All language subtitles for 4. equilibriumvsdiscount EN

Well next books.

This is the fourth of eight
installments for the first

month of the ICT ministership.

We are covering equilibrium versus discs.

Now, again, just as a forewarning, uh,
for thumb, some of you were actually.

Pupils of mine prior to me
starting this mentorship.

This is going to seem a little bit
elementary initially, but I promise

I'll add something to it that, uh, may.

Bring a little bit more depth that
the understanding of what optimal

trade entry is, um, long time ago,
back in 2010, I introduced a simple

idea of looking at swing projections.

Retracements and identifying what
would be deemed as optimal trade

entry and everyone that saw it
obviously fell in love with it.

Liked it.

It was easy for them to see they would
apply it really quick to the chart.

And I think the reason why is because
it had a indicator applied to it and

it being the Fibonacci, not Fibonacci
doesn't have any magic as an Ebony.

Yeah, significance by itself,
and yet to understand where the

market may want to reach for.

Um, so there's going to be a certain
measure of prognostication on your part.

If it doesn't do everything for you.

So, um, I wanted to
draw your attention to.

Looking at where markets are most
likely to create by conditions.

Now, this is not by signal entries.

This is just framing a context initially,
as a new trader, someone new to technical

analysis, someone new to my principles.

It's going to give you a foundation so
that we can go into the chart and start

looking at these things and measure them.

And then study them.

Okay.

So all this has meant is to
give you a framework to work

within in your demo account.

Everyone should be working inside the
forks LTD demo account as I stablish,

um, at the beginning of this mentorship.

So we have multiple price swings
in here on this daily chart, and

we're looking at it primarily daily.

Uh, initially for our setups,
if you're a new trader.

Okay.

And you seemed overwhelmed and you
probably heard me talk about certain

things already in this mentorship.

When we maybe watch some of my videos
on YouTube or my, uh, websites,

uh, tutorial section, and you heard
terms that went right over your head.

Some of the terms are created by me.

Some of them are industry standards.

Uh, so.

Are going to require a little bit
more description about what they

mean later on in the mentorship.

So if you hear something, even in
this presentation, this make a note of

it in your notes, and then obviously
you'll pick up the understanding

as you go deeper every month.

There's something new, but for now I
want you to focus on a simple question.

If a trader believes that the
market's going to go higher,

what would frame that context?

What would give the trader that conclusion
to trust buying a specific market?

Like what goes in, what goes
into making that decision?

Well, the first thing I want you to
understand this is this is going to

be like the very first baby step to
understanding institutional order.

The first thing you need is movement.

You have to understand that to be a buyer.

There has to be a willingness of
somebody with bigger, uh, bigger

pockets than you, more money than you.

And they are the ones that move
price around and they are the banks.

Okay.

Uh, they're they're only
going to let price go higher

when it suits their purpose.

Okay.

So it's not going to be a
supply and demand factor.

It's going to be a greed factor.

They want money.

Okay.

They're in the business of
making money after all, that's

their nature of their business.

That's a bank.

So if we are looking for
buying opportunities, okay.

Many retail traders look for all of
these patterns and indicator based ideas.

And I want you to focus
primarily on price.

Price alone will give you everything
you'll ever need in terms of

indicating a higher or lower price.

And it'll actually give you the actual
specific entries and your exits.

You don't need anything else
outside of a price chart.

Okay.

The open high, low, and close
does everything for you.

I want you to look at this
low down here, and I want you

to look at this high up here.

Okay.

Do you see how that is the biggest
price swing on this entire chart?

So between all August 14th, all
the way to the present time in

September, there is only been one
major price swing higher and lower.

So if we take a Fibonacci level, okay.

And I'm only going to use Fibonacci
to illustrate equilibrium,

kickers, that first have to
establish what equilibrium is.

This is the largest price range.

Okay.

The market range.

That's presently being traded in now,
what do I mean by present market range?

This is the highest range we've seen.

Okay.

In the last month or so.

So if we look at this range and
I'm going to scroll back here so

you can see it, there's nothing.

More significant than that, except
for this one back here, but we're

going to primarily use us and
it has a very strong reaction.

We can use these back here.

Okay.

And I'll do it for completeness
sake later on in the video.

But for now, I want you to see,
we have very strong, impulsive.

Then it comes back retraces then didn't
have another strong, impulsive move away.

It comes all the way
up here to the height.

Okay.

When we say impulsive price move, or what
will we refer to as impulsive price swing

going forward throughout this mentor?

That is the indication that
there has been displacement.

No displacement is where someone
with a lot of money, okay.

Comes into the marketplace and they have
a strong conviction to move price higher.

We already know that price is
going to be set by central bank.

So if they're letting price run this
high they're offering at a higher price,

as long as there's buyers coming in,
they're going to keep offering that price.

As long as they keep finding buyers, as
they keep raising price up, they'll keep

expanding price higher, higher, higher
until there is no longer any interest for

them to pair up orders with participants.

Okay.

Other open interest in the marketplace.

So they'll allow price to retreat a
little bit until they can get more

buy stops above the marketplace.

It is not.

A buyer, buyer, buyer, buyer,
buyer, buyer, buyer, market, and

then keep them stretching price.

They have already bought down here and
then they're allowing price to be offered

to the marketplace at higher prices.

Okay.

And as that happens there, all they're
doing is selling off their positions.

They establish at a lower.

Okay.

From here, the banks are
assume long positions in here.

They accumulate long positions.

Once they accumulate a position,
they allow price to go higher.

Okay.

