Original subtitles

going to be high probability and we're just stacking more

actual real world as we dive into the charts so with that

the countertrend pullback is going to work in our favor okay

apply this you know into our trading plans and into the

have kind of saved down the the the drawings and that you have

marking out your swing highs and lows and we can now go and

apply this and go and have a look and see how this can

I should say so we are now bullish right we're in line

internal lower height so maybe this is where you want to get

maybe up into premium prices because we are pro trend we can

we get that minor break of structure as soon as we get the

and more yeah we're just stacking more and more

discount prices but once prices pulled all the way back into

it's valid to do that. You have to work out what's in your

in the discount prices once we get below the the equilibrium

most probable and this is another tool that we can use,

thinking about these concepts and how we're actually going to

goes deeper okay so anywhere within discount prices is

zone here is going to increase the probability of us not

confluence in our favour we're trying to you know tilt those

and look at how we can apply to the charts hopefully you guys

discount of this internal leg and now if we're getting long

trade management but this is you know the I just want you

this leg as well, right? You've had now two essentially you

said that we've gone through the theory now so we'll next go

the premium up here but then we also have the premium and

done from the previous lesson on the markups new charts

draw on again is then mark this leg out so the internal leg

yeah do whatever works for you it makes my sense but I just

on and so forth. So at this point, this would still be in

again see how here what the difference between the

puzzle okay and you can start to see now how our price can be

equilibrium or potentially further right then once we come

the discount right and we're then get the of character that

price is bullish and then we don't just buy right as soon as

here instead of just targeting you know just this high or

trading plan but at the moment, I'm just talking about what is

that is now in favor of the swing trade of the swing trend

movement down and now what I want to do is I don't want to

downside now just give me a bit more confirmation we're seeing

change of character why is it not high probability do to do

so there's some of the things that you can be thinking about

going to increase your strike rate, what is going to be the

wait for that to pull back to the premium and that again is

the premium versus discount to really do that for us. Okay, so

the premium of the swing leg and again, you can mark out

discount of this single leg as well okay so again just to

price of the of the internal leg the expenses expensive

equilibrium and potentially further into the discount okay

have the leg and you're waiting for the pull back and you

swing range now we wait for the price to pull back into the

the premium of the swing leg okay so we're in the premium

part of the whole swing leg and we are now in the premium part

with the overall bullish trend so now we have the internal

bearish order flow kick in this potentially could be that third

is we want to price to pull into the premium of this prior

structure making that high high we're in the discount of that

start to trade that pullback whilst we were a above this red

in down into the discount of the overall swing leg we wait

right so if we were with the swing trend coming down and

countertrend trade is that you know we're going to just target

never took out the last high right so this starts to go down

either the most recent week low or at least down into the

we're in the premium of this internal leg and we're also in

right once we get down to the discount anywhere within this

first sign that we get that change of character that the

right that this substructure leg essentially so price is

discount anywhere above the red line is premium so essentially

of a number of different ways can really really help us and

you know we get that lower low and price maybe pulling back

I'm getting a little bit ahead of myself here talking about

this week swing high and potentially further right so

still be high probability to look for those countertrend

just applying this very very very simple tool but in in kind

prices whilst we're still within the premium it's not the

the red line just represents the 50% the halfway point that

the word not opaque right I always get that mixed up just

lower highs and buy higher lows okay if you want to do that

bullish market anywhere below the red line is going to be

probability to assume where that pullback is going to end

going to increase your probability. Now, don't get me

guess a minimalistic way of drawing it I'll just quickly

what we can also target is for price to come down to the

line right anywhere within this section of price action it can

then hold this with a lot more confidence and try and target

expect a pullback don't we where is it going to be highest

is the equilibrium so when we're in this bullish market

I've put that down to completely down to zero so it's

for that change of character to go in our favor to show that

in the live market and you may have a lot of drawings and and

right starting to apply all of those concepts that we know

right below the EQ as soon as we start to go above the EQ and

internal lows why is this a weak internal low because it

pobability skills in our favour as much as possible and yeah

target this week low or potentially down to the

back and it won't go all the way up to premium, right? And

that well what do we expect after a break of structure we

then you wanted to play the the pullback right you wanted to

bit messy but I don't want that to be messy I want to see price

going to be higher probability anywhere within this section

bullish market ideally you want to only be selling whilst

and then we can use other concepts right like weak

leg right so price pulls back up to form that lower high now

summarize if you're going to play countertrend shorts in a

wrong, plenty of time as price will just pull a little bit

draw mine in the live market it's just a bit more of a I

we are in the premium of the swing leg and then once you

want to sell that lower high remember our job is to sell

prices of the swing leg and now this is kind of stacking more

it's much lower probability to be buying that countertrend

aggressive with your trade there okay so if you are

together and just piecing them together as sort of one big

and we're short that can be our first target at minimum but

you know what pairs you are trading and you will gain that

premium pricing and then obviously if we were bearish

at the moment currently the way that I draw it on my charts but

a bit fractal here so we have you know all of this is within

action I want to see what's going on so yeah this is just

here but you just have to manage your expectations that

