All language subtitles for Lesson 08 Routine EN

Okay folks.

Welcome back to lesson eight of the
May, 2017 ICT mentorship, but it's the

amplified day trading and scalping.

This lesson is the ICT
daily day trade routine.

Okay.

Folks, when it comes to
day trading or even scout.

Uh, the first thing I'd like
to do is consider this economic

calendar for the next trading day
or the data's going to be traded.

Now, this can be viewed obviously at
the end of the previous trading session.

Um, but generally you want to be
knowing what economic drivers are

gonna be released during the particular
day of, uh, study or day trading.

So we have here the May 30th, 2017,
this is the economic calendar.

Tuesday May 30th.

So you can see what we look
for is high-impact and medium

impact news events for the day.

And next, what I want to do is I
want to take a look at the times of

those releases, respective to the
kill zones of long and open and New

York open, because those are the two
dominant high volume times of the day.

So we want to be looking for
those news events that may unfold.

During those respective times.

So during London, we're looking for
the higher load a form of the day.

It's usually under the
guise of manipulation.

So with that manipulation, we know that
generally it's going to be seen with an

economic renews release or some kind of
volatility injection based on what we

see on a higher, medium impact basis.

You want to look for payers in the
London session or the New York session

to have a medium or high impact news.

In this case, we have a medium impact
news event for the Euro dollar at 3:00 AM.

Tuesday.

It's the Spanish flash CPI.

That's due at 3:00 AM on Tuesday.

So we'll be looking for some
manipulation that occur at that

three o'clock hour, which is the
heart of the non and open kill zone.

So we know that we'll have
an opportunity potentially.

To see a day trade or scout form
around 3:00 AM that particular

day or our next live session.

Now, given the fact that we've
already highlighted and narrowed down

our focus to one particular pair,
which is the Eurodollar on Tuesday.

We know the time of the day
we are expecting the trade

to form based on the current.

At 3:00 AM.

There's a medium impact
news event for your dollar.

So now we have to go back to the
charts and look for framework

about that particular pair.

But we first start with the
dollar index case, and now we're

looking at the dollar index.

This is the daily chart.

And the first thing we're going to be
doing is looking at the last trading day.

Okay.

That's going to be here
Friday, May 26th, 2017.

Okay.

So what we're gonna do is we're gonna
look for the, if the data ranges,

so you just grab a trend line here.

Okay.

And anchor it on a higher, low of the last
trading days, the easiest way of doing it,

drag it to the left.

Okay.

Let go of it again and then re
click on it and then drag it again.

Now you'll notice there.

So a number to the right of the cursor.

It's 36.

And then it's 38 39.

What I'm going to be doing is I'm
dragging that out until it says 60.

So it gives me a rough approximation
of the last 60 trading days.

Now, in this case, there's going
to be factoring in Sundays.

So it's on these candles.

So this is a quick and dirty way of
looking for the into data ranges.

But if your platform doesn't
have Sundays, you don't have

to consider this at all, but.

For the sake of this presentation,
we do have a platform by way of

four XLT DS demo account that
does include the Sunday candle.

So we have to compensate for that.

So you see here, I've added a
vertical line on every Sunday using

the trend line, going back 60.

So we have how many trading
days here that are Sunday.

We have 10 Sundays in here.

We have to deduct because
we don't consider it.

Reliable data.

So we have to go out 1, 2, 3, 4, 5, and
there's another Sunday, 1, 2, 3, 4, 5.

So this is 60 trading days in the
past that occurs on March 6th, 2017.

So we have to include
that for our look back.

So we have our look back period.

Here,

this that's Sunday.

Okay.

So we have to go one more
day forward, right there.

Okay.

So it's 60 trading days back.

Now that we have that, that's our
longest look back period for if the data

ranges or 60 trading days in the past.

Okay.

So using that theory, removing the
Sundays, and we have our 60 day look

back for, if the data range, the 40
day, look back at the data range and

the last 20 days for it to look back.

So now we have a ranges at which
we work for, for Fibonacci.

We look for our PD
arrays inside this range.

So in essence, what we're looking
at is the entire daily chart.

Our only primary focus initially
is in the last 60 trading

days, as defined as you see.

You always count yesterdays days one
and go backward, skipping Sundays to get

60 days then 40 days and then 20 days.

And these are true if the data ranges.

So that's the range that we're
working in for the daily on

the dollar index every new day.

If the data ranges add one more time.

The, the ranges themselves and
we cut off one day looking back.

So it's always shifting
dynamically forward.

So once you have this defined, you
can create a box like this and just

simply move the box one day forward
and you'll have everything each time.

It never needs to change.

This keeps shifting.

You'd have to create a new box for the
40 day and the 20 day respectively into

shifting those three boxes forward.

You always have the look back
period calibrated correctly

with no candles for Sunday.

Now, for those individuals that do
not have a live trading platform,

when you eventually decide on
your own, when you want to go into

live trading with the content.

Should you decide to do that.

I'm never going to tell
you when to do that.

Obviously that's our PR
that's part of the mentorship.

I'll never tell you when to do that.

And it's completely a individual
decision on your part.

I can't tell you when Terry
with live money, that's why

we operate in a demo accounts.

