Original subtitles

Okay folks.

Welcome back.

Presently Monday, October 10th, 2016.

Today's session is going to be about perspective and growth and the theme

of our second month of the mentorship.

Is dealing with risk.

And part of dealing with risk is weighing out and keeping imbalanced

our expectations, our aspirations, our hopes, our goals, and some of

you in our mentorship are 100%.

Blocked.

Okay.

Or your life or your work or your business, um, time of day,

your location on the planet.

Uh, all those things are factors with you and your trading as sometimes that's

going to prevent you from doing certain types of trading I E day trading scalping.

Um, short-term trading, some of you are just going to have to

require, uh, long-term trading.

Some of you can't do long-term.

Okay.

So I want you to remove the, remove those barriers just for a moment while

we're looking at this discussion.

Okay.

And I want to show a couple of different examples and kind of like bring back the

focus to the element of understanding price is important because it's

not limited to any one discipline.

In other words, it's not only uniquely, if is.

In one timeframe or over another, and hopefully communicate

that in this presentation.

Okay.

Obviously we have a chart here.

It's a candlestick chart, as some of you're used to seeing, and for the purpose

of just study of price only I've removed any identification as to what to do.

You don't know if it's a stock.

You don't know if it's a commodity.

You don't know if its a currency.

You don't know if it's Bitcoin, you don't know anything.

Okay.

And I'm trying to teach you today that it's not necessary to know what that is.

Okay.

We don't know if this is a one minute chart.

We don't know if this is a two hour chart.

We don't know if it's a daily chart.

We don't know what this is.

Okay.

But I want you to focus just primarily on the things I'm going to highlight here.

This is going to be very beneficial for those that have gone through

all of my free tutorials and have an understanding of some of the concepts

that I'm going to refer to in brief terms, highlighting specific things.

If a term or a concept is utilized in this presentation, which won't be a long

one, if something comes across and you don't know what that is, all you have

to do is simply make a notation and your notes in the front of the card.

What was, whatever it is that you heard me say, and then you wait,

wait for the discussion to end today.

And then also wait until we finish the presentation for this particular month,

because everything that I'm talking about, you'll have more information

given to you as we go through.

Okay.

I'm not trying to leave you with.

An incomplete study for the month.

I'm going to give you a broad brush idea throughout the entire month,

but I'm going to sum it up so that way you can walk away from it.

Even if you wanted to quit the mentorship, the con tamper deaths, just this month

will be enough in terms of standing alone on the basis of what I'm trying

to specifically teach regarding risk.

But when we, when we further at risk, obviously it's not just simply

limiting how much you're willing to risk and lose on your losing trades.

It's also the balancing of your expectations.

And if you go back through your losses, I guarantee you, they were mostly a

chats to the fact that you were trying to make a lot of money on that one trade.

And either you held onto the trade too long and you married it and you

wouldn't accept the fact that you're potentially wrong and you didn't cut

bait when you should've, you held onto it when you should've let go of it.

You demanded too much from the move.

That's all part of the balancing act as a trader.

If you understand price, if you understand the things that I'm going to teach

you, and I've been teaching for years and now because of the mentorship,

you're in great detail of the studies.

I want you to focus on some specifics in this specific

timeframe that I'm using here.

And when we come away with.

Takeaways.

If you will, you know what?

You should be gleaning from all this.

I think you'll be impressed because it's nothing like this.

It's amazing how you can go into any timeframe and see this.

I gave you a couple of things to look for in September in terms

of what to focus on right now.

And if you look at the, the market up here, how many times have we talked about

a market breaking above a previous one?

When it does that, chances are, it's probably going to go lower.

Even if it continues to go higher, it's going to be a retrace in us,

unkind when price reaches into a significant resistance level.

Okay.

And resistance can come in the form of a bear shorter block, which is usually an

up candle prior to a down move in price like this, this up candle being bullish

rate before the down swing and price.

This concept.

What we call a bearish order block because we understand that during the

up moves smart money sells into that.

They want to sell into it as it hits the highest point.

So that way they can be selling it, the nearest highest point at a

premium, when price starts to drop away, we look for price to return

back into that order block price.

Won't always go up into the actual last cannon.

But we had to look at the way price has been delivered.

We have three green candles making up that highest high three consecutive

up candles, the order block itself, because of this timeframe, we

don't know what timeframe this is.

We don't care.

Okay.

We're only looking at the fact that price has been delivered 1,

2, 3 consecutively up candles.

So this entire price move with three candles going.

That is the bare shorter block.