Once that price goes higher, higher,
higher, higher, higher, it keeps

going higher until their position
is funded and they no longer

want any more, um, position held.

So they're gonna be looking for
liquidation areas where they

know that there's going to be
willing participants to buy.

That's going to be above
this old high back here.

Why would they want to take
price above that OHI here?

Because there's going to be
buy stops on a fund level.

That means big money.

Um, manage funds.

We'll have stop loss orders
rate above that high.

And I'm going to go into details in
this mentorship about where stops

are, how to, uh, how to pick out
institutional funds levels, where

their stops are at where high target,
big money moves are going to occur.

All those things will be taught to you.

But for now, I just want to start your
very small, because then there's a lot

of folks that just started with this
mentorship, and they've never really

been through the complete library.

My, uh, concepts or they
have, haven't really exposed

themselves to technical analysis.

So all this seems Greek to them.

And I don't mean that F anybody
that may be Greek, but it's

an expression in the states.

It means it's alien to them.

But the first thing I want you
to look for in price is you want

to see impulsive price swings.

Okay.

And since we're primarily looking
for discount margin, Okay.

And relative terms to equilibrium,
we first have to understand

what an impulse price swing is.

So let me take the flip off real quick
and go back to that price leg right here.

Let me take all this stuff off over here.

Okay.

So we have one big strong
impulsive price swing right here.

It comes off this low and rallies up.

We don't need to know what
caused the buydown here.

It's not interesting at all to me.

Okay.

We don't know this price link is
going to start until I'm sorry.

We don't know this
price like is here okay.

Until it forms.

So I'm giving you a perspective
studying in hindsight, the

low to this high in here.

Okay.

That rally up or that
impulsive price swing.

We only require price to
start coming down off of that.

And it takes at least four candles,
no matter what timeframe you're

on, you need four candidates.

Okay.

From when the market makes a
low and starts rallying up.

What you're going to look for is once
you see a high form, let me zoom in.

Once you see the high form,
you need four candles.

Why four candles, you need to
have one candle to the left.

One candle in the center of
the most highest one than a

lower candle to the right.

That's a swing high.

And then you got to see price go lower.

When that happens, you start waiting
for price to retrace, back to equal.

Now, what is equilibrium?

Equilibrium is a midway
point of a price move

okay.

So we were mentioning the high from
this low, you take your fib, you draw

it up to the low and you drop it.

Equilibrium is over here.

Let me scrunch this up a little bit more.

Okay.

So we have this price leg.

So impulsive price swing goes higher.

As soon as we get three candles
then, and only then will we start

watching for price to come down
to the equilibrium price point?

And that is basically
the Fibonacci level 50%.

Okay.

We're looking for price to
come down to that level.

And as soon as it comes back to that
level, and we're on a daily chart,

we go down into a lower timeframe
and we hunt buying opportunities.

Now I'm not teaching you buy.

Entry signals.

Okay.

I'm giving you context of how to
discern when the market goes to

discount and when it's at a premium
and we're not trading at premiums.

Okay.

Well, I'll teach you how to use premiums,
uh, the first video of next week.

Okay.

So, um, we're only focusing primarily
on equilibrium versus discount.

We have a price swing that
moves from a low aggressively.

We don't do anything until we
start seeing a down move and it

has to happen after three candles,
basically making a swing high.

Now swing high looks like this.

Okay.

You can see it has a high
in a candle to the left.

It's lower and count to
the right that's lower.

That's a swing high.

And then once that swing high forms,
we're waiting for the fourth candle.

Okay, let's start coming lower.

In other words, we're looking
for four candles to start

turning around when that happens.

Okay.

That gives you now you're allowed
to start looking for the market

to come down into equilibrium.

That means that 50% level.

Okay.

Once you're on the 50% level and you're in
a hard timeframe and we start everything

at a daily chart at the daily chart, we're
no, we know now that between the low.

In the high here, the market now
has gone back to equilibrium.

So it's at fair value
or at fair market value.

If you get something at fair market
value, obviously you're not paying

a premium, but you're not really
getting a discount either, but it's

still a neutral to bolus condition.

That means you're not
buying at an inflated price.

So this time, period right here to mark
is offering an opportunity to be long.

I'm not going down the
lower timeframes today.

I'm not going to teach you that today.

Only thing I'm giving you right now
is developing context around the

daily institutional price levels
that are arrived at on the daily.

And all you're looking for is impulsive
price swings, first letting price,

settle back down into equilibrium.

And then we discern what we're going to
do once we, when we get to that level,

as you see, without going into lower
timeframes, the price does rally again,

where does it rally back up to its
old institutional order flow reference

point, which is an old high back here.

So it goes right above that previous high.

You see that now the market
trades off again and goes lower.

We have now a new, new range.

We have to now put the Fibonacci on
this high, keeping it off this same low.

Now, why did I do that?

Because this price law
has not been violated.

It only retraced down to
here and rallied up again.

Then we, we wait for, uh, three
candles, the high candle to the left.

There's a lower one to the right.

There's a lower one.

This is probably a Sunday.

And even still, this is one.

Either way you don't want to count Sundays
by the way, empty for one L uh, Forex.

LTD does give you the Sunday candle.

So you got to factor that out.

Don't don't count Sunday's
candle because it's an event.

So that's probably going to
end up becoming this case.

And they'll hear once you get the down
candle here that the market has, um,

in fact turned, it's starting to go
lower notice what's happening here.

We're not rushing.

We don't need the cats to high.

Okay.

It gives us all, all kinds of time to
wait and plan and build an idea about

what it is specifically we're going to do.