Everything we're teaching here is for
demo purposes, but should you elect the

trade with a live account using this
information you do so at your own risk,

but if you don't have many candles,
you don't have to do it like this.

You simply just count yesterday's daily.

As day one and go back 60 days, go
back 40 days and go back 20 days.

And you'll have the up-to-date
arrangements that keep

shifting whore dynamically.

When we get to a new quarter or every
three months, we anticipate a shift in

market structure, and therefore there will
be a quarterly shift that takes place.

We re we received that as potential trend
reversals, but we don't always expect it.

We could, we could see.

Unfold, but it, again, it's not a panacea.

It's not a be all end all.

We just anticipate a luckily
shift in direction for the

next two to three months.

Okay.

So now we can take this off.

Okay.

Now we have our data ranges in here.

So with that, we want to be
looking at the last 20 days.

Where's our PD rate.

Okay.

So we have a low

here and we have a high
here for day trading.

You're going to operate
in those last 20 days.

Most of the time.

Now, if we have already exhausted
everything inside of the last 20

days, in terms of all the PD arrays,
we've already treated through any

premium array or trade down through.

In a way from a discount rate in
the last 20 days, which is highly

unlikely, but it can happen.

You'd go back and look into the
last 40 trading days for the date

range for the last 40 trading days.

But in day trading and scalping,
you're primarily going to work

in the 20 day look back, period.

So we have this outlined here
as the high and the low, and

you've seen me do this a lot in.

My video work, where it's
just, I just go about doing it.

And it's not a big deal.

Everybody just sits back and watches it.

But we have price trading
right here and we have a bare

shoulder block, mean threshold.

There's going to eyeball it right there.

So you have that on your chart and
going above that, we have a gap in.

With a breaker here.

So what I'll do is I'll always
elect to go with the lower first

Expressy of breaker because it takes
precedence over everything else.

So I'm looking at the breakers low notice.

I'm not counting that WIC here, like
traditional support resistance guys.

They would use that low here at 98, 46.

I'm more concerned about the down candle.

So I want that 98, 53.

I want that.

So I have that on my chart.

Then we also have this level up here.

So it's part of the shorter
line to anchor that, do any kind

of adjustments on the length.

So I wanted to notice this also because
this could potentially be a fair value

gap that needs to fill, um, the low, the
high of this candle here, which comes in

at 98, 14, that begins the fair value gap.

And the resistance is up here,
but we also have a rough midpoint.

That is a breaker.

Okay.

So these two down candles begins the
breaker that, which we saw the short-term

high beam violated and then rejecting
lower said, we, they, we know that

there's going to be most likely a reason
to want to mitigate something up here.

Even if it's going to be a small
little retracement, we have to be

bearing in mind that this could be
a sticking point for price going.

And then we have a smaller little fair
value gap in here, which will delineate.

And again, this is on a daily
chart, so we're gonna have several

levels in here that will be seen,
but, and here we have a Sunday gap.

Okay.

So it's going to be
less likely to be that.

So in terms of influence.

So while we do note it here,
because it's on a Sunday, The gap

is essentially all the up to here.

Okay.

And we're gonna use that last up
candles low as a anchor point.

Now, for those, without something candles,
you wouldn't have this on your chart

at all, but we have to use it because
it's Sunday, small little moving up.

Then broke down.

That may be a short-term resistance point.

You don't have a candle on Sundays.

You're going to just simply go
back to here, which is the last

bearish order block, which is up
close rate for the down, move that

low closes in the fair value gap.

Notice we're not using this one.

Okay.

Because it has a down close.

We want to see the last up-close
that's where the fair value

gap begins as its resistance.

So we're down here, there's our levels or
PDA rays going on the upside and notice

that in the last 20 days, what we're
doing is we're reframing the market.

Are we in a premium or are
we in a discount market?

Well, if this is the range, the high
and the low, would that be right now?

If we looked at price trading
say opened up on Sunday.

We're very close to the close on Friday.

Would that constitute a market?

That's at a premium or at a discount?

Clearly it's a discount now because
it's in the discount of the 20 day.

Look back.

It doesn't mean there's going
to buy it and expect it.

This goes straight up for the dollar.

You get to look at where we are in
terms of historical reference points.

Even though we go back 60 trading days.

Okay.

We are really low in the last
60, the last 40 in the last 20.

So we're really down there historically
looking beyond the last 60 trading days

for a macro view, we have always referred
to this low back here in recent analysis

because it's going to be influential.

So price did suite below that
like we were expecting and we

saw a little bit of a move up.

So we are in a discount.

With a lot of PD rates on the upside that
could be traded to even still keeping the

bearish tone on the daily dollar index.

This trend could continue going
lower, but we have to outline where

the price could be reaching up to.

Should it start to move higher now for
the discount res cause we've done all the

premiums, which is above market price,
where we're at now and what's below.

We have a bullish order block right here,
the last down close candle right in here.

And we'll throw all that out.

Okay.

And I'm going to disregard any mean
threshold here because it's already

worked on both sides of that, but this
candle here, this last down candle has

been violated by its high being 97 42.

We have a.

Hi on this candle at 97 44.

So now this candle also becomes
a propulsion candle, which is

another or blocked it's bullish
that creates a higher high.

Now I'd like to see them a little
bit more separated in this, but

we re we refer to that level is.

And we'll use that with going forward.