As price breaks down through those consecutive three candles, this becomes

the bottom of the lowest of the three up candles that becomes the beginning

point at which the algorithm will reach for, and then go into a sell program.

Price sees they're happening here, trades right up into that camp.

Only stays there for a short period of time and then quickly reprices lower

when price goes lower, it's reaching for this short-term low, which is what

the liquidity pool, what rest below these short-term lows sell stops.

Why is it cell stops below this low?

Because price has rallied prior to it.

So when the market comes down, they sold up here.

They want to buy it back where there's going to be willing sellers.

Once price goes through that, the next level at which they would be

aiming for blow these lows over here, what resides below these lows sell

stops market trays down below that those sell sauce come market orders.

The Mar the smart money can buy them from the sellers here back

to cover the short position.

They assume the pier.

Every time, the market makes eight price swing lower, and it creates an up candle.

We look for price to trade back up into that, and it should be another

area which there should be selling because up candles, smart money sells

into if the direction is implying that the market's going lower.

Okay.

Let me double check real quick.

Make sure you guys can see my cursor.

Can you guys see my cursor?

Hasn't gone across this chart.

Just wanna make sure.

Thank you.

Appreciate it.

I hate breaking up the continuity, but I just wanna make sure I'm

not wasting my time and yours.

So we have the up candle here, price trades right up into it.

Now notice it's the WIC.

Now we don't know if this is going to be a one minute chart.

We don't know if it's going to be a six hour chart.

It doesn't matter the fact that the price is being delivered here.

We understand that this has been a rally up, so smart money is going

to be wanting to sell into this.

And it's only going back to a point, which we would reasonably

expect new selling to come in.

Why?

Because this three consecutive up candles together blends

what one bearish order block.

So when price hits that they could sell again, or we can be sellers as well and

expect price to expand down below the swing over here and below over here.

Now we don't know if it ultimately is going to go down to this low

here, but we reasonably expect that the trade down the load of this low.

That's reasonable.

Now, the question is going to be okay if say this is a one minute chart, and

if you're selling at the bottom of this lower three candles here, if we sell below

that or sell at that low rather, okay.

How much distance is from here at this low selling over here on this candle to here?

Well, if this is only a one minute chart, obviously it doesn't frame much

in the way of profitability, even if you can define the risk even slightly.

Yeah, however small.

You want to make it, if it doesn't offer you an opportunity to make sure.

In terms of what you want to get in at and where the optimal

ultimate objective is to get short.

And you uncover that short position, it's kind of, it's, it's

a rather moot point to do that.

You don't want to, you don't want to focus too much attention on trades that give

you very little payout, very little risk.

Okay.

Doesn't justify the trade.

It has to have a way of number one, giving you a little small amount of risk

or a measurable amount of risk, but also give you enough movement to provide.

Profitability.

So when we frame specific risk to reward ratios, okay.

They have to be favorable.

And just because it allows us a little bit of difference in terms of

change between where we want to get down where the next level is, is that

really a trade that's viable for you?

Because just simply because there's a little bit of movement X between

where we think it's going to go or come from down to that may not be in.

Uh, pips.

And I'll say, this is from selling it this low here on this candle and uncovering

down here, say that's only 12 pips.

Is that something that someone would want to take a trade on?

Because remember, if you're looking at 12 pips range, you have this spread

on both ends of your trade buying and selling or selling and buying it back.

How much room do you have to make in terms of.

It's to me that wouldn't make any sense, but you'd be surprised how many people

actually try to do that because they want to get in the market for whatever

reason they just want to get in there.

And it's usually after the market's already moved a little bit and

they say, okay, well I want to get something in the marketplace.

Even if I get three pips, five pips or whatever, they think that's the way

market makers are not more profitable.

Traders make money.

They get in their scalp, a couple of pips here.

Five, 10.

And it's it's ludicrous.

It's it's, it's stupid to do that.

Okay.

As price comes back up and trades into this candle here, we get

one more opportunity to sell off.

Okay.

And then it aims for the swing lows over here.

We get a nice rundown here.

What is this?

These three consecutive candles down here that is the liquidity void

quick or one one-sided movement.

Price comes back and retrace.

It goes right back up into this up.

What will be expected here, new selling and in the price expands

again, and then comes back up and now watch what happens here.

Price only comes up to the bottom of these two candles.

This is actually a mitigation block for orders that would have been bought.

And now this is something we're going to talk about in regards to market

structure, institutional market structure.

Let's be specific here, Michael, the idea that just simply because the

market comes up to here and sells off.

If you understand the breakers.

Okay.

That was taught in the market maker series on my free tutorial page.

This is not a breaker.

