All language subtitles for Lesson 4 - Projected Range _ Objective EN

We'll come back folks again, it's
a discussion about commodities.

So take a moment to read this.

Disclaimer, as a reminder, I'm not a
CTN, a licensed commodity trade advisor.

Everything that's mentioned here should
be viewed in light of a paper trade only.

Okay.

Folks, June, 2017, ICT mentorship,
index trading concepts, lesson

four, projected range and objective.

Okay.

Before I get into it, just to
remind you that index trading

can be like anything else over
complicated, or it can be simplified.

And the conversations that we're
going to have here, I want you

to understand that this is how I
interpreted for the last 20 plus years.

The internal movements of how
indices operate and how they

operate on a day by day basis.

Intranet, there's going to be some
deviations from these ideas that

obviously will not help us in any way,
shape or form, but these are my general.

Classifications or how I interpret
how the daily range shift fulfill for

instance, indices and index trading.

The first is to session up-close
and the view is typically with the

daily and for our institutional
order flow should be bullish the

morning trend or the am session.

Typically we'll see a return to a
discount array and then price will rally.

The lunch hour consolidates with
shallow retracements and the PM trend

runs the lunch hour lows sell stops or
drops into a fair value discount rate.

Then rallies into the close.

Now a little bit about this
specific, uh, projected range.

The daily range could actually go.

Straight through the lunch hour with
very little consolidation whatsoever,

depending upon what was the catalyst
that sent prices higher, it could be a

very strong economic or a surprise to
economic news that was released early on.

And while we're looking for basically a
measured move type event, First leg up

in the morning consolidation and a second
leg of equal distance seen from the am

session seen in the afternoon session.

Uh, don't be lulled into thinking that
if it's a strong bull day, that it will

consolidate always the entire lunch hour
and many times it can just continuously

trade higher through the lunch hour.

I'm just giving you a general.

Kind of like a generic view of how
I interpret the price action, how I

forecast it, how I think it may unfold.

Obviously nothing's guaranteed.

Nothing is set in stone, but by
far and large, these eight ways of

projecting the range, they're going
to show you in this teaching will

pretty much fit the bill on most days.

Okay.

Two session down closed just as
the opposite of what we just said.

Institutional order flow will be bearish
on a daily and or four hour chart am

trend will return to a premium array.

Then declines the lunch hour consolidates
with the shallow retracements and the PM

trend runs the lunch hour highs for by
stops or rises into a fair value premium

array, then declines into the close.

Much like what we just said as it relates
to strong updates, the lunch hour may not

see the entire lunch hour consolidate.

It can actually trade through the
lunch hour, going lower at dependent

on again, whatever the stimulus
was that set the day off, it could

be a very strong economic news.

Uh, what's expected to come out
and it disappointed the number.

It was a disappointment and it could
have been a strong disappointment.

So therefore the market's going
to discount current levels and

disk rapidly reprice lower.

The, the impact of seeing these
types of days, obviously this like

a trending day, uh, you want to be
focusing on one a daily and four-hour

are bearish and opposite of seen
with, uh, Two sessions up closed days.

You want to see when the daily and
four hour is institutionally bullish.

If we are in the middle of a intermediate
term or longterm price swing based on

what we would see on the hard timeframe
chart, this is the classic scenario.

Now, when we start approaching hard
timeframe for our daily opposing array.

In this instance here, we would be looking
for two session down close, or basically

a big down day that down close it's high
probability until we get to a four hour

or a daily or weekly discount array.

So when I start trading into those levels,
obviously the same thing and said in

opposite terms for the two sessions up
close, if we're trading in the middle of.

Swaying or enemy term pricing has yet
to complete, and we have not traded up

into a four hour daily premium array.

That scenario should unfold for
a two session of closed day for

two session down closed day.

This is the criteria we're looking for
as long as the four-hour and or daily

discount arrays have not been traded to.

So it makes it very easy for
the price to expand lower.

Okay.