And that was also validated on Friday
by a move through that candle's high.

So we have this level at 97 38,
which is the opening or 9, 7

39 in this case, close enough.

What you use that as a bull shorter
block basis, point for discount.

So now we have all of the PDA rays for
the dollar index in the last 20 days.

We do have a rejection block

down here with the lowest down close.

So we also have that as well.

Okay.

So every one of the PDA rays are now
labeled or delineated on the daily.

And now we got to look at what is
institutional order flow for this market.

Now

we're seeing.

And the last 60 days, we're seeing up
candles, which are bare shorter blocks.

When the price moves down, away from
it, it's been respected here up candles

here after avoid prices, trade up to it.

And last 40 trading days it's
respected that it's gone lower.

We've had a gap in here.

Price traded up into death, filled it.

It's sold off prices, broken lows.

So institutional order flow for
the dollar index is what bear.

So we have to elect to side on looking
to go short preferably that's where

the highest probable trades are with
odds in our favor, but since we're

day trading, we can counter trend,
trade that if we have the ranges

defined in a form of a discount.

So we're already in an extreme,
especially down here, we have.

This old, low, we treated down below.

So there's a potential reversal
scenario that we could see

some measure of retracement.

It doesn't have to retrace, but
we can reasonably expect it to.

So we've seen this down candle trade
through and we have a couple of different

gaps up in here and we have a last
candle great in here, small little

rejection block rate at that case.

Clothes as well, which I won't add because
it's just gonna be one more level on

here, but we would add that as price
got closer to it, but you'd consider it

also in your own notes, but to keep the
charts clean, that's what we would do.

Now.

You would take this same element and
add it to the Euro dollars daily chart.

And we'll do that now.

Okay.

So we have the, if the data ranges for 60,
40, and 20 on the Eurodollar daily chart.

Now, now we're going to look inside
the last 20 days, look back period,

and we're going to identify the range.

So we have the high of
the last 20 days is here.

And the low in the last 20 days is.

Okay.

So we are in what discount or
premium referencing the last

20 days where at a premium.

So now we also go back here
and look at a historical high.

Okay.

Cause you have to have
a macro perspective.

We've traded above this old high
for getting this wit regarding

disregarding that WIC rather, uh,
we've shared it above an old high.

We are in the last 20.

Brains.

We are at a premium.

So now we're going to go through
and add up all the discount arrays

that would be below us in price.

So you go through and you
grab a little trend line here.

We have an order block
here, pull shorter blocks.

So we have to frame that to
take this vertical line on.

Okay.

And so we have a bullshitter block here.

Uh, you would note didn't mean
threshold as price gets down to it

as well, but we're going to keep
the charts very clean for right now.

And we have a fair value gap that begins
with this candles low down to this candle.

We have our liquidity void here.

The fair value gap is in here and inside
this last 20 days, we also have an old

high, so you have to reference that you
can see how nice by understanding that

the data ranges, it limits your focus
to what's only salient at the time.

Right now.

Look, what's, what's important.

What's the things that need to
be concerning yourself with.

Operations and concepts is
what helps you arrive at that.

So you can, so you can think about
price algorithmically like APTA

does, and we have a small little
fair value gap down here as well.

Should price find its way back down here.

We have that small little area in here
that could fill in and let's extend

that out a little bit more in time.

So there are our discount.

And the premium arrays we have
is the rejection block on the

last up highest close here.

So we'll have that.

And then we had the old high naturally
that forms the 20 day look back

periods, range high right in here.

And that's it.

Now we simply go down into a four
hour and we do the same thing

after we note what's his name?

What's the institutional
order flow, right?

Well, you can see in the last 60 days we
had down close candles, which is bullshit

block and price moves away from it.

Price as respect to that.

Yes.

Okay.

We have down candles here in SU uh,
succession, which is one big bullet or

block price hits it and trades away price.

Shawn's back down trades into that
same order block here and rallies away.

We have a gap that also has to be
considered, but we're not going to do that

here because it's a great deal of way.

But this would also be noted on your
charts as we got closer to it, then

we can go into, uh, these last two
down candles, right ahead of the gap

closure price trades down into that.

And below these old lows for
liquidity pool rejects trades higher.

And we've had yet to come down
here and really try to capitalize

any bullish or block here.

We worked on the Wiccan here on this
candle and on this candle here, but I

think it's going to want to try to come
down into there because we are at a

premium, but we have to be mindful of
this opening and the main threshold.

If that gives way to meet the
threshold, and we're gonna be

looking for the fair value gap to
be a likely candidate for filling

in going down to around 1 10, 15, 1.

Big figure.

So let's go down into a four hour chart.

Okay.

Here we are on a four hour chart for
the Euro dollar, and you can see how

all the daily PD arrays in the last
20 trading days look back for IFTA.

We can see where we're, if there
will be looking to consider where

liquidity may be resting or giving
traders at the bank level, an

opportunity to get in and capitalize
orders, whether it be long-term.

Now since we're on a four hour
chart, we have to again, consider

what the longer-term institutional
order flow is on the daily chart.

It's higher, it's going bullish
while we are in a premium,

relative to the last 20 days.

And certainly in the last 40 and 60
trading days, this could be just a

opportunity for price to retrace back
down to gather up discount, arrays,

to capitalize new long positions.

