out the salian

points afterwards it sounds scientific

it sounds

intellectual but it wasn't given

beforehand

so is it really foresight is it real

knowledge or is it just

sounding smart after it's obvious in the

chart think about

it there's a there's a TED Talk that I

gotta find it now it just came to mind

just now uh is a it's a awesome Ted Talk

is a guy that uh young guy he comes out

there and he's he's wearing his glasses

and typical nerdy little guy and he's

starts talking about nothing really but

it sounds like he's talking about

something really engaging in his

mannerisms and his delivery and his tone

and his pauses and then he over

accentuates certain aspects of the

things he's referring to and then he he

go now what I just was doing I was

talking and I really said

nothing and then but you seem like

you're learning something from me

because of what I'm saying how I'm

saying it in the delivery and I'm

wearing these glasses and they're not

even they don't have any glasses in it

like he puts his fingers to it it's a

really amazing presentation because it

starts off like wow what's this young

man going to talk about and it's

engaging and he walks around he carries

himself his body language everything and

that's basically what an infomercial

does and the only thing that's is

important that you notice is the product

that they're standing next to but

they're talking and they're bloing about

a lot of stuff and they're really not

doing anything they're not saying

anything

and I've seen that a lot with people

that live stream I've seen that with

people that pretend to know what they're

doing and teaching and they don't really

teach they're not really teaching and

you can hear what they're teaching is

absolutely backwards because they'll say

you have to trade every day they'll say

every day is a winning day every day is

a opportunity to trade with real money

or you can't learn how to trade unless

you trade with real money you have to

have skin in the

race well you know you know what you

done

by doing that you have further

multiplied the level of

certainty that it will be harder to

learn it because now you've made a

painful

response absolutely the outcome because

you're going to trade with real money no

matter how much it is if it's lure or

not and you're going to have an outcome

that's going to be unfavorable and then

you're going to have the regret of I

wish I never would have did with live

money because now that small little $25

loss while it's insignificant it cost

probably more for you to go to eat

poison from McDonald's at a drive-thru

then take that $25 loss but that $25

loss is going to be like a piece of meat

between your teeth you're going to find

your tongue keep going back to it you

wish you had one of these little dental

floss things to get it out it's going to

plague you all day long and what are you

goingon to want to do about it you're

gonna want to fix it right so how do you

do it take take another trade and now

that 50 loss on the day is there

now you're angry I wish I never would

have start with a real account I wish I

would have known what it was I was

trying to do that way I was bored I see

it forming if it's obvious in the chart

I'll see it and then you try to fix it

again and now that $150 account that you

want to start with real

money has 50 bucks in

it not counting

commissions but

hey it's 11 o'clock in the morning

there's plenty of time to get it back

let's go in there it's only it's only

$100 $150 who cares if I lose it I can

just re I can just replenish it that's

the wrong mentality that's the wrong

mentality but that's what goes on that's

what keeps repeating that's what mentors

out there that should not be mentoring

Foster those

mindsets they enable you to have those

same

viewpoints and people pay them

people pay them for that flawed

logic so we have had multiple attempts

in here at that old per value Gap right

there we inside it with the

bodies the only thing we've done is

worked into a retracement of all this

choppy range bound price action so if we

measure that from

here to there we traded right down into

that which is equilibrium so we have had

this Gap traded to didn't quite come

down to I was I was watching to see if

it would touch that it didn't do it but

now we're above that old Gap here let's

see if we can touch it on the downside

let me get this FIB out of the way

because give a level that I don't want

you focus on I want you this this is

what I want you to see so we have this

Wick midpoint of that I like to see it

go over that a little bit and touch this

Gap and then respond a little bit

there's nothing in here for

inefficiency so where we're at it's

indicating that it could use this old

reference point over

here keep the body inside of it it keeps

a little tail down here that's

fine I should have grabbed the full

water when I brought myself myself down

here came here but a half a bottle of

water I would have liked to seen that

candle have the body inside of that Gap

that would have been a little bit more

obvious than what it's did

here for

now I want you to think about actually

take a screenshot of this price action

as it is right here let me make it a

little bit

better like that okay now be honest

looking at this do you see very

clear impulsive legs going up leaving

One S singular inefficiency in it like a

fair value Gap Maybe One Singular

short-term low and then it runs up to an

obvious level and then drops down with a

nice retracement price swing that has

only one singular fair value Gap and

then runs away quickly lower to an

obvious level that react off of and

trade higher if you don't see that

that's the indication that this is not a

day that you keep pushing really hard

and it's also a day that you demand a

lot

more convictions behind what you're

trying to engage even if even if you

don't have your model yet being flexible

with it I like that right

there watch this candle halfway here I

want to see does it want to run up take

up that high if it runs up and takes

this high I would want to see speed take

us into this Gap it's the red right

there

so this

high it's been taken

out next reference point is here which

is the old Gap and then we have the

liquidity resting rad about that high

right there so I'm not going to keep

these lines here I'm just going to use

that line there to annotate a very short

term byy

side I'll take this

off we extend this out

you're not trading it you're watching

it man I don't know how my wife sits in

this stupid chair it looked great in the

store it's a um what is

it uh it's called a love

sack we didn't do anything on

it but I don't love it literally

sliding like sliding and SL like

slinking down in it it's really not that

comfortable the stuff that's on it is

comfortable it's real soft but it's

actually not comfortable at

all okay so one more time Wick traveling

inside of the old Gap over

[Music]

here for

lot of back and forth but not real

movement I mean there's movement yeah

but nothing to be terribly excited

about so think about like this it's like

it's it found its way up to here but

it's a lot of back and forth a lot of

back and forth lot of back and forth can

it be traded yes but it's very very

difficult it's not going to be something

that you're going to want to do as your

this is your model this isn't your

choice ideal day or type of environment

you want something that's really nice

and clean it runs higher goes to a r

clear obvious level pulls away from it

and you're not seeing that here there

are inefficiencies here there are

short-term highs and lows here but you

don't have that clear obvious it wants

to go one side or the other and by

having like if you take a picture I was

meant to say that earlier I didn't

finish my statement take a picture of

that just just like it is right

here and this is not a clean Market it's

not a clean Market it's a level of

difficulty for someone that doesn't have

a lot of tools or experience you can get

chopped up this is usually the type of

day where you'll see live streamers or

people that are in their chat they'll

say I got chopped up really bad or the

market just chopped me up or I just got

beat up today it just was crap market

conditions that type of thing this is

usually indicative of what they're

referring to versus days where it's just

really really clear really really

obvious all right so now we

had inversion fair value Gap traded to

here that Gap that we annotated earlier

worked inside that as well one more time

we touched it traded lower we have cell

side resting right below this

low high was taken here so there's

nothing in here that I like except for

the singular one candle that's balanced

over here so always have this to there

so we have this closing price to that

high price is going back and forth

multiple times there so that's why you

get that stop I want that's why I said I

want to see it expand through I want

speed through that because this is a

balanced price range there's no

speed we drifted back lower now we've

showing the bodies respecting that old

gap which is over

here so the next one you can start to

monitor is do we use the wick R in

here in the low of that old Gap to make

an attempt to run below that low

it's Friday we've already have 20%

retracement on the

week and we're seeing lethargic price

action got 15 minutes till the morning

session ends and then we will be

entering the lunchtime

macro see how it's going back and forth

back and forth aimlessly he's not trying

to do anything just do chop back and

forth back and forth by having that

skill that screenshot like this and

identifying how this Market looks by

contrast when the market has not

yesterday yesterday is in completely

different uh Market environment where

it's just one-sided like a railroad

train like a a train just going One

Direction you really can't navigate back

and forth up down up down up down all

day long in that type of environment

it's just get out of the way be on the

right side hold it and be out of the way

that's the better

uh approach to trading that type of

thing so if you didn't get in before it

starts moving don't bother doing it at

all and you see it by how this keeps

pressing higher higher higher higher

with no real retracements and the trap

is for you to chase it and you'll find

by doing that you end up getting beat up

you get scared out of it and then it

won't it won't pan out for

you you want a day that has really nice

volatility doesn't have to be extreme

volatility but it has to move and

separate where we've had back and forth

price action look how it's done this

here we went Above This High here

Consolidated again traded back down into

midpoint of this consolidation then we

try trade it up and then back down trade

it back up trade it back down all of

this is a it's indicative of a day that

is not going to be easy if you're new to

see where the Market's going to go to

where it should be safe not to expect it

to trade back to a specific level and

how to frame multiple setups because

it's part of a very

like the word escapes me I I know when I

when I close the stream later today I'll

probably be on a drive somewhere and

I'll be like that's what I should have

said I should have said this this is

what the the real uh Crux of what I'm

trying to emphasize it just means that

we're seeing a lot of back and forth

It's indecisive there it is is it's

indecisive it's not in a hurry to get

anywhere and you don't want to be

trading especially with a great deal of

frequency in a day like today not that

you can't make money not that you can't

find setups not you can't you be

profitable doing it you just once you do

it you want to be done with it when you

get

there at minor cell side in here

[Music]

