Original subtitles

Fifth installment of the eight and the continuous series for the first

month of the ICT mentorship for the month of September, the previous

tutorial in session four, we'd looked at equilibrium versus discount.

And this session where I'm looking at equilibrium versus premium, we went

through a great deal of content and regards to discount versus equilibrium.

We won't have to spend so much time with this tutorial because

everything we're selling here is basically diametrically opposed to

what you would expect to see in the equilibrium versus discount to teaching.

So looking at what we have, uh, when we look for premium markets

markets that are in a premium.

Now, when we talk about, uh, commodities later on in this mentorship, Uh, the,

the topic of premium will come up again.

Uh, but when I'm referring to premium, as it relates to price

action, I'm actually referring to the current range that we're trading in.

And the first thing we look for is an impulse price swing, which is we have

an impulse price swing here, and we have another impulse price went here.

We have another impulse price swing here.

So the first thing we look for in prices and impulse sling, and we see

one here, we see another one here.

We see another one here.

And these three price swings actually make up one larger price

swing, which is an impulse leg or impulse swing by its uh, by its own.

Right.

So when we define our ranges, okay, the use of the Fibonacci is.

Helpful in this case, because we can take the fed draw from

a high down to a price low.

And I'm using this low here because it's the most lowest in contrast to

this high in price comes all the way back up to what I have taught in many

years, the optimal trade entry, which is a standard 79% to 60% retracement.

On the fifth.

Now I didn't create that, but if it was as simply looking at that along 62%

to 70% of tracer levels, uh, looking for buyers and sellers there, every

way we loaded it would be no, no work at all in terms of, uh, taking traits.

But obviously you probably learned very quickly.

There's much more to it than just pulling a fit over top of price swings.

Uh, we have in.

This larger price swam.

We have a smaller price swing here.

Okay.

And we have the high down to this low and the market starts to retrace

equilibrium or half of the impulse price swing has to be at least touched.

And then once it hits that we watch for price to reach up into that.

This area here and then there's other disciplines out there and other mentors

and other teachers will say that the 50% retracement level is a good level

to trade at, based on price swings.

I don't agree with that.

Um, I understand that sometimes it's going to work, but what I want to do is I want

to be selling in a market that's at a premium level, um, for a market to be at a

premium in this current price range here.

And that's assuming none of the price action from this one.

Down all the way to the right has not happened yet.

So you'd be watching price in this initial range and price did not get back up to

the midway point where 50% of the, uh, uh, the range that was great from the high to

low that's all equilibrium is, is 50% on the fit what's that town describing it.

But the concept is, is you have to see, uh, a market price.

A move above the halfway point.

Once it does that start, it starts going into what is

referred to as a premium market.

That means it's at a really high price relative to its current trading range.

We all need overbought and oversold indicators to help us, uh, classify

and overbought or oversold market.

We just simply need to know the current price range we're trading in.

And if we get above the 50%.

Okay, let we start getting into what would we deemed as overbought or

at a premium level on this price?

When here you obviously never gets above the 50% and everyone touches it.

So it never gives us an opportunity to get short relative to this

timeframe or this price line.

So there would be nothing to do there.

The next price leg here.

Okay.

The same thing from this high to this low.

No nothing in terms of that price there, it doesn't get back up to

the 50% level, but look closer.

There's another smaller price swing that has formed right in here.

Okay.

So we could look at that measure the high to the low and the

market gets right to a print.

Uh, I'm sorry, equilibrium, but does not stay above the go to a premium market.

It only goes right to the feminine.

50 level or what we deem as equilibrium.

So Christ goes to an equilibrium price point and then immediately sells off.

This would be a missed opportunity in regards to looking

at equilibrium to premium.

The reason why we want to focus primarily on the 62 or 70% placement levels

in that range to be selling short is because the market's going to be really

pressed higher and would be really in terms of overbought never sold.

It would be very open.

And they will be expecting a willingness to, to sell softer and go lower.