So when we look at the four hour
chart, what we're going to be doing

is, is we're looking for PDA rates.

Yes.

But we're looking for reasons to justify
why price could be going down to gather

up liquidity for an offset accumulation.

So when we have price like this trading
in smaller consolidation like this, and we

have our higher timeframe daily PD raise,
but I like to do is I like to see, okay.

If I knew an institutional
order flow on a daily chart.

Bullish.

I want to first make a case and argue
that there's reasons for them to want

to take it down to take out cell stops,
to accumulate new long positions.

So that could be done
by two different things.

We can see the lowest that
was formed here and here.

Price can go down below that
and hit the higher timeframe.

PDA Ray.

Okay.

Or we can trade down below this.

Because we have this old low, and this
old, low to price could stab down below

that and basically operate under the guise
that we are in a premium market, but it

could drop down to a short term discount
market relative to the four hour chart.

So what am I saying here?

Well, we have another little range
in here from this low to this high.

So if we frame that with a fib in here,

Okay.

We have optimal trade entry
in here, which would be below

equilibrium, which is in a discount.

And we would be also operating on this
down close Candler, which is a bullet

shorter block, which is at 70.5 level.

So that's a level we would be watching
to see if there's any sensitivity,

should price, trade down to it.

So you have that as a, uh, a
level of, are you considering.

And we have the total range
from this low down here.

Okay.

Equilibrium is below this low.

And then we have a little
bit of a gap in here.

A lot more gap in here, which
is the optimal trade entry.

Also to be a little bit of a gap
in here closure, then we have

this old high back here as well.

So price could come down and retrace
from the premium market that we're

in a daily, you could trade all
the way down into a discount.

On the four hour, just to give an
opportunity for banks to capitalize

new lungs at this old high in
closing some of this fair value gap.

Now notice the fair value gap in here.

Let me get to fit ball.

She can see a better fair
value gap with only buy-side

delivery that can fill in down.

And it can retest all this old high
and go down below a little bit.

So we could look for this daily PD
array at 1 0 9 90 to be the basis

for a discount reaction on a higher
timeframe, bullish institutional

or flow for the year, a dollar.

So what am I saying?

I'm saying that, should we
break these lows in here?

And should we go below
the order block here?

We're going to go down to one or
nine 90 most likely, or this old high

back here, which comes in at 1 10 50.

So either one of these two levels
here are better for a buy, but

while we're up here, price, we can
really expect to see it sell off.

Now, if we see price trade through the
up-close candle here, which is a bear

shorter Blackboard bullish candle rate for
this down move, if we lose or trade above

the mean threshold of that candle there.

Cause we got to look at the PDA
raise on the four-hour chart, which

we're doing now in conversation.

If we go through that, that would nullify
any near term four hour bearishness and

they're going to want to run it higher.

So if we do that and we trade through this
last up candle and we trade through that,

then we're going to be looking at these
two down candles as a potential bullish

order block on the four hour chart.

Once this up candle is
traded through on the upside.

So if we violate this entire up candle
or bare shoulder, Then we had to

turn our attention to these two down
candles, which will become at a later

time, a potential bullet shorter block.

So we would be looking at the open on this
candle at 1 12 20 and the high at 1 12 37.

So basically it could
be 1 12 40 to one 12.

In that range, we could be looking for it.

And we can look down into a 60 minute
chart in a minute, but that's how

we would map out two scenarios.

Well, obviously we have to justify the
higher timeframe daily institutional

order flow, being bullish.

So you'd look for arguments that would
say, okay, if price were to drop down,

why would they want to drop it down
while they want to take out equal lows?

Take out some stops.

Okay.

And it can come back down into
this or block here relative

to the four hour chart.

But we are referencing the
daily more than the four hour.

So we have these PDA rates,
which is this old low surprise

can trade down below that.

And if it trades down below that
this old high becomes influential.

Okay.

And obviously we'll get more detailed
as we go, but then you start looking

for scenarios, why and justify
why the argument for continuing

the higher timeframe institutional
order flow should be there.

But if he can't make a sound argument
for entries based on that, then

you have to start electing to say,
okay, we are in a premium market.

Maybe the market needs to
go down into a discount.

Yes.

To go higher.

But if it takes out specific discount
arrays, then we're probably changing

tide and it's going to want to go
lower more or more on an intermediate

term basis versus a short term basis.

So we're going to drop it down to a
60 minute chart and do the same thing.

Understanding that if we look with
control, why this would give us our weekly

perspective or what the weekly ranges
look like from a profile standpoint, we

can see each week it opens trades down.

It comes off the low, it starts this
week, trades all that and closes

on the high the week, last week.

And the last week, a week before
that time of this recording.

And in the last week, we just closed
at the time of this recording.

We've had basically a consolidated.

Okay.

So while it has had an opportunities
to sell off and we've seen those unfold

overall, this market, or prepare the
Euro has been in consolidation this week.

So we know that there's a support
level that's created for this week.

And if we trade down below
it, we have a water block to

watch for potential new buy-in.

If it trades off of there and
starts to go higher, we know that

we can anticipate Bush institutional
order on the four-hour chart.

And to see it be supported
on a daily as well.