okay so we had the bodies on

this right leg run up body stayed inside

they didn't close above that old Gap we

didn't Pierce that high we have a low

taken out here we have a low taken out

here and we pierced the rejection block

there

so we have the early indication of a

fair value Gap there I would like to see

that stay open if it can stay open and

and trade below this low then I think we

can

explore over

here it can touch it and trade into it

and still do that if it wants to go

lower but for the sake of pattern

recognition Caleb and looking for gaps

that want to stay open for the basis of

seeing longer runs if it were to stay

open if this little area right here if

it were completely to close in it's less

likely but still probable that if it

drops below this low we could revisit

this area down here because that's the

low of the day and there's a lot of

liquidity on that a lot of people that

have bought down here and all through

here they've been wanting this to go

higher and every time it's doing all

these types of things it causes

you disenchantment for them

and if it's going to go down there if it

takes out this low I would like to see

it do it rather

quickly whereas any other time this

would be um High Resistance liquidity

run what does that mean because we had

multiple times straighten down down down

down down down and finally sending it

higher usually uh this is a hard area to

get down through if it's going to sell

off because of that very nature because

it's it's it's been used lots of times

okay and then you have the top of this

little consolidation so it's a lot of

order flow that took place in this old

area but because we're entering a time

of day where whatever has transpired in

the beginning of the day so for instance

like 7 o'clock in the morning to 11:30

which is coming up in like 11 minutes or

so this is the the the point of

liquidity that's framed on that first

part of the session or the day so in

other words the majority of the money is

and been made on what being long in the

market or

short the Longs they that's the longest

profitable trade that's been going in

motion today it's the Longs they are the

ones that's been holding the winning

ticket longest for today so if that's

true in the lunch hour is going to make

a run against what has already been in

play kind of like a a midday retrace

but these midday retracements sometimes

can be midday reversals for the whole

day or the week okay so what I'm stating

is is because that we're on a Friday

because it

is seeing that yeah we did rally but

it's had a real hard time finding its

Groove and and traction going up not to

say that they can't start screaming

higher rate from where it's at right now

just go up and keep going up that's

always a given that's a certainty that

is always likely to pan out and then

that's why we have to have stop

losses but if we can identify where the

stop losses are at the beginning of the

day as we went into lunch because

there's really no there's really no

pretty lows in here because if it's

going to go here in my mind I'm thinking

if it could trade below here what would

keep it from going here I I would like

to see it go there if it trades below

this low aggressively and speeds up and

went below that while this is the the

nicer one because it takes out everybody

on the day that that's the Maximum

Carnage

event if it were to trade below this low

and have some speed on the downside I

wouldn't look at this area as a high

resistance liquidity run because I would

have the benefit of having it's

Friday it's been a huge up week since

last Monday we've had two really big

monsters

um relief rallies that came into the

marketplace because the Middle East

didn't explode and we

have further further downside like we we

could still see a 30% retracement on the

week and that will not change the

underlying bullishness of what may be in

motion so it's not like oh you're

calling for too deep of a retrace in ICT

no no it's not actually it's very good

it would be healthy to see a 30%

retracement there's nothing wrong with

that

it doesn't change the underlying

direction of the marketplace I'm not

trying to pick the top right

so look at the look at the

um just the back and forth that's in

here like we get down to here we poke it

by a tick and then there's just back end

these candles that keep overlapping each

other they keep overlapping it's like a

picket fence everything's real close to

the same

previous you know picket in the fence

that the boards they all pretty much are

close to the same length and height than

the next one is that's a day that's an

indication that you're in a day that is

very very comfortable being at the price

it's

at what does that mean it means that

there really isn't any imbalance or

inefficiencies

that's notable to cause the market to

want to go anywhere in One Direction

rather quickly so you have to wait for

those

displacements once they occur in price

action then you have well now you have

something to measure you have the

inefficiency it's either a gap higher or

it's a gap lower and then you measure

how does price react to it once it

trades back into that inefficiency and

then it tips its hand it tells you okay

I'm likely to keep going in the

direction of that Gap no I'm going up

into that Gap just to fade it and now

I'm going to go the other

direction there's that Gap that I said I

wanted to I would like to see it stay

open it hamers around in here and now

we're trading right up into it here so

what what I'm watching is I'm watching

the body of that candle does it close

inside or above this candle's

low imagine you're trying to P you got

250 bucks 250 bucks and then you've

passed your combine you'll have a funded

account and today you're trying to

trade you'll turn that I need to make

$250 into I blew it

or now it's $1,000 I I got to make a

$1,000 versus about just sat still and

waited till Monday or sometime next week

where it was a better Market condition

where it's easy it's Market's making

really nice price runs that it's obvious

you can see where it's reaching

for that's what I'm trying to train you

to see Caleb you you've seen me working

ranges and days that it's just where I'm

pointing out how fast the market runs

and how far it's traveling and not again

don't be confused by what I'm referring

to here and think that that's what that

was yesterday yesterday was it's just

one directional like you you can't you

can't navigate up and down in that type

of day it's just get out of the

way or you have this type of day here

where yes there's fluctuations

occurring there's fluctuations occurring

um I kind of like revealed in the

beginning of the session I'd prefer it

to trade lower I'd like to see that uh

consequent encroachment on uh this over

here I like to see it trade down there

today I may not see it today it might

make a higher high it might erase the

retracement on the weekly range just

today or we could trade down below that

30% level and trade even deeper or just

stay in the range that's already formed

already for today

the the last thing I just said I

wouldn't be surprised if it did that

because of how it's

trading

so there's been times where I've talked

about how I don't trade on Mondays I try

to demand a whole lot from the market on

Monday for the purposes of using it on

Tuesday and the rest of the week for for

directional bias targets um draws on

liquidity that that type of thing there

are times when I don't want to trade on

Fridays and a Friday that has had a

really big run up and on Thursday say it

completes the um the 20 or 30%

retracement on the weekly range which it

didn't it didn't do that it did it this

morning by trading here so when it did

that retracement like that that's 20% of

the weekly range and you can test that

out on your weekly

chart if it were to do a 20 %

retracement on a Thursday when do I

avoid trading Friday when it does that I

don't care what what the market does on

a Friday in that in that instance

then if I have a big weekly range the

candle's been rather elongated and it's

larger than the the the normal weekly

ranges have

been and anybody looking at the last two

weeks they can say that they they they

rather large weekly candles if that's

true and then on Thursday before

Thursday's close we had at any time a

20% of that Weekly range retrace I will

not trade on on

Friday because you'll get this type of

day here whereas we did get the 20%

retracement here because we got that

this is for your notes when you have

that it tends to create these types of

days or

sessions and because it's Friday and it

did it in a morning session of Friday

that means after that 20% retracement

Then the market can become very thickle

and I've used this term before in the

past and people in other countries are

like what do you mean talk plainly talk

talk in more simple terms because they

don't understand what I'm saying it

means that it's back and forth back and

forth back and forth and it

becomes very problematic to see a very

easy sustained price run or a multiple

a large number of of opportunities

intraday whereas a day that's not like

this and not one-sided like yesterday

where you can trade both directions the

one minute chart gives you a lot of

freedom to navigate up and down and you

can get multiple opportunities to to

measure 10 or 15 20 minut uh 20 point or

handle runs and get a lot of experience

and practice and that practice becomes

your model your repertoire and then when

you have a fun account or you're trading

with real money you'll know what you're