Okay.

This is just a mitigation block.

The individuals that would have used orders to go long in here, once

price breaks down below it here, these orders would be underwater.

So they're gonna have to take those positions off here, right?

When it trades back at the bottom of these candles here.

And then we see another round of selling when it sells off.

Whereas it reached for rate below these.

And it does that here, rallies back up.

What's it reach up into the last little up candle right in here.

So you can expect to see what's selling again.

Where does it go down to below this low right here.

Okay.

So you can see many times.

The opportunity to see these specific generic characteristics, repeat

themselves over and over and over again.

Now, if I told you this was a one minute chart, obviously for anyone that's been

trading for a long period of time, it's not terribly exciting because you know,

the range is going to be really small.

But what if I told you this was a four hour chart and every one of

these swings offered 50 to 60 pips.

Every single time it retraced, it was giving you 50 to 60 pips.

So now suddenly.

For those individuals that don't see these opportunities or can't get in

there and trade these five minute setups or 15 minutes setups, they can

now walk away from the market today.

Hopefully thinking, well, you know, I don't need to have a lot of trades.

All I have to do is wait for these things to set up on a four hour

chart and then I'll just wait and I can set my limit orders.

I knew where my objectives are going to be.

I can do all those things in advance.

Let me ask you this.

What about this movement in here?

Okay.

Even if we see this as a turtle soup or false break below this low, the questions

always come always comes up as well.

How do I know it's a turtle suit?

How do I know it's not going to go through this low here and just keep on going?

Well, the thing is, is we don't always know that for certain, but

we do know that there is always a likelihood for it to happen.

And all we had to do is wait for it.

It makes the low it breaches the candles bodies here.

Okay.

And then it rallies up.

Well, at this point, what do you start looking.

You don't have to trade down here on the break below this low, you

look at the down candle right here.

This is a bull shore block price breaks through this candle, the OMD,

a down candle, which is a bullshitter bought because they buy Dorn down.

Candle moves.

This candle breaks it here.

So now at that point, you draw this out in time.

Anytime it trades down into that candle, again, you can buy it.

It does it here.

So you can be a buyer here.

It only goes down to the middle of the down candle, which is the means, right?

Okay.

So now this is a four hour chart and we're buying somewhere down here.

Okay.

And we can look for an objective above this swing high, if we do this.

Okay.

And this is a four-hour chart.

How many pips, if you have understood that anything about four hour

charts, if you started looked at them that tipped that nine to two pips

are pretty significant sometimes.

Now, if you were just buying down here, the middle of this down

candle here, buying that on a limit, using a four hour chart, using this

as a objective exit loan limit.

Okay.

You would have your entire trade framed out with a timeframe that you don't have

to be sitting in front of and babysitting.

That's the beauty of this.

And here's the other thing.

If you can take first profit.

Okay.

Where would your neck next level of objective date?

You had this up candle right before this down move, which is a liquidity void.

And then look at these equal highs up here.

There's a liquidity pool resting above that liquidity void liquidity.

Paul Price does goes through both of them.

Pierce's this one here just by a little bit.

And then once a day trades back down, once it, once it goes down to.

Right into this bearish order block.

I'm sorry.

Bears candles is a bullet shorter block.

Now own this timeframe.

We could go down to a lower timeframe and find something smaller.

It would probably reside inside of this wick in here, but because if we're

assuming this is a four hour chart and you're only looking for setups based on

these ideas, if you went long here, you would be expecting to take profit where

above this old high price does that here.

Okay.

Now here's the cool.

Here's the really cool part would, if this was a daily chart with every one of these

candles represented the daily range, how many pips would there be there hundreds?

Right?

It'd be hundreds of pips.

What if this was a weekly chart?

How about it was a monthly.

Nothing's changed.

It's all the same concepts.

Look at this here.

If we were looking at this segment of price action, what would you

reasonably expect to see happen?

I'm actually going to look for, for feedback on this one.

I'm getting a mix here of 50, 50, some are saying going higher, some are going lower.

What would you reasonably expect to see price do?

Looking at the price as it is right now.

Do you see this segment of price action in here?

And then what happens here?

What's going on here?

All this here.

That's expansion.

What's this little area in price range.

Fair value.

So prices reaching back down into fair value.

And what's this black handle here.

Two bullet shorter block.

The market has shown a willingness to break through this

level here by trading higher.

It's came back down into an area of fair value, which is this big candle.

Breaking through this bears candle here, which is a bull shorter block as they buy.

When it's going down.

