Original subtitles

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.