doing because you can identify the

market conditions oh this is a market

that's going to give me some some

movement today also by learning what I'm

teaching you today is you'll know when

to anticipate these crappy Market

environments because these are some of

the things I'm going to talk about in

two weeks I just gave you one here

because it's salian whatever we're

anticipating TGIF and TGIF can form at

100 p.m on Thursdays New York time okay

why 1 p.m. because we have to at least

give that hour lunch noon to 1:00 to do

whatever it's going to do and

then at 1 pm on

Thursday throughout Friday till Friday's

close I'm always anticipating a 20 to

30% retracement if we have a a elated

larger than the last few weeks weekly

range if it's up then I'm expecting 20

to 30% retracement from the highest high

that's formed at Thursday 1 p.m. Eastern

Standard Time going into Friday's

trading if at any

time if at any

time the market has a 20%

retracement as soon as it does that and

if I have not had a trade I am not going

to trade anymore for the rest of that

week I'm done for the week because it's

fulfilled its upside objectives and then

it's retraced so think about it as a

daily range Power three It's Already

Done its movement so now what am I gonna

be doing I'm gonna be trading in the

uncertainty of where is it going to go

is it going to close higher on the week

is it going to have a deeper

retracement is it going to close in an

unchanged no real event taking us out of

the consolidation it's going to just

Meander around think about how a daily

candle closes in the last few minutes

the last 15 or 30 minutes of a day

there's little things that take off and

cause markets to run but they're not

running a 100 handles they're not they

they're not doing a whole lot of you

know excited excited animated

movement they're doing what they're

staying in a really small range off the

high off the low and they're not trying

to make new ground and they're not

trying to trade back to the middle of

the daily range either so that's why

you're seeing this type of action here

because it's already done this part here

the 20% retracement so the weekly range

has already in my opinion has already

done all the work that it needs to do

now everybody else is sitting in here

trying to do something

extra when power three applied to the

weekly Candlestick has already completed

its role its function on the weekly

Candlestick has done its job now does

that mean prices is going to go sideways

and never change and just create a

straight line to the you know horizontal

line of course not there's going to be

fluctuations in price but the

fluctuations in price are going to be

rather annoying because they're not

going to give you a lot of run there's

not going to be a lot of magnitude and

not a distance closing in on something

it's obvious that it's reaching for does

it make

sense let me give you a graphic

depiction because I'm not I'm not

satisfied with what I just I know what

I'm trying to articulate but I don't

think it's been communicated very well

so let me let me try to just do this for

you let's say for an argument that this

is a candle on The Daily okay so this is

daily power

three this is the highest

high and this is the lowest low and

let's say for instance that the market

starts Trading

right

there okay and then it trades

higher and this is where it closes for

the

day all right

so what we have here is this is a

hypothetical daily range let's for the

sake of argument say that you believed

in advance that it was going to be an up

close day or a big bullish

day and then once it goes to a

Target and then starts to

retrace if we

measure the high to the low that day

20 to 30% if the

market comes off the

high that it forms here after it does

that and you anticipate the market doing

what coming off the high it's not always

going to close on the high if it's

bullish like this usually the close is

going to be an upper third of the

Candlestick so that means here's your

half so if you do it in one third second

third upper third the close is going to

be an upper third of the candle for the

daily range that's power three that's

new information by the way if you didn't

write that down you missed

it but generally what you'll find is

that when it creates its objective to

the upside it'll retrace 20 to

30% on the day not always but now if

apply this same logic to a daily

Candlestick do we anticipate the market

closing on the

highs no but if it starts closing on the

highs then we're probably going to have

a nice retracement or short the

following

day but what does it mean for this day

once we hit our Target and we start

trading down into 20 to 30% of the

range it means it's less likely that

we're going to come back to that

candle's High

because it's already retraced and now

it's going to want to try to settle

between 20 and 30% of the the

range in the upper one3 percentage of

the total daily range now if we take a

Quantum Leap outside of the daily range

perspective and apply that same logic to

the weekly Candlestick the the elements

of TGIF are simply this when the market

trades up for the

week once it's proven itself that it

wants to come back back and start

retracing which is what it does today

here and trades back down into 20% of

the

range that's the equivalent of

this I'm not comfortable because I've

I've chopped up my accounts I've hurt

myself and lost accounts trading

commodities doing these types of things

thinking it's going to go back up here

and make a higher high once it's done

this for the week I'm done because what

you're essentially trying to say is

because we traded down to 20% and now

we're going to say this candle diagram

that's being crudely drawn out here by

me um represents the weekly candle okay

because we had the high here and it

traded down

20% here I'm not confident once it does

this to ever try to trade to get a new

higher

high the the conditions between the high

and the % of retracement after a big up

week generally creates these very

lackluster choppy not real exciting type

of days can it go up and take the high

out and trade higher yes but it doesn't

do it more times than it does this type

of stuff so when can we anticipate

choppy price action when not to get too

excited you want to take a day off as a

live streamer or take a session off if

you trade in front of people and you

know you're doing it live this is a real

good way of saying you know what I I

feel confident that I'm not willing to

worry about what I leave on the table

I'm not worried about how you know my

audience may see me because this is an

environment that I'm not trying to work

within not that you can't find setups

not that you're not a good Trader not

you're not a profitable Trader it just

means that if you spend time identifying

periods in price action where it's just

simply not sexy enough to get me

involved with

it isn't clean enough it isn't obvious

it doesn't give you very clear levels of

this is what it wants to do this is what

it probably will not do and everything's

a a

50/50 do you want to trade in those

environments where it's 50/50 or do you

want to be when the market still hasn't

traded up to this level yet and the

market could potentially trade up and

still reach for something and always

focusing on discount of race going long

and then once it hits that then you can

expect that it might have a 20 to 30 %

retracement so therefore when you do get

those levels up here take the largest

portion off 80 75% of your trade off

because you don't know post 1M on

Thursday when that 20 30% retracement

can materialize and you give up a whole

lot of profit trying to just simply be

greedy and hope for the biggest

run what I just said to you was uh

something that took a lot of time for me

trust and

learn and stick to because watching

price action it's easy to convince

yourself wow this is going to do this or

that and it doesn't and it frustrates

you so how do you know when to avoid

certain days when do you know when to

look for this I'm giving you a lot of

that stuff it's very dry information

I'll admit it is very dry but it's

things that help me say I'm not going to

go out on Twitter today and talk about

what candles are going to go up and down

when I was doing all that stuff if there

was days that were more likely to create

these type of wishy-washy days like nah

I'm not interested I would tell my

private students n I'm not going to

trade today I don't like I don't like I

don't see anything I'm not

interested that's the way it

worked sometimes it was be there would

be a day where I wish I would have done

it in hindsight thinking wow you know I

didn't see all of this coming it came

and started really panning out good and

that's going to happen too you can't

expect to be

perfect so so far we've had a 20%

retrace on the week and then we have

been just grinding between

the 7 a.m. start and that 20%

retracement in the upper quadrant of

yesterday's opening

range I'm watching how it behaves in

here e

I'm quite certain

if Caleb wasn't

uh wasn't used to seeing me do this

stuff next to him live and tell him

what's going to happen and trade it and

watch how it pans out

whatnot he would be thinking like

there's no way I'm doing all

this I I would not I will not be doing

all this Dad I can't do it I'm not

interested it's too boring it's dry it

won't I I just don't see myself doing

that

so I understand how many of you and I'm

I'm sure there's a large number of you

that maybe started watching the stream

but then said yeah I can't I can't I

can't watch

