Market Analysis and Trading Strategies
Okay, so let's go back into it.
We had the high of the week form on Wednesday.
Well, that's right out of the free tutorials,
as you would expect.
All right, so let's go back into the chart here.
We're looking at the
Wednesday high.
So this is high of the week.
The market trades down. It reaches into that weekly
liquidity pool.
It does so here.
Rallies away, trades one more time, creates a double bottom.
Comes all the way back up to at least the equilibrium price point
of the weekly high from this high
to the new low.
Trades back up to midpoint of that. Why does it do that?
It does that to pick up more orders and
allow fair value entries on the banks.
The market trades down lower, comes back up, rebalances, and then
drifts, drifts, drifts, and makes an aggressive run
down to make the low of the week. Here's our ten, twenty,
and thirty pip great
swings below that weekly liquidity pool.
So everything here, if we zoom in
Ten pip right here, twenty pip right here,
thirty pip here. Just fell short of it.
It's like twenty-nine pips or whatever it was.
Didn't quite get down to thirty. But it gives you a nice rule-based
idea every time we look for a run on liquidity.
So when we have these theories, okay, when we're looking for price
action to do specific things
relative to that daily timeframe,
we up- we incorporate the daily time of
day and the kill zones to formulate
ideas when liquidity will be r-rated, okay, when the stop runs
occur. All of the things that cause the market
structure theories, like we have these double bottoms,
which is what we call on the
Twitter feed Candyland, uh, they're-- they don't like to leave
price action like that. So we're gonna anticipate this whole run
here.
If,
if we know that that same fractal that's being shown here
works on a fifteen-minute timeframe, and it works on a one-minute chart, a
five-minute chart,
why won't it work on a daily?
Absolutely will work on a daily. In fact, it's gonna work more often on the daily
than it will on any other timeframe.
Why? Because the interbank is based on what
that chart's showing.
It's going to give you the truest form of
knowing where the market's going to go, the most sensitive price points
on the highs and the lows, where there's fair value, where there's
inefficiencies, and where there's buy-side
and sell-side liquidity.
Everything you're looking for is derived from that daily chart
because you can still pick up the insights that would be seen on a weekly
chart by studying a daily chart if you know what you're looking at.
Now, don't read too much into that and say,
send me emails or ask me on Twitter, "What did you mean by that?" You learn all
that in the mentorship and beyond charter level.
It's important for you to stick to one narrative.
That means seeking liquidity outside of the candles.
Now, what I just told you is what I hint at all the time on Twitter,
but the uninitiated, they have no idea what I'm saying.
I'm looking at what's outside of the candles.
That's the liquidity. In this case here, it's the sell-side liquidity pool.
There's nothing down here that's being seen in
retail's mindset in terms of what they see on their chart.
They see that as support.
I don't.
I see that as liquidity,
and it's outside of the chart.
Think about it.
You look at, as a retail trader, support,
resistance, trend lines, moving averages, indicators.
They're all very
interesting. They're entertaining, but they rarely work.
I look at things that aren't necessarily seen in
price.
I show you where fair value gaps are.
I show you where inefficiencies exist, buy-side
inefficiency, sell-side inefficiency,
buy-side imbalance, sell-side imbalance.
I show you and tell you what the narrative is that creates those things
and why the market will reach back to it and what it should do once it gets
there.
All of that is outside of the understanding of a chart
from a retail perspective.
That's why you, as my students, are learning how to do what
ninety-nine percent of everyone else around the world cannot do:
predict price.
We do it every single week based on what we do on that daily chart.
That's the secret weapon for bias.
If you do not use that daily chart, you're gonna struggle with your bias.
It's just as simple as that. So if we go back,
and we look at that idea of
when the market is seeking
that higher timeframe draw on liquidity, which again is that weekly liquidity pool,
from
Wednesday
down to here,
we're above that opening price. So all up in here,
we're close to, if not at the very high of the week.
Why would I say that?
Well, we have equal highs in here.
We have a high and a low, so there's a range in there.
So if we just look for simple optimal trade entries, go back to baby pip days-
Low to high.
We're basically at the sweet spot creating a high of the week.
So everything I was giving you on Baby Pips still works,
but you need to know how to use those things I taught on Baby Pips.
Once you understand mentorship level, you can go in there and pull out Trader's
Trinity, things I don't talk about anymore,
and you can literally look
like a wizard
to the retail world
because you'll be able to do things with price action that no one else is able to
do because they're looking at patterns for pattern's sake.
They're looking at Elliott Wave and trying to decipher what's the count,
what wave are we on, what ratio should I have if I'm a ratio
trader, what harmonic pattern is harmonic right now?
Okay, it's look,
anybody that's interested in harmony, okay, in what they're doing,
use eHarmony, okay? And no, they're not a sponsor.
That's the only harmony you need to have as an individual, okay?
Because if you try to incorporate harmony in price action,
you know, you're going to find that you
are going to struggle. You're going to find
that you're trying to force things.
You're trying to look for things, okay, instead of saying, what is price most
likely trying to do here? It's going after the money. Whose money?
Large funds. It's just that simple.
It's just that simple. That's why COT works.
COT data, Commodity Traders Reports. What is that?
It's showing you the relationship between the
large pools
of liquidity
being held
by the large funds. Who gave those positions to them?
The counterparties, the commercials, the large institutions, the banks, the
producers or manufacturers
of that market or commodity.
Since the currencies are a commodity,
we understand that the relationship for price
delivery is not based on the retail
universe. Retail is too small. It's too
insignificant of an animal that doesn't leave a
mark. It just can't. It doesn't support it.
But large funds,
okay, large funds are the market.
They are the buyers and sellers.
The liquidity providers are the commercials.
So we look for the relationships between those two
parties in price action
and where their stop loss would be,
that's where the market's going to go.
Where a return to a level that would not
necessarily be seen as
bullish for a large fund trader,
the commercials would see that retracement
lower to fill in some fair value and then pick up
more orders and then go higher
and move against the intermediate term swing
low and high
that would be against the large funds position.
And you'll understand what that means later on in mentorship because
I'll teach you specifics on how to find it in price action, real
accumulation, real distribution.
And you can measure that with tools that I'll show you using price
action. But when we look at the weekly
analysis videos, it's important that you go with a
specific
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