Original subtitles

okay.

Folks.

Welcome to the sixth teaching a motto of the ICT, mentorship, learning

specifically dealing with the secrets to high reward trading setups.

Some of, you may have already went through my trading plan development series.

Um, it was a long video series as a lot of information.

It was really aimed for those individuals that have never really

had exposure to the marketplace.

Um, giving them ideas on what direction to go and what to focus on primarily.

And while it is a great deal of information for a neophyte, uh, it is

necessary to go through those things because it has to, uh, give you well,

not, it doesn't have to, but when you're first starting out, it's important that

you have a mentor or you have a framework or a foundation to build upon to give

your, your trading career a direction.

Um, one of the most reoccurring themes in.

My role as a mentor is new.

Where do I begin?

What should I do first?

Where should I be focusing my attention at now?

What should I be studying?

Okay.

And while the trading plan development series is still good,

it's still valuable in my opinion.

Um, not because I made it, but because it's, again, it's useful.

Uh, some of you and majority of you actually are actually really

exposed to my content and my material as it relates to trading

specifically to, uh, foreign exchange.

But I think that the, if, if one were to.

Look at what I actually do on a day by day basis.

Uh, what is the procedure?

What are the things that I do to elect a specific stance on the

marketplace and what makes me bullish?

What makes me bearish?

Why do I focus on one currency pair over another?

Um, all those things are decisions and processes.

And while we will have specifics in relationship to how I arrive at individual

specific views or decision points as relates to how everything fits together

on in my decision process, um, it's important that we start with kind of like

a, um, a micro version of the trading plan development series in this teaching.

That's what this is.

Um, while it's not going to be comprehensive as the trading

plan development series.

Was, um, this one's going to be a little bit more specific.

Uh, it's gonna be more salient to the things that I do as

a specific Forex trader.

Um, I don't look at all the things that the trading plan development

series, um, view course spoke about.

Um, they do occasionally come up in my thought processes, but they're not all

required to come to a trade decision.

Okay.

So we're going to go through a lot of the things that I believe that if you've been

exposed to at least all my free tutorials are, we're gonna be able to get down to

a little bit more process and a decision based parameters in this teaching.

Now it's important also that we go into this with the proper mind.

Okay.

I don't want anybody thinking that we're going into trade signals.

We're not talking about trading patterns.

We're not talking about a stop-loss placement or, or trade management.

None of those things are important here.

This is the last primer for us.

Before we start going into the specifics of breaking down individual

decisions, um, each process, which.

As a collective whole, as we'll discuss in this teaching will you'll see

that that's how the ICT mindset is.

You know, what we do on a day by day basis, what frames our

opinion about certain things.

And when do we change those opinions?

And when do we, uh, move to the sideline, all those things come

by way of process thinking.

Okay.

And it's important that you understand that while entry signals and stop

placement and patterns in order blocks and overflow and all the

ICT, you know, jargon and the things that get really, uh, exciting.

Um, there's gotta be a little bit of dry, uh, information presented

to you and it's important.

So I don't want you to look at this video and go through it and walk

away with, well, you know, this isn't really teaching me anything.

It really is teaching you.

It's going to teach you how number one to think in terms of

foundations, because we have to understand where we're building on.

To elect a decision, but relative to whether we're going to be a

buyer or seller or where we're going to stay in on the sidelines.

Okay.

Because that's the real secret to trading, um, understanding what makes

the process arrive at a decision.

Okay.

You know, what is the process?

You know, what are the components that help you arrive at whether you

should be a trader buying or selling or staying on the sidelines and what

asset class should you be trading?

And what specific pair are going to be dealing with foreign exchange as

we are in this teaching, all those things will be, um, a little bit more

clear, a lot more clear, I should say, by having the thought processes

of that, I'm going to introduce here.

Now.

Obviously there has to be a specific order.

Okay.

There's got to be in the hierarchy to what it is that we do as a trader.

What makes our decisions, um, Incremental w what, what do we do first?

What do we focus on first?

And obviously I've been a, um, a strong supporter of the notion that every

trader needs to have patience, obviously.

And, you know, after patients, then we have to understand when you obviously,

what defines trade environments, you know, are the environments

conducive for trading right now?

Uh, that's an, a topic that obviously goes, um, largely, uh, taught by

majority of everyone that's teaching and has courses or whatever they do

in terms of, uh, teaching the poppy.

And I do a lot of work with that in this mentorship.

And it's going to be a lot more, uh, spread across the entire mentor shifts.

I don't really have one specific teaching to talks about.

Um, when you shouldn't trade, there's going to be a lot of things that

you'll come by experience and learning that define those environments.

Okay.

