Original subtitles

Okay folks.

Welcome back.

This is the third teaching of a series of eight, the first

month of the ICT mentorship.

Okay, we're going to continue continuing on our theme of understanding the mindset

that you have to have going into the marketplace, looking at things in a

little bit reverse order than you're normally taught from a retail perspective.

This is one of those teachings that you're going to have, that if you're

new, you actually had the advantage here.

Uh, for those that have been trading for a while that have adopted bad habits or

an understanding, or a belief that they have an understanding, it's going to be

a little bit expensive for them because they're going to have to purge some of the

things that they either subscribe to or wrestle with it until they either do or.

Elect not to use this insight at all.

Um, I mapped out a crude depiction here and I've been using it for months,

actually, um, as a teaching tool.

Um, but we're going to really hammer it down in this mentorship because

imperative that, you know, how we act.

Traders are supposed to be viewing marketplace, uh, the data delivery,

um, reverse psychology, um, whatever the psychology of this informed

money is, um, it's going to be diametrically opposed to that.

Uh, the uninformed or speculative money or quote unquote dumb.

And when we have these ideas, when we look at price, okay.

The first thing we have to do is establish who is the victim here?

You know, generally there's a victim, always in every crime and

the perspective that the speculative uninformed money has is that number one?

Yes.

Acknowledged that there's a smart money.

Uh, there is not an entity out there that has a quote unquote, the right things,

always on, uh, the right perspective, uh, or that a market is rigged or

controlled or manipulated, or has any influence over long-term price delivery.

Um, the uninformed money.

Okay.

Or those that are uninformed in regards to how smart money actually

operates and exists in the marketplace.

Their actual perspective really is the indicators are the

answer and uninformed money.

Their perspective holds.

Belief that price moves by indicators influence.

Okay.

And the influence of an indicator being overbought or were sold,

that is what the precursor is to a market moving higher or lower.

And I can tell you, I subscribed to that for years as a nutrient.

And it took a long time for me to actually be broken away from that type of mindset.

Um, so if you're new and you haven't been exposed to indicator itis, and

you're not infected, but that yet you actually pretty good, uh, in, in

terms of advantage, uh, those that.

To use it.

Uh, indicators are going to have a little bit of a struggle with this

mentorship because I'm telling you basically, you need to get that out

of your system, get that off your charts, because it is not how you're

going to be able to see smart money.

In fact, we're going to be able to use these indicators to be, uh,

informed as to what the uninformed traders are actually thinking.

So when we talk about sentiment next month, you'll have a lot more

understanding about what that is, how it's developed and what you can do with it.

Obviously we only exposed one side of the paradigm here.

Specifically dealing with the speculative uninformed monies perspective.

You're not here to really so much learn about those individuals.

Cause obviously no, we all know that there's a losing crowd in the

marketplace and your idea of, uh, you know, being a part of that group.

Yeah.

Foolish.

So we're here only the focus on what the smart money view is on the marketplace.

And that begins by understanding that there is a huge, vast, enormous new

pool of liquidity coming into the marketplace every single day, even

though there's new busted accounts all the time that statistics.

Tell us that 90% of traders lose their money.

Large funds are in the same category.

Not every fund is profitable, just because there's a lot of people that

are investing money into this fund, or this fund manager does not no way

guarantee that that fund will exist a year, two years, five years from now.

So we ask.

Informed traders.

Our perspective is, is the whole, the perspective of what a liquidity provider

or smart money view is on the marketplace.

And they put a spotlight on the aspects of uninformed money,

because that's what makes the world go round in the marketplace.

The smart money is there to provide liquidity, but they're

doing it at a exchange premium.

In other words, they're putting him in trades that they're going to most likely

come back to, to either offset or.

Neutralize for them.

Interests and want to talk more about that as we go, but for now understand that the

smart money knows in fact, that there is a large body of uninformed money out there.

Contrast that with what we spoke of concerning the uninformed money's

perspective is that there's a lack of an entity out there that has a

smart money perspective on the price.