this but this is the part that you have

to go through like you got to look at

Price action you have to do

that because you don't know what you're

going to be choosing as a model unless

you're going to force yourself into a

model which I've already produced some

of that stuff already and for some

people that doesn't work for them not

because his Concepts don't work but

doesn't fit them doesn't give them

comfort knowing that what they're doing

makes sense to them they can see it why

it should beave way and trade at certain

time of

day it's uh that's a reality to it and

that's why I teach the way I do I teach

where you'll see something that makes

sense for you and you might have a very

easy loow hanging fruit objective where

if I can just get eight handles you know

need to be 10 ICT I I just think if I

got eight handles three times a week

that's plenty enough for

me you know what some of you might hear

that and think man that's not enough I

wouldn't do that and other people like

you know what I never thought about that

that means I could take two days

off

yeah like but you're thinking I got to

be here every day I got to be here every

session I got to trade Forex I got to

trade Futures I got to trade trade

crypto I got to trade everything and

then when you start putting your hands

in all of that you take a step back what

are you really

accomplishing you're going to find it

the more you try to do the less you

actually achieve at

so if it spikes through that fair value

Gap that's in Orange where can it Spike

into New Day opening Gap and because we

have those relative equal highs there we

want to see does it have the ability to

trade above the

endg and maybe Spike through it and

touch this again and then accelerate

through here because otherwise there's

no reason for it to have been

here we to do all this and not take that

out at the minimum

foolishness if I was Phill I would just

simply run it

here spike it up on to here with three

candles

after what that's just me

now think about like this say for

instance that we did not get this

retracement on the weekly range of 20%

so it means the highest high and the

lowest low of this particular trading

week okay say we didn't get that 20%

retracement yet and where we're trading

TimeWise not pricewise TimeWise I would

expect the market to try to sell off to

try to explore that 20% but because we

have had this happen already

here right there it's more likely that

it's going to create a lot

of price action that

is it's fuzzy

okay like it's it's real fuzzy back and

forth back and forth back it's going

certain places yes but it's not running

like from here

displacement

inefficiency displacement inefficiency

displacement you see that contrast

this with all this

garbage okay when does that come into

the marketplace when is it when is it

visible in price after it's already done

20% retracement on the week so now it's

going to take

something

for well let's say it this way it's

going to be a manual intervention for it

to create a higher high on the week

there you go

and I can anticipate times that

occurring but mostly I don't know when

it's likely to occur but usually it's

like fomc obviously they're timed by the

economic calendar but when there is

nothing in the economic calendar and the

hand if you will comes into the

marketplace and starts manipulating and

driving price to a specific price

level they will come out of the woodwork

at times when I don't expect it but it

will take something like that after 20%

or 30% has been met as a retracement in

the same week and then if it goes and

retraces and runs higher that's always

absolutely 100% manual intervention that

means they are rigging it they're

pricing it in there the market makers if

you will uh they're they're they're

behind it and you will see very very low

volume send it there so that kind of

like laughs in the face of it's buying

selling

pressure all right so we're back in the

new day opening Gap found our way above

it now we're inside of it in here now

you can touch this here and see how it

reacts off of

that so here's a question for you is it

is it

something easier for the market to trade

to the liquidity that's resting right

above these relative equal highs or is

it more likely to go not here but all

the way back down here which one's

easier to

do which one's more likely to occur

if it can run these highs is it out of

the question for it to go over here and

upset where it's smooth does it need to

go all the way back up to here no why

because this high is higher than that

one this high is higher than the one to

the

right this high is higher than the one

to the right so which one's the valid

relative equal high this one and this

one is this relative equal

low seen with a lower or higher low

here it's lower on that

one so which one's more

probable the B side

now what would be

neat this is how I would really do it I

would pump it from where it's at here

clear the nine uh 590 level I would

sweep 601 on a Candlestick Wick just a

wick no body and then I would slam it

down

below and take out the low of the day

that's how I would that's how I would do

it and that would keep the weekly high

in check not not take the weekly High

out it would take out the high of day

day session that's here the day day

session high is that Candlestick right

there so that way you can sweep that

that's Disturbed this is taken out and

we're still leaving the weekly Range

High in play it this doesn't get T it

doesn't get taken out doesn't get traded

to and then run it all the way lower and

take out the people down here that have

been trying to make money all day

continuing the Run that's been done for

the last two weeks like two full weeks

of up up up up

up but knock these individuals out that

are short that would be positioned to be

profitable and knock out anyone that has

a stop loss there so they rode this down

and hint nudge nudge and then you have

this they bump that and then it drops

but that drop would be fast it would be

furious it would be like sudden not a

drifting fuzzy drop like this stuff in

here like all this stuff here it's too

fuzzy you want to see it look like this

where it's just Ride the

Lightning it's a Metallica reference for

those

to oh man play a Metallica I ex me

I was supposed to close this at

11:30 this guy's a

liar you getting extra you didn't have

to pay for

[Music]

it okay would you feel confident if you

were

long and if you were short would you

feel confident let's say your stop loss

is right

here and you're

short would you feel comfortable right

now watch that orange range see if we

can get a single candle come out and tap

it again

same thing for the end dog you get above

it see if there's a single cam that

comes down and touches it then you study

that one and see if it runs from that if

you can either touch this or

touch it's got to leave it it can't do

that that's not what I'm referring to

it's got to close a candle come down to

start a new candle and then touch it

either the high consequent encouragement

or the low it can Spike as low as this

one here and study and see if it goes to

these relative equal highs to bump the

high of the

day and if it can reach there does it

have The Moxy to reach up into and Spike

through these clean levels right

here all right now watch the next

candle we hit

it right here is where the spy side

[Music]

Trade It Up open Trade It Down touched

it rally this is

balanced like to see this portion stay

open between that candle's high that

candle

low how many handles is

this from the new day opening Gap

High to the high

here 20 handles right so that's a that's

a min minimum for me that's a minimum

range for targeting purposes so if it's

a setup that affords me the setup

to identify where price could

reach where it could start and the

Inception of the price run so words I

can frame something as a beginning point

and I can frame something as a

Terminus if it's 20 handles for NQ that

is a trade that is in my opinion worth

if it's less than I'm not interested in

it does that make sense visually now

regardless if it goes up here or not it

has to have the range between where the

trade could begin and where the trade

could draw to because we have these

relative equal highs up here they may

bump the high of the day which is this

relative equal high they could bump that

clear it and how far can it clear it we

have those relative equal highs to the

left over here we referring to all

session okay

so all right so we had this Gap close in

it doesn't change it just means that

it's better for it to stay

open it would have to be below

this volume balance for a stop for the

ones that are wondering what that would

be so your risk would be there and

deference to that candle right there

that low plus a tick up because it has

to be if you're trying to use a new day

opening Gap High that's the first

barrier easiest low threshold for

barrier of Entry that means you're

picking the one that's most likely

easiest to fill if you're trying to get

consequent encroachment of the new day

opening Gap you would never gotten

filled if you were trying to use the low

of it you never would have gotten filled

so the high plus one tick your fill

would be there your stop loss would be

below this candle's open that's the

risk it's not

much but it would have been better if it

would left that cap open here I would

have like to seen that stay open but now

we're going to get a real example of

what it looks like when it does close it

how does it behave

see where we're trading at right now

also

I the good first

[Music]