When price gets to equilibrium,
price drops down a little

bit more than it goes up.

What do we do the whole time?

This is happening?

Nothing.

We're not doing anything.

This is a higher timeframe principle.

Most of you are all begging for a higher
timeframe principle to trade with.

This is the beginning
building blocks to that.

Okay.

Market trades, lower, lower.

What do we do here?

Not doing anything here yet.

Okay.

Nothing train low or low
or low or lower sudden.

Boom.

It hits equilibrium over here.

Now we can start studying.

We want to study price
on the lower timeframes.

We'll look for entries, but not until
I'm not teaching you entry signals here.

I'm giving you context.

As soon as we get to equilibrium,
we are now at fair market value.

So the market is permitted to be bought.

Okay.

At the banking level, they will be
able to buy at these levels because

there's not at a premium based market.

The levels that are
trading at this level here.

All right.

Fair market value.

Now banks are just like anyone else.

If you go to the grocery store
and you see steaks for $10, uh,

I don't even know what they cost.

My wife does all the shopping,
the a, if a state costs 10 and

dollars at the, at the market.

Uh, and it drops down to
$8 and 50 cents a steak.

That's probably, you know, a discount
and it may not be that price.

I don't know.

But for the sake of
analogy we're using it.

That means that we are now at a discount.

Anything below equilibrium
is now a discount market.

When markets go below equilibrium, they
do not spend much time below equilibrium.

And there's usually a very
dynamic price move away from that.

Especially if the context behind
the marketplace is bullish.

Now, looking at this framework we have
here, we had an impulsive price swing.

Oh, read a little tiny little
trace and came back to equilibrium.

Rallied.

One more time.

Took out the high, um, high
over here and then sold off.

Okay.

Went back down into equilibrium
again and went to a discount

below 50% of the impulse price
swing that is now at a distance.

So the market on the banking
perspective is that this now is now

at a discount is allowed to be bought.

Now you just don't go indiscriminately
in there trying to buy it just

because it goes back to 50% or less.

That's not enough.

You've got to have more information, but
for now, I just want to give you when

we have a bullish scenario for a market.

Okay.

If we think of pears bullish, we look
for impulsive price swings on the daily

chart, the frame, higher timeframe, ideas.

There's other trades that you can take
in lower timeframes in between these,

but for now, I want you primarily
focused on just this, because it'll

give you all the things that you've
probably been lacking with hard timeframe

ideas, and the beginning blocks of
directional bias, because it's done.

It gives you a lot of time to you.

Don't have to be sitting in
front of an intraday chart.

You don't have to worry about the
boss catching you doing something

and steel on time at the job.

This gives you a lot of flexibility and
time to prepare for an idea to trade on.

So when we get the equilibrium, we
know that we are at fair market value.

It's a market that could be bought
if we are bolus, but we can't buy it.

We can't buy above this level up to here.

Okay.

That's that's the point, what I'm
saying, the best buys come at equal.

Or less anything below equilibrium or
a 50% level is viewed as a discount.

Now, the wonderful thing about
understanding this is when a market's

at discount and its underlying a
basis is bullish discount prices.

Don't stay in the market very long.

The market's going to want to
run away from that really quick,

because this is a daily chart.

This isn't that bad in terms
of how much time it spends.

Below equilibrium, but you can see finally
it explosively moved away from that and

rally up through what I asked you guys
to do in the third tutorial, which was

to on your charts and mark out areas of
where equal highs would be and where old

highs would be the market rallies from
that price point and goes right back up

and clear that these equal highs, when
these equal Heights are taken out, if

you were a trader that only took a long
in this area, And it don't have to be

an exact science as far as where it was.

We're just going to
speak in general terms.

If you went along somewhere in this small
little consolidation before the expansion.

Okay.

Between buying the 95 big
figure, roughly up to these

equal highs, that's about 98, 50.

Yeah, about 98 50 and
you bought around 95 50.

So that's 300 pips move on a
signal that would have formed.

It took a little bit more.

To, uh, come to fruition, but based
on equilibrium and discounting, okay.

You can frame the ideas in
which the market should react.

It should be viewed as a
discount across the board.

And if there is in fact bullish, the
banks will Dogpile on this and send the

price higher and it should be with quick
dynamic price action, understanding

where it should be reaching for it.

Above old highs above equal highs.

Okay.

Above, um, closing a range.

Okay.

Which we don't really have in
here, but I'm just showing you

just some one example here already.

The first one it's 300 pips.

Okay.

Then we have another price
move all the up here.

This there's no real retracements in here.

Cause lodge, we have a high
equals a little bit lower here.

And then here's one here.

If we would have measured the low.

To this high, it doesn't come down.

The 50% is nowhere near.

I can eyeball that.

And you can probably do that too, but
I probably might miss this, do it.

Cause I'm probably going to
have some of you folks that

are from different countries.

Having a hard time, understanding
my English, let alone four X, if

we would've measured just this
impulsive price swing right here.

Notice that even though we had the candle
here lower on the fourth one, it had

an up-close, but it was still lower.

Nothing came back down the equilibrium,
it stayed at a high price and the

kids kept going higher and higher
and higher and higher and higher.

So if we go back to adding the fed
to that initial price low here,

and we stretch it because now
we, we broke, we broke this high.

We're going to keep draw on the fifth
up on swings that move up dynamically.

So we have this big parent price.

So now we're going to wait until
price gets back down to equilibrium.

When do we start waiting for that?

When the market shows a swing
high, which it does here, then we

start counting to the fourth candle
where it drops to the fourth candle

has to move lower or be lower.

