All language subtitles for Lesson 3 - Institutional Sponsorship - How To Identify It In Setups EN

okay, folks.

Welcome back.

This is lesson three.

Of month three for the mentorship, we're
going to be dealing with specifically

the institutional sponsorship
and how to identify it in setups.

First, we're gonna go to the
institutional sponsorship in long setups.

Keep identifying institutional
sponsorship and long setups is

the notation of a hard time.

Price displacement.

And that can come in the form
of a reversal and expansion

or return to fair value,

intermediate term imbalance and price.

Now this is a move to discount
or a Southside liquidity run.

In other words, the price is
going to actually retrace, or it

can begin by going below an old,
low to run out the south stuff.

Once one of these two occurrences,
uh, appear in your chart.

The next thing you'll be
looking for is short-term by

liquidity above the marketplace.

Now this is going to be ideal for
pairing long exits to sell to.

And obviously you're going to be
looking specifically for a time of day

influence I E London open for the low
today or a New York session low for me.

Now it's important, understanding
that number one and number

two are the criteria.

What sets up the expectation
for institutional sponsorship?

Then we see the actual institutional
sponsors have come in by way of attack.

The marketplace for the
buy-side liquidity that would be

resting above the marketplace.

In other words, we have buy
stops typically above old highs.

When we're, when we're short, the
assumption is, and again, on ATP,

the role-playing model that gives us
the perspective of a market maker.

So you have to have that market
maker, uh, perspective on price.

So we look to sell high, but
we have to find buyers that are

willing to buy higher from us.

So.

The criteria is, is we have
to look for short term by

liquidity above the marketplace.

Now it's going to be layered by stops
throughout the marketplace because

it's, there's all kinds of trading
that goes on it's long-term slang

trade, short term day trading scalping.

Uh, but you have to look at
the hard timeframe for that.

Short-term by liquidity to give us a
framework, to see if there is in fact

institutional sponsorship in your sector.

And obviously you'll see these
characteristics come to fruition by

studying the time of day influence.

Now, obviously you're not
just studying it eventually.

You're going to be actually trading in
the marketplace at these specific times

of the day, belong in open New York
session, London closed and sometimes Asia

and obviously the opposite would be for
institutional sponsorship in short sale.

We were looking for again much in the
same way we saw for the long setups

it's in reverse higher timeframe,
price, displacement, and that's going to

come by way of a reversal or expansion
or a return to fair value and an

intermediate term in balance and price.

That's seeing price move to a premium or
moving towards the buy-side liquidity.

Make it run on the buy-side.

And then short term sell
liquidity below the marketplace.

This is going to be ideal for
pairing short exits to cover.

And obviously those sell stocks.

We're going to be buying those from
the counterparties in the marketplace.

And just like we did with the long
setups, we would be looking for time

of day influence island and open high
of day or New York high formation.

In this specific teaching,
we're all gonna be dealing

specifically with the institutional
sponsorship scene in long setups.

Everything you see in the example,
we'll, we'd just be reversing that for

the criteria used in the short setups.

Okay.

We're looking at a hard timeframe chart.

Okay.

Just for disclosure sake, this is a
Japanese yen us dollar versus yen.

And we're looking at a daily chart.

Oh, that particular pair.

And I gave you an ideal scenario where
we can study a sample set of data.

Okay.

And it's not cherry picking.

You guys can go through charging.

You actually see some of these things
that come to fruition many, many

times, but the criteria is for our
setups to be high probability, we have

to have institutional sponsorship.

Now, what is institutional
sponsorship specifically?

It's the willingness.

To protect an underlying price swing
that has high probability of unfolding.

Now I'm going to outline that throughout
this entire teaching, but I want you

to understand that simply institutional
sponsorship is just the impact of

large institutions, banks, and big
equity traders coming in the fund.

The side of the marketplace
that you answer that.

Seeing it run towards a particular
side of the marketplace.

For instance, we're looking at a, by
set up, we're going to be measuring

and trying to identify characteristics
that lead us to the assumption and

ultimately in a, an understanding of
institutional sponsorship as a concept.