Uh, the next stage is obviously it's determined a trade parameter and you know,

what makes your trading, um, you, uh, buy or sell, you know, what gives you,

um, those notions to even take action?

Obviously it's not simply, you know, well, it's been going up for the last

60 minutes, so I'm going to buy, or it's going to be going lower because

of an interest rate announcement.

I believe that's going to happen.

So therefore I'm going to treat them that it has to be very defined.

Okay.

It has to be.

Specific it has to be binary.

You do this or you don't do this.

Okay.

Do X or do Y okay.

It has to be a very black or white decision process.

If you don't have your trading plan or your perspective or, or a process,

you know, in determining whether you want to be a trader buying or selling

right now, or staying on the sidelines, it will create a huge vacuum where

lots of emotional, psychological and impulsive trading will creep in.

And if you don't have these binary thought processes and where you're specifically

dealing with in terms of decision-making, you won't have any structure and without

structure, without having a refined, clear trading model, what defines your trading?

What makes your trading model uniquely yours?

You're gonna.

And it doesn't matter who teaches you.

It doesn't matter what principle, what discipline you trade with.

It's going to be an impossible endeavor if you do not become highly organized.

So the athlete, after a long period of time spending in front of charts

and, and work with individuals and myself as a, as a trader, because I'm

always a student, I'm always learning something about myself as a trader, uh,

not so much about the market anymore.

And I don't mean to sound arrogant, but most of my learning comes by way

of my individual, uh, experience.

And you're a learned that, uh, that actually helps you refine

your, your, uh, trade parameters.

And next, obviously you need to know what makes your executable criteria,

what it is, what makes you be the buyer or the seller, and, you know,

having those, those parameters defined.

It's not just simply I'm bullish right now.

Okay.

Well, if you're bullish, what would you do to be a buyer and what would

make that buying scenario, uh, negated?

What would, what would change the, the, the tone of the marketplace for

you to either move to the sidelines?

If you have a stop-loss head, do you still consider that being a buying condition?

And these things have to be specific.

They have to be highly refined.

It's gotta be like a flow chart format.

It's gotta, you have to go from one step to the next.

And if it's not like that again, you're going to be very emotional.

You're going to be very psychologically, uh, influenced by the things that you

see in the price action and worse by online media forums, Twitter, Facebook,

people talking to you and you're at work.

And you have friends that maybe, you know, they are traders.

All those things are going to be influential to you.

And it's going to be detrimental to your performance as a trader.

So we don't care what anybody else's opinion is.

We don't care about what, uh, their, uh, opinion of our trading model is.

In fact, we're not really trying to share our trading model to anybody.

It's a unique trading plan and trading model for you.

Okay.

And you're going to define that, refine it to yourself.

And that's going to be your graduation when you know exactly what's going to

be framing your trading model and you'll have a lot of help along the way through

the remaining months of this mentorship, but they have to be defined by you.

I can't force you to be a day trader.

I can't force you to be a short-term trader.

I can't force you to be a swing trader you'll know which one that is for

you by the end of this mentorship.

And then more importantly, you have to understand why the trade

should pan out and understand what makes the trade viable.

Okay.

It's not just simply I see a trading pattern here, or, um, I believe on bullish

or I believe on bears in the marketplace.

There has to be a real understanding of why that scenario should

take place and largely this is going to come by experience.

Okay.

And obviously that experience comes by taking action in a demo account.

And when you do that experience should be low.

And kept for future reference.

Uh, that's the only way you're really going to learn.

Um, obviously if you just go into a demo account and you click on buy and sell and

you're just waiting to see the outcome and you want to attribute the winning trades

as you're a good trader and the losing trades, well, that really didn't happen.

So therefore it doesn't make a difference to me, um, that doesn't

help you as a developing trader.

So the real secrets to, um, finding high reward trade setups is that

number one, you have to know what it is specifically you're looking for

and where to find that information.

So before we get into all those things, I want you to understand that it's

crucial to understand that efficiency in trading comes by way of process

oriented thinking it doesn't come by way of reactionary or impulsive

thinking, which also leads to rushing ahead and trade signals prematurely.

I could tell you if we were all going to sit at the top of my email box and look

at some of the things that I got and by way of feedback, um, it's the reoccurring

thing is, is I want to see trades.

I want to see entries.

I want to see, um, get me in and get me out that type of perspective.

And I understand that I get that.

Okay.

But I can tell you being from where you are right now and where

I am now, in my understanding as a trader, I can tell you, that's not

what you need to know right now.

And it doesn't feel good to hear that it feels like I'm leading

you down the Primrose lane.

If he is like, I'm just, you know, uh, you know, differing, you know, something

that you think you need to have right now.

And that's not true.

What it is is you have to develop a process oriented thinking.