They don't have an opinion or an idea based.

Um, perspective that there is someone or some entity or entities out there,

the heavy, smart money perspective, or that the banks would actually, uh,

trade against, uh, large firms or funds.

Th th that it was against the grain of what a free market is.

So when we have a smart money perspective in the marketplace, we actually use their

perspective as everybody else is liquid.

And price is deliberate to engineer efficiency for the

smart money entities only.

It's not anything outside that.

So the whole, the perspective of a liquidity provider, you are

adopting a smart money perspective, and everybody else is liquidity.

And the liquidity is going to be in the form of buy stops.

Sales stops pending orders above and below the market highs that are

most recently formed on your chart.

Once we understand that there's two distinct perspectives.

That's what creates the market efficiency paradigm.

Both of both groups.

Okay.

Have their individual perspectives.

The one that is smart money, they have the unique perspective of understanding

already what the uninformed money is going to believe about the marketplace.

And that gives them their edge.

On top of that.

They are actually in control of price.

Just like anything else, if you own a storefront or if you are in a

business and your commodity is sold, who sets the price for that commodity?

You you're a store owner.

Well, currency is owned by the bank and they set the price on the value of

that bank note or that digit on your screen that says you have XYZ number

of dollars in or Franks or pounds or wherever it is that you're, uh,

Measuring your currency in that's east.

That value is set by the central.

That has printed that money and why this is such a, uh, of speed bump for people's

understanding is beyond me, because if you look at the state of the world

we're in right now, obviously corruption and to see is the name of the game.

So, um, it's not a shock to hear if you first time being exposed to this, but

the central banks are in absolute control of what their price of their currency

is, and they can set it at any time at any price they want don't believe me,

look at what they did with the Swiss Franc and the Euro when it was deep.

Instantaneous white belt.

Okay.

So once we understand both perspectives, okay.

Intimately.

Okay.

We no longer have a at odds perspective on the marketplace.

We don't vilify the market maker.

We don't buy smart money.

We don't beat up or, uh, make fun of the uninformed money.

In fact, what we do is we find a balance in between that, and we don't

think in terms of victim or aggressor, We just think in terms of efficiency,

because the markets are always going to trade in an efficient manner,

but it's slanted and more prone to lace the pockets of the smart money,

because they have the advantage of pricing where they want price to go to.

And they already know what the perspective is of the uninformed money.

And they also knew how to manipulate that perspective at any given time based on

chart patterns, based on indicators, based on just reactions to the market news.

Now as we go through this mentorship, we're going to be focusing primarily

on your understanding of these four primary drivers in price delivery.

It's retracement expansion, reversal, and consolidation.

Now we're not going to talk specifically about that, but I want you to understand

that all the things we're teaching here, they're all frameworks for you to

understand those four general principles.

We can't teach specifically.

Contexts or topics without having a broad base understanding and foundation.

And that's what this entire month of September is doing.

It brings everybody to a reference point to start at the same location.

Some of you that are advanced, it was a lot of my free tutorials over the years.

You need to put that aside for a moment and start with this perspective in mind.

And I promise you it's going to deliver everything that you've skipped over.

We're going to fill in all those gaps, but understanding that the

interbank price delivery algorithm.

Okay.

To understand that it's going to have to come by exposure and

exposure creates experience.

That experience is going to give you the, the understanding of going

into the charts, seeing what they, what they should be doing, price,

what you should be seeing in price

by seeing each individual component.

Explained in detail and context, each individual part or component of the

whole will be able to dovetail nicely and you'll understand how everything fits

together, but suppress that desire to feel like you have to have techniques and

patterns and intricate secrets about how the chart does this or chart does that.

You have to have the framework in mind and the foundation of why these things exist.

Otherwise, all those little things ain't gonna make any sense to you

when I'm calling on you to refer.

So with all that, what specifically should you be focusing on right now

as a new student in this mentorship?