consequent encro of the

wick see where we're

trading so we want to see if it can

gravitate towards that high or these

highs

rather I promise you on cleaner days

it's going to be a a lot more fun but

you have to go through these days

because you're going to trade with these

type days as well so it it doesn't do

you good and this is why I was trying to

teach my students in

2016

um when I would go through and point out

certain things in price action to start

giving them a

baseline to what to look for what's

important what's not all that important

what are going to be things that are be

con concerning for the trade for the

idea for the price to be moving a

specific spefic level or how it should

deliver I had so many

people quit the first two months because

they were not willing to sit and observe

because you're how how can you identify

something like how can you how can you

identify it if it doesn't pan out rep

with repetition if you will if you don't

see it constantly you know panning out

how can you identify it on your own

because if it was easy and it was

something that everybody can do

everybody could write the same book

reword it differently but it's the same

pattern or same thing that occurs in

price

action and then we wouldn't need to have

people like Educators and mentors and

stuff they could just everybody does the

same thing because we can see at one

time and know what we're

doing do you have that drop down in that

consequent C with and

dog that's pretty Sharp

so you have to sit and watch and by

watching and forcing yourself in days

where it's going to be harder for you to

do it pretending that it's going to be

easy and if I put my students in

conditions where it's obvious it's easy

it's going to be really easy fast runs

to everything that we point out that

gives you a false sense of security it

makes it feel like well I'm ready to go

out there and treat with real money but

when you start watching price action

over over more challenging conditions

which we are in challenging conditions

anyone that has been trading longer than

a couple

years can tell you that how we're

trading now these are very difficult

marking conditions Prior to let's say uh

200

10 okay or

2007 totally different kind of market

conditions they're they're whole lot

more volatile which is fun but that

volatility comes with it with a

price and it causes a whole lot more

opportunities for the market to be

challenging so we have this Market trade

Above This High

there so that would be opportunity for

you if you're going to be doing partials

you have to entertain the idea that

would be a partial because your first

high is here Terminus is here Terminus

is where you think the trade is going to

go to that means it's going to book

price to that price level that's how you

frame it so if you think price is going

to go to a particular level in your

notations and your annotating that's

Terminus that kills the idea for you and

you're satisfied it does not mean it

can't go further it just means that

that's what you're trying to frame for

that move and if it afford you in here

and it touched here and it ride to this

high when it retraced back down in and

ran up one more time soon as it takes

out that high this is called running

down Equity okay my private students

know this I don't know if I mention it

in any lectures I I don't know if I did

it publicly but all my private students

know this and anytime you're in a trade

and you're long if you have a short-term

high

before the Run gets to your target but

it has to be at least 50% of the Run so

words if it gets halfway to where you

think it's going to go what does that

mean this is where we were watching it

start so from here to here that high is

above it isn't

it so if it passes through it one time

you have to take a partial there so if

you're learning how to take partials

your partial will be taken

there that right there that would have

been stop so you would have partial One

Stop on the

balance you log

how much time did it take entry on one

candle 1 minute 2 minute 3 minute 4

minutes for partial five if your limit

order was a little bit higher let's be

real and say it's five minutes five

minutes and then you got stopped out on

six seven eight 9 minutes so 9 minutes

into the the setup 9 minutes you're

stopped on the balance one partial and

you go to the next setup so it gives you

data it gives you how much time did it

move what was the distance from the

entry

72 we'll just call it 10 10 uh handles

with spread both both in and

out so you can go in and start now let

me take this

off I promise you it doesn't feel fun

but this is all the stuff that you use

to figure out how where to place a stop

loss where to take partials when's the

market going to be

harder how to how to frame the setup

where's the

Terminus when what's the first threshold

that you have to breach before you can

even consider taking a partial not just

is because you're in a trade you're up

500 bucks and you never seen that before

then me just take something off because

I'm afraid that's impulsive that's

emotional so you have to have rules and

processes and protocols to follow and

over time it'll give you more and more

experience and you'll trust it I'm

watching how they're wicking in this all

here we trade it back down into the

volume IM balance so that might be just

an area where they have

reaccumulated so I'm watching to see can

we maybe entertain the idea getting back

above this here if it touches it we'll

try to do another observation on that

one so we traded once more here I would

have if you remember back here I said it

could trade back down and touch this one

more time it did a little bit too late

for my liking so now I would demand for

it to trade above get into into this one

and then treat that same fair value Gap

Again by a new candle it's got to go

above it new candle open go down and

trade into it then see if we can start

setting up here and maybe challenge the

high of the

day if we lose this Gap here then I will

I will change my focus to weakness going

into the close but right now my focus is

here and maybe as much as up

here let's leave it in the screen

but you can see how we rallied gave a

little bit of range came back dug in

deep now I know some of you are actually

taking these trades and you should not

be doing it you should not be using

where I said this is where the stock

would be don't put your liquidity there

because there's so many people following

this live stream by you doing that and

the Market's this close you're creating

a very easy very easy target for them to

push a button open the spreads make it

run and go right down there and fill

it you get stopped out and there you go

I'm teaching you how to read it and when

you read it you're not on the internet

with 20,000 people telling them to put

the same stop loss where yours is

at right see it's spiked above it there

but didn't give me the body I want to

see it go above it close above it open a

new candle and then

see what we do by touching it

then if it does I think it's going to be

real fast like it'll run real real quick

if at all if it's going to go up there

and take those relative equal HIDs out

it'll be a fast

run because we're real close to high day

liquidity and they're not going to want

to let them pull those orders out so how

they overcome that they do a real quick

fast sudden run

okay watch this candle

here six Pence None the Richer comes to

mind song Kiss Me I want to see it just

touch that right there but I'm looking

at that Wick and it's just real hard to

get just the consequent encouragement

and went into

that all right now go back to that

analogy your stop- loss is here you've

been short all day you've been feeling

sexy you've been feeling smart do you

feel good right

now say you've been smarter than those

guys and you've had your stop up

here do you feel smart do you feel safe

[Music]