Then the highest candle that makes a swing
high, it's all, it's a very simple thing.

And then from there we just start waiting
and then countdown, every time it goes

down to low, low, lower, low, low, low.

And finally, what's your hit rate?

Equilibrium at set 50% marks.

And as it does that, the market is
at a fair market value so that it

can be bought on the banking level.

It cannot be bought until it
gets to that level or below it.

They won't come in and they won't do it.

It's not based on Fibonacci.

I'm just showing you in terms of.

Equilibrium between old highs and old
lows it's cyst evaluation, marker.

That's all it is.

Okay.

So the algo will kick into a buy mood in
here, especially if they have orders at

that level or just a little bit below it.

And if they are there, you'll know it
because the price will react immediately.

Like it does here.

It hits it one time.

It doesn't have another camera.

If I touch it, this one gets close
to it, but it still rallies away.

Okay.

So now watch what happens.

We have another impulse swing.

Price moves away from an area
where we expect it to rally.

Why do we expect it to rally there?

Because between this low and this
high price should be sensitive

here on the upside and it
rallies now watch what happens.

This is a big, big step.

I'm going to keep this
Fibonacci just like it is.

I'm going to add another one right on
the low that starts here and it runs up.

See that.

So between this low up to this
high, why we count in this swing?

Why are we using this Fibonacci price,
swing Michael and not something else?

Because this one has showed reaction
to want to move away from an area.

We would expect it to move.

And now watch we have a swing high
here's a high, lower high, lower high,

and this candle is lower than the one on
the highest portion of the swing hikes.

So now we start counting down until
price gets to what equilibrium or less.

The next candle doesn't do it.

This candle does.

It goes right down through
equilibrium, down into what

we call optimal trade entry.

So when we get below equilibrium
all this time in here, look how

much time it gives you opportunities
to get in at 62 to 70 and a half

percent, which is optimal trade entry.

Sweet spot.

If you look at that price, gathers up
more orders and rallies away aggressively.

Watch it happens again.

Now we have another reference point.

This is where we expected
price to react and it did.

It gives us another price leg
before all the way up here.

From this low to this high, we get
high, a low, a lower low on this one,

and we're already below equilibrium.

Look at the buyers of the candle.

We win.

I'm not going to talk about water
blocks here, as much as I want to right

now, it's for some of you guys that do
know in a block, you'd probably would

know what I'm talking about before.

I would say it, but in here we
expect price to be sensitive in here.

Okay.

Because we're below 50% or equilibrium.

We're at a discount price should
not spend much time there at all.

It quickly rallies away.

Okay.

And it comes back down.

I can draw a fib on this
low to this high America.

Let me just do it.

That's after all.

That's the context of what
we're teaching here today.

Right?

Colin AFib on all these levels
where they should be reaction.

Okay.

Market rallies up.

Here's the swing high.

The next candle, the fourth
candle has gotta be lower.

It does it trades through equilibrium
right into optimal trade entry.

Does it stay there long?

No, it rallies up comes back.

It doesn't break.

The high comes back one more time.

The equilibrium, and then
aggressively moves away.

And expand, expand,
expand, expand, expand.

And then finally it gives us a reversal,
but nonetheless it, that right there

from buying and here to here, let's
look at that in terms of range,

300 pips again.

Okay.

You're not, it's not every, not every.

Day setups.

Okay.

But it's giving you significant setups.

If we look at the moves that we called
in here using what I'm showing you.

If you bought down in here, just to
this level here, it's 140 pips to here.

It's 272 pips.

If you held onto it, it's 400 pips.

This price, move in here.

Price should be sensitive right here.

I'll throw it in here.

Order blocks right here.

You'll learn about those, but
the Fibonacci we just showed you.

It's still there.

And watch this.

We had a price swing here that reacted
off of a level that should be bullish.

Here's our new price leg here.

We haven't high in a higher high, so
we have a higher magnitude price swing.

That's going on.

We wait for the swing high to
form down candles right here.

Equilibriums right here into the
optimal trade entry, which is discount.

It's gotta be below equilibrium.

If the market is below equilibrium, we
are in a discount market and it should

not go below the old bullet forms.

In other words, wherever there's
the impulse price swing is that low.

It starts from it.

Can't go below.

So think about what it's already
given you, it's given you a

framework to work with it.

Okay.

I don't need to know
exactly where I'm buying it.

I just know a general area.

I can fine tune that down
into lower timeframes.

When we do top down
analysis, I'll teach that.

But for now, if we understand this is the
low, we draw our fit from a stop loss has

to be below there when this timeframe,
so we can buy in this area here.

Put a stop-loss down here
define the risk between that.

And then how much of a rest of the
world will, will we get based on how

far should reach up every time, every
time that price makes an impulse price

swing higher, we just wait for it to
come back down and there's no rush.

We just wait.

It takes three candles
on the third candle.

It can hit equilibrium on Google.

But we needed to simply wait
for the swing high, that form,

and then you watch it drop down.

Once it drops down, you know what
you're going to be expecting.

The price move should be explosive
to the upside because the market goes

back to a discount below equilibrium.

It can be a sensitive at equilibrium,
but here's what we're supposed

to be focusing primarily on.

You want high odds trades, you
want high probability, explosive

price action moves in your favor.

That happens when it goes below
equilibrium because the market will

go to a very, very suppressed levels.

And when they go below equilibrium
to a discount level, markets will

not sustain discount prices very
long if the underlying pinnings

of the marketplace is bullish.

So it gives you two things.