So that way we can go forward in
our trading and start looking for

these fingerprints that are many
times repeating over and over again.

When we use higher timeframe setups.

Now looking at this daily
chart, you see it's shows price

dropping down below an old low.

And this is typically where sell stops
are going to be residing or as we call

it a liquidity pool, uh, sell stocks will
pull below this old, low, and everyone

that would be wanting to go along.

They would have a sell
stock rate below that.

And then the fact that, because
everyone's doing that same idea of

putting a sell stop here, that's
where the idea of a liquidity.

All those orders are pulling together.

Okay.

And creating a pocket.

If you will, of selling interest.

Now, it doesn't mean that they
want to go sell them short.

Okay.

Some folks out there would see that
as a particular, um, interesting

level to be short at a later time.

Should we break below it?

But in this case, when we see a price
run like that, we obviously have to

assume again, if that market efficiency
paradigm again, um, participants are

looking to protect long positions there.

So it's not that they want to get short.

They want to get out of the long.

So if we ever see them, my par
price meters cell stops are ran

out now in an aggressive trader.

They can see this as an opportunity
to go into a lower timeframe as that

low is violated here, right on this
candle here, you can go into a lower

timeframe and look for a similar
pattern because price is fractal.

I mean, everything you see on one
timeframe is replicable on the higher

timeframe in the lower timeframe.

So in other words, it's going
to have a lot of similarity

throughout all the timeframes,
because price is still what price.

So you can look into a lower timeframe and
actually study the price action and come

to, uh, basically the same idea you're
seeing here an old well, so we would

wait for short term, um, price action
on a lower timeframe to create that same

scenario, which is a low being violated
because everything on price is fractal.

By having that understanding and
expectation, we can take a long position,

but we're going to go one step further.

I'm going to actually start looking
for evidence of institutional

sponsorship now looking at this setup.

Okay.

What's the first thing that comes
to mind for you as a trader?

Obviously going back to
the September is content.

There were some things I
told you to look right.

In terms of studying price action.

What should you be focusing on?

Well, if we're anticipating in market
move higher from down here after a run

below the old lows we start looking for.

Okay.

Where could this market go to?

Well, we have a short-term high here.

We have a short-term high here.

Look at this big candle here.

One what that's going to suggest to us.

And how about this old high back here?

We have a nice price move here.

Price could ultimately go back up here
or it could just come in this area here,

closing that range, or it can come up
and clear these relatively equal highs.

Remember the things we talked
about in September, I gave

you as bullet points for you.

As soon as you go into a price
chart, and those are the same

things you look for all the time.

They're not changing morphing.

It's the same premise.

Every single time we look at price
action, but looking at what we see here,

prices forming a potential bullish.

Now this old high here, obviously we know
what's going to be resting about that.

It's going to be by stops.

Well, we have a down last
down candle here, prices now

reaching into that right here.

And it's also dipped one more time
into that area rate below this old low.

So we did one more time, poke our
head just below that level so we

can anticipate now some sensitive.

And protection of seeing
the price not go lower.

That's what we're anticipating.

So if we see that we're going
to see what characteristics of

institutional sponsorship, that means
that banks are coming in and they're

capitalizing that old, low back there.

That means they're buying it again.

Notice again, that range up here.

What is that?

It's liquidity void.

So inside this liquidity
void and above this old.

What do we have up here?

This is called buy-side liquidity.

That means there's a willing
participant or pool of buyers up there.

Okay.

So when we start talking about open float,
we will be referring to a lot of these

ideas as well, but, uh, open float can be
a little confusing because it's relative

to the timeframe you're looking at.

So while we're working on hard timeframes,
I'm just going to focus primarily

on classifying this as what it is.

It's a buy-side liquidity in the market.

So as a market maker, they see these
opportunities to sell the run, the

stats that are below this old low.

The below and I'll load
it, take the cell stops.

What does that implying?

They're probably accumulating
those cell stops in the form

of taking the buy side of it.