the next candle should send

us for

imagine your stop loss is sitting right

there at

592 and you're thinking I really wish I

would have listened to taking partials

to ICT videos talks

about so now for here what's to say that

we can't run up there and take that

60150 level out because it's too it's

too smooth up there too

smooth why would they let them off the

hook right if you're so close to that

why not just simply put a pairing of two

orders on short and a long right at

601.051

Market

order short and sold and and long and

short basically and then all of a sudden

the folks that have their stop loss at

that level or just above it they get

engaged but there's no honeymoon

divorce so you want to screenshot

that okay so I've given you instances

where you would read it you get a

partial you get stopped out you look for

it to give you a fill it just falls

short of touching it you wouldn't have

been fill there but then it it runs so

in a real world while you're learning

this is what it's going to feel like

when you're doing your observations

you're going to have a good good feel

for what it's likely to do you're going

to have a real good inkling that it's

going to go to a specific level I think

it's going to go there I think it's

going to go here and then you're going

to look for certain things in price that

may or may not afford you an entry and

now you have you're met with either

you're going to be frustrated or you're

going to say you know

what I saw where it was going to go and

it went there so now I feel confident

that I can stick to doing this next week

I'm gonna study price action and I'm

gonna get better at this because I see

there's something going on but I can't

quite put my finger on it yet but I feel

like I'm getting closer to it if you

feel that way you're in the right you're

on the right path if you're here

thinking there's no trade being taken

this is dumb well that's an indication

that you need go somewhere else because

I'm teaching people how to do it on

their own and the ones that make money

and you see them out there card carrying

members of the ICT Cult of

winning they will tell you that they had

to do stuff like this too and it didn't

happen right away it wasn't easy it

wasn't fast for them and they had doubts

and they had other people and still

people that are my students that are

making money they're still being trolled

because these people are miserable and

they're broke and they're never going to

make money and they will never have

attention placed on them greater than

the person they're turn the control if

they give them the grace of saying

anything about whatever they say about

them that's the extent or that's the

Pinnacle of their existence

so are you going to let would you let

these people anyone that's going to try

to talk down to you if you are making

money and you start making money and

you're profiting would you let their

criticism have any impact on you when

you're making

money no you wouldn't it would have no

you wouldn't it wouldn't bother you so

why will you allow them to influence you

while you're learning if you already

know other people are using this

information and they're making money

with

it you already know that it works you

just need to know will it work in your

hands and the only way you're going to

know that is if you start and this is

what it looks like when you start I'm

trying to be as practical I'm trying to

be as real and I'm putting you in

conditions that you're going to be met

with every single day whatever the

market throws at me I will engage it and

tell you this is what you should be

looking at this is what may or may not

happen I don't like this I do like that

I'm explaining it where it's

Salient it means where there's something

to explain away and also how to ring in

the

retail like the traders that were

trading a certain way how how do they

get bothered how they get

Disturbed how can they be taken out of

the market if they've been right if

they've been

wrong now I would sink it all the way

down to the low of the day going into

the close

that's that's what I would do that

doesn't mean it's what's going to happen

though but that's exactly what I would

do because that means anyone that was

short they're out anyone that's long

feels Rich right now and the way you do

that is you do a sudden crush and send

lower

but I think that's going to be it for

this week um I really had fun this week

I had a lot of fun I wish I would not

have live streamed yesterday simply

because my attention was elsewhere and

I'm probably going to have to start the

stream sooner simply because OBS is

mucking around with me and I don't know

what I'm doing wrong that it keeps

causing me a problem where I can't load

it up and I don't know what I don't know

any other streaming software that works

with uh YouTube and I don't want to

venture to try to learn anything new

either so it's kind of like I'm I want

to see this get resolved so that way I

can when I start a stream it's starts

off with without a hitch because I'm I'm

obsessively compulsive and you you

probably picked that up over the years

listening to

me and when I get jerked out of gear

it's it takes a minute or two for me to

to get my my bearings and try to forget

about something that's either upset me

or or bothered me but

um I hope you guys are are are learning

okay

and these first couple weeks they're

boring they really really boring

information and it's important that

Caleb is reminded just as much as you if

you're trying to really make a good

attempt at learning all this

stuff you're only going to be as good as

the market environments that is

presented to

you

and Bob Ross as beautiful as a painting

that he can paint when he was alive and

with us and as cool and as mellow as he

was while he was doing

it I'm quite certain that if we would

asked him while he was alive say Hey

listen

Bob this brick

wall this brick wall is your canvas

today okay and I'm sorry I didn't bring

any paint brushes and you aren't allowed

to use any of yours but I have these

spray paint cans okay we have these

spray paint cans and we have eight of

them eight different colors and we want

to see you paint a snowy background with

a little cabin with these happy little

trees and we want some birds and we want

a little string that has some some ice

on parts of it not entirely all it and

we expect to see you do that in 30

minutes and keep us entertain with some

mellow Jazz coming out of these bcal

cords well I'm quite certain that Bob

Ross is going to fail doing that because

number one that's not his typical canvas

and it's also his not it's not his

medium is his paint brushes are not his

tool they're not there rather he's he's

being asked to do something in a canvas

with tools he's not used to doing or

using well there's going to be times

where your

tools will not be accessible to you and

it's going to be dictated by the market

environment how the market

behaves if the market doesn't give you

your price you can't do anything about

it I mean you can get mad and you can

get angry because you just had one

exposure to it trying to do it you think

well it didn't work this time so it's

probably never going to work in the

future and that's not realistic anyone

that is trying to educate and they're

not reminding the people they're trying

to teach probably with any real

skill and they're not reminding them or

showcasing or giving them the realities

that you can have all the things in the

world that's going to afford you an

entry mechanism to get into the market

place but the Market's going to do what

the Market's going to do and if you do

it wrong you have brought in the element

of humanity I am a human just like any

one of you I can feel much more

confident about a setup than I should I

can feel less confident about a setup

than I should and I may not see a setup

at all because it just jumps out at me

because I'm either distracted or just

not I'm just not paying enough attention

because I have something else on my mind

you're going to encounter that as well

but you need to give yourself the

opportunity to study price action when

you feel feel a little bit of anxiety

when you feel like you're having a

little bit of things in your personal

life bothering

you measure your response to what price

is doing in those instances you're going

to get huge revelations in who you are

how you think and how you're going to

react afterwards because if you have an

adverse result say you you spent hours

in front of the price action and you

felt like you didn't come away with

anything it felt like it was

unproductive

how are you going to treat yourself the

rest of that day and the day after on a

day like Friday how are you going to

treat yourself throughout the entirety

of the weekend are you going to punish

yourself for not knowing enough not

being able to do it should have known

better should know more by now I should

be making money with this I'm I'm going

to quit if it doesn't start showing me

anything next

week how do you think because if you

start feeling toxic like that and if you

really want to learn how to do this you

have to remind I'm here I'm reminding

you right now it is not going to be that

fast for you I have never had a student

not one student has ever come to me and

inside of a couple months figured it all

out and they're making money it doesn't

work like that folks because you have

your own issues that you have to

identify and then build coping skills

around them if they're extremely toxic

that means impatience highly critical of

yourself of everyone else unrealistic

expectations you should be making money

within a mon month that's what you're

thinking and that's not

true that's not true my son I want him

to make as much money as he wants him

more but I've already told him he will

not see profitability shorter than six

months it won't

happen and you get to watch it you get

to see it you get to see it unfold every

step every lecture every lesson I'm

making it available to you I mean look

at me I'm they're they're very long

they're not short little five minute

videos or not 30 minute videos I'm going

over live PR action and I'm talking

about what he's probably going to feel

what he's probably is feeling when he's

watching the price

action and I'm explaining the does and

the don'ts and why and where it's

Salient why it shouldn't what's

important to me right now and why should

it be

important you don't always know what

price is going to do next you're you're

not going to know that okay you're not

going to know that so you're going to

have to subscribe to

uncertainty and trading is embracing

that

uncertainty but having enough experience

seeing certain things that you use as a

catalyst as the reason for you to get

involved or engage price action these

things will become characteristics that

you see repeating they may not all be

there but if a number of them are in

play and you see it in price action that

should bolster your confidence to at

least explore it and over time how much

time I don't know for every one of you

you're all going to do it at a different

pace but when you have a daily

interaction with price action whether

beind sight or real time preferably real

time if you cannot watch price like I'm

showing you here the best thing you can

do is watch the the the streams watch

the recordings if you can't watch it

live watch them at the same Pace do not

speed them up if you speed them up

you're getting a skewed perspective it's

not the same as watching it real time

doing it at two times the speed because

you want to get through it because you

ain't got that much time that's the

wrong way of doing it because you can't

speed up your understanding while you're

watching live price action you can't do

that

part don't think of it as I'm getting

through it quicker and I'll be able to

watch more videos because more videos is

not it I've already told you you're not

going to win in in this progress by

watching in more videos you need to be

watching price and then how you feel

what you're thinking what you're fearful

of when do you get elated and feel like

oh yeah this is working out perfectly

and you need to make annotations about

when you feel that euphoric moment where

it's perfect I know it's going to happen

and then when it doesn't and it turns

back on you what do you

feel do you feel embarrassed do you feel

like a failure do you feel like oh it's

never going to work for me and you need

to be honest with yourself in this part

of your development the very very early

stages and then if you discover that

you're very toxic to yourself you need