It gives you a context, work
with them when you for buys

and it gives you options.

A relative strength study that's built in.

It should be sensitive.

It should be dynamic price action moves
away from that equilibrium or less,

more specifically below equilibrium.

So that's where the optimal trade
entry idea came from when I was

using the 62% to 79% trade spend
levels that you see on my Fibonaccis.

Well, it's this area of 60 to 70.5.

And 79%.

Okay.

And those levels are very, very sensitive,
not because of Fibonacci sake, but because

it's really just measuring how far the
per the current price range has been.

The algo had a low down
here and it had a high here.

This is the total range that
we're trading inside of right now.

Okay.

Right now this is, this is right
now, current as of today, um,

Friday's close of September 16.

Okay.

So right now we are in the range.

That's been defined by
the high and the low here.

So that level of equilibrium
still exists, which is here.

So any by condition that occurs below
this level here is high probability.

But what does that mean?

That means you just measure every
single impulsive price leg higher.

When it moves up.

Actually let's do this.

Let's shade, this area.

And that way we'll understand that.

Anything below anything below here, that's
in a high probability or discount market.

Okay.

So now when we, when we understand that
we can define every single price leg

that moves up, which is an impulsive
price swing when it moves high.

All we have to do is measure the new
equilibrium point at which it's created.

And here I'm going to start right here.

There's an impulse price leg right there.

So we have the low up to
the high swing high fourth.

Canon's gotta be down.

It does hit equilibrium.

Should it respond?

Yes, it should be dynamic.

Does it go higher?

Yes, it does.

Makes a new high.

Where's it go to Michael above
a previous high over here,

and then it trades back down.

Now, here we have equilibrium
here, traced equilibrium, and then

aggressively trades through it.

You're probably thinking, oh, it failed.

It does.

That's what's going to happen.

Sometimes you're going to lose it.

I want you to understand that it's not
going to be perfect, but it's going

to give you more context than you have
right now, especially if you're new.

If you have been looking at price action
before you probably have never looked

at it like this in terms of valuation
between equilibrium and discount,

and we're going to teach them the
importance of that the rest of this

month and the remaining teachings.

But for now, I'm going to introduce you to
the idea of viewing price in this country.

Below equilibrium here.

No discount.

We come all the way back
down and take out a stop.

Stop runs is what's going
to be a different profile.

And if you take a loss,
that's what you expect.

You expect this occurrence that happened
where the market takes the low out.

Well, if it does take that low out,
what is it probably really doing?

It's taking stops out so that it
should be a turtle soup, turtle

soup, a false breakout pattern.

We went below that low.

We should see a responsiveness
that's aggressive that moves higher.

We see that.

Okay.

Market trades up makes
an impulsive price leg

from that low, all the way up to here.

Now watch here's the cool part about this.

We have a swing high and you have
the high, the lower high, the lower

high, and the fourth candle is down.

Does it ever get down to the equilibrium?

No.

So we have no trade.

We don't catch anything
that keeps going up.

No problem.

I ain't worried about you.

Ain't worried about.

Next price leg we look for.

Okay.

We have this price leg here.

We're only focusing on
inside the yellow area.

That's the shaded discount
portion of this market.

That's the dollar swissy this
current market is a discount below,

below.

This line here.

This is equilibrium at the top of the
Hilo shaded area and below it is discount.

So the market should be
responsive at levels of discount.

After we, after we see this high form,
we look for the high, the swing high,

the form, and the fourth game has
got to show willingness to be lower.

It does.

And then we simply just, wait, wait,
wait, wait, wait, wait, wait, wait,

wait until it hits the equilibrium and
they would go down to a lower timeframes

and we look for trading signals.

There may or may not be, they may
or may not have rather than one.

Okay, I'm going to say maybe
it took one there and maybe

it took and you took a loss.

Great.

No problem.

You took a loss.

Here's a, here's a losing trade
here and here's a losing trade here.

No problem.

We have a winner here.

Market's gone down into a deeper discount.

Look at this swing low over here.

Okay.

This is the building blocks of
understanding how institutional overflow

will incorporate for shorter blocks.

When market comes down into a
discount and a deep retracement

of this impulsive price.

You're looking at the down candles.

Great at the low.

Okay.

If you have two of them
consecutively, it begins at the

top of this candle right here.

So draw that out in time.

The market goes into that area.

This is a buying opportunity.

You would go down to a lower timeframe.

Again, the daily chart is really high.

It's a tight timeframe.

So you're gonna be able to break
that down into four hour, 60

minute, 15 minute and five minutes.

Look for buying opportunities.

Yeah, that area for a discounting market
immediately aggressively moves away.

When we get that, we get another price leg

and we can take our Fibonacci
and measure it to, uh, come

up with another equilibrium.

Doesn't come back down to
discount or equilibrium in here.

So we don't have any trade here.

The market rallies, again, from that
level, we put our logo on our Fibonacci.

And here's our high here.

So we have a high, a lower high
and down candle hit equilibrium.

We'll get a response rallies up trades
rate back up to an old, low rejection.

I'm not looking for sell signals.

We're not teaching that here.

Now we have a higher magnitude price
swing, all this impulsive price.

When even though it's
broken up into three.

You still have to measure that
because that's the, there it's the

parent price swing that's currently
being traded in right there.

Okay.

So this movement here, then
price gets down the equilibrium.

We would study and see if
there's a reason to be a buyer.

There's an order block over here.

So there may be in something.

Look at it.

When the lower timeframe,
maybe there was a loss.

Maybe you didn't take a trade.