So if they're willing to buy those
buy, buy, those cell stops up.

That means they're prime,
meaning building a net long book.

And if we have suggestions in the
marketplace in the form of price

action, suggesting that we have buy-side
liquidity in the form of liquidity,

void, and old equal highs back.

We may see, in fact, a very
easy, low risk, high probability

trade scenario to be long.

And obviously you see the results
of price later on takes off and

fills that void in now by itself,
you may not have caught that trade.

You may not have seen this trait and
you may not have, uh, seen as we're

describing here, because obviously
we have the benefit of hindsight.

But let's assume for a moment,
we're going to go through the

characteristics of what we just outlined
in the beginning of this teaching.

What we had to look for is hard
timeframe, disc displacement, and price.

That's what you're seeing right here.

This is higher timeframe,
price displacement.

That means there is clear
evidence that there is a large

entity entering the market.

And the reason why we know that is because
if this is a daily chart, daily charts

are not going to move that dynamic without
sponsorship behind that by banks or large

institutions or big equity traders, or
again, the reason why we focus on a daily

chart is because that's where the banks
are trading off of those levels are key

to those institutional level traders.

So when we see this, obviously we have
to go back to where did that move?

Yeah, everything has to have a origin.

So we go back to the beginning of that
price swing, that higher timeframe

price displacement has to have a route
price level at which we can classify

as an institutional sponsorship level.

In other words, where
everything started from.

So if we can arrive at that, we
can break down the marketplace

and wait for another opportunity.

Should it get down to that level again,
that comes in a way of this or block.

That last down candle, we're using
the body of that candle here.

Not so much the WIC, because the book is
basically the body of this candle as well.

Price comes down and hits that level.

Now again, to identify institutional
sponsorship in a particular segment

of price action, you need to
see immediate dynamic response.

Lethargic.

If it's not willing to move right
away, that means there is no

institutional orders in that area.

So therefore if you're in a trade
and you see that lackluster activity,

the first thing you should be
thinking is either reduce risk,

cut the position in half or two.

Completely bail on the trade.

You can always reenter it another time.

You can always go back in and on another,
uh, continuation pattern, but do not force

yourself to come to marry a idea that it
has to be just because you entered the

trade and the trade idea, doesn't show
you evidence that it wants to move in

your favor dynamically don't ever regret
or feel bad about wanting to collect knee

collapsed that trade, because even if
it moves in your favor, you collapse it.

If you have.

The, uh, the characteristics that we're
describing here in this teaching, in your

trade, and you start seeing it, chances
are, you're probably not in a good mood.

Okay.

If you're on the right side of the
marketplace, the market's going

to move dynamically immediately.

Soon as you get in, if you are
offside, you're going to see either.

The market hauling and hauling
and back and forth, uh, stalling,

and then ultimately, uh, re
you know, reversing on you.

Um, that's the worst scenario.

I'd rather have my losers be immediate,
you know, show me that there's an

evidence that, uh, I'm on the wrong
side of the marketplace and I'm off

side, but sometimes it won't happen.

Sometimes it'll be really lethargic and
they'll start to squeeze on you slowly.

And then just about when you realize
you're, uh, you're on the wrong side,

then you'll accelerate towards your stop.

Or, you know, if you don't have to stop.

It hurts worse, but that's
why we use stop loss orders.

But when we see this cell stop,
uh, low capitalized by this buying

in here, okay, we see this hard
timeframe, price, displacement.

That means the elephant has
put itself inside that pool.

I did a teaching online tutorial page
where I kind of gave you an analogy

where if you had a small children's
swimming pool in your backyard

and you filled it up with water.

And, uh, and the elephant stepped
inside that small children's pool, but

what happened, obviously, one of two
things, if it's an inflatable pool,

it probably would collapse, but if
it could withstand the fact that the

elephant was in that small children's
pool, the fact that the elephant getting

in that pool would displace the water.

It would rise up above the
brim of that pole and overflow.

And that's what we're seeing here.

This is the evidence of
a large body or entity.

It has a lot more money than us.

