Original subtitles

We're looking at price consolidating here.

I mentioned how we were sitting at this level and I didn't feel that there would

be any kind of old highs finding support, which is like a traditional

and resistance theory.

I said that we would want to come down here and clean up this busy buy side and

bounce sell side inefficiency.

Specifically training our eye on this right here.

This level is a breaker.

We have a low, high, a lower low.

The stops resting below here were swept. We had displacement.

Price is coming back down into this level right here.

That was the reason why I annotated that in my previous recording. I don't know

if I really annotated it. I just drew your attention to it really.

And we'll look at the lower time frame in a minute what this blue line is

because it's salient to this particular chart.

But we were looking for price to reach down into this area here, and that would

be the objective for euro pound.

Now, I want to talk a little bit about cross -displacement manipulation.

Now, when we refer to this pair, it's going to be very germane to

how you trade the euro dollar or the British pound versus the dollar.

Okay, or fiber and cable.

If, as we indicated in the last session, that euro pound was bearish

and that we would see it trade down to this level here, highly specific. We had

a direction in mind.

We had a level to look for. So we were looking for a specific discount array.

It's a bullish breaker, and it does not require us to trade down here and find a

rally. It's not what this was.

Initially, it's just a draw on liquidity from where price was and where price

should go.

There's our range.

OK, so that's our potential opportunity for this pair.

I use it. I don't trade euro pound. I use it as a decision making pair.

So I use dollar as a barometer, whether I should be bullish or bearish, am I in

a buy program or a sell program?

And if it's in consolidation relative to the dollar.

then I have to rely heavily on euro pound.

Well, since we've been in a consolidation on dollar index, my

me to this pair here, which is for the purpose of cross -displacement

manipulation.

Now, if I'm bearish on euro pound, that means that the euro dollar

is going to be bearish and pound dollar is going to go into a consolidation.

or pound -dollar is bullish and euro -dollar is held in consolidation.

That's the premise.

That's what you're looking for. Based on what I said on Wednesday relative to

this pair wanting to go down to this level here, which it indeed did, how we

take that information is we go into euro -dollar and cable looking for these

conditions because the analysis led us to believe.

That euro pound should go lower.

So right away, from an algorithmic stance, we go from one thing to the

Dollar index, we're in consolidation.

So where do we go next in our analysis?

We go to cross -displacement manipulation.

Whatever pair you look at, for instance, if you are a yen trader, you could look

at euro dollar, euro yen.

Pound dollar, pound yen.

Look at those.

And you're going to have one more extra step with that, but it's the same

process of using these types of filtering.

You're going from one major macro view of the dollar index from a buy

or sell program, or are we in consolidation?

If it's in consolidation, then you just drop to an intermarket relationship.

And for me, since I trade predominantly the euro -dollar and cable,

then I'm going to be looking at this particular cross because this is the

that they use to manipulate the majors. So I want you to have this in your

notes.

It's spelled out here rather clearly, and everything would be said in the

opposite if euro pound was bullish.

Just replace everything you see here in terms of the pair, the bullish or

bearishness, and consolidation would be the opposite of whatever this would be.

And again, it's taught in the Mentorship Core content, so don't go crazy.

Don't send me emails about all this stuff because this is things that we'll

repeating over and over and over again, and eventually you'll come to those

specific lessons in the Mentorship Core content.

I want to drop down into an hourly chart, and these two blue lines here,

relative to the previous chart and the information I was providing you, if

looking for Euro pound to drop,

That means we're going to be expecting euro dollar to be in consolidation and

cable to rally or euro dollar to drop and

pound versus the dollar to be held in consolidation.

Between this candle and this candle, okay, let

me show you what they are.

That's this candle.

On the 22nd of August.

And this candle.

You can see price has dropped.

Precipitously for euro pound.

We're not going to look at this slide anymore. We're going to go over to the

euro dollar.

And right in here you can see what is the euro dollar doing at that same time.

It's part of its original consolidation during the entire week.

So is it moving up? Is it moving down? Is it held in consolidation?

It's held in consolidation.

On the same day, August 22nd, what is cable doing?

Tearing off to the upside.

So between those two currencies, we have euro consolidating.

Cable tearing off into new highs, running above equal highs here and

into buy side liquidity.

This is going to create that catalyst that causes euro pound to decline or

So that's what that looks like and how you find it in the charts. And you want

to go back and look at instances in price action. Whenever you see euro

create nice moves intra -week or intraday, you collect a lot of these

moments and save them as hindsight examples. Now, obviously, you know

that we don't.

Have hindsight here as our only teacher, because I outlined exactly what was

going to happen before it happened, which leads me to the next portion of

teaching today.

For some of you that have just recently started.