I don't know.

But price goes down into a deeper discount
trades rate into bullets over block.

Price hits it.

Does it spend much time there?

No, it rallies aggressively and it
fills in an area where price had

already moved in rather quickly.

And I'll just toss this in there
for, for, uh, teasing purposes.

It goes right up to the bottom
of this bullish candle, which

is a bear shorter block.

And that's an area where you would look
to take profits on a long position.

If he did something like that,
buying sale, he bought it in may here

in the middle of this range here.

And you got out there.

It's 175 pips factory
in brought by 170 pips.

How can anyone be upset with something
like that when you're waiting around,

you're not getting a million trades.

Okay.

There's not a lot of
this is the daily chart.

So you're getting about one per week,
really good high odds opportunities.

So when you see it moves like this,
okay, you can see there's a willingness

to, to recapitalize these levels based
on the fact that market goes to a deal.

Uh, we have the same print
price swing back here.

You always use the same ranges
that we're currently in.

This range is still in effect of
our comes back down into the seven

times certain chasing level, which
is still a deep discount market.

And also it blows out an old whoa.

So there may be some stuff down here.

The market takes out nothing.

If the market's going
to go higher, generally.

Now think at the market's going to
go higher and it's bullish and it

comes down below an old low that's
generally going to be a stop-loss run.

That was the first thing I taught in
2010 to look for dynamic price moves.

If you understand what
a bullish market is.

Okay.

You want to define every time the market
creates a low and then violates that low.

If it does that generally, that means that
the market makers or the institutional

bank in algo will go down below the
lows and gather up any orders that

will be resting below those orders.

Um, some blow that low, this
low here it's violated here

immediately rejects and goes higher.

This low here.

It goes below here, rejects
Emilia and goes higher.

This low here, it goes
down below it rejects.

Emily goes higher.

So now think about what
I've just given you.

I've given you a framework to
map out what equilibrium is.

Okay.

What is that?

And then I told you what the benefit
of knowing what below equilibrium is.

So when you're looking for a market,
when you're looking at a range in the

marketplace and the market goes below
an old low, that gives you context to

look for what stop rates below the lows.

And there should be a
reaction going higher.

If the market's bullish, if the
market's underlying tone is bullish and

we're going to frame all that stuff.

But for now, I want you to study, go in
your charts and you'll see a plethora

of these things occurring all the time.

And it gives you the building blocks
of knowing what trading setups

form, how the market should react.

And you'll start seeing these
things before they happen.

You want to study them in the past
first, but then start looking for

them to anticipate future moves
based on what I'm teaching you here.

So in summary, we understand
that equilibrium is the

midway point of a range.

We need an impulsive price leg.

Once we identify that an
individual impulse price swing.

We run our Fibonacci from the
low up to the high, and then

we wait for four candles.

Once those fourth candle is lower than
the highest one, we start waiting for

price to come down into equilibrium.

When it does that we can go in and hunt
for buying opportunities on the lower

timeframes we blend in institutional
order flow ideas, like the order blocks,

mitigation blocks, breakers, turtle soup.

Okay.

And optimal trade entries, all those
things, either one of them, any one of

them can be applied for a buying scenario.

But if you ever see the conditions
that's bullish and I low is swept out.

That's when you anticipate a turtle
suit, the question I get all the

time is, is how do I know if the
market's going to keep going lower?

Or if it's going to just go
below an old, low, and then.

This is the beginning basis point of
knowing when that occurs and when not

to expect it to, uh, to turn around.

So we have, uh, the market
reacting off of this at rallies up.

Now we have another
price leg right in here.

It took out an old high, so we
can go over here, draw a Fibonacci

on that low up to this high.

Price comes down the equilibrium.

We start hunting for buying opportunities
right in here on a lower timeframe.

I don't know if there's
anything there yet.

You'll have to go in and look into your
charts yourself, but we go down into 62%

and tracing level, which is now discount.

Okay.

So when we identify equilibrium,
that's the 50% level.

When price goes below
50%, it's at a discount.

When is it the highest probable.

Degree of bullishness at a discount price.

That's when you have this

to fix the two to 79% treatment
level in that area right there,

that's the deep discount that we look
for in bullish conditions and why

Fibonacci 62 to 78% treatment levels.

Any other time, Fibonacci is
going to fail you all the time.

It's the foundations behind price action
that caused these indicators to work.

Sometimes even overbought and
oversold indicators will work.

If you apply these ideas to
them, bullish, divergence.

Trend following hidden divergence.

Okay.

Or type to trend following, which
is, uh, really what it is, uh,

developed and discovered by Nick van.

Nice.

And not George Lane, by the way,
the, the ideas have to come by

way of sound, price, action.

Understanding if it's not there.

Based on what the foundations
of price action are implying,

then it's not going to work.

It doesn't matter what I didn't
hear you slap on your chart.

You need to have the underpinnings
of the market being dictated by

price action, not by a mathematically
derived or crunching of past price

to give you some prognostication.

It doesn't work like that.

The market will not
respond to an indicator.

The indicator is only reflecting a
mathematical historical reference

of something that price already.

That has no basis on what the
market is going to do going forward.

So when we look at markets,
we have to number one, define

what these price ranges are.

That means number one, if we're bullish,
all we're doing is waiting around.

What are we waiting around for?

Michael?

We're waiting for a price move.

Well I'm with I'm missing all that.

Yeah.

And that's patients traders that
make money professionally or manage

funds are not chasing everything
that goes on in the marketplace.

They're know exactly
what they're looking for.