The first thing you need to know is there are very little things you should

be bringing into your expectations and what your understanding should be.

And in other words, basically what I'm saying is this, you need

to have no previous knowledge.

Brought in with this kind of like put everything aside and assume it's very

difficult for those to have already gone.

Different disciplines of trading because they have to try to

forget what they already know.

And even if they've made money with it, which is the worst thing

that could have ever happened.

If anything, outside of institutional order flow led to your profitability,

it really was just coincidence and coincidence can happen for a long time.

I did it for nine months and it was all pure luck.

And then it no longer worked again.

Understanding right now, what it is specifically you're supposed to be doing.

That's important as a new mentor student.

Uh, the first thing you need to be doing is creating a daily price

action log with price charts.

Now, I know some of you don't want to do this.

Some of you have resisted me, uh, telling you for years to do this,

but I'm telling you, you all are here and you've paid for this mentorship.

You paid for the understanding and expectation experience that I've

gained over the last 23 plus years.

I can tell you how I got it was doing the very things I'm going to tell

you to do in this specific video.

It starts.

Yeah.

If you skip this video, if you skip what I'm teaching you in this video,

if you ignore what I'm telling you, what to do in regards to what

specific things you should start with right now, it does not mean, okay.

Just because you've been trading longer than anybody else.

And because you have on understanding what optimal trade entry is, because

you understand what a order block bullish embarrass is before, because

you understand what a liquidity void is.

That is not an advantage.

Okay.

You need to go back to square one.

And understand that this is strength in your development.

If you don't do these types of things, you're actually

going to hurt your development.

You're going to hurt and stunt your growth throughout this mentorship.

So go back to square one.

You're the new student do everything that's being described here and

advise, because this is where the money starts coming in with.

You have these things in place.

Right at this very core principle, it will develop.

We're going to be focusing on this throughout the entire

12 months, every month.

We're going to build on what rules and what things that you're suppose

to be looking for in the charts.

But for right now, I'm primarily, the only thing I want you to be

doing is starting with a daily chart.

Okay.

Your daily chart needs to show 12 months, no less than nine months view.

You have to have that month perspective when your chart.

Have so much of a perspective.

You have multiple years on your chart, 12 months to nine months,

ideally you have a four hour chart and your four hour chart needs to have

three months of price action viewed.

The 60 minute chart or one hour chart has to have at least three weeks view.

And the 15 minute chart needs to have at least three to four days view.

That means for every chart here, I'm recommending a specific amount of day.

That needs to be displayed for that respective timeframe.

What you need to resist doing right now is you need to resist the urge

to forecast the price movements.

That's not for your stage of development right now.

Do not try to rush ahead and try to figure out what the market's

going to do next, because that's going to be a problem for you.

And it's only going to lead to frustration.

We will get you there and it's going to happen in due time.

But for now resist that urge.

But there are some things you need to be specifically dealing with these things.

You need to note where price shown in quick movement from a specific level.

In other words, if it's run quickly higher or lower from a particular level, that's

noteworthy, you need to note that on your chart, you need to also note recent

highs and lows to haven't been retested.

That means if a high, a formed on your chart, if the price has not come back

up to that level in recent time, okay.

You need to make a special note of that because it's going to probably

be influential going in the future.

Vice versa.

Just contrarily speaking.

You're going to be able to look for the lows that have formed that have

not been recently traded to, and that will be influential later on

in future price delivery as well.

Note areas on the charts where price has left clean highs and clean lows.

Basically that looks like two equals that formed in close proximity to one another.

Um, whenever we, whenever we see a high go up inform and then it trades away

from it for a little while, then comes right back to it and doesn't make a

new high, or maybe falls a little bit shorter, just a little bit above it.

Uh, I knew that it's a clean house.

And usually by stops all form above that in the market will usually come

back up there and run through that.

Uh, it doesn't mean it won't, uh, continue through it, but it's

usually a big bulls-eye for a price that want to go up into that area.