And that means I can show you order book.

You know, I can show you, um, uh, breakers.

I can show you institutional order flow, uh, returning back

to, um, uh, mitigation block.

Okay.

I can show you examples of that, but until you understand the process

behind why these things should be doing what they're going to do, it's

going to be really no help to you.

It's going to feel like I'm demonstrating toys.

It's going to feel like I'm, you know, showing you what this is, what I can do.

And that's not what this is all about.

It's to show you with an intimate experience on a day-by-day basis, a

weekly basis, a teaching tutorial basis, a theme generalized over the month.

Okay.

That builds on your total understanding.

Um, the folks that are struggling right now are the folks that are

really trying to be a reactionary or they're impulsively thinking

about what they want to do, right.

And that's the hardest thing for traders to do.

When he first got involved with learning, they have this insatiable desire.

They have to be trading right now.

They want to get in.

They want to take signals.

Okay.

And I spent the entire first month, September on a day-by-day basis

showing you that there are a plethora of trading signals all the time.

We were laser guided precision.

There's no reason for you to be feeling rushed, adopt Tobar didn't change.

Okay.

The way practice is being delivered, none of these concepts fell out of fad.

Okay.

It still works.

But I needed to show you the first month that there's nothing that's going

to hinder your ability to find signals because there's always a lot of them.

The problem is going to be is, is you don't know what defines

the setups for you as a trader.

And you're not going to have a process oriented thinking that leads

you to high reward, trade setup.

And it's, it comes by experience.

It comes by showing you conceptual ideas and a broad brush idea of

breaking down what it is that we look for in the marketplace.

And where does that information reside?

So it's real important.

Before we get into this, that this is important that you focus on the fact that

what I'm showing you in this teaching, while it doesn't give you technicals,

it doesn't give you trade scenarios.

It doesn't give you a specific, get in, get out type things.

I'm I'm of the mindset that this is exactly what I needed to be told when

I first started as a trader, but no one was around to tell me these things.

No one had the experience around me, or I had the, uh, the avenue of reaching them.

Like you have with me, you have a very intimate relationship with me as a mentor

because I'm spending a great deal of time.

And I'm investing a lot of my time by way of my expenses.

And it takes a lot of time to communicate that because we're talking about

someone that's been doing this for two decades or more, and there's a lot of

lessons I learned and there's a lot of lessons that I resisted initially.

And some of those are the same things.

I'm one of those individuals that are feeling it right now.

And you know who you are because right now you're squirming, you're wanting to

get on, get on with it, get on with it.

Michael, if you're feeling that you're in that reactionary, impulsive

thinking, okay, you need to change that.

Suppress that.

It's hard.

I know it's hard, but you're not going to get to high reward trading scenarios.

Okay.

That you can find very quickly in the marketplace that you can

find consistently efficiently.

All those things are going to evade you because you're looking

to do something right now.

And professional traders are not in a rush to put money at work.

They want to sit back and wait for a scenario.

That makes sense.

So if, if we were all in a room.

And everyone had a chance to ask me something.

I can tell you the number one reoccurring question.

If we were all to write it down on a piece of paper ahead of time, not just

the broken vocally, say it that way.

No one would new basically replay it and repeat it.

The, uh, the question would come up way of what makes me think this order

blocks going to do what or what makes me think that this level's going

to keep price from going higher?

Or what, why do I think that you to swing should go up after midnight and then sell

off, you know, what are all those things?

And I understand why you're asking those questions and they

have the same types of questions that I had about the marketplace.

But again, I didn't have anybody to direct those questions to, but it's

important that you understand that.

There's no way I can actually answer that question to you now, because we haven't

gone through all of the things that are necessary for me to adequately answer.

It would, it's almost like I'm creating an additional language on

top of what you've already arrived at by going through my free tutorials.

And that's why I require 12 months with me because it's going to basically beat

it in your brains by hearing over and over again, specifically dealing with it.

I'm going to try a trade by trade basis, a daily, uh, involvement,

um, the, uh, the application.

And that's going to be, you know, the big takeaway you're going to have experience.

Whereas if I just wrote a book or if I made some DVDs or CDs and

you watch them, uh, that will be it, it would be rather stilted.

You would come away with, well, that's cool.

I can see how it works sometimes, or I can see how it works in

the past, but you don't have the intimate relationship of sitting

down and going through the process.

Okay.

And I explain why it should take place.

We did some of that on a micro scale in September, but we need to go through

a process, uh, of, uh, outlining, you know, what the beginning foundations

are going to be, because as we go into the fourth, fifth, and six month,

they're going to be greatly, um, uh, focused on the, the components

that make up the trade templates.

Okay.