That once you get a price run like
this, it's an impulsive price swing.

Then you wait, what are you
waiting for for candles up here?

When the fourth one comes, then
you certainly wait for it to

come back down the equilibrium.

Once it gets the equilibrium,
you can look for a second.

But I'm stressing.

The difference between equilibrium
versus discount is you want it to now go

below equilibrium into 62% minimum down
into 79% placement when it does that.

That's when you have the highest probable
degree of bullishness, while the market's

in a discount, then you should see
explosive price act into the upside.

If you're using a daily chart, you'll
be able to use this as a day trader

as a short term trader or position.

Swing trader nothing has been changed
in the delivery of what I look for

relative to bullshit order blocks,
turtle, soups, all that business.

Here's the cool thing.

If we understand that we're bullish
in the discount zone, like we've had

here defined by this a Fibonacci level.

Okay.

Down in this area here, we're looking
for specific things to happen.

We're not just looking at.

Um, why did you use the term a zone, but
not like zone, like supply and demand zone

in this section or, or, well, let's say
here, it's not because it's not really

defined in the sense that it's supply and
demand zones, but, uh, it's a total area

of valuation where between equilibrium
and less than it's in a discount.

So if you're going to have this as a range
to work with them, what inside of the

range are you really specifically looking.

Okay, well, you're looking for
specific reference points in

terms of institutional order flow.

That means a stop run.

Like we defined here and here
where the market went lower

than a previous low in here.

And then you anticipate what the
market to expand it, the upside.

If we understand that that's the
occurrence that should take place.

When we're down here and
we're looking for bison area.

So if it goes below equilibrium and
blows out a Fibonacci level and you

take a loss, just find the low, it
just blew out and then expect the

buy signal air then, and then you're
buying at a really deep discount.

Then you're going to get
an explosive moody upside.

So now if we're using false breaks below
previous lows down here, what can you

do to get out of a profitable position?

The same thing you look for a house.

If you're buying down here after
stock's been run, you take your profit.

Once this market goes above the
previous high over here, mark

makes a lower, low it rallies.

Okay.

It rallies up, starts to retrace where
you want to get out at, when it gets

about a old high here's an old high,
you take your profits right there.

But wait a minute, Michael, wait a minute.

It didn't go above this one here.

What if I would have held on
to that one, then you would.

He gave you two chances to do
it, to market me a new high

here, turn back a little round.

And then one more time punched above it.

Get out above and old high markets will
distribute, or let me say it this way.

Market makers and smart money will
distribute long positions above old highs.

It doesn't have to be the oldest high.

You didn't go over about this one.

You didn't go above this one.

You don't need it to, once it creates
a high, they Le they only allow

price to retrace to allow stops,
to build up above an old high.

That's how they engineer liquidity.

So when engineered liquidity comes in the
marketplace in the form of a buy stop,

protecting a short position that somebody
out there, you know, foolishly put in

here, then they'll run price above it.

Hitting those buys stops those
buy stocks to come market.

Where's the bite, the market,
and they sell to those buys.

Stuffs.

They're long positions.

He made it back here.

That's all institutional.

Understanding the storyline between what
the highs and the lows are given you.

If you frame the ranges based on
your understanding of what the market

should be bullish or bearish, and
that's easy, don't worry about that.

We'll get to that.

But for now, I'm trying to try to
Institute a foundation for looking

at price on a hard timeframe, and
then managing your expectations

based on what you see on this.

And also building the beginning
basis to your anticipatory skills

for looking for future moves.

Wait a minute, Michael, this is S
this you just form fitted this one.

This is probably just only
working on this chart here.

What happens if you go into, um,
what happens if you go into an

hourly chart, suddenly it's all
going to be different, right?

It's going to be.

It's all gonna be different.

Well,

here we have a price lag here.

Okay.

Impulsive price swing.

You map that out.

Okay.

Swing high.

Fourth candle.

Doesn't get back down the equilibrium.

No problem.

We wait for it to do it.

It doesn't do it makes another leg higher.

What happened?

We missed it.

Don't worry about it.

Don't chase it.

You know exactly what you're waiting for.

Price makes the new hire high.

So we have the low to the
high, what are we waiting for?

Price to get down the equilibrium.

Okay, great.

But what happens when it gets below
that we're w we're in a discount market.

We have to go into the what?

62% retracement level minimum right here.

It does.

Does it stay there long?

No way.

It doesn't stay that long.

What happens?

The price moves away from it.

And then what does it do?

It comes back down at the equilibrium
again and it expands again.

It consolidates a little bit.

It makes us short-term.

Huh?

Where do you take your profits at Michael
above old time, a short term high boom.

It rallies above it, knocks that high
out and even comes back and clears

this one out too, just by a little bit.

And then look what happens.

They retrace it all the way
back down to equilibrium.

Again, this doesn't spend time much there.

No rallies back up.

Where's it go back to the bottom
of this bullish candle, which

is a pair shorter block fills
it right to the rate to the PIP.

I'm going to tell you something.

I hate this pair.

I literally hate this pair with a
passion because it's this sneaky

pair, like the Japanese yen and you
Swiss folks and, uh, Japanese folks,

please don't take offense to that.

I'm just, I don't like your currencies.

Put it that way.

The, uh, the on candles, 97 60.

And the high on this candle
comes in at exactly 97, 68.

So you take your profits right there.

Not at that high you exit
before you get to that.

Remember, we always want to get out
before we get to the actual price.

Like now we have another higher high.

Right here.

See that.

So we're going to wait for price to get
down to equilibrium and unless it does it

here again, 62% and 62% retracement level,
should it stay there long new does it?