If price were the trade back down into this candle here, we could

reasonably expect to see what happens or what would you want to do

if price did this trading rate into that or a block right there, what would

you expect to see price reasonably do?

And where would you ultimately look forward to it?

Well, we could be a buyer down here and look for price to

trade up to this high here.

Right?

That's the, that's the reaction of it?

Hitting it with a boldface candle, then it becomes a WIC.

You have to get used to seeing it when it's trading rate down as

when it's trading at the camera.

I'm sorry, I have to, uh, bullish or block Lance down there and opens and

trades and goes into that candle.

And you see that that's when you want to be a buyer and you expect price

to expand up into an area where.

By Stossel bay, because you want to find buyers for those individuals

that want to take the position long or buy it for whatever reason, being

a protective stop on a short, if you're long, like smart money would

be buying down here, you're going to be looking to sell it for a profit.

So you have to pep vine, you have to find willing buyers at a higher price.

And they're always going to be above highs, old highs, above highs.

That's where it's going to be at now.

Here's the cool part.

And this is the takeaway for today.

If

I show you what this really is, this is the Japanese yen weekly chart.

And for this is this whole teaching this morning is to settle down.

Those folks that have been talking about I can't day trade.

Can you give me a.

Way to do this stuff where I don't have to be in front of the charts all the time.

I can't be a day trader.

I'm not sure how I'm going to stay with this mentorship because I can't day trade.

This is a bullish order.

Block, fair value gap, price trades down into it closes the here,

if you add 40 pips or so to it.

Okay.

And you buy here and you get out at first profit here at this high that's 1,154.

Okay.

These are weekly candles, 1,154 pips.

How many times does it trade back down into the mean threshold here of this

bullish candle bull shorter block.

It's a here.

If you see that trade and you buy it at that point and

you'd look for that move here.

That's 960 pips.

What about this candle?

This is a propulsion candle.

Why is it a propulsion candle?

We have a bullet shorter block, which is the down candle.

We see price move through it.

Another down candle, right into that previous down candle.

This candle here should not see its mean threshold given up.

Okay.

The opening of that candle sensitive, you can buy it here.

Old high back here at 753 pips right there.

Okay.

Another down candle here, price hits it.

Another expansion up it trades down into what this bullish candle rallies.

Again, if you went and held a small portion, just buying it

down here originally, and you held on a small piece of it.

That's 20, almost 25.

Well it's 2,500 pounds.

On one position that you scale out and leave a little piece on

how many people have have you come in contact with that made 2,500

pips in one trade they're unicorn.

They don't exist.

The first chart I showed you in an example was the monthly chart of the Japanese.

Yet, if you sold that the bearish order block, as we defined it here, taking

first profit down here, that's 876.

Down here it's 1,610 pips.

If you leave a portion on and you take a run out below this

low here that's 2,240 pips.

If you wait for this low, the form and then expansion below

it again, that's 3,270 pips.

Here's a short-term low here.

If it violates that it's 3,862 pips wait for this low here, the

form and an aim for move below it.

That's 4,200.

It takes a long time for these trades to pan out.

So my question is, yes, there's plenty of opportunity to trade

every single timeframe, this bearish or block here going short,

just taking profit right here.

It's 1500 pips.

So ensure the mitigation.

Okay here with a move below these lows here.

That's 1,330 pips.

Now you have to wait every single month for these candles.

But you're telling me that you can't day trade, but you need to do long-term

position trading, or they showed you on a monthly here and a weekly chart.

There's thousands of pips available.

And I use the worst pair in my own personal liking.

I can't stand the Japanese yen, but it's still there.

It's still there.

If you look at the bear shorter block here and you sell short and you

look for a move below this low here.

That's a thousand pips.

I mean, how many months does it take to get there?

You trade shorten this one, one month, two months, three months, three

months, a thousand pips one position.

So my question is can you make 6% compounded a month over the

course of these types of trades with a very small amount of risk?

Of course you can.

Absolutely.

There's no reason for you to be worrying about whether or not

I'm teaching in a intraday chart.

It's the same premise.

Everything I teach is universal, but you'd need to settle down

and let me teach it to you.

Okay.

Everything I've promised you in terms of what I'm going to deliver, you'll have it.

And I want you to come away with this teaching today with the greater

appreciation for price action, because it's not limited to introduction.

So I'm going to give this session a close and remind you that we will be

back in at nine 30 to do a panel session.

One of our members are actually, uh, get on here with me and discuss

a meeting he had with someone I think, of his own interest.

And if you have any, uh, any Eureka moments today from this one,

uh, share it with me on Twitter.

And until we talk again later on today at nine o'clock good luck and good trade.