In other words, at the end of your mentorship, you're actually going

to get a flow chart for when to be.

For swing trades wanting to be a seller for swing trades, every specific

decision point that goes through my head as a trader and what tools

you use for each decision point.

And what's the response that you should have?

Um, everything that we use, everything that I go through in my

tools, uh, for short term trading, same way, what makes me be a buyer?

What makes me be a seller?

You know, what makes trade no longer?

Good.

Where does my stock go?

When do I move my stop?

All those decisions that go through my new, my mental process.

Okay.

Because whatever, everything I do is process oriented thinking

and it comes across as well.

You you're just really good at this and it's not that I'm good at it.

It's just, I'm experienced at it.

And I know what decision I need to make right now.

And sometimes it's sit on the sidelines and because I've done it so long.

That experience gives me reference to go to mentally.

And it only takes a few seconds sometimes to arrive at where I think the market's

going to go based on these processes now, while it seems like it's a great deal

of information and I'm, jawboning here.

It's important that you really, really listen.

So if you're, this is one of those videos, because there's no

charts here, you need to sit down and listen, don't be watching TV.

Don't you know, don't be having your kids in the sidelines.

Okay.

Distracting you, you need to be paying attention to this

one because it's important.

Okay.

So let's take a look.

Yeah.

How we go about this using the tools and all the, uh, the processes along

the lines of ICT related information.

Um, obviously again, we're not talking about D trade plan development series.

Okay.

It's just like a micro scale version of all that stuff.

So we're going go right into where the information is going to reside and what

you're going to be looking for in these specific areas of study before we get

into any high reward trading scenario.

But we have to understand, obviously there's going to

be a big picture perspective.

Okay.

And w when I say big picture perspective, it's primarily for areas of reference,

it's going to be macro market analysis.

It's going to be inter I'm sorry, interest rate analysis, intermarket

analysis and seasonal influences

index.

Next area of studies is going to be for an intermediate perspective.

Uh, we're gonna be looking at top down analysis.

Cot data, which is commitment of traders and market sentiment.

And for our short-term perspective, we're gonna be looking at correlation analysis

time and price theory and IPTA, which is the interbank price delivery algorithm.

Okay.

Now looking closer at the big picture perspective, we're going to take a look at

what makes up our big picture perspective.

Um, obviously there's four areas of study and again, my, uh, macro market analysis,

interest rate analysis, intermarket analysis and seasonal influences, a little

bit of a tongue twister here, folks.

Um, when we look at the big picture perspective, okay.

Uh, while there's four areas of study, um, we're going to need to

primarily focus on at least two of these that have to come into it.

Okay.

Um, what I mean by that is our macro analysis, our interest rate

analysis, our inter market analysis and seasonal influences, uh, all four.

These do not have to agree.

Okay.

But you do need to have two of these components to arrive at

your big picture perspective.

Okay.

And that words are our grand scheme of things are, are

our big picture perspective.

Okay.

Is going to be defined by at least two of these areas of study.

They have to come into agreement.

It doesn't matter which of these four that you elect to subscribe to, but

they have to come in an agreement.

So let's take a look at, um, a little bit more information

about each one of these four.

Okay.

So again, focusing on the big picture perspective, the first

thing we're going to be looking at is the macro market analysis.

Now, this is really simply described as, are we in an inflationary market

or are we in a deflationary market when the markets or a currency or

country is in a inflationary condition?

Uh, it's going to have a direct relationship on the currency.

Obviously when they're in a deflationary market condition,

that's going to have a relationship or a response to their currency.

Um, it also, in terms of equities is going to have a direct relationship to that.

So when we talk about, uh, commodities and we talk about, um, stock prices

later on in this mentorship, uh, inflationary and deflationary market

conditions are going to have a large, uh, impact on that as well.

The next area is interest rate analysis.

And obviously when we're looking at interest rates, we have to consider,

are we looking at higher interest rates?

Have we seen a trend in interest rates?

Have they been climbing?

Are we looking at lower interest rates?

Um, have we just had, uh, rates, uh, uh, decrease or have we seen

a trend in lower interest rates or do we have an unexpected change?

It's something coming out with, uh, you know, FMC that, uh, their

currency coming out and, uh, intervene in their currency by having an

unexpected interest rate change.

Uh, did they hike interest rates or did they do an unexpected, uh, rate cut

and also, uh, by looking at interest rates, which is not noted here?

Uh, we look at differentials between, uh, two interest rate markets.

So between a currency that has a high interest rate and another

currency has a low interest rate.

Uh, many times that creates what's called a caring, uh, um, And carrying

charge market where you can actually have, uh, a very easy way of finding

a trades directional when it has that.

Um, but again, you know what we're looking at.