Now we have a M rally PM.

Reversal institutional order flow
is bullish, and this is seen on

daily and four hour, but it's
underneath for instance, a four hour

higher timeframe, premium PD era.

So in other words, price has been
going up it's yet to fulfill a, uh,

completion completion of a bullish run.

Very close to where we are.

Presently.

There is a higher timeframe, premium PDA
rate, and it could be seen on a four hour

or it could be a daily, but the am session
will start off bullish until it hits the

higher timeframe premium PD array, which
causes the intraday market reversal.

The am trend returns to a discount array.

Then rallies the lunch hour
consolidates with shallow retrace.

The PM.

Tren runs the lunch hour highs
then reverses into the close,

or it runs the intra-day high,
then reverses into the clothes.

So it could create a higher high in the
PM session that was seen on the intraday.

Or it could just simply run
above the lunchtime hour.

And then reversed air.

So in other words, it could
create a lower high that most

formed in a New York am session.

So don't think that it has to create,
like, as this diagram showing here a

higher, higher NPM session relative to
the am session, it could just be a higher

high relative to what was seen during the
lunch hour, which would create a failure

swing on the run, into the am sessions
high, and the PM trend can resume.

If the am session discount
array, it rally off of equals a

hard timeframe, discount array.

So where we could see it recapitalize
that same level, once it trades

down to it in the PM session,
they can recapitalize that, that

discount rate and send it higher.

If there is no higher
timeframe, discount array.

Saul price rally away in am.

Say for instance, maybe
it was a 60 minute.

Okay.

Or a 15 minute discount rate
that caused the am session rally.

Then obviously we could look for
price to continue lower, but if

that New York am session discount
array happened to be a Ford.

Or a daily or weekly discount array,
or say like an instance or a block

it's bullish from a hard timeframe.

If it trades back down to it in the
PM session, it could reverse their

entry higher and resume going higher.

The filter is if it's not a four hour or a
daily or a higher than that discount array

expected to trade through it and go low.

Okay.

The am declined PM reversal institutional
order flow is going to be bearish,

but it's yet to trade down into a
discount PDA Ray on a higher timeframe.

So prices above a higher timeframe
discount array from a four hour

or a daily basis, or even higher

am trend returns to a
premium array, then decline.

The lunch hour consolidates with
shallow retracements the PM trend runs

the lunch hour lows then reverses into
the close, or it runs the intraday

lows then reverses into the clothes.

So again, like we just said
with the am rally PM reversal.

This day, we can see the lunch hour Lowe's
can be violated and traded down, running

off the sell stops for any short term
lows created during the lunch hour and

then rallies in the PM session or the PM
session as shown here, it runs out the

low formed in the New York am session.

Then reverses and trades higher.

The PM trend can resume lower.

I am session premium array equals
a higher timeframe, premium array.

So everything we just mentioned for a
am rally PM reversal in relationship to

what the hard timeframe array may be.

If the am session premium
array that it trades up to and

sells off from, if that equals.

Higher timeframe for our daily,
weekly, or monthly premium array.

It can be returning back to it in
the PM session to recapitalize that

same level and then go lower and
resume lower if that's not the case.

And we don't see that hard timeframe
for our daily or higher premium

Ray that the New York am session
key off of before dropdown.

Then we can expect price to continue
through and make an attempt to run higher.

Consolidation am rally PM decline.

Institutional order flow is
going to be neutral, or it's

going to be unclear to you.

So if you're ever questioning what
the institutional order flow is

for a particular, uh, market day,
and it's not obvious in terms of

where we're at relative to premium
or discount on daily or four hour.

Chances are, we could probably see a
scenario like this, especially if there's

no real high impact or medium impact news
expected during the, uh, the 10 o'clock

hour or later in the day in the afternoon.

So if there's a vacuum of any romance
market drivers, you can expect a

particular projected range to unfold am
trend is going to be seen by returning

to a discount array than price.