And then we can continue to see looking,
go through market looking for long,

which is what we'll start, um, building
cases for now on the 60 minute charts.

So let's do that now.

Okay.

So now we have a 60 minute Charlie Euro.

Okay.

And now we have all the individual
days broken now with the controlled.

You used personnel to take
that off for a second.

We'll come back to in a moment.

So now we have a clean chart
here and we see the equal.

Lowe's this low here and this low here and
below us again, this is a daily PD rang.

We have the lowest, we have the discount
array of this bullish or block, which

of these two down close candles.

And I want you to take a close look again.

We're looking for conferences
of PDA raised overlap with one.

And justify if they're going to take
this market lower, is it going down

just to give them an opportunity to
buy at a cheaper price for longer-term

institutional order flow, being higher
to unfold and look for those 1 13,

1 14 is on the Euro, or are we going
down for a more sustainable move?

We can't guess that yet.

We can't determine that yet.

Don't ever try to think that you can, we
are looking for probabilities right now.

We've been in a consolidation.

So.

They could be taking us in a consolidation
to build a larger liquidity pool of

sell stocks below the marketplace and
drop down to take those sell stocks,

to capitalize new longs on if they're
doing that, where could they do it?

Well only hourly basis.

A PDA Ray.

We have a fair value got right in here.

It starts at this candle's
high in this candle's low.

So in here we are a fair value.

So right here,

this is a fair guy you got.

And to the left of it, we have to
down close candles right before it.

Nice move.

So we knew it was a
bullshitter block right there.

So we have a convergence of
two discount arrays right here.

And it's below the.

Okay.

So, uh, the low comes in at 1 11 62,
and this level comes down here, starts

at a low of 1, 11 36 in the high on
this candle for gap support would be.

1 11 30.

So 1 11 30, 1, 11 35 should
price trade down to that level.

Okay.

We could expect some measure
of bullishness now, how

we use this information.

If price, trade down to this level here.

Okay.

If it does that, we want to be
in a 15 minute timeframe and

look for our standard deviations.

We want to be doing the
central bank dealers, right?

We want to be doing the flout, which
is central bank dealers range and Asian

range and Asia range, standard deviations.

And we want to project them above and
below the marketplace giving us potential

targets to reach for, but also we want to
be looking at the opening price when price

trades down at this level, we only looking
at the opening price at zero GMT and the

opening price at midnight in New York.

And what we'll be expecting if we're
expecting some measure of bullishness.

Yeah.

We're going to be looking for what
the open and a very small decline, if

at all, after the opening at zero GMT
or midnight, New York on a 15 minute

candle or a 15 minute chart, rather.

And by having that protectionary state
of the market where it opens and trades

down from zero GMT or midnight candle
in New York, if it trades down below

that opening price, we would expect
at this level, or very close to.

To be a buy for a day trade.

That expectation would be for the London
session that particular day, if London

fulfills that we would expect some measure
of continuation on the New York session.

But if the New York session
trades up to say these levels of.

Okay.

We have a lot of resistance
in here, so that could promote

a New York session reversal.

So that way we're already
framing scenarios is what you

have to do is go through your
templates and think about, okay.

The idea is we have already come down
to this level and there's some bullshit.

And run scenarios in your
mind and build a plan.

Now you can't just say, okay, this
is the only way it's going to unfold.

This is the only way that it can
happen, because believe me, it

can do a lot of different things.

But generally, if you think in generic
terms, if we're bullish or bearish,

there's only a few templates that you
can use based on the day of the week

that it trades down to this level.

Remember if it trades
down there on Monday?

Well, Monday is a bank holiday in
the U S so I would be more unlikely.

To be trading that, but for
observation purposes, if it

does it and you can see it.

But Tuesday, when we go back to
our live sessions, again, it'll

be the day after the holiday.

And if it trades on that level, we
can reasonably expect to see an open

decline, power, three formation, and
an up-close, or at least for the London

session for a scalp, then New York.

We look for evidences to see
if it gets up to that level.

Does it have loan has to go through
it if it does, guess what that means?

This run down was for stock runs
below here, and then institutional

order flow will be kicking back in
bullish from the daily standpoint.

And then we had to switch gears and look
for continuation on the upside, which is

another open down move or Judas to buy
at at zero GMT or at midnight New York.

And it looked for runs on the
liquidity above the marketplace

and the premium capacity.

But should price fail and say, price gets
down to this level here and you try to

do a buy and it fails and stops you out.

Then you have to go out to a
little bit longer perspective

and consider what these daily
PDA rays may have impact for.

We have equal lows borough
here, and then that fair value

got down here and the old high.

So if we lose the opportunity to find
a long at this level, because it's a

bullshitter block and the fair value
gap, and it's below the equal lows.

So if that drops down and new banks
come in and step in to capitalize

there, well, you'll get immediate
feedback by being stopped out.

And then if it does that, we'll
anticipate price running below these

lows, not for a buying opportunity, but
for targeting purposes for expansion.

So we could potentially see a second.

At this level is failure.

So we can see a return back to fair
value bear, shorter block, fill in a

fair amount yet liquidity void, and
then sell off to a run down to this

level here, closing in that gap as well.

So there's a formula
at which we go through.

We start with liquidity, uh, uh,
injections or volatility injections

rather by looking at the economic
calendar framing the time of day.