If we were just looking at these two primary areas of focus for the big

picture perspective, um, we could have the macro market analysis and

the ways we could see an inflation in the market and, uh, interest rates

alignment with that perspective.

And that would give us our big picture analysis.

In other words, that would frame on a grand scale, are we a buyer or seller?

And we want to focus primarily on that.

The next area of study is inter market analysis, and it's going to come by

way of the CRB index or we're focusing primarily on the commodity market.

And we're looking at the relationship between the

commodities and the us dollar index.

Uh, you're going to see many times, um, the markets between commodities

and the dollar index are inversely.

In other words, if the dollar index is going up, usually commodity prices

are going down and when commodity prices are going up, usually the

dollar is going higher and vice versa.

In other words, um, again, looking at these three areas of study, uh,

we need to have these areas of study to come in agreement, to arrive

at our big picture perspective.

Okay.

We could see a interest rate, uh, market, uh, indicating that there are

lower rates on the horizon or, um, or higher interest rates on the horizon.

And that's gonna, you know, lend well to a directional bias on a currency.

And if we see that same time happening where the commodity market wants

to go higher, and the dollar index wants to go lower, that gives us a

framework for a high reward chain scenario relative to the big picture.

So the only thing we're doing now is framing three areas of study.

Okay.

And if I haven't said it already, uh, what makes a high reward trade setup is if your

big picture perspective, your intermediate perspective and your short-term

perspective is all in agreement.

Okay.

And directional wise, if you want to be a buyer or seller relative to those

three perspectives on the marketplace, if those three are in alignment and you

trade on that side of the marketplace, that is high reward trading scenarios or.

And the last and the four is seasonal influences.

And that is obviously you speaking on terms of, are we in a bullish, seasonal

tendency for that asset class or, or a payer or currency or for the dollar for

that matter, um, or, or commodities, if you, if we're studying commodities,

there's a large, uh, seasonal influence that has, um, an effect on commodities.

And if we see that, obviously there's going to be mirrored and

what we see in the dollar index.

Okay.

Um, the CRB index is entering a time when commodities as a whole, usually go higher.

Uh, that's going to put downward pressure on the dollar.

So if there's gonna be downward pressure on the dollar, that means that we can see

easy buy signals in currencies to have interest rates that are going higher.

And that, that chasing of yield okay.

With the currency makes a high reward trades.

And then obviously there's bears seasonal tendencies as well.

But when we go forward in the mentorship, we're actually going to be breaking

down what specifically frames a inflation, I'm sorry to inflationary

market and a deflationary market, and how to go in and look at interest

rates specifically and how they use the interest rate market for timing.

So it gives us a stage on when this criteria is in place, what we do with

it, you know, what, when should we be buying or selling relative to the

interest rate analysis that we see and the same thing with intermarket

analysis and seasonal tendencies,

the next area of focus is obviously the intermediate perspective.

And that is by way of looking at a top down analysis, uh, the

commitment traders, data and market sentiment, and for intermediate

perspective, there's only really three things that you're looking for.

Okay.

At least two of these things have to come in an agreement.

So that means by looking at these three specific components, okay.

Top down analysis is simply just looking at, um, uh, higher timeframes down

to a lower timeframe and CRT again, if you're not familiar, what that

is, it's commitment of traders data.

Uh, what we do is we look at the CFTC re uh, report that comes out every week

and it gives us a reportable level, uh, report on, uh, large commercial

traders, uh, large speculators.

And obviously the small specks.

We're not really so concerned about small specks.

Small specks will be somebody like ourselves.

You know, when we're trading in unreportable, uh, levels and almonds,

we don't, we don't trade at a level where we have to report our trade

size, which is mandated by the CFTC.

At least in the states.

It is.

And the market sentiment is simply a, I use markets.

Okay, which is a measure of brokerage firms actually calling around and getting

a consensus on whether they believe a particular market is bullish or bearish.

And it's basically, it's an opinion.

Um, you can, you can use other things like, um, there's certain

websites out there that have, uh, a bullish or bears, um, an opinion.

Um, like if you go to bar chart.com and you pull up a specific commodity,

uh, you can actually see what the community at large in net forum has

for that particular, um, that view.

Um, I think there's, uh, pretty much just about every forum out there

has a way of measuring sentiment.

And I do a lot of research on Saturdays.

With that perspective alone.

I go through a lot of resources and actually show you where I

go and get all my sentiments.

But, uh, it's again, this teaching is not going to teach you everything about every

individual component, but the components that we're talking about specifically,

we're laying down the foundation because it's important that we know where our

study is going to be focused going through this mentorship and why it's not

a lot of information, but it's a little bit of homework that's needed for you.

Did they get to the decision making processes that I go through as a teacher?

