Market Analysis and Trading Strategies

The dealing range high, dealing range low. Why is that a dealing range again?

We took both sides, buy side and sell side out. What's the bias now?

Bearish. All this ranging here, we're looking for areas to anticipate a

run back up

into a premium. Short-term high, short-term low.

It runs up into a premium here, sells off. It creates relative equal highs.

Sell side's taken here. So once it has taken the sell side here,

what's the

market likely to do? Revert back to buy side.

Even though it's bearish, where's the buy side?

Like a neon sign, relative equal highs. Bumps up to it, then does what?

You have now a new dealing range. You have a dealing range from low because

it took

out the sell side, and the buy side's taken here.

So your dealing range is from here to here. What

is the usefulness in that?

You're anticipating the market to trade back down to a discount and eventually to

its sell side. Discount array below fifty percent of here

to here.

This fair value gap is a target. So you're gonna be looking for areas once

it sells

off. Here's a fair value gap, break lower, break lower, target filled.

Sell side, relative equal lows tags it.

So now we have this dealing range from here to here. Why is that a dealing range?

We've taken buy side here and sell side's been taken here.

So from here to here, you start doing analysis inside of that

range. Look at all the back and forth in here.

And then we get to this level here, and it's more energetic.

When I see that, I identify this as the dealing range high

to here to here

but I will refine it down to the most energetic price swing inside of the

dealing range. So I'm going to use this range here from

high to low.

How's that useful? From here to here, I'm going to be looking for a equilibrium

price point or premium to go short 'cause the bias is what? Bearish.

I said we're entering a seasonal tendency here where we go into May where it's

bearish. Did it deliver? Of course it did.

Now, this gap here, we see it trade up until here.

Sells off, comes up, up until here, fails to go into it there.

But look at all these opportunities where it could have filled in that gap, but it

didn't. Broke lower. That indicates to me that this

is a breakaway gap,

meaning it's going to most likely stay heavy and run where? In our buys.

What's that direction? Lower. So we have sell side below here now.

So we expect mark-- price to trade lower below that.

It does so and then keeps on trading lower and creates a short term low here,

rallies back up into a gap, drops down once more, takes sell side.

So now buy side is where it's likely to revert back to.

And from this high to that low, that's our focal point for our study.

So inside this range, I want you to think about what you see.

Study this, pause the video, make notes of it.

All right, so I have the chart kinda aligned so we

can focus on that range here.

So inside that range, we have a buy-side liquidity pool right

there.

It trades up and purges buy side. Why is that likely to occur?

Because we're bearish. We're going into a seasonal tendency where

the market's

likely to trade lower. So anytime it runs back above buy-side

liquidity, it's

likely to sell off. Once it accumulates those buy orders,

it's going to target

what? The sell side below that low here, and it does so here.

So sell side is now purged. So in short, if we're bearish, I like to look for

a short-term high taken out and accumulate short positions.

Who's accumulating short positions above old highs? Smart money.

They held price there. Why? Because they were allowing traders to

engage this as what? A bull flag. We were bearish here.

The market trades lower, attacks the sell side, runs in,

spends time down here, and

then we have Friday's price movement.

So let's discuss liquidity a little bit deeper.

This is what the algorithm does, okay?

I want you to think like this because this is what the algorithm when it runs

certain macros. Macros are a short list of orders of instruction.

Do this, do that. The if then or. That logic behind how the

price is being designed, delivered, and booked.

We have now a dealing range. This low was taken out here, this high

was taken out

here. So now we have this high down to that low.

How is that useful?

So we're looking inside this range here. Okay, this is our specific dealing range.

What do you see? Before I go further, "Wait a minute, ICT,

you just said that's a

dealing range." Right. These are relative equal highs.

It went above into the fair value gap with this here, and we never were able to

go higher. So I'm looking at that as that's the cap on the marketplace,

and it's

likely gonna be a breakaway gap. That means it doesn't fill right away

until it

fulfills lower level objectives on price down here. So what do you see in here?

Pause the video. All right, so we have this high to that low.

Why am I picking this high? Because it has the most energetic price

run away from

it. That's the most recent one that has that energy going lower.

The delivery of the candle's moving away from it quickly.

That's what I'm really getting at.

