All language subtitles for Lesson 3.4 - Reinforcing Orderblock Theory [Reclaimed Blocks]

Welcome back folks.

This is teaching 3.4 of
eight, December, 2016.

ICT mentorships content
we're dealing specifically.

The reinforcing order, block
theory and reclaimed blocks.

Okay.

We're gonna be looking at the
market maker by model first.

And what this essentially is, is
when the market drops down and has

a price swing, lower reaching into a
higher timeframe or intermediate term.

Level and that support level can come in.

The way of an old high can come
in and the way of the old low,

it can be a bull shorter block.

It could have, it could be a filled
void or closing in on a fair value gap.

Any one of those things could lend
well to a price support level, but the

idea is we're going to be anticipating
that market move lower and you

can anticipate it and watch it go.

Lower and be short, or if you look at
it and move has already transpired.

And if you notice you have seen the
decline down to support level, we

can start looking at specific levels
to watch for reclaimed order blocks.

First, we have to understand the sell side
of the curve on a market maker by model.

That's the drop down
into that support level.

Before we see the move higher, the market
makers are going to be scaling in early.

So they're going to have areas at which
they start buying early because their

positions are much larger than us.

As a retail trader.

They require a great deal of movement
and time to price in their orders

because they can't facilitate their
entire order on one transaction, one

specific move from a level they have.

Scale that position in, and
that's in the form of hedging.

As the price drops down
into the lower levels.

They're going to be building in more
positions and you'll see, as you

watch price, go lower and lower.

There'll be small little transactions
that caused the market to create

short-term little lows in the market.

So as the market moves lower,
Every time we see a small

little bounce in price action.

That is a minor displacement showing
that there was new accumulation

being taken into the marketplace.

In other words, the smart money is
actually a queuing new long positions.

You have to have the understanding
that that lower level support

that it's reaching for is going
to be the ultimate price level.

It's most likely going to have
its impulse price swing away from

prior to that low being formed.

Like I said, there's.

The initial short-term rallies that
take place many times traders that are

looking at those as entry points, they
ended up getting stopped out because what

you're doing is, is they're piggybacking
on an entry that is based on a hedging.

Motive on the market maker.

So as the lawyers keep creating lower
lows, but every time the price makes

a smaller short-term move higher.

We're going to be referencing that last
down candle because that's a bullet

shorter block, but it's occurring.

We're watching the bullish order blocks
or the down candles, right before a

small little price movement higher
during the sell side of the curve.

Now that's the market-maker by model.

The curve is basically a
price swing lower that trades.

That's all market-maker by profile
is or market maker by model.

It's just understanding that the
market's going lower to go higher.

Eventually we'll see the price move
higher off of a major support level.

And we'll start seeing the buy-side
of the curve come on their way.

The market will start
pricing new, higher highs.

And as it does, we're going to be
focusing on those old down candles

during the south side of the curve.

Every time, there was a bullshitter
block that was created on the

major price swing going lower.

And it saw a little bit of a minor
movement higher that has indicated

that there was hedging going on.

And that down candle is what we're
going to be looking to reclaim or watch

price recapitalize, that order block.

Now that we're on the buy side of the
curve, every new buying opportunity.

It's going to be matched up to
the previous down candle while

the rice was dropping earlier
on the south side of the curve.

And ultimately everything will match
up with the down candles on both

sides of the market maker Bimal model.

So what is a bullish?

Reclaimed block is a candle or
bar that was previously used to

buy price and a short-term bounce
confirms minor displacement

and the buy side of the curve.

These.

Blocks or down candles will
be reclaimed for new lungs.

Just take a look at what it
looks like in price action.

Okay.

We see the market dropping down from
November 24th and November 29th.

Okay.

So we have a market maker by model or
the market's going down to go hierarchy.

See here this down candle on the
buy-side of the curve right here.

This down candle, right before
this movement up here, just

placement shows that this was an
actual hedging or they were buying

early and the market drops lower.