So again, intermediate perspective, let's take a closer look at these three things.

Okay.

So enemy perspective on the marketplace, framing, high reward

trading scenarios or setups.

Okay.

Top down analysis is obviously this going through a monthly chart and

we do Mar monthly chart analysis.

And w what specifically are we looking for in a monthly chart?

Um, you know, obviously without going into great detail, because

I'm not trying to teach it all here.

Uh, the monthly chart is we're looking at key levels.

We're looking at intermediate and longterm highs and lows.

Uh, we're looking at, uh, uh, specific order blocks and we're looking at, uh, you

know, levels that show a clear indication of wanting to repel price higher or lower.

And the same thing as said for the weekly chart.

Uh, when we look at the weekly charts, we're looking at again,

a higher timeframe perspective.

So it gives us a great deal of framework for high reward trading scenarios,

simply because of the weekly chart being again, a weekly chart, uh, large funds.

Okay.

Large managed funds do a great deal of analysis on weekly charts.

Okay.

Um, most of their work really comes by way of monthly and weekly and

they usually execute on daily charts.

Okay.

So it's important that, that you understand that that's the reason

why the markets move around.

Like they do, um, most folks that have YouTube channels and, and Facebook,

uh, you know, uh, accounts and they're out there trying to pretend that

there are some kind of analysis or I'm sorry, analyst, or, or teacher, um,

they'll be teaching with a one minute chart or a five minute chart, right.

They, they lead individuals to believe that these intraday charts have some

influence over price and they don't, all they're doing is reflecting.

Okay.

What is going to be arrived at, by looking at a monthly, weekly and a daily chart?

Because those three timeframes are really what makes the markets move by

having these intermediate perspectives.

Okay.

Again, you have to have at least two of these, uh, the

areas of focus in agreement.

So in other words, you can have a, an idea on a monthly chart that frames

one of the two things that lead to your intermediate term perspective.

Okay.

And it could be, obviously it can be all for the weekly chart

or it could be the daily chart.

Okay.

But that would be one of the two that's necessary to frame your enemy.

The next area of study would be a C a T data.

Okay.

That's obviously looking at the bullish hedging by smart money

or the commercial traders or the bears hedging by the smart money.

And again, if you haven't watched any of my free tutorials, um, there's

teachings on commitment of traders.

Um, it's important to know that you'll learn everything you need to know

about cot data in this mentorship.

So even if you haven't watched the videos, okay.

Or familiar with commitment and traders, just settle down, relax, please.

Don't send me a Twitter storm of questions or emails because everything I'm talking

about here, I'm laying down a foundation.

Okay.

These are the things that you need to be starting to write down in your

notebook, because there's going to be areas in your notebook that you need to

have specific notes relative to these.

Okay.

And I will give you everything you need to know and more trust me, but

I'm just giving you the foundation of where our study is going forward.

Okay.

Going into this mentorship, and obviously with the cot data, we

look at extreme levels historically.

And in the last 12 months, in the last four years, uh, when the commercials on

the commitment traders report get to a 12 month extreme, higher or low, I don't

want to say if they have a real extreme, high reading or low reading relative to

the net sum zero line that that's used for the cot, uh, net traded physician

chart, which you'll learn all about, um, that usually sometimes indicates

a change in their hedging program.

And it gives you a real clear indication of there's probably an

enemy in term or longterm high form.

And the last is market sentiment.

Obviously we're looking at extreme market bullishness or extreme market bearishness

and again, that's one of the things that come by way of my Saturday studies.

I go through all of the things that lead to my, uh, opinion or

my own individual market sentiment readings based on a number of areas.

I go and look for, uh, readings.

And then I get an average of that reading and come away with a consensus,

whether or not we're either at a bullish or bearish sentiment.

Now, again, out of these three, you need to have at least two of them in agreement,

the least the, uh, of significance is obvious the market sentiment.

But the main thing is, uh, you know, the top-down analysis, you have to

have a level or an idea relative to the monthly, the weekly or the daily.

It does not require two of those timeframes.

It just needs to be.

Okay.

Uh, you can trade really without the, uh, monthly, weekly and daily chart

and trade on a idea of relative to the commitment of traders and sentiment.

Now think about that.

You're probably thinking, wait a minute, Michael, when you say we got to use a

daily chart, we've got use a weekly chart.

We gotta use a monthly chart.

Yeah, you can, but you can still use the commitment, traders data

information I'm going to provide to you and market sentiment to frame

your intermediate perspective.

Now, obviously we're not executing on an intermediate basis, but

it frames your trade idea.

You need one of two, at least three to come in and agreement with your

intermediate term perspective.

Now I know what some of you were already thinking.

