All language subtitles for Lesson 5 - Index Trading Setups EN

Okay folks.

Welcome back.

This is our final discussion
this month of June, 2017 content

regarding commodities and futures.

But I have to remind you one more time
to take a look at the disclaimer here.

It's very important.

And as a reminder, I'm not a CTA
non-licensed commodity trade advisor.

Everything that we discuss here should
be viewed in light of a paper trade.

All right.

June, 2017, ICT mentorship, ICT
index trading concepts, less

than five index trade setups.

Okay.

So I gave you the range, projections
and objectives lesson in lesson

four, and I'm going to amplify those
four trade setups for instance.

And as you're going to see here, it's
rather simplistic, which is exactly

what you should be looking for.

We're looking for setups.

If you ever complicated, obviously
you're going to have a million

questions and never come to the
end result of understanding.

So the first one we're gonna
look at is two sessions up close.

And when we look for the am trend
three turned down to a discount array.

What we're actually looking for is we're
looking for index SMT divergence on the.

They're not going to be comparing the lows
from the London session into the 9:30 AM.

The am session is usually going
to reach up into a expansion move.

It can be a higher timeframe
PDA, but generally you want to

be holding out for time of day.

10 30 to 11 o'clock in the morning.

Typically, as we understand it in Forex
as the London close, but we want to be

holding on to it with the idea that it's
going to expand going into the lunch hour.

Now, when we get into the lunch
hour, it can go and consolidation.

And again, we can be looking for
a retracement back down below the

lows formed in lunch, or we can
be returning back to a Fairview.

GAF or bullish or block seen inside of
the lunch hour at the lows that's formed

in the lunch hour and the low that
forms immediately after one o'clock New

York time, those loads are going to be
compared against the two other averages.

So when we look at the S and P
we're looking to Dow and the NASDAQ,

and we're going to be comparing
lows at these specific prices.

There's no ambiguity here.

It's highly specific.

We're going to be looking
for the NSC, the diverged.

One of them doesn't have to be the E-mini
S and P if the NASDAQ fails to go lower,

that in itself supports the idea that
the S and P should rally and go higher.

And again, as we go into the later
portions of the day, going into the club,

We're going to be relying on time of day,
as well as we did with the am session.

Now w when, I mean, relying
on time of day, we have to do

what we can to hold for time.

Do you remember the days gone
to expand as we close to the

closing price or closing out?

We want to get the maximum route
days daily range in our favor.

So if we're long or trying to get
long in am or the PM session, it's

most beneficial when we're holding
for the maximum potential rains

that could fulfill any daily candle.

So if we're looking at the E-mini
S and P and we see bullishness on

their way and we're long, and it's
only two o'clock in the afternoon,

we've seen some handles in our favor.

Or in other words, paper, profit.

Don't be aggressive about trying to
take this profits off the table because

you want to allow the time of day to
come to a higher level of delivery

on price, which obviously will lend
well to you getting a higher profit.

The more you hold towards the
close, the more opportunity there

is for you to make more of a range.

The am session and the PM session highs
initially are going to be most likely a

15 minute or a 60 minute PD right now,
since we're looking at a two session up

close, both the am session and PM session
PD array is going to be a premium array.

Now, again, it could be a 15
minute premium array or a 60

minute premium array, but you're
aiming for that for both sessions.

If you notice how I have the diagram
on the PM session, going into the

close, it could be two stages.

It could fall short of a
15 or 60 minute PDA, right.

And start to retrace.

Look for an additional ramp up
that last hour, going into the

close until it reaches the 15 or
60 minute PD rate or premium array.

Okay, we're looking at the
two session down close.

Again, in the morning when we see
price return to premium array.

At that moment, we're gonna
be comparing the other two

indices, the NASDAQ and the Dow.

And we're going to be comparing the
highs for index SMT, again from London

into the nine 30 opening equities.

And we're going to be holding.

Till 10 30 to 11 o'clock in the
morning, or relying on time of day

to get the maximum amount of range.

As we get close to 11 o'clock, there's
more likelihood of a consolidation or

Paul's going into the lunch hour at noon.

And during the lunch, we're
going to be looking at the highs

comparable with the NASDAQ and.

Dow futures against the S and P.

And again, this can be a return
back to a fair value gap or a

bare shorter block or closing of
liquidity void, and then go lower.

Or you can run the lunch high
for by stops and the reject.

But you're looking at the highs during
the lunch hour, and you're looking at

the high that forms post New York line.

When that happens and it forms,
there's always going to be some

measure of a short-term high that
forms immediately after the lunch.

And if you're looking for a two
session down close profile to unfold,

projecting that daily range, we're
going to be looking for weakness

immediately after the lunch hour closes.

