All language subtitles for Lesson 2 - The AM Trend EN

Okay.

Folks, as a reminder, we are
discussing commodities and it's

important that I remind you that
this disclaimer is important.

Everything we say here, as it
relates to this lesson should be

viewed as a paper trade idea only.

Okay.

June, 2017, ICT mentorship, ICT index
trading, lesson to the am trends.

Okay.

The am trend.

Now, obviously when we refer to the
Antron, we're going to always have

in the forefront of our minds, that
traditional overnight session, what

was seen as the monsoon session and
in New York am session is defined

by 9:30 AM to noon, New York times.

The true day high or low will
tend to form in between the

hours of 9:30 AM and 10:30 AM.

New York time between the open at
9:30 AM and noon New York time.

There's typically a trend
or price swing daily.

This is referred to as the
am trend or morning swore.

The am trend can be a continuation
of overnight direction or an outright

reversal of direction, right?

From the opening at 9:30 AM.

You want to study many days of
intraday price action to learn how

consistent this morning price swing is.

The am trend can end at 10:30 AM to
11:00 AM, but anticipated, continuing

up to noon or New York lunch hour.

Okay.

And classically see the London
session price action overnight.

This is the London session.

And then at 9:30 AM the
equities market open.

That's when we started looking for
our indices for index trades and

again, bar charts, always gonna
be showing it as central time.

So that's going to be one hour behind.

So it looks like eight 30 here to 11:00 AM
is actually 9:30 AM to noon New York time.

So this is our New York am
session and the am trend

begins@ninethirtyamoreightthirtycentralasshownonthebarchart.com
charts and the am trend ends

at noon or 11:00 AM central.

As it relates to bar chart.com.

As you can see here during the New
York session price trades up into

a fair, shorter block, and it gives
you the price swing for the am trend.

Same here.

Okay.

As another example, I want to just give
you a few examples of the study so that

way you can go through as many samples.

Of data that you can consume as a
study, but I want you to go back as

far as you can use the bar chart.com
and you can look at all the indices.

You can look at the NASDAQ, the
doubt, the S and P you can actually

look at the Dax and footsie as well.

If you want to be looking
at, uh, other indices,

looking at the London
session here overnight again.

And then we have the New York am session.

And right at the beginning of the
am session, we have price trading

down into a previous down closed
candle or bullish order block, and

then price expands on the upside

off of the run, into the bullish.

Notice the highest forming at 10:30 AM.

New York time.

Another example here, the London overnight
session, and we have the New York am.

And price drops down into the rings that
was created during the London session.

And it fills in a fair value gap.

Only wicks were being shown here.

We like to see bodies.

The bodies has to cross
it's efficiently through.

So we see two wicks there.

The candle comes down and wicks into it.

During the New York am session,
rebels reprices hire and run.

Off of a bullish or block later on in
the New York am session, creating the

am trend from 23 94 50 up to 23 99, 50.

And again, that's a bullet shorter boxing.

Another example here we have the London.

And we have the New York am session.

Again, we have price trading
down at the beginning of the

New York am session at 9:30 AM.

New York time price trades down
into a previous down closed candle

bull shorter block, same here
and price trades from the 2352.

Handle all the way up into almost the
2368, but traits the 2367 big figure

another example here we
have the London session.

Now we're going to be looking
at the Dow E-mini futures.

So as a contrast, we see
the long session, the needs.

Am session and noticed that we have
here price trading from London, we

trade all the way down and cleared
a level of stops right here.

And that's our bullish breaker.

So at the beginning of the New York am
session, we can anticipate that expansion

based on institutional order flow.

And the fact that during London, we
had a breaker there's last two up-close

candles during the London session.

That's the catalyst for them.

So they're going to be looking
to reduce or remove that

exposure by going along there.

And it happens at the beginning of
the New York am session or 9:30 AM

equities open to that expansion move.

That is actually a precursor by looking at
the London session, run out on the load.

Now we're going to contrast the NASDAQ.

E-money again, we're looking
at the London session

and then we have the New York am session.

Okay.

And we see the New York
equities open at nine 30.

Or shown as eight 30 here in
central time on bar chart.com.

We have price running out a
previous low as a turtle soup.

And now we're gonna look at the index
SMT between 5:00 AM and 9:30 AM.