And they got into the marketplace here.

How do we know that?

Because price surged and
again, to the daily chart.

So if price can get back down to
that level, again, price should see

as a responsiveness on the upside.

So we're gonna start looking for
signs and evidences of institutional

sponsorship there because we already
identify an area where price should see.

Returned to buying again because it
had a strong, willingness to want

to be bought up at this level here.

So we're back down to that level again.

So we should see upside momentum,
or if not for anything else or

short-term bounce that we can actually
trade and take some profits off of.

So focusing on this bullish quarter
block here, that's where the

institutional sponsorship is going to be.

And it comes in a way of
a bullish order block.

So we have this idea when we take
this information, we can transpose

all these levels down to a lower
timeframe, but I'm going to build on

this idea with this timeframe here.

So we got one and number two of the
criteria, when we're looking for

institutional sponsorship, we see
higher timeframe displacement, and we

see price trading back down into a.

And closing in basically returning to
a fair value or back to an old area

where it was bought up the last time.

The next level is where where's
the short term by liquidity.

It means the buyers that would be above
where current price market is right here.

This where we're assuming the price would
be at a time where would be the logical

area where we'd expect to see the banks
want to unload those long positions.

If they're going to buy
here, where would it be?

There'll be a ideal scenario for them
to want to sell those long positions?

Well, we have a short-term high here.

We have a short term high here, but
we also have this old swing high

back here, which was the mid point
of this overall price swing here.

Okay.

So we had a consolidation,
accumulation price explodes.

Okay.

And it reverses up here and it comes
back down, back down to the area

at which it was bought up again.

If we see a willingness to go up, we have
to take our position off at logical areas.

So we want to see the Mo the willingness
to see the market rate run back up into

these highs here, run those by stops, run
those biceps above the short-term high.

And then ultimately we want to see
this high as well, trait retreated

to now, if the market can come back
above this old high here, that's

showing a willingness to do what.

Hold for higher prices.

So if they aren't going to hold it to
this level here, where would be the next

level on this chart to you consider for
unloading long positions by the banks?

Well, above this old high and there's
by stock liquidity, obviously,

as we noted earlier, so above the
marketplace, Buyers that would be

willing to buy up here because why
they have a short position here again,

it's at market efficiency paradigm.

You have to think in terms of
the market as the market maker.

So there's going to be buyers up here.

So if you're going to be a bookmaker okay.

At the bank and you're buying
and your net long in your book.

Yeah.

You want to unload where
10 pips, 15 pips up.

Now, obviously not that you can't
move your positions in and out.

You're, you're controlling such a
large book in a large equity base.

You want to get it out off, up here?

Why?

Because there's going to be a pool
of by stock up here then in the

form of protecting short positions,
there's a large degree of buying

interests because of that very, very
nature of what we're seeing in price.

The market hasn't traded.

Dave trailed trailer.

Stop-loss to just about this high here,
just about this high here and stubborn or

very strong willed bears will have their
stop protection right above this old high.

Here are their protective, uh, post-op
for their, short-termism going to be

resting just above the high, basically.

So if you're gonna be buying down
here like a bank, you're going to be

looking for the move to go up there.

And price obviously goes
up there and hits it.

Now here's the thing, as price hits that
level right up here, what's it doing?

It's pairing orders with vice stops.

So that bias that liquidity is gone.

So what's the next level of
institutional order flow.

Suggest price may go to that old high
back here and what's resting above that.

By stop liquidity.

So now think for a moment, we have a daily
chart here where sell stocks were reign.

Now price was willing to go higher.

Came back down in that same area here.

They bought it up, ran an
area of Bystolic liquidity.

And we have an old high back here still.

If it's going to go up.

That means it's going to be highly
unlikely for it to come all the

way back down to this level.

Again, why would that be?

Uh, unlikely because we've seen
this low here and it rallied higher.

We've seen this lower low here that went
below this old low, and it rallied up.

We came back down to that same
level here and they bought it again.

Now this time we were able
to move above this old high.