Influences on what pairs are we going
to have for London and New York?

And then we go in and get an analysis
baseline on the dollar index.

Determine if the data range look
at the PDA raise, consider what

the PDA rate matrix are we in
a discount or premium market.

Then we go into a Drake
down of the pair that has.

News driver coming out at that
session, we knew at three o'clock on

Tuesday, May 30th, 2017, there's going
to be a medium impact news event.

So we want to be anticipating
some measure of manipulation.

Now, what could that be?

Well, Monday and Sunday, it
could see this level traded too.

So I can't forecast that, but
say we stay in a tight range.

Okay.

Or we trade a little bit high.

At some point on Tuesday or Wednesday,
if we trade down to this level here,

that could be a Tuesday long, low the
week or a Wednesday low of the week.

I think you have to think
about those weekly templates.

So if we're looking for reasons to justify
why the longer-term daily institutional

order flow, which is bullets for Euro
could resume by going down to here.

That builds the case for watching
the rest of the week unfold.

But what day of the week
does it hit that level?

Consider your weekly templates.

If we're looking for the reason to justify
a continuation of the bullishness on the

daily, which is always the case, we're
looking for daily institutional order flow

to give us our directional bias, but there
are times where like we are right now on

a Euro, we're at a really high pressure.

And it may require it to consolidate
longer than we've seen here last week,

or it may need to do a deeper retracement
down to discount market to allow banks

to buy it at a cheaper level and also
unseat offset and remove those individuals

that are already long, that are very
aggressive about turning up their

stop losses, or maybe in below here.

And it can come down through
all this capitalize old.

And folks could be looking at
this as a potential reversal

long-term and it very well may be.

I'm not trying to pick a top in a year.

And I mentioned that earlier
last week in our live sessions,

I don't want to do top picking.

Okay.

Cause the market's showing
primarily it wants to go higher

and it was very strong in the case
of its bullishness on the daily.

So we don't want to fight that.

We don't want to stand in front of
it because there's large funds and

flows going into this currency.

So if that's the case, We need to be
justifying reasons to go in and long.

So the routine is in summary form.

As you see here, everything we do here
in this list is one step at a time.

We break it down and we'd
look at all of those elements.

When we get to the point where we're
looking at a 15 minute timeframe, you

would be adding the standard deviations
for the central bank dealers range, the

Asian range, respectively, and the flout.

So by having those deviations and also
incorporating the average daily range,

if there's a confluence of those standard
deviations, ADR, and a pediatric.

I want a 15 minute basis or the 60 minute
or four hour PDA rays, then, you know,

there's a high probability for price
to want to expand higher or lower to

those respective levels when I'm picking
daily highs and lows, and I'm getting

really close to it sometimes, right?

To the PIP or few pips away from it.

This is the procedure I'm using.

There's nothing else
that I'm doing at secret.

There's nothing else
that's mystical about it.

There's no other
indicators that helped me.

It's the work of looking at it and
using the templates that I've given

you for the weekly and for the daily.

So if we know what we're expecting
in terms of a scenario, if we're

bullish, there's only so many weekly
templates to outline the range for

the weekly grains to be bullish.

So we would look for evidence to support.

Know, we, obviously you start from
the Monday low the week and Monday,

it doesn't give us enough evidence.

We look for Tuesday low the week, the
format Tuesday starts to trade up.

Then we know that Wednesday is probably
going to be a good buying day, the

scalp longs in, and we can do that all
the way up into Thursdays, New York,

open, where we contend, basically expect
that weekly hide to start the form.

It doesn't have to, but that's
the conditions we anticipate.

And then if Thursday continues
higher, then we know that there's

probably going to be some.

Profit taking on Friday.

So try not to buy on Friday, either
move to the silence, they'll do

anything or look for currencies.

Okay.

That has opportunities that would create
reversal scenarios, where they've already

met their extreme, and maybe they'll
get some opportunities going against it,

but we don't want to be trading short
payers that we have primarily outlined

ahead of time that we're bullish.

When we have that weekly rate.

Or institutional workflow ideas as we've
outlined here in this teaching, once

that's incorporated in your analysis,
you never want to go against that for

the framework of high probability.

You want to stay inside that framework.

In other words, if it's daily,
institutional workflows foolish,

we want to primarily look for
reasons to justify going long.

And guess what that means.

You're not always going to get a day
trade buying in that environment.

There's going to be days of
retracement or consulted.

And there's nothing wrong with that.

Again, day trading is not everyday
trading and scalping is not every move.

Okay.

Every fluctuation in today's not a scalp.

So once we have those conferences of
standard deviations, average daily

range in line with what we expect
in terms of institutional workflow

or the evidences of where we think
the bias is going to be based on

that daily four hour, uh, timeframe.

Once we have that, we use the
weekly template to justify

what the weekly range may be.

And that puts the highest
probability in our favor.

Once we have that, then we go
into our daily routine of, okay.

Is it going to be a open down low of
the day first and up-close or is it

going to be a consolidation during
London then trades down into New York,

creating the low for a buy opportunity
for market reversal profile and trades.

That's what you're looking for.

You have to see things that
justify and frame the idea.

You're never going to know, trust me
when I tell you this, and you're never

going to know what weekly template it's
going to unfold before Sundays open.