Um, there's going to be times when the market does not give that

scenario to you and you just got to let those particular price wins.

Go without you.

The next price swing

is this high to this low Margaret trades.

Back up to equilibrium.

Here, you move this over so you can see a little bit better.

Okay.

So market trades back to equilibrium, goes back above it into a premium market,

and it goes right on through what would be deemed as an optimal trade entry.

Okay.

Or selling at a premium.

So here's the wonderful thing about this.

You can look at this and say, okay, if I'm measuring this high to this

low and I'm going to be selling I'm above equilibrium, I want to get sure.

In this area between 62 and 79% tracing level.

Okay.

Uh, you look over here, maybe there's something over here, institutionally,

um, in terms of a bear shorter block or something like that, you can define,

we're going to say that that's not.

I want to say that you went short, just purely on price action, retracing,

back into this Fibonacci level, here it comes all the way up and hit you where

your stop would be when you see these conditions where the market trades above

equilibrium and goes through the levels of 62 and 70 certain chase levels.

What that does is it gives you a condition that we saw in

the equilibrium to discount.

If it takes out a previous low, when it's in discount, it's

probably going to get trouble.

Bye-bye in this case, it's going to be a turtle soup cell.

It's going to be reaching for stops above the impulse swings high.

And you see that here, it goes up, runs out the stops here and then goes lower.

Where is it going to go?

Where do you take profits at below lows?

That's already established in the marketplace here and here.

You can see that's exactly what the market does.

You can also use when you're defining your ranges, all price

swings from high down to low.

Okay.

You, you, you want to anchor your, your Fibonacci on the market, goes down from

this high, all the way down to here.

Okay.

And creates that low.

As soon as we start seeing it bounce up, you need four candles.

Remember it's the same thing we just saw on the equilibrium to discount teaching.

Once you see it, uh, uh, swing low.

You're watching that fourth candle to show willingness to go higher.

It does, but then you simply wait years to equilibrium price

point, this, this 15% level.

And if misfit price goes through that, so now you're going to be watching it.

You want to watch to see if price gets to 60 to the 7% tracing levels.

It does.

And it does it while it's running out there high here.

So two scenarios, one, you could've used this high down to this low and got a stop.

In the initial, uh, 62 to 700 it's tracing levels where we saw

earlier, but it ran right through it.

If you had not anchored your fib to this high, to this low, you would never

see this, uh, optimal trade entry.

Okay.

Or return to a premium to go short prices above the equilibrium price point.

And it takes out an old time.

So we're running stops at an old high, and we're going back into what would

be a premium market we're above the equilibrium price point of the range.

And the range low and we take stops out.

That's really, really good in terms of probabilities and the market goes

down and sweeps out a previous low.

Remember when we were looking at the equilibrium to discount, every

time we were buying, we were taking profits at above an old high.

Okay.

So when you see that all we're seeing is the reverse of that in the

equilibrium versus premium market.

So we're always looking to sell at a premium premiums as defined

by has to be above the equilibrium price point or 59, 50% level, the

Fibonacci anchored on a swing of.

Clear discernible price action.

In other words, if it looks sloppy, if it doesn't really give us a solid

price pricing and obviously obvious price swings are the ones we look

at, we're not looking at anything.

It looks questionable.

If it's a pure price line, we measure it and this is a high and this is a low.

And we went through all the potential stages of all these high to low,

high, to low, high to low scenario.

Really nice scenario here again, taking profits initially a below

this low here, and then it would hit that and then you'd hold out for a

potential run for some of your trade to be taken off below this low here.

Now market goes into another area of premium relative to equilibrium.

We'll go back to this larger price swing here, this low, all the way up to this

high mark and goes right into the seven times 79% retracement level hits it

perfectly to the pit and then rolls down.

Where do you take your profits at the end?

We're looking to take profits at below this low here.

Okay.

And into the order block down in here, which is what you see right there.

Okay.