So market structure on the daily
chart has now changed to bullish.

So if we see this, the whole premise
behind this teaching is institutional

sponsorship should protect price from
ever coming back down into this area here.

So don't think just because we rally
up here, let's go back down here

and let's wait for price and give
us a bicycle here and then get us

a ride up to that level up here.

No, that's not how it's going to happen.

We've already cleared an area right here.

There's old high.

And now.

If we were trying to buy here.

Okay.

And our ultimate objective would
be to take our profits up here.

If we grade that swing,
this would be origin.

This would be the midway
point or equilibrium and in

Terminus would be up here.

So they're inside this
little section of price.

Action would be the.

Grade of that price swing.

This is equilibrium or midway point.

Then there's going to be something up
here probably before we get to that level.

And then ultimately up here at Terminus.

So we have four stages of that price
swing to identify and institutional

sponsorship should support price at
those logical areas and price down here.

Usually it's pretty quick.

They don't want to get you an opportunity.

Okay.

And once it takes off, then you
got to look at the equilibrium

price point of the overall price.

Like you're trying to capture.

In other words, we're trying to buy down
here and get off our position up here.

So we're trying to buy down here and
sell to the buy stock traders up here.

In other words, anyone that's bears
to have a bias up above here, or

do you think that the market's
going to be a breakout candidate?

If it gets above that pie,
those buy stops are our target.

But in here, we do not expect to see
price come all the way back down to

this level, because we've already seen
it trade from this level here, this

level here, this level here and now
we have market structure breaking on

a very intermediate term basis with
this old high being violated here.

So now looking at this, we could see
what we have a down candle in here.

Prices already moved to the
mid point of that candle rate.

Even though it's a down candle.

This is an opportunity to anticipate
price doing what being protected here.

So institutional sponsorship, okay.

Should be identified in this area here.

They should not see price come lower.

And if we see that, then it's
going to be a high probability.

The market's going to want to reach
out for this level up in here, which

is aiming for these old buys stops.

So we're gonna take a look at that whole
thing in the form of a four-hour trip.

As price came down and hit that
level here and gave us that same

fractal idea trading below and old.

Whoa.

Okay.

Cause that's what we saw on a daily chart.

Price goes just below that
old, low here and rallies off.

Now think for a second.

What's actually occurring here.

What's actually happening.

What's this right here.

What's these two down candles forming.

Well, it's dropping
price, but it's dropping.

A specific level or going into
a hard timeframe support level.

What does that what's that
create when it does that?

It's a bullet shorter block, it's
down price or down candles at an

anticipated level of support or
way we expect to see institutional

order flow, send price higher.

So in other words, we're expecting,
we're anticipating that that bullishness

and price, obviously we have Bystolic
liquidity above the short-term.

That short term high.

And ultimately we have there's Bystolic
liquidity resting above the high that

we've were just mapping out earlier.

Each time the market goes up and takes
out a level of bias that liquidity,

we don't collapse the trade entirely.

We don't look for reversal patterns.

We do not look for divergence in.

Every time we get to an old
high here, we're looking for a

willingness to keep moving higher.

They run these longer term buy stops

as price takes that first level out.

Those buy stops are gone.

What's missing now to liquidity
in the form of buy stops

above that short-term high.

So what would be expecting
to see is price continuously?

Look to go higher, to go after.

The next level of buy stops.

And that comes in the way of those old
highs here, but not losing sight of

the buy stops above that higher high

price.

Surge is higher runs through takes us to
the second level by Bystolic liquidity.

Now notice what's happened.

While it was the dynamic search through
that second level by site liquidity.

It fails to go back to that old.

Hi, this is classic price action.

Now think about what we've
talked about earlier.

We had the original, uh, point of which
the price swing began or the origin.

Then we have the first area or the
first is a scale of that price range.

Then price goes up and now we're getting
just about to the point at which the

equilibrium price point would come into
way, uh, in the formation for analysis,

where we would look for the fact that
price has an unwillingness to go lower.

That would be evidence of what
institutional sponsorship.