about to go right so that's the general idea behind that. So if

of this high and this low then the countertrend longs are

going to take that countertrend short in this case and play

will mark out the 50% level of your range and then anywhere

bit opaque as well and then here yeah just basically have

it may just be a short move right and it might not go the

increase your strike rate in catching the true swing high

premium you can look to take countertrend shorts on the idea

getting involved in those full signals prematurely so it can

and then you basically use that as your premium versus discount

as you can see here we get the of character the signals that

with experience but as a very very general rule a blanket

whole way so you can get in and out and be a bit more

we kind of take this theory just one little last step

class you are trading no matter what individual instrument you

and you can draw it between the low and the high and then that

buy this pullback up here right let's say that this is the EQ

are trading this theory will always hold water that the

see that there will be times where price will not pull back

going to have that higher probability of catching the low

premium okay so if price is bullish in this case we we are

something that you need to test yourself you need to collect

we're in the gray section right whilst we're still in the

rule that would apply to everything no matter what asset

zero the one and the nought. 5 but all I have showing in terms

further now the way I've kind of drawn the premium at

essentially of what you want to do which is identify the price

completely opaque or translucent I guess would be

that pullback it's high probability to do it whilst

right we know that this is the equilibrium and we're expecting

of the color is the the red line there just got a little

data on it will obviously defeat depending on your style

little bit more in a bit when we go on the charts but this is

that price is going to want to pull back to at least the

that will actually go right because you can still buy up

and then stacking those in your favor to to catch those largest

it a very very thin line grey but I don't have the background

just sell here straight away but we want to what do what

right and then all you do is get your Fibonacci tool your

getting in too early where it goes up a little bit and then

right so then what we can do is what I've done here I'll just

right the swing trend so that gives us that first signal that

swing leg and then you are playing within this swing range

and into the discount pricing exact same thing here right

your probability of actually catching the move that

want you now to stand that obviously when we're in a

it's just the exact same thing again but kind of like fractal

discount tool here is essentially how I personally

swing moves is to wait for price to come down in here

in a swing bullish trend right it's best you don't have to

discount anywhere above you'll be buying or selling in the

before you buy now you don't have to do that right you will

this discount level the theory is is you're going to improve

right but it's better in terms of increasing your probability

high probability if we're looking to to buy is to wait

signal we then get that bearish change of character right and

look to get short here and at minimum target you know the

bit and it will continue going on so we'll talk about this a

now we're in the premium price of this leg right that's where

other concepts that we'll be using later it can get a little

continues the next run up in towards this high so just got

lower you are buying right within the swing range you're

short now you've seen enough confluence and then you can

know those those two minor breaks of structure to the

the high low maybe in place but it turns out to be a full

the swing around may be over and the pullback is starting we

show you the setting so exact same thing again right just the

of this internal leg right so we pull back into expenses

price to pull back below the EQ at some point it's a discount

shorts so we get that minor break of structure that kind of

high most high probability area to be buying but if we want to

equilibrium point so the equilibrium point is

so it's a simple line essentially just so when you're

colors showing so this is why it would be like that right but

probability in our favor that going short here and playing

then you can just draw it up to the swing high there so that's

working for me see okay anyway but if we were looking for

kind of really see this concept of how it pays out so obviously

right you could be looking for don't know why that's not

probably see the reason why we use this tool is because it's

premium pricing this is where price is at higher levels and

when that change of character occurs because we are in the

of trading how aggressive you are how conservative you are

then see that change of character in favor of the trend

to the equilibrium or the discount it will back a little

the equilibrium you're essentially buying at a

little bit in our favor but then it ends up not working we

some very simple instructions over here on the left hand side

up here right this is the leg of price action that whole

week lows the internal week lows or target the equilibrium

get a change of character and we pull back so as you can

getting long from down here right then your price runs a

for price to come down into those discount prices right so

action but anyway we'll talk about that in a little bit when

halfway point we are now anywhere in the discount level

short because at any point right that lower high could be

essentially the 50% level it's the halfway point between the

how I recommend you kind of draw it and then you can keep

equilibrium but ideally the discount pricing okay and then

low forming right so if you wait for price to come down to

the price leg so essentially this this whole swing leg run

the levels as well and then you can play around with the

doesn't really matter you'll see how we use this in a second

we go below that equilibrium level once we go below the

you only want zero one and nought. 5 and then I tend to

character in our favor and then we get this little pullback

except I have applied this premium and discount range tool

low and the high and the idea is that at the halfway point

the higher up in the leg right this is going to be the more

it on the leg of price action and it kind of keeps your

is premium and expensive prices so if we look at the previous

of you know the fair value of the actual price so then once

then we got full signal here so when we saw that change of

what often happens is price likes to pull back past the

so the idea is anywhere in this boo box below the 50% is we

change of character and the pullback is starting right and

balance between buyers and seller at that level in terms

example we're looking at right where we get that first initial

it's at complete fair value is that the equilibrium there's a

you draw the tool down to the bottom of the swing low and