New York time relative highs
and lows should be compared when

institutional order flow is bullish.

What that means we have to be compared to.

Relative lows across the three indices,
one index will fail to confirm a lower,

low it's usually typically seen or
what we expected to see in all three.

So as all three are trading lower
while it's bullish, one index is

going to fail to make a lower low
when that occurs that your bullish

confirmation for trading the AAM trend

that.

Where at the top chart is
the NASDAQ E-mini futures.

15 minute timeframe.

And from 5:00 AM into nine 30
equities open or in central

time, it's 4:00 AM to 8:30 AM.

It makes a lower low, right at the
beginning of the New York am session.

But the Dow, which is the middle chart
from 4:00 AM central time to eight 30

central time or 5:00 AM, New York time to.

9:30 AM equities open.

It creates a higher low, then it's
4:00 AM central time to 8:30 AM central

time, or will be 5:00 AM to nine
30 equities open in New York time.

The S and P mini futures
makes a higher, low.

So by looking at those three
indices, you can see there's a

massive accumulation under the Dow
futures and own the S and P five.

While the tech sector rallied off of
that divergence by far and large, all of

the indices moot up as the accumulation
pattern takes place in price action.

So the index SMT gives us
confirmation that there is something

bullish going on behind the.

And we used some of the precursors and
institutional order flow and reference

points and the previous slides to
frame what those catalysts were in

respective terms to the NASDAQ, the
Dow and the S and P E-mini futures.

Now institutional order flow is bearish.

We would be comparing comparable
highs between five and New York time

to 9:30 AM equities open one indices.

It's going to fail to confirm a higher
high that would be normally expected

while they all move up in general tandem.

One more fail to do that when it's
bearish, institutional order flow.

And by comparing highs that
seem between 5:00 AM and new

York's 9:30 AM equities open.

You're looking at four and a half hours.

Now it isn't going to be always like
you're seeing here where at exactly the

5:00 AM hour, it creates a specific flow
and then it creates a lower, low, or a

failure to make a lower low at 9:30 AM.

There may be a low scene at for instance,
um, seven o'clock in the morning, New

York time, and then nine 30 in the
morning, New York time, those low.

They may diverge.

Okay.

So when I say that you're looking
at relative highs and relative

lows across the spectrum of time.

Okay.

Of 5:00 AM in New York
time to equities 9:30 AM.

That's your span, or
basically like a kill zone.

Think of it like that.

So between that 5:00 AM and 9:30 AM
time, it's four and a half hours of

time where you're constantly scouting.

When the price action is bullish
on the higher timeframe daily.

If we're expecting this trade higher
based on institutional order flow.

And we dropped down to say a four
and a one hour basis, we're looking

for PDA race, just like we've done in
all the other asset classes thus far.

When we look for these evidences
to support the bullishness or

bearishness in price, the filter
is when institutional order flow

is bullish, comparably, the lows.

Okay.

When prices foolish overall,
we're going to be looking for

price, fail to make a lower load.

Once retracing we'll see that footprint
of smart money by way of the index

SMT because of greed and the sheer
size of their orders and buying

will always create this pattern.

It'll, it'll be their significant
trading opportunities.

We'll always have this hallmark to it.

And when institutional order
flow is bearish, we're gonna

be looking for comparable high.

Between 5:00 AM and 9:30 AM.

And it may be a matter of simply the
opening at 9:30 AM equities, then 8:30 AM.

It may be comparable
higher, comparable low.

So don't think that it's
exactly at 5:00 AM and 9:30 AM.

Okay.

Don't think like their goalposts
and that defines it as both.

And they don't specifically
create those highs and lows.

It can as being shown here, but between
the 5:00 AM, New York time and nine

30 equities open New York time, you're
going to be looking for relative lows

and relative highs and just compare them.

That's why it's important that you look
at a large sample size because you're

going to see how it will show you that
crack in correlation where otherwise

the indices should be moving into.

As a drop lower, all three should be
moving in, in concert with one another.

But when it's bullish,
one will fail to do that.

And we're simply just applying doubt,
theories, all it is, but timing in the

relative terms to whether institutional
or flow is bullish or bearish, and then

bracketing out a specific time window,
which is again, 5:00 AM to 9:30 AM.

Now.

5:00 AM.

Why are we looking at
the beginning of 5:00 AM?