to start replacing those toxic ideas and

opinions of yourself and your efforts

while you're doing this and reward

yourself for the effort to keep doing it

and say you know what this gives me

opportunity to see what did I miss what

would I've done differently now that

I've seen this and is there any

investment that I can make in myself by

having this exposure that was adverse

and you do it in a very disarming way so

that way you're not punishing yourself

selft talk is absolutely critical in

this not just when you're still learning

how to trade but when you are a Trader

because you're going to have losing days

you're going to know and I'm saying this

and I'm closing you're going to know

when your model was there and when to

engage it and there's going to be

instances where you feel

externally you feel this desire to

compensate for something that's

occurring

or has occurred in your personal life

some inadequacy some kind of uh mistake

you maybe said maybe you said something

maybe you caused an argument maybe

you're not feeling well or you missed an

opportunity in the previous day maybe

you lost your job or in the verge of

being made redundant at your job and

they may get ready to you give you a

pink slip and send you on your way you

feel something is looming so you go into

the marketplace and you force something

you tell yourself yeah it's there I'm

gonna take the trade I'm not GNA wait

for the real setup because I just need

to be in there because if it pans out

it'll make me feel better than I feel

right now because my real life outside

these charts while I'm learning how to

be a

Trader I need a distraction from that

and these candlesticks are not used for

that purpose if you treat them like a

siren they'll call you to the

Rocks if you invite

them if you invite them to be that trick

on the corner that you need to release

from you might be able to afford that

real quick friendly handshake with her

him which you might not like what you

get on the other side of

it same thing with reading price action

it's either there or it isn't and the

only way you recognize it is by

repetition seeing it you'll watch me for

weeks and months do this and you're

going to start seeing the same things

and it's going to be boring that's

exactly what your goal is you want to be

able to you want to be able to finish my

sentences

or predict what I'm about to say based

on what the candlesticks are doing

nothing pleases me more than seeing

individuals show their trades

recorded annotate them with the same

observations I would have and many times

have because that means you're on the

same wavelength you're seeing the same

thing that means you have received what

I put

down you received that transmission that

that download of

intelligence left me and went into you

and that's proof of concept and it's

also proof that if other people can do

it women young and old men young and old

different cultures different race

different backgrounds hey if they can do

it why aren't you able to do it

what's going to prevent you from doing

it I'm going to tell you what's going to

prevent you not subscribing to what I'm

doing here daily not doing those things

doing it like this you have the benefit

of me doing it with you right now when

this gets to the point where Caleb is

now able to do on his own I won't be

doing this and you'll miss it you won't

have the the the ability the same

effects of watching it live seeing when

it's obvious when it's not obvious

obious when things change gears and it

becomes much more clear oh now now it

changes that's something you have to see

as it happens it can't be communicated

in a book a static picture a paragraph

three four pages of it isn't going to

give you the answer because it's going

to feel like well you know he has the

benefit of having known at the time what

the price is going to do but I don't

have that safety net here in front of

you in front of with with real time

price action

so either the methodology holds up or it

doesn't hold up and if you don't see

these things you know repeating to a

degree of repetition that warrants your

interest to keep showing up and watching

studying by all means please go watch

someone else you don't have to give me

the middle finger out the door as you go

you don't have to let the door hit you

in the ass either it just it wasn't your

thing and go chase something else that

you think is going to be better fit and

whatever it is if it's not my stuff if

it works and it makes you money man God

bless you for that like I I I I want all

of that for you I don't want to hold

anybody up but I also am honest I'm not

going to hold you up with useless

things I'm going to put you through the

things that you're going to have to do

to really learn

this understanding why it's going to

take place why it shouldn't take place

when the odds are against a certain

thing when the odds are still 5050

and you're going to see when I talk

about well this is a real this is a nice

clean Market that means you want to rec

this this today's recording today's live

stream today's episode or whatnot this

is a day where you want to put it in

your Journal that day August uh what are

we on

16th 2024 was a very thickle day

whenever I say it's you know we're in a

market that's probably going to be

thickle today or it's being fickle what

does that mean you're going to have a

whole lot of fuzzy price action where

it's overlapping constantly back and

forth back and forth back and forth and

it does these little sputtering like and

then that's it and back into fuzzy price

action and then when you get to lunch

whatever has happened you in the day

they'll make a run against that and then

then you have the

afternoon on a Friday there's no telling

what they're going to do that's why in

the afternoon if I haven't made money

in the morning on Fridays I don't go in

in the afternoon and say well you let me

see if I can get I don't want to do

that I have had losses on those days

because I'm trying to fill in a void

where maybe I missed a move in the

morning and I wanted to trade it 32

years of plus doing this I still feel

human impulses to be more involved than

should and I have seen that when I try

to go in on a Friday if I haven't done

anything all all day or maybe I missed

it or say I there's an instance a few

times in my memory now I can remember

where I was ill I was physically sick

and I wasn't able to trade all

throughout the week and I was like you

know what I got time I'm G to go out

there and I only have like an hour and a

half left in the the week and it's it

had a pretty good move for the week and

it's obvious that I think it's going to

do this or do that and I go in and I

engage in it and then then it starts

moving in my favor and I start

pyramiding and pyramiding and then

I put a stop in where

it's should be protecting it but it runs

up in tags it it eats away and I didn't

take any partial so what I've done is

I've committed too much to an idea

didn't follow the rules of taking

partials and I'm building a position and

left the stop in a position where if it

takes me out it's a losing trade is it

losing a lot of money no but I gave up

all of what I built up and now I have a

loss psychologically and emotionally

carrying into the weekend knowing full

well that I've told myself instances

beforehand that I shouldn't do that and

I did so you're not going to discover

where your pitfalls and snares are until

you start logging them but nobody wants

to do those things because it

encapsulates and and makes a monument to

Frailty and failure but as a Trader you

want to really identify what they are

because you'll never be able to fix and

address them and replace them with the

right stuff unless you identify them but

the Young Generation that wants to run

around be chairman and and mentors okay

and have a voice they don't have the

clout behind them to

to promote the validity of having a

voice they're parenting they're

parenting me they're parenting other

people anything that's written in a book

that's what they're saying

they've memorized that script and they

just sound smart to people that don't

know anything about what they're talking

about and it's all together something

different when you get out here and

you're literally over a live price

action and we're not talking about just

following some indicators there has to

be a logic explain what should take

place why shouldn't it take place when

and where it

should and your audience your your

student base if they see something that

they're pursuing and they see the

evidences of it if they see the things

that are starting to pan out and they

start all the dots are starting to

connect and that fuzzy image of what's

the future look like for them starts to

come clearer and clearer and clearer and

then they can start seeing wow I can be

a Trader that takes a trade that's a

breaker here here here we're trading

inside these last two up closed candles

right in here

so if you're you're going to use that

logic what are you going to use as a

stop loss if you have that PD array

understood not just simply a new day

opening Gap and a volume imbalance your

stop has to be down

here right below that

low so while Caleb will be using fair

value gaps as his entry model he'll have

to grow out of that before he's allowed

to get any more information from

me you just like he is he's learning

other PD arrays that will

complement so I've had students that

come to me and say I'm going to make the

order block my entry method okay well

you now just made it harder because

there are all kinds of order blocks

which one are you going to use what's

the framework within that order Block's

use what are you trading

on it's not just I'm going to buy a down

closed candle I'm going to sell short of

up closed candle there has to be some

kind of framework

and I gave you a a challenge this week I

don't know what day it was but I know I

mentioned it this week I said can you

frame what your trade idea can you draw

it out with a line like a draw draw it

out with a line depiction because if you

can't draw it out on a napkin or a piece

of paper to explain

someone what it is you're trying to

do you don't really know what you're

doing

that that is your

first goal to know before you start

pressing a button with the demo account

okay you need to be able to draw

it you need to be able to draw a

depiction of what it looks like as a buy

what it looks like as a sell where's

your initial stop loss where's your

initial

paral how will you close the trade at

Terminus I'm not talking about how many

contracts or what your risk manager is

going to be but what does the framework

look like because if you can't do that

guess what you're indicating you're IND

indicating that you did not walk the

woods with

Daddy you did not hear the crunch of the

snow under your boot as you were walking

on snow following Footprints of a deer

an elk a bear whatever it is you're

hunting whatever dad's trying to teach

you that that we're going to hunt today

you didn't go out in the woods that day

you didn't follow Dad into the woods you

didn't spend any time trying to remember

what these footprints look like because

if you understood what those footprints

look like you can draw a crude depiction

of what a deer track looks like a bare

paw print an

elk whatever it is you're hunting you'll

know what it looks like because you've

seen it enough times so how can you be

mad at yourself if you can't recognize a

setup because you've never spent time

studying what a setup looks like the one

you're hunting you don't know what

you're going to hunt yet so by watching

live price action it will teach you what

it is it's going to be easy for you to

see every Hunter does not hunt

everything they go out and they hunt

deer they go boar hunting they go bear

hunting whatever it is they hunt they

hunt turkey hunting duck hunting now you

might do duck and you might do deer but

you're not hunting

everything you don't have enough time to

do it you have job you have family you

have whatever you're doing

NASCAR now we're talking ICT hot damn

we're talking some now ain't we

but you have to be able to be in here

looking for your

setup so while we go through the coming

weeks it's not necessary for you to do

it yet if you're brand new if you're

really trying to make a serious attempt

to learn how to do this stuff it's not

realistic for you to know that yet but

just know that that's a homework

assignment that every single week that

we spend together you need to be

thinking how did this build in any more

understanding about what price is likely

to do leads me to a pattern and a