No, it's, we're, we're not
seeing them allow price go lower.

And it's basically all
I'm saying in clear terms.

So, again, those buy stops are gone
and we're focusing primarily on

the mood justified by price action.

Is it going to still go for those
buy stops above the old high here

and ultimately get runs up in snaps
through that old high, you can see

pricing ending that at the Terminus,
but notice what we have here.

Price has moved in.

Grades in, it has moved up
into what would be deemed as

equilibrium on the daily chart.

So let's take a closer look of why this
was such an easy expectation and how

institutional sponsorship, uh, could
aid you in your price action study.

When you see buy-side liquidity as your
targets, what, what things should we see

in price action to help support these.

We're going to take a look at this
in the form of lower timeframe chart.

And again, outlining why the
buy liquidity is ran out.

Okay.

We're looking at a four hour
chart of that price swing and

you can see the price swing here.

Hi, that's this move here.

This whole price swing.

And we're going to look.

Institutional sponsorship
throughout the entire price swing.

You probably already noticed there's
some blue line segments on there

is that we're gonna start talking
about some super secret sauce.

We're looking at it now, a 60
minute chart, and I want you to

take a look at the reactions that
happen from the blue line segments.

Okay.

And I want you to look at it
real close, those blue lines.

Are one of the coolest things I
discovered about price action.

And not only is it indicative of
what future price, uh, direction

may be, but it also gives us
prognostication for future setups.

It doesn't just give us a
right now, what should it be?

Support or resistance?

It gives us a fruit, a future
prognostication for where setups

may unfold at a later time.

So that's the zoom in a little bit.

Okay.

And I'm going to add, again, the levels
on those short term highs, and we're

going to note them as the old highs
and every time you see that little gray

horizontal line segment, what we're
actually drawing your attention to is

these old highs here, and that's going
to be in the form of those old buy stops.

Okay.

Say again, you can see those gray
lines here and all that Jones

is delineating there's old high.

In the form of price.

Now, I don't want you focusing on
price numbers or anything like that.

I just want you to focusing primarily
on price action alone to delivery a

price is all we're interested in talking
about specifically for this teaching.

And we have the beginning of the move
here, price trades down back into.

Now this is the run
below that previous low.

So we'd see price making that low.

And then we see a reaction.

Then we see price trading low.

Okay.

All these down candles is building
what that four hour order block.

Okay.

It's a bullshitter block
beginning right there.

So that high on that candle
begins the order block.

That would be deemed a bullish
shorter block on the four hour chart.

But because this is a smaller
timeframe, we're going to have

a lot more candles, obviously.

So I want you to take a look
at the blue line segments.

Okay.

What I'm delineating there.

The opening price at midnight in New York.

Okay.

If we suspect that price is going
to be bullish, we can look at the

opening price at midnight in New York.

And if we're expecting a price move
higher, what we see in the form of

institutional sponsorship is price.

When it goes below the
opening price at midnight.

Should be accumulated.

So here's the opening
price later in the day.

This is New York price trades higher.

Okay.

Here's the opening price
at midnight the next day.

We're not concerned about
the movement above it.

We want to see what happens
when price goes below it.

Okay.

Now obviously gone
below the opening price.

Here we have what?

What's all this, this is a liquidity void.

Okay.

Price is going to do
what return back down in.

No, whatever block price does,
what the very next day it opens

trades lower and does what rallies.

The next day we open, we trade lower
and then we rally the next day.

We opened small little move below
the opening price and institutional

sponsorship steps in again, and
sends price higher the next day.

The opening at noon, New York,
midnight candle trades lower again.

And what happens institutional
sponsorships steps in one more time

and they buy it again, rallies up.

We start moving into consolidation
and we'll look at each individual

stage and price action.

As we look at it here, the first
one is we have that bullet shorter

block and price comes back down.

It snaps right back into it, right here.

Five pips attitude, D level.

It could be a buyer that.

And again, this is in
the London timeframe.

The next one here is down candle
rate at the opening price and how

much we find your opening price.