Because London traders are going to be
taking their lunch then, and they're

going to come back at some time.

What time?

Who knows?

It could be five 30.

It could be six o'clock in
the morning, New York time.

So we start.

Waiting for that buildup of orders that
come, come by way of the UK European

traders that want to trade the indices
in the north American continent,

NASDAQ, Dow, and even a futures.

So they're going to be still trading.

They still have time of the day
left for their trading day, and

they're going to be looking for
opportunities to pour money into it.

So large flows of whole.

And that crack and correlation when the
market's really not going to go lower,

you can anticipate, for instance, if
you were trading trading, uh, the NASDAQ

is your cup of tea in to see, um, you
could look at this particular day here

and see the massive buildup at the
lows on the Dow and the S and P 500.

So, you know, with a great deal
of confidence that run under

the 5:00 AM low on NASDAQ.

That's a.

And quickly we reprice
the NASDAQ futures higher.

After that low has been
violated from the 5:00 AM.

The other trading indices.

We have to factor in institutional
order flow and reference points

and expansion type ideas.

So when it's bullish, as indicated in this
example here, if price is expected to go

home, We see the divergence or failure
to go lower on the doubt in S and P 500.

Those ideas you start
looking for expansion moves.

So what I do is I look for opportunities
to trade on buying on a stock.

So you can be a buyer on a
stop or wait for price to

trade up through an old house.

And if that happens, we can also, if
that happens, we can also anticipate

the breakout above, down close
candles, which would otherwise at a

later time become bullish or blocks.

So we can be ahead of the curve by
buying on a stop on a down closed

candle, whatever that high is, our
buying stock could be placed above that.

And that would be our entry,
toll or entry technique.

Otherwise.

And to see that trades below an old,
low and bucks, that overall trend, two

of them are diverging or going higher.

While one goes down your eye
should go right to that one.

It's making a lower, low and
identify that as turtle soup.

That's a Ronald stops
by below the old low.

So you're using two types of framework
here to be a trader for trading indices.

You can be buying on a, on
a stop buying strength or.

Buying weakness under an old,
low and scooping up that sell

side liquidity, pairing up your
entry there either one is fine.

There's nothing.

There's one.

There's not one over the
other in terms of advantage.

You're there all three
going to move in tandem.

Once the setup takes place as being
explained here now, definitely there will

be an index SMT divergence to qualify
the am trend setups a few times a week.

There has been some instances over
my observations when I was really

active and following the indices,
uh, where there's been every single

trading day, there has been some
measure of an index SMT divergence.

It does not equate to a large opportunity
with low risk, but if you, if you look

hard enough and scout it hard enough,
you'll find a crack in the correlation.

And then there's some kind of a
little move to it takes place.

It's important.

Look for them, but don't strain
your eye looking for them.

What do I mean by that?

When it's not obvious,
assume it's not there.

If it isn't clear, as you're
seeing here, this is so clear.

And so telling that it's classic,
this is what you're looking for.

And when it happens in price action
live, when we watch price action.

Oh, looking at the
equity's open at nine 30.

As traders and developing traders,
when we're looking for these concepts

to build our confidence, to eventually
use them at your own choosing, okay.

Th th to help you build
confidence behind your analysis.

When we see this happen over and over and
over again, it builds an understanding.

It builds anticipatory
price skills, and also.

Removes that fear of the question
that comes up all the time.

How do I know to be buying a
turtle soup under an old boat?

That's scary.

Well, when you see these patterns
like this, when you have two indices

saying it, they wanting to go lower and
one does the one that does go lower.

That's a turtle suit.

You can buy it right below that old
low feel confident that you're dealing.

So, and watch it.

And generally, as you see here, the
speed will be seen at the one that

makes the lower low, because they
want to quickly get out of there.

After this SOPs are taken, the one
that has the expansion move, they

can be a little bit more lethargic,
but they're both, you know, the

ones that divert still will go up.

But the one that it's the stops
speed will generally be seen there.

It doesn't always equate to magnets.

To this habit mine.

So we're going to build on
this concept of the am trend.

When we do the setups teaching as
number five in the index trading

concepts, the next lesson I'm going
to be teaching you is the PM train.

And we'll talk about time and
price as it relates to indices.

And we'll also talk about the
effects of the New York lunch

hour and until next lesson or wish
you good luck and good trading.