You have another range that you can use.

This high to this low.

Okay.

Now what's, uh, what's really nice about this is if the

market's in a consolidation, this type of trading is your go-to.

Okay.

Um, along protraction, airy state in the marketplace where it goes.

Up and down.

No, no real movement higher in one direction or lower one direction.

It just stays in a large consolidation.

You want to be trading turtle soups for understanding where

premium and discount are.

And if you have the high here and you pull down to the low here, when the

market gets above equilibrium, right in here, it goes right into the 70.5 or

what would be the optimal trade entry.

Sweet.

Okay.

Or OTE and the market is a sell off there.

Where, where do you look to take your profits at below an old, low

or below this low right there.

Every time the market makes a swing low, you have to take a look

and it only takes three candles.

This is why do you not use the Williams, uh, fractal that requires five candles.

I only need three candles.

So we have a candle low here, a lower candle low here, a small,

smaller little candle in here.

Blows through that.

That would be your, uh, your target right there.

You would take first profit.

Then you would come back and end up taking your stop-out right there.

Now, if you get a stop and say you don't take first profit, the slate

devil's advocate for a moment, say you're greedy, you're impatient.

You're developing.

You just don't want to do anything to take some profits out.

Or it couldn't happen for you.

You didn't do it like that.

That mark comes back and takes your stop-loss out.

If you see that scenario.

Okay.

You want to be looking for old highs to be breached while we're above the 50% level.

So we're in pretty, we're in a deep premium.

Okay.

So markets are overbought right in here.

The market runs through this previous high.

So we're internal soup scenario.

We could be looking for turtle soup cells.

Mark comes up, starts to come down.

One more time runs through you.

Take your stop out again.

This is going to happen in your trading.

Do not try to avoid it because it's going to happen.

So the same scenario we have an old high mark goes back above it.

If it's at a premium and you've defined the range here, you take the scenario

as a sell on turtle suit basis.

For each above it all high sell short, are you gonna have to take profits at

the low, the first low that's here?

The next low is right here and we have another range created here.

So while we're watching this form, as soon as we see a swing

low form just came up here.

We knew they're probably going to want to run back up into this range here.

Now we have a new range.

The impulse price swing is this high down to this low.

Here's equilibrium price expands to equilibrium.

Once we start seeing that we watched does it get to 62?

It does.

The body of the candle stopped perfectly right there.

You could sell short right there.

What's nice.

Is, is you're going to see the bottom of this candle is up candle.

That's a bear over block, which you'll learn more about.

That's a cell by itself where you look to take profits at below.

The old low right in here goes right down below that.

And does what trades backup.

If we've used the price swing from that high, we just anchor two to this low.

The same thing occurs here.

We have this high all the way down to this price.

Low price comes all up into the 79% trace level above equilibrium.

We start watching it.

Now we're in an area where the price is going into equilibrium.

I'm sorry.

From equilibrium up into premium.

Okay.

Premium is above equilibrium in a range that's been defined from high to low.

And look what's happening.

We're running out an area of stops above an old high, again, very, very

good, um, probabilities for getting short, take that as a turtle suit

inside of a premium based market.

And you can look to take profits on a swing low.

Here's your swing low here, the market trades down to that.

You'd have to take profits below.

Margaret trays now into small little consolidation here, and I'm not going to

define anything else that's in this chart because I can do all kinds of other things

to, it would look like sugarcoating, but you'll learn other things to look at.

And it has to do with this candle over here.

So we'll refer to this candle later on and, uh, we capitalize bullish,

shorter box and bear sort of blocks, but the market creates another range.

This high down to this low here.

to this high down to this low market goes above equilibrium here.

Where's it going to go to, we want to watch it go to at least 62% tracing level.

It does that because we have to 70.5.

Optimal trade entry and then sells off where you take profits at

close swing, low, bigger swing, low take profits right there.

Now they're not astronomical trades.

Okay.