No, it doesn't.

It rallies away.

Retrace it back to equilibrium again.

And then what do we expect it equilibrium.

What did I teach you about?

The algo?

It goes from consolidation,
which is always going to be

at equilibrium to expansion.

What's it expanding?

The liquidity.

Where's the liquidity at Ray here
before it takes off going vertical.

Where is the liquidity at?

It's above this high and
above this high here.

What is it?

Probably stops.

Somebody wants to
protect a short position.

So if they're going to buy down here
as smart money, they're going to sell

it to who somebody wants to buy it.

A higher price.

The buy stops here and the buy stops here.

Look what happens.

It goes up a little bit, small little
retracement and then expands aggressively.

What's it going for the stops
right here and then right.

Then once we go above local
happens this movement here.

What did I teach you?

I teach that markets move in
intraday price action in grades

of 10 there's, 10, 10, and 20
pit rains is above a high that's.

How far they'll reach, where stopped.

But.

There you go, there's your
stop run on equal highs.

Remember I told you on your charts,
mark out areas where there's equal

highs to, to clean the market's
going to want to run there.

So anything below 50% is discount,
but it can go back to equilibrium

and consolidate and then expand.

So I'm blending two components giving
you introduction to the, uh, the

interbank algo where you'll know
what the, what the price engines

were going to do before they do it.

They're going to offer the price higher
when it's time to do so, but they're going

to have to capitalize discounted margin.

Before it goes higher.

It won't just go straight
up for no reason.

It doesn't, it doesn't operate like that.

The market has to come back down to
a discount and below equilibrium,

then you get explosive moves.

Then it may come back to equilibrium to
consolidate in a wait for an expansion.

Then the expansion comes and you look
for the liquidity about the marketplace.

So the difference between equilibrium
is yes, it's fair market value at equal.

We as traders, we want
to trade at discounts.

We have to get below equilibrium
when it gets into the 62%

retracement level or down into
70.5 or even 79% trace on levels.

You really need to be considering being
interested in being long on those markets.

When your underlying bullishness is
there waiting for expansion, blending

in all the tools that you'll learn.

Uh, look at the low here.

Okay.

We're below equilibrium.

Here's a low, it comes all the way down.

Hits those right there.

What would you expect even if you
didn't see the Fibonacci, what would

you expect that this is a turtle suit?

It's a Ronald stops.

It quickly rejects.

It comes back down.

What is it going to go lower, Michael?

It shouldn't why?

Because it already took the stops out.

So it's only retracing a little bit.

If you took another Fibonacci.

And you put it on this range because
we're looking at an hourly chart here.

This would be a smaller price
leg in a lower timeframe.

Look what it does.

It goes right back down into
optimal trade entry again, below

equilibrium, optimal trade entry.

And does it spend lot of time down here?

No, it rallies up hits a 60% chance.

62% retracement level again,
and then expands boom takes off.

There's no magic in Fibonacci.

None.

The only thing it helps you do is
visually see what equilibrium is.

And then below equilibrium, where is
a good price to enter at a discount.

And here's the benefit.

If it goes lower than the optimal trade
entry between 62 and 70, I'm still chasing

labels and you're in line bullishness.

Is there wait for the turtle suit by boom.

It's that easy?

It's that easy.

And you don't believe me.

I know you don't believe me.

That's the beautiful part about this.

And that's why I want you to go
into your charts and look for it.

If we have a bullish.

Okay.

And we know that markets are retracing.

You won't need to see the Fibonacci.

You can just eyeball it between
this low and this high midway

points about right here.

This market move below.

That is below equilibrium.

It's at a discount.

And guess what?

It cleared out, stops over here.

What's it going to do?

Rally it rallies up equal lows in
here to clean market drops down.

What's it doing?

Going down the equilibrium Fibonacci line.

Optimal trade entry.

I'm not going to put the tape on
it and you can do it from this

low to this high goes right beyond
its optimal trade entry explodes.

Why?

Because it cleared up the
equal loads down here.

Boom.

Explodes up to the outside.

What about this low over here, Michael?

Sure.

Come down and cleans it out.

What should happen?

It should expand.

It's bullish.

We're at a discount.

Yeah.

They're only coming down to take
the stops below the marketplace out.

These are cell stops.

Why would the market makers want to take
the market down to take out cell stuff?

Because it injects people that want
to sell to them that want to buy.

They get counter parties
to their buy orders.

By having the sell stops tripped
below that low boom explodes.

This low rate.

Violated right here.

Not by much.

It doesn't need to be much.

Once I hit that level, then the orders
go hot, bang, explodes up the upside.

Well, it doesn't make a new high, Michael.

It doesn't have to, you get exited
right here at your old older blocks.

You don't need to have everything
out there to come in alignment.

The stars don't have to align
to get you a profitable trade.

You just needed a couple
things that make sense.

They have to start with
equilibrium to discount.

That has to happen.

If you don't get that, you're not going
to have these explosive buy signals.

It's going to fall on your lap.

It's not just knowing, give me a bicycle.

Michael.

Tell me when to get in and get out.

This is, this is why I told you.

You have to understand things before
just looking for bullets or blocks before

turtle suit longs before optimal trade
entry, longs before stochastic divergence.

None of those things work outside
of understanding the central

tenant to what a market is at
equilibrium or below it at discount.

That's a favorable buying market.

Anything apart from that,
you stay away from it.

You wait or look for the opposite
side of the market, which is

what we'll talk about next week.

When we look at
equilibrium versus premium.