Okay.

And once it makes its low
here, we can see the price.

Did it.

In fact, come back down to this same down
candle, right to it here and was reclaimed

or they recapitalized this old order
block here, and price started to move.

The next level is here.

This movement down prior to
this displacement here, all

of this movement here is down.

Candle is a bullet shorter block
on the right side of this low.

Now we're on the buy-side
side of the curve and that's

what this movement is here.

Hits it right to the PIP
and then price moves home.

So there they are two examples of
reclaimed bullish order blocks.

Okay.

Now we're gonna take a look at
the market maker sell model.

This is just the same thing, just in
reverse, where we're anticipating the

market to trade higher, to go lower.

You may not see it happen before the fact.

You may notice that the market's making
a high and you expect to see a sell

off so we'll can use this information.

By focusing on the buy-side of the curve,
every up candle that sees a displacement

or a short-term decline confirms
that there are hedging on their way.

That means that there are selling
short early in market makers

are selling into these rallies.

When we get to the sell side of the
curve, every single time we see the

market trade back up into a up candle.

We're bullish candle, right?

For the down move during the buy-side
of the curve, that bears order

block is going to be reclaimed.

And you can take that as a new short,
and again, matching up during the

bias out of the curve, while price
is being built up into a premium, the

market makers are actually going to
hedge into that rally selling short,

they have deeper pockets than us.

They can do this for a longer period than.

And as they do this, their
pricing in more short positions,

we can match that up and see it.

Like x-ray vision into price action by
looking at every single up candle that

has a small displacement or short-term
decline, that's confirming that

there was hedging underway beginning.

We understand that
market-makers and smart money.

They're the only ones that
can move price around.

So if there is a displacement in price
and we see bearishness after an up

candle, we can assume that this is
going to be evidence, that they have

been hedging and selling short early.

And when we get to the high and we
climax there and start trading softer

and go lower every time we retrade
back up into that old, previous

up candle on during the buy side.

To the right of the high
that's already formed.

We can now take new shorts at these
old bears, shorter blocks, everything

matching on the buy side of the
curve to the sell side of the curve.

So again, in summary, a bearish,
reclaimed or block is a candle or

bar that is, was previously used
to sell price and a short-term

decline confirms monitor displays.

In the cell side of the curve, these
old blocks will be reclaimed shorts

or new entries for short positions.

Right?

Let's take a look at this chart.

We'll take a look at the example
of a market maker cell profile and

using the reclaimed order block.

We're gonna be looking at the cell side
of the curve or to the right of that.

And we're going to be focusing on every
up candle that showed a willingness

to see price drop during the buy-side
of the curb or to the left of the

high that formed you see here, the
last beefy candle rate, before this

drop down price trades up into it.

And sells off domestic.

Next example is this up candle here, which
would be a bearish order block will be

reasonably seen as in the free tutorials.

You would think that this was
probably a bearish indication to

start looking for lower prices.

It doesn't do that here at trades
through it, but we see a climax high.

So now we see price doing what
it trades up into this up candle.

This is a new short, another exam.

This last up candle here,
price trades up into it here.

Very handsomely sees that as
a displacement lower here.

So they started hedging here.

This is a selling short opportunity
to see, to completion of the

market-maker cell profile.

So again, We use the market-maker buy
and sell models to be able to match

up old order blocks during the buy
side and the sell side of the curve.

And we wait for that reclaimed mechanism
that takes place where the market

makers will use the same reference
points and facilitate new positions.

We'll build more on this idea as we go
through the coming months of material, and

you'll see examples of it before the fact,
and I'll be able to map it out for you,

but for now study these examples and also
go through your charts and find where you

can see during price rallies like this and
declines map out all of the up candles.

And during the decline side of
the marketplace, you'll see that

there's wonderful opportunities to
get short that you would otherwise

not noticed until next time I wish
you good luck and good trading.