They're not enormous trades, but to get short in here at 98 big figure and

covering below the low on this candle here at 96 94, that's over a hundred pounds.

Nothing wrong with that.

This is a daily chart we're trading off of.

Again, this is helping these folks that can not be doing day trades.

Okay.

You don't need a great deal of movement.

I want a daily chart to make a decent amount of pips.

We're going to go back to this high and use that same old low here.

Okay.

From this high down to this low.

Yeah.

If you went short here based on stop, run above here, and we're

in a premium, we're above the equilibrium, we've defined our rate.

We're looking to sell into strength.

It's scary when you first start looking at it as a new trader, but

that's exactly what you want to be doing as a professional trader.

You want to be selling at premium prices.

Think about it.

You could sell something if you own it and say you own a car and

you want to sell your car, do you want to sell it at a discount?

That doesn't make any sense?

You want to sell it at a premium.

So professional traders sell their long positions or they sell new

short positions at premium price.

They ain't no better place in the world, the sell short or sell longs

above the old Hein, because there's going to be willing buyers right

there in the form of buy stops.

So when we see this area here, we get short from this area here going short.

And if you just took profits once this low formed, that low comes in at

96, 7 39 97, 39 in the open is 97 99.

So we're going to say we will short somewhere around the 98 big.

The low comes in at 97 39.

So that means your stop.

I'm sorry.

Your limit order to take profits would be below 97, 39.

So you'd get the low here.

Say you're aiming for 10 pips below that low below this low right here.

You'd be looking for 97 29, roughly a 97 30.

That's 70 pips using a setup.

That's on a daily chart.

You're not intraday trading.

You're not looking at five minute, 15 minute charts.

You know, you're not, you're not being forced to do what ICT does.

Most of his teachings through Digiday treat trading, but the same concepts

appear in these higher timeframe charts that don't discount it, that

I'm teaching you in a 15 minute basis because all the concepts are universal.

And I know it's hard for you to understand that as a neutral.

Because it just seems like I can't be watching that charge.

So therefore I can't treat it.

That's not true.

That's not true at all.

So by having these ideas of looking at price over the course of a

premium market, we go down to a say, we go down to an hourly rate.

Okay.

And what's nice is you don't have to trade with a bias.

Most people are always asking me, Hey, looking, can you give me a, uh,

a way of trading with a daily bias?

Give me the trend direction.

Like, well, I need to know that.

Well, you don't really need to know that you don't need to know it.

And the reason why you don't need to know that it's because you need to

know how to trade inside of a range because there's ranges are always there.

Whether you're in a trending market, whether you're in a

consolidation or they're universal.

Those profiles will always give you ranges to trade in and you don't need

to break out of the range to make money.

We have a swing high here.

Why am I using that swing high, Michael, not this one here, not this

one here, because this is the most recent one prior to this down move.

I could use this one here, but I'm going to use this because it

has more price action around it.

This high.

Down to the lowest low, okay.

Market trades up to the equilibrium in here.

Okay.

Does it get too premium?

No, it doesn't get up there yet.

It comes down off of this a little bit and then trades right up into

79, 7 tradesman level rate in here closes in a range, which we'll talk

about in the next teaching over here, the market sale that sells off.

And where are you going to be looking to take profits at?

You had a small little swing love here.

You have a certain real good swing load.

So if you're getting short up here and on an hourly basis,

say we got shorted, uh, 97, 70 nice round number to get out of that level.

Here's 42 pips to get up below this low here, 60 pips.

So if you go 10 pips below that, that'll give you a nice 70 pounds.

And give me a nice 70 pips and there look at the reaction going 10 pips

below here is this range low from that high up here where we would have

been selling it based on the concepts.

Again, it's all hypothetical.

And in hindsight here, but the conceptual idea is the same going

forward range of 60 pips, 10 pips below.

It will be 70.

You got at least four pips below that for a per spread to take you out.

And it absolutely does that.

And that doesn't go very much at all.