And the reverse has said for double bottoms or equal lows, when

a low is formed and another low is equally, uh, formed in close

proximity to the initial one.

Uh, that's a big area for cell stops to pull or build up underneath.

It was, uh, lows in the market tends to have a willingness to go down

there and test that illiquidity.

It means the market will go down into that area, whether it continues to go lower,

or if it goes down there and then reverses there's conditions that we look for,

their frame, all that, and you will know when to expect, uh, specific conditions.

But for now I want you to start practicing, looking for

that in your charts and having them noted on your chart.

Note, what days the highs and the lows.

And this is for the weekly range.

And you want to know what time of day that occurs?

What kills zone is it a high and low of a week forming in London

or is it forming in New York?

Because all those things are going to lend well to prognostication and

what should happen going forward.

And you want to note the daily high and a daily, low every single trading day.

And you want to note when the daily high and the daily low forms

for every individual trading day.

Now, what does that look like?

Well, it starts off with a bare bones chart.

This is a daily chart and I'm using the Swiss Franc here.

It could be any chart, any pair, but you want to start with one currency

pair and then some mentorship you want to specifically deal with one.

I would recommend you doing something apart from the British pound and the

Euro only because you're going to see me specifically dealing with that,

um, in this individual mentorship, but you want to be doing something

with a currency pair that is not being utilized in this mentorship.

That way you're getting a unique perspective that you yourself have

arrived at, uh, using this as a guideline.

But the first thing you want to do is obviously note the most recent highs

and the recent lows where markets have shown a willingness to repel.

That's the first thing you want to note, because this is

how you identify or blocks.

This is how you identify liquidity voids.

This is all the beginning frameworks of that, but you need to be able to note

those recent highs and recent lows.

That's what it's been done for you here next year, down into a four

hour chart and no same levels of this note on the daily chart are shown

here and there's more highs and more lows that come into visibility by

doing a lower timeframe perspective.

We went from again.

That chart was a daily chart before now we're looking at these same

levels, this drop down into a four hour chart, and those levels

will be transposed immediately to what the four hour chart shows.

Then you go through doing the same thing.

You're looking for areas of where it's.

Equal our highs and equal lows and close proximity to one another.

And you'll look for where the market has moved quickly away from

a particular level when it creates these real big candles or bars.

Okay.

On your chart, you want to note that because they're going to be influential

in your expectations of where price should go and where they should not go.

You're going to go down to an hourly chart.

Okay.

An hourly chart.

You're going to be looking at.

Individual days.

Okay.

Over a course of one or two weeks and you can get the weekly range,

um, define what the ally chart.

And you can look at the intraday, highs and lows with an hour chart.

Allie charts are really good bellwether chart.

If you're a short-term trader or a day trader that's like the daily chart for,

uh, the barometer, whether you should be a buyer or seller and we'll teach

all those things, all those intricate details that we taught in his mentorship.

You mean, taking all those levels, you found on the daily chart in the four hour

and transposing those to an hourly chart.

Now you want to keep this chart.

Okay.

And this format separate from all the other charts that

I'm going to talk about now.

Okay.

Anything else we talk about in terms of what we're specifically looking for?

They don't get utilized on the same chart.

You created another chart.

So you're gonna have two individual independent U S swissy charts.

Okay.

But you're going to carry the information on two separate charts.

That way you don't have trucks that are too busy at too many things on air and

you get confused and all kinds of things that we worry about, then you're going

to create another Swiss Franc chart.

Okay.

And for that, you're gonna use a 15 minute chart.

And when it's loaded, obviously it's going to be naked, bare nothing on it.

And the 15 minute chart looks like a lot of noise.

It doesn't give you any perspective without any frames of reference.

And you want to take the course of action.

We talked about using the daily to four-hour in a one hour chart and do

that same thing with the individual 15 minute chart, but you only need to be

applying it to the last 15, sorry, the last three days, three to four days.

And using those reference points in the last three to four days on a 15 minutes.

Okay.