Or after the first hour or the
opening range or expands higher from

equilibrium to run London by stops, or
it could be intraday highs for the buy

stops at the time of this recording.

This is the actual projected range
I used for the June 22nd, 2017.

Trading day for the spoos market,
where I sold short at 24 37.

And look for the price to trade down
into a discount array, or reach for

sell stocks below the marketplace.

So this is the actual projected range
I used for a live trade example.

So you can see how I formulated the
idea and used it in a real time.

Example today for your learning,
the lunch hour consolidates

with shallow retracements PM.

Trend runs the lunch hour highs
then reaches for the days.

Sell stops, intraday sell
stops, or it runs the intraday.

Huh?

Then reaches for intraday
or London cell stops.

Now, obviously what's the criteria.

How do we know which one
it's going to do in Belarus?

Is it going to just run the
lunch hour highs or is it

going to run the intraday high?

That depends on which is a premium array.

In other words, if there's a
higher timeframe premium or.

That am session hit, then it's likely
that it won't go back up there because

they've already defended that level.

And it may just want to run
the lunchtime hour highs.

Now, if the am session has not traded up
into a higher timeframe, premium array,

like an hourly or a four hour chart, a
premium array, then the afternoon could

run the intraday high and then reverse.

The PM trend can simply consolidate into
the clothes after the lunch hour as well.

So it can make all the movement
in the morning and then just

fizzle out and go sideways.

The rest of the day through
launching into the close

consolidation am decline PM.

Rally is just the opposite.

What we just saw institutional order
flow again will be neutral or uncertain.

The am trend will see price return to
a premium array, then decline or after

the first hour of trading or the opening
range price will expand lower from

equilibrium to run London, self stops.

The lunch hour is going to see
consolidation with shallow retracements.

The PM trend will see price
run the lunchtime lows, then

reach for the days by style.

Or runs the intraday low, then reaches
for intraday or London by stops.

Now, again, as I mentioned in
the previous slide, what CA what,

what scenario would you expect?

Which one would you look
for for the PM trend?

If the am session low trades down to
a higher timeframe discount array,

then the New York PM session will
only look to run out the London lunch.

If the am session blow in this
case does not trade down into a

higher timeframe discount array.

Then the New York PM session
we'll look to run out the

intraday low and then rallying PM.

Trend can simply consolidate into the
close after the lunch hour as well.

Just like we said, in the previous
slide for consolidation am rally PM.

Now, when we're looking at this
particular day right here, when the

market's not predisposed to trade higher
with a trend or lower with a trend,

this is the classic scenario where you
see that tug of war back and forth.

This is what you'll see a lot
of times in index trading,

which makes it very frustrating.

If you don't understand
the mechanics behind.

When there's a strong, directional
bias behind the marketplace or the

underlying pinnings of the market
suggest higher price or lower prices do

not look for this particular scenario.

Okay.

This is not seeking to destroy.

It's simply consolidation.

Now non-farm payroll.

There is seeking destroyed conditions
in S and P, but generally this type

of day will fulfill if there is
a lack of trend and lack of news.

So as you can see, there's only eight
projected ranges that I use for the S

and P and it makes it very simple to
anticipate what it is that I should

be seeing on respective sessions,
the am session and the PM session.

Now, obviously the
lunchtime hour is the same.

It's the same thing across all of
them consolidation with shallow.

Retracements the only time that
the lunch hour is different

is when we see the trending.

The two sessions up close or two
session down closed days because

lunch can actually be active during
those days, but it's always going

to be relative to what was seen as
a catalyst that drove price higher

or lower for those perspective days.

So hopefully this has given you
more insight as to how I interpret

projected ranges and how we can look
for objectives and price action.

Using stops because
that's what we understand.

The indices look for.

They'd seek stops and they on a higher
timeframe can trend what on an intraday

basis, you have to understand it's all
about liquidity and where the stops are.

It's a traders market.

So therefore they're going
to hunt stops predominantly.

And until the next lesson, I wish
you good luck and good trading.