Well, what if I look at a monthly chart and it tells me that this is bullish

and the weekly chart says it's bearish and a daily chart is bearish, but the

commandment trader says it's bullish and market sentiment is extremely bad.

Okay.

What do I do with all that information?

How do I arrive at that?

That's all going to be taught to you in the mentorship, but the

main thing is, is this criteria is what we'll be using going forward.

So that way, when we look at the market in these views, you'll understand why I'm

doing what I'm doing, because it's based on the things that you're seeing here.

Okay.

So again, just knew that to have the intermediate perspective outlined,

if it come to an agreement that at least two of these areas of study or

focus for the enemy term perspective, you have to come into agreement with,

with two of them, no words either have to be a buyer based on two specific

areas of study here out of the three.

Okay.

So again, as an example, you know, the weekly chart indicates a higher

prices and commitment traders suggesting that there's bullishness

on the stance of the commercials.

Uh, that would be enough to frame a.

Intermediate term perspective.

That means you're gonna simply wait around for a short-term perspective,

that lines up with buying and that's really all we do here.

That's all we're doing.

Okay.

So we're going to frame a macro big perspective.

Okay.

And then eating an intermediate term perspective and a short-term perspective.

That's what we're looking at next.

Keisha for short-term perspectives, we're going to be looking at the

correlation analysis time and price theory and IPTA, which is again,

interbank price delivery algorithm.

So take a coach.

Look at this short-term perspective.

Okay, so right away, there should be something staring at you that now all of

a sudden, we have to look at three things to arrive at our short-term perspective.

And the reason why is because most people just look at it and one minute

chart, or if I'm in insurance says, okay, well, this is what all I need.

And that's what gets them in trouble.

Okay.

So when we look at short term perspectives, okay, we're gonna be

looking at the correlation analysis.

And again, that is going to be linked to your understanding of

the U S dollar index SMT analysis.

And I know it's probably went way over your head.

If you're new, if you never went through my free tutorials, that's probably

sounds like, uh, something you hear from NASA, but, uh, that the dollar

index SMT analysis is basically just looking at the relationship between

the dollar making higher highs.

Um, A relationship between a currency to the dollar, like the British pound,

for instance, if the dollar is making higher highs, if the British pound

versus the dollar fails to make lower lows, uh, that's a cracking correlation.

And we, we view that with a specific idea in mind.

And the other, uh, correlation analysis concept that I use is correlated pair

SMT analysis, where we look at, uh, closely correlated pairs, like for

instance, a Euro dollar and the British pound dollar, uh, because usually

they move in a general same direction.

Not always, obviously you can see what the Brexit issue.

Um, generally when there's a symmetrical market, which we learned about in this

mentorship already, uh, correlated payers move in tandem, um, when they do not

move in tandem, that obviously gives us a lot of insight in terms of how

we should be trading the marketplace.

If it is not moving in tandem, then obviously that's

indication that we do not have.

Asymmetrical market.

So that means we have to be very selective with our trades because

now there is the lack of summit symmetry in the marketplace.

That means the dollar is very clearly moving higher.

All foreign currencies are moving lower in sympathy.

Next area of study is time and price theory.

Okay.

And so in time and price theory, we're looking specifically

at the quarterly effect.

That means every every three months or so, uh, there is a new price shift

in, in, uh, the higher timeframes.

In the words, if the market's been going higher, uh, generally you

probably see the market go into a consolidation over the next three months.

Uh, not for the next entire three months, but over the course of three months,

if the market's been going higher, uh, you'll probably see the market

going to consolidation or reverse.

Okay.

And if the market's been going low.

Okay.

Over the next three months, uh, we may see a consolidation and then go into

range or it could reverse and go higher.

And then we just, we were watching them, uh, the market over a it's

usually a three to four months.

So I'll out a little bit of overlap in terms of calendar months.

It's not specific daily.

Uh, you know, I'm sorry, it's not specific to the first of every

month to the end of, uh, you know, the last day of the third month.

I, it's not that clear cut.

Uh, so we look at the market with a quarterly perspective and allow,

um, the next shift in market structure to, uh, uh, unfold.

There's a monthly effect where we look at the monthly ranges and we

look at, uh, specific points of reference relative to the monthly.

And then obviously the weekly rains, most of you know about that.

Cause I teach a lot in my free tutorials about a one shot, one kill setups,

which I think is like, that's like my bread and butter go to, uh, that's how

I, that's how I define my own trading.

I am a weekly range trader, uh, by far and large.

That's usually how I'm treating the marketplace.

I'm looking for capitalizing, uh, at least the lion's portion of what

I interpret as the weekly rains that may unfold for the week ahead.