So I'm framing it with the logic that this is likely to stay open,

not rebalance,

and the market's gonna drive lower.

So our range from here to here, that's what I'm measuring,

and equilibrium is

here. So above that level, this level here, what are we looking for?

Well, we're looking for buy side. So I teach you to look at a range

and define

it in the scope of premium to discount.

Equilibrium is here, and if we're bearish, we need the price get to equilibrium or

preferably higher than to go short.

In this shaded area here, why did it not just simply

trade back to that low and go lower? Why didn't it do that? Think.

That's our last up close candle rate before the energetic move lower Inside the

context that this is likely a fair value gap that is going to stay open. Why?

Because it had no ability to get up into it, close it at all.

So that changes the fair value gap to what? A breakaway gap.

Breakaway gaps remain open until lower level objectives

are fulfilled and delivered and booked.

In other words, it goes lower to a specific price level in

the discount.

Then at a later time, it might come back up to here,

but it could be an

undetermined amount of time. I don't know when they'll come back to

fill in a

breakaway gap. And if it's bullish market, everything I just said, just reverse it.

This last uplose candle prior to move lower and taking out

that dealing range low,

that is my ICT bearish order block.

It trades lower, comes back up, doesn't really quite get back to

that old low,

sells off again. Then it comes back, ramrods this low

here, goes above it, and then consolidates.

So anyone that would have expected this little bit of fluctuation through, this

would have wore them out. These are days. These are days of trading, S&P.

Shorts are going to be scared. This is probably going to go higher. Why?

Because they see a bull flag run up, consolidation, and they expect it to go

higher. We're bearish. We're in a premium market,

and it's going to a bearish order

block. Now, price is likely to drop lower

and reprice and, and

target what? What's it gonna target?

If this is your, your trade, what's it targeting?

Well, think about what I taught on this YouTube

channel flagship pattern, the

optimal trade entry. From high to low, seventy-nine percent, sixty-two

percent retracement levels. That's here. That's my optimal trade entry.

So you can use targeting approaches where you put the fib on the bodies

here and here, the lowest of the open or close and the highest of the open or

close, and your projections down would be read in

here.

But we have a fair value gap that's left open. Fair shorter block.

A dealing range that's been broken to the downside.

The only thing we've done is retrace back into a short-term premium,

and retail

traders are gonna see a bull flag. We're looking at it to go lower.

What's it gonna go lower for? Before we get into that,

we have a short-term load

that's taken here. So we had sell side here,

and it starts to rally back up.

What's it reaching for next? It's gonna revert back to buy side.

That's this here.

That's why it's not gonna go to simply that level and go lower.

It's gonna go deeper than to clear off all the buy-side liquidity,

so that way it can absorb that buying orders and translate that to

a short position for smart money. So counterparty is the buy side being

attacked

here. So shorts in the smart money camp can then

target that low down

here So we have buy side taken here.

The sell side was taken here, so now the sell side changes to here

because dealing

range is now defined by this low and this high.

Because buy side was taken on this high, sell side was taken on this low here.

So we have a dealing range here. How do we find that useful? We're bearish.

So even though this is a fair value gap close to around

equilibrium between this low and this high,

that simply would just be a partial,

and we hold for what? Sell side to be attacked.

But look closer in here. What do you see? Let's zoom in.

So here is that area here, and inside this own area

of shaded-ness, I'm taking your attention to this

short-term low here.

So we have a short-term low here, and then it gets taken out,

and then we have this

low here, and it starts to rally up. Look close.

Do you see that this is a swing low? Again, these are daily candles.

They're not lower intraday charts.

We have a low that takes out sell side here, runs down,

creates that low. One more smaller attempt to go lower than

this day. It does.

Then the following day, we open trade down and trade back up.

This is a swing low on a daily chart.

After we've taken out sell side below here, and we have a short-term sell

side liquidity pool here, which it runs down into,

and then creates a swing low.

So we're in a discount inside of a discount. Think about that now.

If sell side's been taken here and sell side's been taken here,

what's it gonna revert back to? Buy side. Where's that?

Swing high on the daily is here. So if it's going to go here and run to

that level,

buy side is simply not just tha-- at that level. What's above that?

Bingo. Our gap. Notice how we had sell side taken here,

and then the market reverts back to buy side and to an imbalance, that gap