You know that there's a
few of them that you have.

Expectation of unfolding.

So it gives you a bias to
work within in the framework.

So it helps you train, train your eye
to look for these scenarios unfold,

but more importantly, it gives you
the context of frame your trades.

You hear the planning of trade,
trade you're playing stuff.

Well, if you don't know what that means,
conceptually with my stuff, it just simply

means going through the notions of, are
we bullish or bearish long return ones?

If we're bullish, we're going to
be focusing on the weekly rains

to unfold in a bullish capacity.

So look at the weekly templates I
provided you in the previous months

and say, okay, where are we in terms
of each day of the week unfolding that,

that template, even if you only get
one portion of that template to unfold

and you made a profit that's enough,
don't try to do it every single day.

When we look at scenarios in the
individual day perspective, are we looking

for scenarios where the London session
is again, consolidation, then the New

York session creates the low of the day?

Or are we creating a low day
rate from jump at zero GMT?

Or are we going to see
their classic by day?

Where at midnight in New York, we open and
trade down, creating a low of the day and

then rally, you don't know for certain.

You don't know.

So if you're going to trade at zero
GMT every day, or every time you

try to trade, you may take losses.

Then you have to trade again
after midnight, New York.

And again, that creates and promotes
overtrading or the potential for it.

So if you're willing to leave the market
B and never worry about having to get

that zero GMT early start of the daily
range and just focusing on midnight,

which primarily that's what I like to do.

Use that opening at midnight in New York.

And if I'm published, I want to see a
move down below that opening price to

some measure of standard deviations of
the Asian range, the flout or central by

dealers range to a discount PDA, right.

That I can see on a 15 minute timeframe
that may converge also with a daily

four hour 60 minutes discount.

By doing that, it helps me
in terms of confidence nailed

down that low of the day.

If it happens to occur in London kill
zone, I can be buying it all day long

and not have any fear about it using
the 33 PIP, uh, standard deviation

that we expect from the opening price.

When a classic 100 PIP day opening
price trades down up to 33 pips or

thereabouts, also that framework
helps build the model of pre.

And then we'd look for those expansions
higher on bullish days with our standard

deviations on the Asian range, central
bank dealers range and or the flout

looking for average daily range.

Hi, to converge as well.

Again with ADA opposing premium
array that seen on the 15, 60

minute, four hour or daily,

if the average daily range
is smaller than 60 beds.

We know that there's going to be a
likelihood of a large range day to then

see for trading institutional order flow.

In that bias, we may get much
more than the average daily range.

So if the average daily range has
met before New York or at new York's

open, we know that we probably
caught a tiger by the tail, and we

need to leave something on for that
large range day to complete itself.

It may go past 10 30, 11 o'clock
mountain close may go deeper

into the day at maybe one or two.

So this is our routine.

This is what we do on a day by day
basis as a day trader as a scalper.

And it gives us context that go into
the marketplace and look for things

to unfold in a systematic methodical.

And here's the word I
like to use all the time.

A generic form.

There are still choices that you are
going to have to make as the trader.

You need to elect to do one thing.

And it's a step-by-step basis.

You're looking for, if you're
still scratching your head, you're

still looking for the unicorn.

That means it's the perfect,
this is what you do all the time.

And nothing else is, has
to be concerned with.

You don't ever have to do anything else.

That's the type of trade you're
looking for and they do not exist

because there's never going to
be a black and white scenario.

There never is.

You're never going to have it.

What we had is probabilities.

We operate inside of probabilities,
but if we understand what those

probabilities are and the context and
the conditions around those setups,

the more odds we have in our favor,
the more apt we're going to be correct.

And when we're right, if that will
be on our side, because we're going

to be trading in line with it.

So if we understand what it's doing,
that's why you see my precision.

Like it is.

It's not because it's luck.

It's not because it's, you know, uh,
it has a lot to do with experience.

Yes.

But I'm using what I just showed you
here in this order, in this manner,

this routine, I do that very thing.

Every single trading day.

I mean, I do it all in front of you, but
that's what leads me to that, this, that,

that determination of what I want to do.

And sometimes I'm right.

Sometimes I'm wrong.

But when I'm wrong, it
gives me more insight.

And that's what you need to identify with,
even if you're wrong, that insight, that

feedback you get immediately, that is
empowering, but you're viewing that loss

monetarily as a loss, it's detrimental.

It's going to kill you.

It's mental cancer.

You can't handle it because
your perspective is retail

smart money investors.

They do not view a.

As a defeat, it's a premium
paid for greater insight.

So if you knew somebody on the inside
was rigging a football game, okay.

Ms.

May not be true.

I'm just going to give you a scenario.

But if you knew that a team was going
to lay down for another team and all

the money was being bet on that team
winning, but you knew the inside

track, that team was going to lay down.

Who has the advantage, the bulk of
that money being bet on that team

that may be a superstar team or the
insider that knows that that team

player is going to lay down in the
quarterback's going to throw the game.

Obviously the person that
knows the inside track.

So what we're trying to do is align
ourselves with those individuals

that know the inside track.

So, if we're wrong on our
assumptions, on the analysis, we

immediately know what they're doing.

They tip their hand and it means
maybe sometimes wait for another setup

that may not be immediately seen for
reverse your idea in day trading.