And then we're going to be looking for
a down candle that down candle should

be seeing capitalization of new longs.

We see that come to fruition
when the down candle was fired.

Okay.

So let me go back to this for a moment.

We have this down candle here.

This becomes an older block that's bullish
when this candle trades through it.

So at a later time, when it hits it
here, you could be a buyer and it has to

be below the opening price of that day.

Now it can happen during London,
or it can happen in New York.

Either one is still a good viable trade.

The next day here we see what price
trade below the opening price.

We have a small little order block here
and this one here as well, but we're

going to, uh, we're going to say, we're
not going to worry about that one.

Cause we're trading at equilibrium.

Okay.

We're going to wait for an order block
to form, which we see right here.

So between this high here and
this low here, we're essentially

trading an equilibrium.

So when we're at equilibrium
price points like that, we want

to see price, give us an order.

To give us the justification
for wanting to expand, hiring

away from the equilibrium.

We see the down candle
here, draw that out in time.

Price hits it here at five
pips to that level, it could

be a buyer price takes off.

We have the opening price here
at trades discipline out here,

down candle at that level.

Now notice I'm using a down
candle prior to that new day.

That's okay.

You gotta use the previous day sessions.

The down candle, here's
where it's being capitalized.

They're buying up more of it.

So the institutional sponsorships
should be justified by saying what

the down candle being violated on
the upside, which you see it here.

So when price comes back down, it
doesn't come right down to on price.

I don't want to give you every
possible, you know, perfect scenario.

And then we see another
opening price trades down.

But we get a down candle here
and it's violated on the upside.

So it just becomes a
bullish shorter block.

So you can be a buyer here.

So now think in terms of power
three, power three is the concept

I teach as it relates to the daily
open, high, low, and close bar.

So now what's a timeframe
of daily charting.

If your minimum trading is China cash
to the bulk of that daily range, you

want to be buying near the opening on
an up day and exiting on the close.

And obviously it sounds like, you
know, everyone should know that,

but the problem is is 99% and
everyone doesn't know how to do that.

Okay.

It's easy to hear conceptually
say, oh yeah, of course it's

obvious, but try doing it.

So what I have taught is power three
is when you're bullish, you want to

be buying near or below the opening.

This scenario does that every time it gets
you either at below or very close to the

opening price and allows you a range to
expand for you and you get a higher close.

The reason why we're expecting each
day to have a higher close each day,

moving from a low up to a higher high
close from a low to higher close below.

Up to a higher close, a low up to a
higher close, a low up to a higher close,

and again, a low up to a higher close,
ultimately not a low to a higher close.

And we started a new day here.

We can't see on this chart yet,
but look, what's happening.

Prices being drawn up to that first old
high and look what it does once it gets up

that old high, it starts staying sideways.

It's consolidating.

Traditional support resistant players
will see that old high as resistance

and they'll want to sell short.

So what's going to happen.

They're going to sell short, sell
short shelf short, and they'll

see what price go nowhere.

And thereby stops will be
just above this old high.

And then he run through them again.

They come back down, capitalize
new lungs and then extends

it up where to the old hi.

The second one and what's happening there.

Same scenario.

They give you a reason to expect
this thing to go lower because

it's resistance, old resistance.

Okay.

Should be sold.

That's what classic textbooks say.

So what's going to happen is they're
going to take a short position,

put your stop loss, another buy
stop, right about this Ohio.

They take those positions out right here.

So they're not going to see what any lower
prices, but we send price back down again.

This old order block, what
to pick the next slide

surprise in here as we were that's where
we just left off at price comes back down

into that water block here, right there,
rallies up at nicest where we stopped.

We stopped short of the ultimate Terminus
or the objective of the price swing.

It has a retracement and goes yellow.

No, that's a retracement lower.

We'll get everybody excited
thinking it's been a high form.

Okay.

So dollar yen should be trading
lower, get short dollar yen.

Everyone's going to
have that on the forums.

Everyone's gonna be talking
about on Twitter for news,

social media and everything.

And it's only going to go back
down to this order block over here.