So from one o'clock in the afternoon,
New York time, we're immediately

going to be hunting and stalking
the E-mini S and P S short-term.

So price was rallying up.

We're going to be looking for reasons
to suspect a fair value play for returns

to fair value for selling short and
a bear shorter block for your value

gap or liquidity void, or a run above
or a move above the New York launch

in the PM session.

Again, we have to rely on time of day.

Don't just take a couple of handles
a profit hold onto it, head towards

the close, at least try to hold
onto it till 3:00 PM bond close.

And if you can do all that, you can
to hold onto it into four o'clock.

It's ideal to do that.

The am session and the PM session.

Intraday lows again are going
to be many times lined up with

a 15 to 60 minute PD array.

And since we're looking at two session
down close projected range, it's

going to be a 15 to 60 minute discount
for right now and the PM session.

Again, that many times can happen as
a two-stage short-term rally where

early profit it will be taking.

If it does not do that, short-term
bounce at a logical 15 or 60 minute

discount array hold for it to break
another leg, lower going into the close.

And then that later point at which it
trades lower many times we'll trade into

that 15 or 60 minute discount array.

All right.

We're looking at the am.

Rally PM.

Reversal projected rain.

In the am session, we're gonna
be looking at the three averages,

NASDAQ Dow against the S and P.

And we're gonna be comparing
the index SMT on the lows.

So we're gonna be
looking for a divergence.

One of them will fail to go lower.

That will signal at the time
to be a buyer of E-mini S and

P for the New York session.

And we're going to be relying
on time of day holding.

Until we get to very close to 11
o'clock or just past 11 o'clock

as we get into the lunch hour.

And again, ahead of noon, many times
we'll see a little bit of a profit taking

retracement, and then the afternoon
we're going to be looking for a rally to

sell into, and we're going to hold that.

Until we get to time of day and price.

So we have to refer back to that
discount or write in the am session

that caused the initial rally.

And if it blends well with a hard
timeframe discount rate, obviously

we expect a short-term bounce, maybe
back into consolidation or resuming

higher to take out the daily high.

But if the daily am session discount rate
is not a hard timeframe, discounted rate.

We'll look for continuation
on a downside and take out the

intraday low in the afternoon.

That high is going to be a 15 to 60
minute premium PDRI in the am session.

In this case, it creates a lower high than
that, which is formed in the PM session.

If that short-term high forms before
lunch, if it's below a 15 minute or a 60

minutes, Premium array, then we're going
to be anticipating before it even happens.

The initial move outside of the
London lunch around one o'clock in

the afternoon, New York time, then it
will rally up to the 15 or 60 minute

premium array and then anticipate a
higher timeframe market reversal to

fall as indicated in this diagram.

Now know what you're thinking?

15.

Higher timeframe and neither is the
60 minutes, but we're going to be

looking for a overlap or a nested
premium array vaccine on the 15 or

60 minutes and daily or four hour.

So the higher timeframe confluence with
nested ideas of premium array would be

our catalyst for this PM session reversal.

I am declined PM.

Reverse.

In the morning, we're gonna be looking
for the index S and T diversions on

the highs going from London session
into the 9:30 AM equities opening.

One of them bears them.

One of those three indices will
be bearish divergence, indicating

a New York am session decline.

We're going to be holding again
for very minimum, 10:30 AM.

And closer to 11 o'clock at 11 o'clock
and to the paint, some measure of

consolidation or retracement going
into the lunch hour and the PM session.

We anticipate a run on the daily, low,
or the low teen in the lunch hour.

Now, again, we hold on to, to the
later portion of the day, at least

try to aim for holding till three
o'clock bond, close New York time,

if at all possible, if it gets to.

The premium rate is saw price
decline from the am session.

We could see price resume in go lower.

Or if that am session premium array is
not a hard timeframe, premium array.

We can anticipate further upside
in the intraday high being

taken out in this diagram.

The am session low is suggesting the.

Low forms above a 15 or 60 minute PD
IRA, and therefore a lower, low could

be expected in the afternoon trading
down into 15 minute or 60 minute PD IRA.

And that would cause our again, reason
to justify a nested discount array.

So if that discount array.

In the afternoon forms at a 15
or 16 minute discount array.

And it is also a nested hard timeframe
for our daily discount array.

That further bolsters the idea
that this is going to be a market

reversal in the afternoon, and
we can trade it accordingly.

Consolidation am decline PM.

Rally.

Again, initially when the market makes
a attempt to rally up into a premium

array, we're gonna be looking at the
indices to diverged barely at the highs

com comparable, and we're gonna be
holding for again, ideally around 10 30

to 11 o'clock in the morning, New York
time, then anticipating after 11 o'clock

some measure of consolidation through
retracement higher going into the lunch.

