Original subtitles

Okay folks, we're going to be looking at the breaker.

Okay.

And what we're gonna be looking at is how we can use this form of mitigate.

To highlight a trade set up where I assume that we're watching price and it

trades lower and creates a short term low.

Eventually when that short, low is violated and trades down into a support

level, we view that initial drop down below the previous low as a potential

false break or total super-long.

Below short-term lows.

There's going to be cell stops.

And our expectation is, is that we want to see if the market wants to

get back above that short term low.

Initially it may come up and flirt with that same old, low, and an

indication that may want to view that as a resistance price point, we're

more inclined to wait to see if it wants to show a real significant price.

Eventually, when we see that here, this is going to be informed

of a market structure shift.

It takes out the high or the short-term high.

That high is what we focus on.

Wait for price to come back down into that old high.

And when it trades there, we view that as real support, because there's going

to be orders inside that high that we'll be looking to be mitigating.

In other words, those individuals that were short at that high,

they're going to want to take those positions off and maybe get in sync

with a new leg higher in price.

As price moves away that confirms the breaker.

And then we wait for higher objectives to be met in price action.

Again, focusing on the high in between the two lower, low.

One low has to be traded below and it's going to run out the cell stops.

We focus our attention on the short-term high that's in between the two lows.

We use that as a resistance level, that's broken, that will become

support, making it a bullish.

Contrastingly we can look at the market in this way when the market trades

higher and it takes out an old high and then breaks below the load, it

makes that new high, our focus is there and we view that as a bearish break.

Okay, so take a look, a closer look, a bearish breaker.

Okay.

Bear's breaker is a bearish range or down closed candle and the most recent

swing low prior to an old high being violated the buyers that buy this low

and later see this same swing, low violated we'll look to mitigate the.

When price returns back to the swing low, this is a bearish trade set up worth.

Considering

too.

We have an old high here it's traded through and rejected.

It runs to stops above the old high.

Those by stops are now neutralized and we focus our attention on the swing low.

That formed between the two, huh.

We see a market structure break retrains back to the swing low.

That is the bearish breaker.

We look for another low, the form with a new leg in price.

Moving.

the salient points are what we're looking for as an old high to be ran

out or a false break above an old high.

This read on by stops.

Indicate buyers are trapped long.

We know this is true when the market quickly does a repricing net seen here

repricing lower after by stops or.

That is a confirmation that we are potentially seeing a new breaker forming.

The low gets violated here.

Once market structure is broken down and all future retracements what we

viewed as new selling opportunities, especially wants to trades back up to

the low here that gives us our bearish.

Okay.

For a bullish breaker, it's a Bush ranger up-close candle on the most recent

swing high prior to an old, low being violated the sellers that sold this

low and later see this same swing high violated we'll look to mitigate the loss.

When price returns back to the swing high, this is a bullish trade set up worth.

Considering again, we have an old, low that's violated taking.

Sell stops below that old low our swing highs, where we're going to be looking

for our bullish breaker, but we have to wait for price to break through

that swing high, to confirm that there has been a run on stops and that, that

old swing high will house or inside that swing high will reside a bullish.

As price trades back down to that swing high, we would be buying that, but the

expectation that there's going to be a mitigation taking place, those sell

orders that they use to drive prices down below the old low, they would be

underwater here or not making a profit.

So they're going to want to take those off and add more longs

and that's our bullish breaker.

And then we would expect to see and anticipate at range expansion to the us.

to telltale signs that you have a breaker information or confirmation.

The rate on cell stops indicates sellers are trapped below the old low.

The range expansion that takes out the short-term high in between the two lows.

This repricing higher after cell stops are taken as a confirmation that the market

is in fact, run on stops below an old, low and old high that's violated that supports

a market structure shift for bullishness.

This run here.

Supports the market structure being broken higher in any retracements from

this point on will be viewed as a new buying opportunity when it trades back

into the old swing high here, let me see that that's a bullish breaker.

So let's take a look at it in real price action.

Okay.

We have an old low here, the market trades down below that low and punches

through it again, and then rallies up.

So what we're seeing here is that market structures.

After stops have been taken on the sell side.

So there's been a massive repricing to the market's going to want to look

to reprice lower and retrace back down into what, whereas our focus point, we

find the short-term high in the last up candle and between the two lows

that most recently formed and taking out those cell stops that scene here.

So right now this would be viewed as a bullish.

We would anticipate seeing in the market to trade higher where those

orders would be collapsed once Retraded back down to with price, any selling

orders would be mitigated and new buying orders would be replacing them.

And there's a subsequent price actions you would anticipate seeing in your.

So it started your charts, looking at examples where you see this formation,

where you have the market creating a low, and then the market trade

down lower one more time and runs through to short-term high in between.

This is where classic support ideas.

Effective, uh, probably done what I've done.

And as a new trader, where we look for support resistance ideas by

drawing a horizontal line, and you think that, you know, it's that easy?

Well, you have to have a storyline behind why prices don't work doing.

If you understand what the breaker is doing, it's indicating that it's running.

Pool of liquidity out when you find the short-term load has been violated.

Find the short-term height that this recently formed when it trades

back down to that, that will be in fact, a support level that is

highly probable for bullish prices.

You see that here, it's trading inside the range that's created

with this last up candle.

Why am I using this one?

And this one here, because this one was the highest one prior to the

dropdown and we're using the entire way.

Price trades down into it.

Recapitalize is all the selling they sold here that drove prices down to take.

These cell stops out there.

Underwater are losing money here.

They have deeper pockets in the us.

They'll wait for price to get back to an area where they can mitigate

those shorts and add new longs.

And that's why you see that explosive price.

Action.

See.

So, hopefully this has been more insight to breakers.

And we'll talk more about these as we go through the mentorship and

futures months until next time, which good luck and good trading.