Okay.

The same capitalized order block
that we saw on this initial run here.

Why is this one being used?

Because we had this old area
of institutional order flow

in the form of the old high.

At this point, that's when classic
support resistance works because why we

haven't unfulfilled objective up here with
that old higher high set price comes in

accumulates that same position in here,
consolidation back to the consolidation,

expands up off of an older block.

But I want you to think about
all these down candles in here.

All these down candles on a 15
minute timeframe creates a larger

order block on a higher timeframe.

Draw that out in time at threes.

And while we're seeing price trade here.

So yes, the market opens here,
trades lower closes in the range.

Here is liquidity void back
into the order block here.

And then we had the opening here.

It doesn't go lower.

Can't do anything with this yet.

So it has to expand.

So we can't do anything
with a buyer on this day.

Here we wait to the next day, the opening
price trades back down closes in its

Boyd back to an order block here in the
beginning of all these down candles.

That's the buy here.

The next one.

Here's the opening price here.

It trades just below it here.

But dipping into this down candle,
which is an order block from

the previous day in New York.

Okay.

So I want you to think about where
these order blocks are forming.

You're referencing old bullish order
blocks from the previous day or maybe

three sessions ago, and you can buy old
bullish order blocks because they're

going to do what recapitalize them.

That's institutional sponsorship.

They're defending specific levels.

Why should they be defending
these particular levels?

Because their vested interest is to see
it go above that old, higher high, where

they're ultimately looking to try to
take out all of their long positions.

Yes.

They're going to scale out some here.

They're gonna scale out some here.

They may scale out some of us here and
here, but ultimately they're trying to

drive it up here because that's where a
large degree of buyers are going to be

and price ultimately trades down off.

Candle here and rallies
up and ends at Terminus.

So I want you to think about when you're
looking at price action, everyone asks

for what's the order block that you use.

Well, it starts with understanding
where the market should go.

Okay.

And that starts by looking at what
we talked about in September, which

you should be focusing on right now,
down candles, right before the moon.

Up candles rate for the down, moves,
looking for liquidity voids, looking

for old lows to be violated, and then
rallied off of that's a turtle suit

or an old high to be rally through
and then rejected and trade softer.

That's a turtle soup,
sell all these ideas.

Okay.

Begin to start taking shape in your, in
your price action study, but you have to

use specific generic things like time.

Every order block that we refer
to here is linked to a London

session or a New York session.

And they're happening from the
previous day or a couple days ago.

But the idea is they should be
capitalized again because there

is an underlying interest for the
market maker to see price go up.

So they're not going to allow much
in way of retracement, but if it

retraces, it's going to go back to
logical areas and it's a form of full

shoulder blocks or running an old low.

Now the lows can be again, same way,
an old previous New York session or

London low they'll take out the cell
stops below the lows and then rally up.

The same thing can be seen
with the bull shorter blocks.

You want to be focusing on the
London session and the New York side.

And using these down candles in
those previous sessions to give

you new buying opportunities.

If you're seeing that come to fruition
in your charts, you are seeing and

identifying institutional sponsorship,
every one of your successful trades will

have this hallmark, the characteristic
of seeing these recapitalize

order blocks and seeing the moves.

You gravitate towards these
hard timeframe, liquidity

pools in the form of buy stops.

When you're long, when you have
that, it makes trading very easy.

It's it's allows you to relax and
not get so freaked out when you

see these retracements like here.

Okay.

All this is is right before
the last push up to go to where

ultimately the price may go.

Now, I don't want to sell the idea that
it's always going to go to your levels.

Okay.

Cause you're going to have
to do a lot of learning.

Studying these ideas, but I want you to
focus primarily on the characteristics.

I've shown you here specific or blocks
that take place at London and New York.

Okay.

They will help you discern whether
there is institutional sponsorship

in your particular trade.

If you see the lack of that, chances
are you're probably offside and

either going to want to reduce the
risk on the trade, or maybe go to the

sidelines and wait for another option.

So until the next time wish
you good luck and good trading.