framework that sets up a trade that has

a beginning where I buy or sell where I

can place a stop loss that is finite

that means it's not it's not imaginary

it means I'm literally going to put a

stop loss there and if I get stopped out

I'm okay with

it where would be the first partial

formed or what's the logic behind where

the first partial would be taken all of

this can be added some of you are going

to be like well you can't do that ICT

well you don't know what you're talking

about okay that means don't know enough

yet but you will keep just stay with us

stay on the train it's not costing you

any money but I promise because it's my

son's end result it's in mind remember

I'm not doing this to entertain you

people I'm doing this to give him what

works and I'm giving him a framework to

study this is how you do it this is what

it looks like and because sometimes he's

working he has to watch these live

streams after the fact just like you

that work have job have college you know

you're sleeping because you're not

watching this time of day you want me to

get up and trade Forex in London for you

okay um these same principles are going

to be those same time frames and other

assets as well but I'm not going to be

I'm not interested in answering

everybody's you know request list that's

not why I'm here I have have a job to

take care of which is teach my son the

right way it's the way he's going to

have to learn it and this is the this is

what I've preached to all of you if you

paid me to learn how to do this I've

said all these things before and I was

doing these things in live stream every

single day in mentorship the first year

I literally did this every single day

and it was monotonous it was boring it

seemed like oh it is not a trade when

you didn't realize I'm literally giving

you a baseline you have to see these

things I know what I'm looking for I'm

not looking at every one of these things

today I'm looking for one or two things

and I'm done because I know what I want

to trade on but I have to give you as

the student and specifically my son you

have to bring your own personality into

this and you have to grow at your own

speed and your own pace and since it's

my son I'm okay with it as long as I got

breath in my lungs and I can have my

mental faculties I will be here doing

this because I want him to succeed and I

want his brothers to have the same

reference material should they say well

you know I'm going to go through what

you went through they they'll have it

it's here they can see

it but none of them wanted to sit down

and do this part they all just want the

money they all want it the easy way so

in that regard for some of you or all of

you really you all just want a real

quick short way of doing it and you

think that I have that for my children

and I don't this is what's essential

they have to do this just like

you you will not understand Enigma

unless you have these Baseline

understandings that's it so for people

that say they they figured it out they

cracked a code you're a liying piece of

period okay

period so I'm G to leave you with that I

will wish you all a very pleasant

weekend a safe weekend try to relax

don't spend too much time if you've been

with me each day you live don't to too

much on the weekend relax use that as

your downtime because you can burn

yourself out really fast this is a lot

of time being invested listening to me

and you're not really paying attention

entirely it's easy for you to just phase

in and out but there

are a large number of you that can't be

here and you're complaining about the

length of these things if I'm trying to

teach you live price action and it needs

to be done over live

data how is it benefiting you if I'm

talking less when you have to get a

comprehensive understanding of what the

Market's going to do over the spectrum

of a whole trading session like that

just proves a myopic perspective you

don't even know what you're supposed to

know to even ask the right questions and

that's not to be condescending to you if

you if that's how you feel that's why I

delete your comment or I ban you when

you're commenting stuff like that you

talk too much I don't ever want to hear

from somebody like that because you're

telling me the clearest way that I'm not

here to learn properly

and I don't I don't appreciate your time

and and your effort because I don't need

to do this for

you I'm doing it for my son and I'm

hoping it's going to inspire him enough

to show results to his brothers where

they will get jealous I'm trying to

create jealousy in them because they're

boys and just like every other boy they

want to pull out their dick and measured

against somebody else's and say I'm

bigger than you

bub and I know that that will make them

want to do it if one of them's doing it

they all want to do it when Cameron was

making money in TOP Step my youngest son

dad can you teach me how to

trade but the same Tik Tock mentality I

sat down with him I did one day with him

like this and he was looking at his

phone I said put the phone on the

counter over there and he's staring off

in the space and he wasn't watching the

chart attention span's too small wants

it right now and that's the that's the

problem driveth through menu mentality

give it to me right now and the time I

spent from driving my car to one menu to

get up there to receive see them um food

from you is too

long and I can't tolerate that like I

have no no tolerance for that type of

and that's why I teach the way I do

I sound like a hard ass I sound like a

prick and I'm very very direct and I

don't care about your feelings because

the market doesn't care about your

feelings it doesn't care that it feels

harder for you to learn this it doesn't

care once you arrive and you get to your

profitable model it doesn't care that

you have that profitable model it's

going to do what it's going to do if

you're in it and you make money it

doesn't care it's indifferent to you but

you're going to personify it like it's

hurting your

feelings because you have the the wrong

perspective you have to be 100%

responsible and you don't know how

you're going to react to determine the

level of responsibility you have until

you go through this stuff you have to

put yourself through it see it I don't

care who it is people that like me don't

like me if they have a model if they

have a software they designed or they

use or they sell whatever they all did

this they sat and they watched

price action and they had to get used to

seeing these things happen when you're

trading what do you think's going to

happen differently you think that

they're going to speed the

charts up for you two times the speed do

you think that annotations are going to

pop up on your chart there's a

trading view indicator ICT m in inner

musings of ICT you're going to watch

price action and everything that I'm

saying here when price is ticking and

where I think is interesting and what it

should do what it shouldn't do there's

an indicator going to pop up and

populate all that stuff on your chart

you think that's going to happen because

it's not going to happen your chart's

going to be naked until you scribble

whatever it is that you put on it or if

you leave it open whatever happens by

your observation of watching price

action that's what you're left with

that's the reality of trading you don't

know what the next candle's going to do

you don't know that you have no idea

where it's going to go but we study to

get a a baseline on how we can

predetermine

the most likely next draw on liquidity

and that's the that's the basis of

profitable trading know where it's

going and then have a pattern that you

trust you've seen many times over and

over again pan out that leads to a

reason to be in that move and Rite it to

that draw and liquidity where you think

it's going to go to and there's lots of

ways to get into a

trade but I don't want to force you into

a mode that says this is the best one

for

you so as a reminder as I close it this

is another week behind us now Caleb's

being forcing into fair value Gap I

promise you I swear to Christ almighty

it's not because the fair value Gap is

the best it's just the one that's easily

visual you can see it easily in the

chart it doesn't

hide when there is a obvious draw on

liquidity he will be using a fair value

Gap and he will buy one tick below the

high of a discount fair value G he will

sell short one tick above the low of a

bearish fair value Gap that's his entry

technique I've already told you now okay

I've told you this yesterday I told you

at the beginning of the live streams

last week how he's going to get in if

you're just wondering what the model is

that's going to get him in you don't

need to watch my videos and stop

bitching about it in my comments because

nobody sees them but me and I see them

one time and I never see it again you'll

never be good at this if that's your

mentality

is but just knowing where a fair value

Gap entry is doesn't mean you have

to know where the Market's going to grow

up to or reduce down to it's going to go

up or it's going to go down and it's

never going to be a straight line for

you it's not going to be like that and

you're going to be met with as I'm going

to talk about in a couple

weeks when it's challenging how to

overcome holding on to an idea when it's

not so clear that it wants to keep doing

it how to hold on to a trade I get that

all the time I've given lots of

responses to that this week I've given

you things on how to frame a trade with

stop-loss placement I've given you

things to think about if you get stopped

out how to revisit the same idea and get

back in I've given you instances where

you could use that same criteria and it'

be reasonable to anticipate a level be

trade to and if you used that it would

still run away without you but go to

where you thought or I said it was going

go there's no shame came in that I'm

teaching you how to disarm yourself

because that's the stuff that all my

students that bitched and cried to me in

the beginning that finally found their

way through it by doing this stuff by

journaling correctly not beating

themselves up not talking themselves

down not inviting ass hats on the

internet and their commentaries

and their insults and criticism to

derail

them it's easy to

do you give the devil a seat at the

table he will come and dine with you

don't don't invite

him don't invite

him keep your business your business

don't tell other people what you're

doing don't give progress reports to

other people that you know that now they

know that you're going through this

because they're never going to encourage

you that's not going to happen that's

not going to happen they're going to

give you 15 reasons why you should not

waste any more

time and these same people talking to

you don't make a

penny they don't make a penny and they

probably work at Jiffy Loop and

they never had a job better than that

one

so I'm closing it you have a lot of

homework through this one this week

Caleb lots and lots of need to go

through but we'll be back at it again on

Monday Lord willing I will see you then

until then enjoy your weekend be

safe and I

think I mentioned we're going to work on

the foundations of entry next week so we

we've given some basic rules for draw

liquidity that will be every single time

so it's not like I'm done with that

every single lecture we'll be working

around draws on liquidity but now we're

going to be working with elements of

Entry so that way we can start looking

at it with the perspective of while tape

reading what should I be expected to see

what should it do what shouldn't it do

so we're going to be using the fair

value Gap with that in mind framing the

logic of what an entry would be

hypothetically not pushing a demo button

not not entering a trade but building

that so that we can study it watch it

over time and then you have that skill

set that in when I'm not doing live

streams like if you want to watch the

London session if you want to watch

Forex if you want to watch you know uh

the Asian

session you'll be able to do that stuff

and not require me to be doing it with

you live so it gives you the resources

and the practice the the pro uh the

process and protocols to go through for

you to be able to do it without me

because you got to be involved in this

even when I'm not doing

it okay so that's it I'll talk to you

next time be safe

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YouTube Transcript:ICT 2024 Mentorship Lecture #10 August 16_ 2024

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ICT 2024 Mentorship Lecture #10 August 16_ 2024