Then we will become comparing the
SMT diversions that should form

at the lows comparable across the
NASDAQ Dow and E-mini futures.

And looking for time of day to support
the idea of an expansion on the upside.

If it's consolidation, we don't expect
that to go all the way into the close.

In other words, it's going to
be an early short-term high-def

forums that will be later on.

Uh, decline seeing going into the close.

So we're not gonna be holding
for the rest of the day.

We're gonna be relying on time of day.

So generally around two o'clock
in the afternoon, it creates that

comparable high and the PM session.

The am session low is many times
a 15 or 60 minute discount PDRs.

And the afternoon again is also a 1560
minute PD array or discount array.

The afternoon low could run just non low,
or it can run the intraday low formed

an am session again, as a reminder, how
you determine which one it's going to

be is if the am session bounces into
the lunch off of a hard timeframe,

nested level, that's also seen on a 15
or a 60 minute discount array, then we

don't expect the intraday low to be.

In the afternoon session, but if
that am session low is forming above

a higher timeframe discount array.

Then we would anticipate a lower run
on the intraday, low in the PM session.

And then the rally or increase in price.

After that sell stock run
has been seen the afternoon.

Hi is going to be seen with.

A 15 or 60 minute PD array.

And we would anticipate not further
upside, but a retracement and gravitation

back to the equilibrium price point of
the day, basically back to the middle

consolidation am rally PM decline.

In the morning, we're gonna be comparing
the index SMT diversions at the

Lowe's comparably against the Dow and
NASDAQ with the S and P me and Minnie.

And we're gonna be holding for
minimum of 10 30 to 11 o'clock in the

morning, New York time at 11 o'clock.

We would anticipate some
measure of consolidation and or

retracement down into the luncheon.

After one o'clock is seen in New York,
we would anticipate some measure of a

rally again, and we would be comparing
S and T diversions at the highs

comparably across the three averages.

And we would be holding for again
around two o'clock minimum, looking

for a run into the short-term lows,

the am session.

We'll be a 15 or 16 minute
PDA rate or premium array.

The afternoon will be a 15
minute or 60 minute PD array.

Now the afternoon can run the lunch hour.

Hi for bicycle.

If the am session high forms at a higher
timeframe for our daily premium array.

If the am session does not form the
short-term high, going into the lunch

at a higher timeframe, four hour or
daily premium array, we would anticipate

the rally after the New York lunch to
run the intraday high up into a four

hour or daily PDRs or premium array.

And then the client.

So it's a very simple measure of what's
causing the high to form an am session.

If it falls short of a premium rate,
it's seen on a four hour daily,

chances are, it's probably going
to rally again, harder to reach

for that level endemic or reversal.

Yeah.

Afternoon low again, reaching
into the two o'clock hour.

Cause many times it's going to be a
15 minute to 60 minute discount or.

All right.

So just as an example, just to show
you what it looks like again, give

you an example of a consolidation.

Am rally PM decline.

That's what was seen today at the time
of this recording and show you here.

As an example, look at the most
furthest down or chart on the bottom.

It's the doubt.

And we can see going into the am session
of June, 2017 on the 23rd Friday, we

can see that the low failed to go lower
into the am session for the NASDAQ.

We can see very easily.

And obviously that the
NASDAQ was able to go.

And the S and P was able to go lower.

So the Dow was able to buck that trend
indicating there was strong buyers

stepping in and the S and P rally as
a result, then we went into the lunch

hour and then immediately after the
lunch hour at 12 to one o'clock in

New York time that begins RPN trend or
afternoon session for the equities or.

And again, at the bottom, we can see
that the Dow from the high formed

in lunch made a lower high, wasn't
unable to rally above it and the PM

session and went lower in an Aztec.

In the middle chart, we can see that
the NASDAQ made a higher high than

that, which was seen in the lunch hour.

And the S and P was unable to make a hire.

That was seen in the lunch hour and price
trades down as a result and back into the

equilibrium or the middle of the range.

Notice in the S and P that during
the am session, that rally traded all

the way up into an old premium array.

See the old high back here.

So blending these ideas, you can
see how using the 15, 16 minute PDA

Ray as objectives and targets, and
also to frame the context of what

makes these intraday swings occur.

When looking at the essence.

So when we get into the August content,
I give you the top-down analysis PDF.

It gives you like a
flow chart perspective.

I'll walk you through the scenarios
that leads to these specific projected

ranges and how the trade them a
quarterly and a trading plan format.

Until I talk to you again, next week,
we talk about the stock trading doing

short-term trading and swing trading
with stocks on a month by month basis.

And that will complete the delivery of
June, 2017 content and the next month

in July, where be looking at mega trades
across all the asset classes as well.

And until then, I wish you
good luck and good trading.