Market Analysis and Trading Strategies

If you look at this short-term high here right before this low formed,

when this high is taken out right there on that candle, that's

significant only if this run down here

has traded into sell stops, okay? Below an old

low of some kind. It could be a, a double bottom, it could be a single low,

but it's gotta be trading under some retail idea that would be

viewed as support. Up here, the same thing. We're trading above highs.

When this run above these relative equal highs happens right there, you're

anticipating a market structure shift. See this swing low?

Let me go back to this for a second. We have this high on this candle,

then we have

the candle right after that here, the highest one, and then the lower

high of this candle here. So that's a swing high.

Very simple little pattern, but it means a lot

when it's in the proper context.

When this high is broken with this particular candle right there, that is

significant only on the basis that we have taken liquidity out of the

marketplace. So when it broke this short-term high,

this is more

meaningful, and then the market will start to seek buy

stops, okay?

Or buy-side liquidity. That would rest above here, here,

and here.

All I'm gonna do is add a few annotations, and this is about as

extensive of lipstick we put on our chart.

So here's those sell stops. So this little area here, that's a

area where sell stops would be residing below that fourteen six hundred

level. The market dove into that liquidity, and you may or may not

know that is a buy. You don't need to.

You anticipate a shift in market structure.

When the market rallies above, when does that happen?

On this candle right here.

See that little light bulb? That's when you're thinking okay, now I have

a condition in the marketplace that I might see an

opportunity intraday. Short-term high is taken here.

We traded above it. It does not need to close above that,

okay? Real important. Once that candle closes and this candle

opens, you're gonna monitor this candle, and you wanna see as soon as this

candle closes, does it create that fair value gap?

If it creates a fair value gap, again, that's a candle at the high,

one single pass

up, next candle has a low that doesn't completely overlap all this.

That's a fair value gap. Real simple, okay?

This candle is where you would look to potentially trade at the earliest.

The market trades down into that,

boom. Takes off. Here is insight. Order blocks,

okay? I invented it. It's mine. No one talked about it before me.

See these down closed candles? That's all one continuous order block.

What's it doing? It's inside that pool of liquidity, sell stops.

Where's the open on that series of down closed candles?

Right here.

That's the price level extended out in time. Boom.

So inside this fair value gap, this opening price on the order block,

that's your

buy. Price starts to run where? Above the highs where buy stops would be

here,

above this high here, and above this high here.

So the buy stops above here that was taken, this swing low forms once

this candle closes. So this candle we're watching.

Does it go below that short-term low? It does.

So now we have a shift in market structure that is now bearish, only because we've

taken buy stop. Fair value gap forms, the market rallies up into that, you go

short there. What are you looking for? Below here, sell stops.

Below here, sell stops. Below here, sell stops.

And in this fair value gap here. You can take partials below here.

I probably wouldn't do it there, but below here, here.

And I know some of you are saying, "Well, why wouldn't you take them below their

ICT?" Well, if you're trying to get short here,

that's not really that much

movement. So if you're gonna take something off your

trade below that low, why not

just try to reach for that one? And you could get it there, okay?

And then below that low is nice as well.

Below this low, and this is what I mentioned on the first lesson.

This is below the fifty level of this high and that low, okay?

So fifty percent level, that's what we targeting.

Now, this candle's low was the high end or first

objective inside this gap, so that's your target.

You're gonna look for that.

Here's that same price structure just on a one-minute chart.

The same logic's still there, right?

Swing high taken after liquidity's been traded into.

This short-term high gets violated.

Right when this trades down in here, what's actually occurring?

High-frequency algorithms are hammering.

They're th- just throwing orders in. Buy, buy, buy, buy, buy.

That is not... Okay, here's an important thing.

That is not causing the market to go higher.

It's just volume that's coming in.

The algorithms that deliver price, that offer price, that are constantly

offering the price in the marketplace, that's what's beginning to spool and

go higher. When the price starts to rally, all this is, is

a default to the algorithm constantly offering price at a

higher price. We're looking at the swing low right here.

Market breaks down, trades break back up into this,

back up in this fair value gap

here, and sells off. And there's another fair value gap right

there.

Trades up into that as well. This is a one-minute chart.

So it's giving you multiple points of execution that you could trade on, and

then dives. See these two candles here?

That's one consecutive bearish order block,

the opening price extended out in time.

Why is this a good b- uh, bearish order block?

'Cause it has that gap, and it's taken liquidity,

and there's a market structure

shift. There's your high frequency, high power, high probability

bearish order block. What is an order block?

What it is, it's a s- change in the state of delivery.

The market's being offered higher, higher, higher, higher in these two up closed

candles. How did this series of up closed candles

begin?

With this candle's opening right there.

Once this candle trades below it, that changes the state of

delivery. So you go back to that point of reference right there,

and that's why

it's sensitive. The algorithm remembers that right there.

Much in the same way, all of this movement down here,

all these down closed

candles, the opening on that candle starts this series of delivery

on the downside.

When that opening price gets violated here, it changes its state of delivery.

Now, it was offering sell side when it goes above that opening.

Now it's offering buy side. What will it be doing after that?

It will be looking for buy stops, buy stops, buy stops because it's

offering buy-side liquidity. Same thing here.

Buy side is being offered until that opening price

is violated right there.

Then the change of state of delivery occurs.

Now the market's gonna be doing what?

Offering sell-side liquidity. What's that mean?

It's gonna start going lower and attacking the sell stops,

all the sell-side

liquidity. It's offering it to the marketplace.

That's what's happening.

That's what the algorithm is doing.

But the market goes down to that fifty percent level.

It's going down from a premium Market relative to this

low and this high, 50% is here. That's equilibrium,

so it's gonna go down to a

discount, and that's that gap right in here.

Does- doesn't look like a gap so much here,

but if we go back up one more time,

that's that single opening right there.

On a two-minute chart and then on a one-minute chart,

it's two candles that make

that up. But you're gonna have to do is go through a progression of going from

the

three-minute, two-minute, and one-minute chart,

and you'll get your m- market

structure and your areas of where it wants to look for an imbalance or old or low,

old high, and it just makes it easy.

Swing high, broken. Market structure is now bullish.

Rallies, taking buy stops, taking buy stops, taking buy

stops. This right here, these highs right here is just staying

below that low. It's building up more interest

that this is what?

Resistance. That is engineering liquidity.

Those individuals that know what you're learning today,

they know that that's a

pool of liquidity for buyers coming in at a high price. Why is that useful?

Because smart money, they bought down here or here or here or

here or here. That's where they sell to high-seeking

buyers. Look in here. You see that gap right there?

See that down closed candle right there? That's your order block. Boom.

Buy it right there. What about this

right here? Dropping down. All these candles here

are more

significant if you look at it on a two-minute chart. See that?

It becomes one order block. Buy it, sell short, buy it again.

We got up into the stops, sell short, reverse, then ride the larger

swing down. So with that,

I want you to think about how this is useful, okay?

Number one, you're looking at London highs and lows,

the session

for London

Open, okay? For instance, like 2:00 in the morning to 5:00 in the

morning.

New York time. Every, every time I tell you, just always set it

with New York local time.

2:00 to 5:00 in the morning, that's your London session.

What's the highs and lows of that session? Okay?

Uh, that's important because the market's

gonna probably sweep above those highs or

sweep below those lows and create situations like this, okay?

And the New York session is 7:00 in the morning to 10:00 in the

morning, New York

local time. Okay? What's the session high and low for that?

And do the same thing for Asia, okay?

7:00 PM to

9:00 PM.