You're going to be looking at also the daily highs and the daily lows.

And you can see, this is how I do my charts on a 15 minute basis.

You're actually going to see me actually do this very practice every single day,

going forward, starting with this week that we're going to enter into an event.

Um, I note the previous day's highs and lows, uh, previous day's lows,

and then draw them out to where zero GMT is, which is eight o'clock in

the evening time in my timeframe.

And then this delivery of data with this platform.

Uh, this is how I knew my daily highs and daily lows.

Uh, it's important to note also the days of the week.

Now I'm not going to give you all the specifics here because you're

actually going to be watching me do it on a day-to-day basis.

So you'll be able to get a rough idea.

In this tutorial, but more specifically you're can actually

see me actually creating documents for my individual record keeping.

So you're going to see actually how I do my charts, how I logged them in.

Yes.

Even after 23 years of trading, I still do this.

It's important to do it.

It's understanding it's clarity.

It gives you perspective and it's what professionals do.

Sorry.

It's just, there's no way around it.

The folks that are really concerned about the market, they

have logs, they keep journals.

These are the types of things that they do.

Um, if you notice real quick, why noting the previous day's

highs and previous day's lows, if you look at Wednesday's data.

Okay.

Uh, you see the little delineation where it says Wednesday.

Uh, if you look at the previous day, obviously it would be Tuesday

in the course of a normal week.

Um, th the high that was formed on Tuesday, on Wednesday price came

right up there and ran through that around the 97 90 level.

Uh, notice it did not continue through that.

It just went up through the previous days or Tuesdays.

Then it sold off when it sold off, it went all the way down.

I go down to just any old level and went down to Tuesday's low, just

breaching it by a PIP or two, and then came back off into consolidation.

And then look at what happened on Thursday, Thursday, we had price

retrace back into the range that was created from Wednesday's high down

into Wednesday's low Thursday starts today with trading and consolidation.

It rallies.

Closest in a range.

Okay.

That was formed from Wednesday's high and Wednesday's low, then it sells off.

And where does it sell off to moving?

Just below?

Pulls off that low and goes into the consolidation.

Then we have Friday, the market just goes straight on, up rolls, right on through

Thursday's high and creating a new high.

Prior to Friday, the weekly high was formed on Wednesday.

It ran out the stops and all the liquidity that would be resting above

Wednesday's high, all done on Friday.

So we're going to be using these reference points and giving you a lot more.

About specifics and what you're doing with it.

But for now, I want you to know that this is what you're gonna be doing,

going forward every single trading day, you're gonna document price action.

And you're going to build on your understanding every month.

I give you more reference points to add to your charts and why it's important, what

specifically, what the information will do for you w uh, with the advantages it gives

to you by having it, and by having your charts very uniformly organized like this.

Um, when you're trading, uh, your chart is going to have its independent analysis.

You're not going to have all these things on your chart, but these

charts are always going to be referred to while you're watching price,

because by having three charts, okay.

Cause you're gonna have one that's executable.

In other words, what you're watching on the setup right now, because

you never want to marry the ideas that you have in your analysis.

You need to reflect on.

But you don't want to be so cast iron and can't do it any other way.

It has to be that way.

Otherwise, if you're watching a real-time price accident, if he sees something

that doesn't make sense for what the underlying conditions that you're

expecting occurs in the marketplace, you won't have the flexibility to

switch gears or go to the sidelines.

You'll just hold on to the market with strong conviction.

That's imposing your will, that the market's going to do what they're

going to do, and it's not going to happen because you want it to happen.

It's going to happen cause it's going to happen.

And we try to get in sync with what the market's going to do, whether it's going

to be moving sideways, whether it's gonna go higher or whether it's going to lower.

And we don't know any of those, uh, directions with a great deal of certainty.

We didn't know probabilities.

And, but we know how to go into the marketplace, looking for these types of

things over and over and over again, they repeat and you'll be able to find those

repeating occurrences in price action.

After going through this mental.