You're going to be very flexible
in that idea, especially with

scalping, but for lowest.

Risk and highest probability
direction by these trading.

This is what I do on a daily basis.

This is what I always look
to do day by day by day.

Because if I can't get my weekly
objective, this is the operation

I go through to try to get my
weekly objective and small pieces.

Not because I have to have it, but if
there's enough time before Friday's

close, I'll go in using this crisis.

To get me my weekly
objective or something.

Maybe it mitigate a loss
or something like that.

And you saw me take a loss this
week and how I mitigate it was doing

this very same thing, but because
I've been doing it so long, I can

see it on the chart real quick.

For some of you, it may take you
30, 40 minutes to do this every

single day to break it down, look
at it and weigh out some scenarios.

But as you do it more and more, more.

Your experience level will promote a
faster response that you're looking

at, price your eyes automatically
go to where the data range is.

Reach back to where the PDA rays are
on your respective timeframes, and

it will become second nature to you.

It'd be just real quick.

And you'll notice this also by
watching price action intraday.

That's why I believe that even
if you're not going to be a day

trader, it is so beneficial for
you to have intraday price action.

Y.

Okay.

And if you can find a way of screen
capturing in today, price action

on a 15 or five minute chart.

Okay.

And just let it record all day long.

If you're not there and
then come back and watch it.

And literally just look at
it, us speed up the playback.

If you will.

Like I do some of my recordings and
I'll speed it up to save you a lot of

time, but watching this like unfold.

But if you watch.

Okay.

And you study how price action works
and you see it, you build a greater

understanding about it because it's not
enough me showing you static examples.

And some of you have come into this
with the expectation that I'm going to

show you a magical picture, and it's
going to remove all the work for you.

You're going to work.

You're going to have to look for these
things and you have to weigh it all

out and see is there opportunity here?

And if it doesn't pan out,
what does that tell me?

And that's what I've outlined here.

If we lose this level, These equal
lows, unexpecting, uh, uh, reasonable

bounds or reasons to expect the bounce
at this level here, because we can see

nice buying that fair value get there.

So it minimum, I think we're
probably gonna try to get down

there as an opportunity to clear
out some stops if it goes through

that and it doesn't support price.

I think we're going down to this old
high and the closing this fair value gap.

So we'll look for the 1 10
20 to one 10 big figure base.

Okay.

As a downtown objective, and guess
what that means over a hundred pips,

potential profit, more range has worked
with let's call it that non-profit.

So if it moves below this level
here, we have about a hundred pips

more till we get down to that level.

And inside that that's enough to make
money and you would just switch gears and

say, okay, if we lose this level here, the
next trading day, I'm going to look at the

opening prices here, GMT or at midnight.

And we'll wait for a rally up above
that opening price to some measure of

a premium array, maybe closing the fair
value gap, a bear bare shorter block.

And then I'm going to get short on that
on the basis of a 15 or five minute chart.

Now look for range experience and they
get down to this level and then we

have to switch gears and think this
could be an opportunity for that higher

timeframe daily institutional order
flow to kick back in again and trade.

And that's all we're doing as a
scalper as a day trader, you have to

be nimble, but the best trades are
going to be in sync with the higher

time fitness institutional order flow.

If it's bullish, we want
to be looking to be.

Monday Tuesday, Wednesdays.

If institutional order flow is bearish,
we only want to be looking for selling

short as they trade our scalper
on Monday, Tuesday, and Wednesday.

If you stick to those primary
conditions, you won't have it licked

every single trading day, but you
will be profitable over long time.

You're going to have losing weeks.

You're going to have losing trading days.

You may have months where
you go into a drawer.

But if you stick with this, I promise
you, you will get better, but you

can't be the best right out the gate.

You have to grow in.

And these are the criteria is
that I work within to do it.

So now you have my daily routine.

What I break down, how I do it, go
in using the, if the data ranges, I

use DPD res and I look for using the
weekly templates I've supplied you.

And also what we expect is an internal,
uh, intraday, uh, templates, what

we expect and what days of the week
to see those most likely unfold.

So what we're doing is
we're blending time.

And price scenarios.

That's what those
templates to provide you.

Not all of them are going to unfold,
you know, cause you only going to

get one template done for, for the
weekly range in one template for the

entire day, but not every one of those
templates agree with one another.

When you're bullish you and look at how
the weekly templates may unfold and in

Xero, you're focusing on those specific.

If there's a Wednesday reversal and
you're bullish, that could be a criteria.

We could see this consolidation
in here and it trade down to this

level on Wednesday and there's
or Wednesday low the week form.

And then it goes higher.

But you have to look for evidence
is to support those things.

You can't reasonably expect that, but
in this case, going into this week,

I would consider it for this one
because it's Monday is a us holiday

and Monday may be a quiet thing.

Then Tuesday becomes what
would normally be a Monday.

So if we're going to see a reversal
higher on Euro ethic going down,

it could happen on Wednesday.

So have that in your notes,
going into the new trading week

and we'll see what happens.

And until next time I will wish
you good luck and good trading.

And we moving into the next month of June
content where we are doing the commodity.

Stocks index trading for
futures and bond trading.

All those four asset classes
compliment moves that we can pick

and predict in the currency markets.

And until then, I wish you
good luck and good trading.