All language subtitles for 3. The importance of the present moment

The importance of the present moment.

As we have already discussed, the
Wyckoff method is, by definition, a

approach. Before considering possible
scenarios, we have to evaluate the signs

that appear on the chart after the
interaction between the participants to

figure out who is likely to be in
control of the market.

And as the control of the market can
change any time due to its dynamic and

adaptive nature, We must continuously
analyze the signs that can be observed

the chart to be ready and able to react
to these changes as quickly as possible.

One of the most logical ways to do this
is to give more weight to the

implications of the latest behavior seen
on the chart.

When asked what is the most important
thing on the chart, I usually say the

thing that happened, and the next most
important thing is what happened

immediately before that.

The reason why is very simple.

because the last key action represents
the most current valuations of the

agents, and therefore we should be
biased in favor of the roadmap suggested

the last behavior of the price.

With this in mind, we need to then turn
to the auction theory we looked at

previously, which suggests the market
moves with inefficiencies in search of

efficiency. But we should also refer to
one of the basic principles of technical

analysis, which is that the market has a
tendency to continue to behave in the

same way.

Therefore, if a market changes from a
sideways environment to a trend context,

it will most likely continue in this
trend into the future, unless some event

occurs that again leads to the
valuations of the participants to

resulting in the price settling into a
range.

What does all this mean in trading
terms?

The two events that can influence our
directional bias are false breakouts and

impulse movements, with the former being
the most significant of these.

Under the aforementioned principles, We
want to get to the point where the last

false breakout on the chart changes our
trading bias in the direction of the

roadmap that it suggests.

The false breakout alone is powerful
enough to shift the context of the

and presage a move of intent almost
immediately.

As we have already commented previously,
almost all impulse movements are born

from a previous false breakout.

That is where we want to be.

Therefore, if we find ourselves in a
sideways environment of equilibrium,

and at one of its edges there is a
search for liquidity, a failed or false

breakout, from that moment we must be
ready for the context that the roadmap

suggests will emerge as a result of this
action in particular.

Since we know that generally after the
appearance of a false breakout there

be an impulse movement in the same
direction, this presents us with a

trading opportunity.

As we can see in the example, impulse
movements appear after false breakouts

relevant trading levels.

And when the price reaches the zone of
liquidity once again, there is a new

false breakout and reversal towards the
opposite direction.

The market can remain in this context
for as long as it wants.

Our task is to look for the signs that
should appear once the roadmap of

events has been established.

After the development of the impulse
movement that manages to break the

level, this will be the most important
signal so far.

As we saw previously, we obtain real
confirmation of the spring when we

the sign of intent in favor of its
roadmap.

So this impulse will be the most
important trading event, and the second

important will be the false breakout
that caused it.

And as long as this context is
respected, which in this case means as

the price does not re -enter the range,
the bias in favor of its roadmap will

remain valid.

In this example, if we see a spring and
a good sign of strength, What we should

expect is a real breakout and acceptance
of out -of -range trading levels,

suggesting we look to take long
positions.

And we should be very clear that
anything other than that means we need

dismiss the bullish scenario and,
depending on what really happens,

consider going short.

But completely the opposite happens.

It's not that the market doesn't build
enough acceptance above the broken

It's that it recovers quickly and again
executes a false breakout.

an upthrust.

If there are no signs of a higher degree
that provide the context only on the

long side, at this point we should
assess the possibility of entering the

in a short position.

The prevailing context was established
by the spring and the sign of strength,

but we know that the market can change
hands at any time.

It has failed to continue adding inputs
in favor of the bullish upturn with that

false breakout, and now we know the
roadmap suggests we should look to go

an example of how important it is to
have a flexible mindset.

The market continues to develop and
breaks the last relevant lower level at

bottom of the range, as always, the
potential spring area or potential

breakout.

Given that the context is bearish, as we
are coming from an upthrust and a sign

of weakness, we should be expecting the
development of some type of successful

bearish breakout test, whether it is
simply a test or some behavior that

market acceptance.

And once again, it fools us. We might
think that now that's it, that there

already been two false breakouts and
therefore there was more of a chance of

latest upthrust generating the real
bearish downturn, but no.

Again, the market performs another false
breakout and re -enters the range.

It is a context in which price and value
converge, and most of the participants

consider it to be so.

That is why they trade the edges of the
range on one side or the other to take

advantage of the opportunity, waiting
for at least one reversal to the

of the range. And the market will
continue in this dynamic as long as

fundamentally changes.

Again, at this point, the context once
again changes in favor of bullish

control. But we just said that we were
directionally biased downwards.

How come we are now biased upwards?

Well, simply because the latest trading
event we have observed in the market is

the sign of strength, which has
originated from a new bearish false

and this conditions the roadmap in the
short term. And here again, the same

situation, a zone of multiple
resistance, without a doubt a strong

imbalance, where previously sufficient
supply appeared to produce a downturn in

the market.

What will happen now?

Well, once again, given that the context
is bullish following the line of the

last two trading events, we will expect
there to be acceptance of those levels

and the price will continue upwards.

But no, the market remains stable.

New appearance of sellers in the
identified supply zone and a minor

again reversing the sentiment of the
structure, even resulting in a complete

distribution scheme that reactivates the
bearish roadmap with the aim of taking

the price to the lower part of the
structure.

And now we arrive at the present moment.

The market was able to perform another
bearish -false breakout and a final

bullish one, which is what is
influencing the short -term bias.

At this point, the prevailing roadmap is
determined by the bearish movement and

the last upthrust.

With this idea about the importance of
the present moment, I simply want to

stress how important it is to keep an
open mind and be aware that anything is

possible and that the control and
sentiment of the market could change

Just because we have just seen a very
genuine false breakout and impulse

movement does not mean that the market
will continue to move in line with that

imbalance. The likelihood is that it
will because that is the normal and

roadmap that the methodology offers us
and it is repeated time and again.

However, the opposite could occur with
the emergence of a turning point that

reverses the price and sends it once
more in the opposite direction.

And the point here is that If we have
fully assimilated this concept and we

also good analysts and traders, when the
time comes we will also be able to take

advantage of this new opportunity that
is presented to us.

The market can remain for a considerable
period in this state with continuous

false breakouts at the edges as long as
its participants agree on their

valuations and there is total
equilibrium.

This is why we need to actively analyze
the market to assess who is in control.

and where the price is most likely to
go.