a bullish market you mark out where your current swing low is

it's in the premium prices so you can if you want to right

so I just have a pre save ten like this reasonably neutral

charts nice and simple so you can focus on the actual price

waiting for price to reach discount right it can prevent

have cheap pricing anywhere above it in the grey box this

colors now the way you actually draw this tool is if we are in

rid of these and then you want to get rid of those and

this here just for the purpose of the explanation so you can

and your current swing high so you know what range we are in

we actually hop on the charts but for now I'm just going to

transparency there right so that's essentially all you want

which is probably you know a trading that you've heard

visibility and what not but essentially all you want is 01

tracement at the start so if you just add that to your

I'll show you what it will probably look like change it to

this side menu you will get something called the fibre

the default settings you'll have this horrendous thing that

go into your settings and change this so that only zero

guess price hatching example that we're just looking at

now you can change the colors to whatever you want and

and nought. 5 and then make sure the top half and the

get rid of the trend line and then get rid of the prices and

high so in fact what I would do is actually show you how I do

same thing we want to buy low and we want to sell high right

is ticked get rid of everything else and then keep the one get

this so if you go over to the left hand side and you open

then you click that now when you first drag this out in fact

so this concept is very very simple it's the exact same I

bottom half are slightly different colors well even that

favorites if you haven't already got it on there and

here which basically just draw this box from the low to the

to customers a higher price than which they bought and they

right at low prices and they're going to want to sell that back

learned about market structure up until now so the idea behind

thing you know we're we're running a business and the

products that we are you know buying selling that we're

will essentially lock in their profit right so it's exact same

premium and discount is essentially buy low sell high

looks like this right now what you want to do is essentially

altogether but in this just just as one video alone we're

world right a business is going to want to buy their stock

there's many things that we can use and we're going to combine

a normal business would run itself sort of in the real

is the idea of premium versus discounts so like I was saying

few concepts that we can look at and introduce that can help

these full signals and increasing our probability of

those concepts as you probably guess by the title of the video

of premium discount with everything that you have

us to potentially stay out of getting trapped and trading

only trading the moves when they're actually going to play

plenty of times essentially all just boils down to you know how

trading is just simply currency and we want to do the exact

literally just going to look at how we can introduce the idea

out so essentially increasing our strike rate now one of

weak swing high right so change of character I guess is one

starting but sometimes it can give us full signals so it's

lower highs to form that next higher high right we get that

pullback may be finished and this next swing leg may be

may be in place and then that pro-trend swing move has about

signal that the pullback now has finished that the high low

be the swing high low and actually we're likely to pull

this case we form that lower low lower high lower low lower

internal change of character and again this may be a a

ending and that a pullback is starting and that when the

quite a thing quite a few things that we can do quite a

tool that we can use to help us identify that swing run is

actually this low is now going to get run this is not going to

then gives us another signal and a warning that okay

highs high lows and high highs is suddenly broken again we get

series of lower highs to give us that high high so we can use

high lower low and then we get that break of that series of

that as a signal that potentially the swing high low

to commence with the first minimum target of breaking that

change character to the downside so that series of high

internal change of character right to the downside which

back deeper right and then we pull back deeper and then in

is now in place and potentially we are about to start the next

series of lower lows and lower highs right with the internal

bullish swing leg to make that high high okay but as we were

into the market right that some has stepped in to break this

structure there we get another change of character as price

a short lived bullish move and then price can you know again

that lower low so that first lower low again is that next

initial minor low get broken to the downside then we get a

structure and then price breaks up we get that minor break of

highs right showing us that some bullish intent has come

looking at right sometimes it can be a full signal it can be

now forms that first high high again after a series of lower

and reverse and cause a swing lower low right but we can use

minor lower low and that minor lower high right that can then

where we see the initial change of character we see that

this case one of the examples that we looked at before was

get that minor break of structure and we see that for

is going to pull back or even if that's actually going to go

character essentially just one sort of tool on its own so in

indication of what may be happening so change of

those those minor structure breaks and that internal

signal to us that this swing run is now over and the

what we can do or well we don't even have to trade it but we

pullback is about to commence now we never know how far price

next right and if we see something like this where we

price to pull back before potentially looking for a trade

can also just use it to anticipate what's happening

structure changes of character to sort of give us an

initial change of character right where we get that first

example and we have the swing high the swing low and then

structure those substructure breaks and those minor breaks

another swing high up here right we don't have to wait for

high and between the swing low is essentially that internal

but also looking at the breaks of those minor lows and all of

the internal structure that stuck between that swing range

changes of character so not only looking at those major

like that any structure or price action between the swing

of structure so when we have a bullish trending market for

call them the more basic components of market structure

essentially looking at a few more of the I guess you could

breaks of structure on those major swing highs as swing lows

In the previous couple of lessons where we've been

one of the sort of powerful concepts that we looked at was

really aid us in our analysis.