And then obviously the daily range daily range is the time and price

theory that we use for engineering to daily range, uh, that the power three,

you open high, low, and close how that transforms into the actual daily candle.

Uh, you know, those theories and ideas concepts will we'll

teach a great deal about that.

Uh, and, and obviously time and time of day, um, w we'll build on, what's already

been shared in the free tutorials and you'll actually have, uh, really precision

based concepts, uh, as it relates to that.

And I'm finally APTA, which is the interbank price delivery algorithm.

Uh, we'll be nailing down institutional order flow.

We'll understand, obviously, by looking at liquidity, we'll be looking at

how the market seeks liquidity and we'll be finishing up our perspective

on market efficiency paradigm.

So when we are looking at the short-term perspective, we require three things.

Okay.

Three things must come by way of these three areas of study,

correlation, analysis, time and price theory, and the APTA.

Preferably you have to have at least one from each.

Okay.

So going, where do you have to have a, your dollar index has given you

an indication that it's showing you a crack and correlation or correlated

pair SMT is giving you insight.

Okay.

So that would be one way of determining correlation analysis.

The next area is crucial time and price.

You have to have something from the time price theory to indicate where you're at

relative to the short term perspective.

Now you're probably thinking, okay, well, how is the quarterly affected a monthly

effect or a weekly range, a short-term perspective, uh, because short term is

what you're actually going to execute on.

Okay.

It doesn't mean this is your five minute or 15 minute, uh, set up.

It's just, this is your short-term perspective.

So we're looking at framing, the ideas of trading around a big picture

perspective, intermediate term perspective, and a short-term perspective.

When we get things in alignment that lead to us, being a buyer all across

those three perspectives, being a big picture perspective and immediate term

perspective, and a short term perspective, we are highly prepared to find high reward

setups, to be a buyer in those conditions.

Doesn't mean you're going to have a.

No losses and you're going to have all winners.

It doesn't mean that.

Okay.

But we have a context that we frame our ideas of trades with that model,

or at least that's how I do it.

So that's why you're here.

You're going to learn how I do it.

So this is how I do it.

Um, we can have the correlated analysis, give us a indication that,

uh, we're going to be bullish on dollar, which would be bearish on foreign

currencies and time and price theory.

Okay.

Uh, quarterly effect.

Um, w maybe we've seen the market moving higher.

Okay.

In recent months.

And we're probably getting ready to go into a down cycle.

Okay.

And that would, uh, lend well to, um, you know, being.

On foreign currencies, uh, maybe the, uh, um, the weekly range.

Okay.

Maybe we have, uh, initially at the beginning of the week, we've rallied out

from Sunday and the Monday, and now we're primarily looking for what lower prices.

And if we see that weakness on the part of foreign currencies, relative to what

the dollar index is suggesting, okay, these are all scenarios I'm giving you

just, and I get, cause some of you, you're probably thinking Institute vague.

Isn't that helpful?

Okay.

Believe me.

This is, this is what really trading is all about.

You're doing all these things behind the scene.

The very little bit of time that's used to execute trades.

Okay.

That's so tiny.

The most of your time is going to be, it'll be in the process of deciding

whether or not you should be a buyer or seller and what frames that criteria.

And obviously the time of day, um, you know, are we in a time of day where

it's conducive for the trade, the setup?

Okay.

Um, we may not have anything immediately off the quarterly effect or a monthly

effect or weekly range or the daily range.

Okay.

Let the time of day may indicate that now suddenly there's

something that we could do.

Okay.

And obviously APTA is always going to be essential, uh, understanding

institutional order flow and understanding where liquidity is and

why the market will seek that liquidity.

And our perspective is always with the market efficiency paradigm.

We look at the marketplace in terms of where are the orders and

it's not the orders of the smart.

Okay.

Like supply and demand tries to teach.

They teach you that this is where smart money orders are.

And this is where smart money, uh, uh, wants to go back to.

They're not always knowing that there's sometimes seeking where existing olders

are that would allow them to engineer counterparties to their execution.

Okay.

So in other words, they're run old highs for the buy stops.

They'll run old lows for the sell stops because that will be a

forced injection of liquidity to be counterparty to their bookmaking.

So we're going to go forward in our studies, in his mentorship

with a great deal of, uh, refinement on all of these things.

And I know some of you probably looked at this and say, well, this is a lot

of just boring information, but I have to give you a context of where

our area of study is going to be.

So in the grand scheme of things, we're going to be

breaking them out, sit down and.

Nice specific perspectives.

And then what we do in these respective, uh, areas of study that give us what

we're supposed to be specifically doing on a day by day basis.

Now it looks like, and I've been talking for a long time.

It looks like a lot of information and a lot of things to do before you come away

with, okay, I'm going to be by herself.

You'll see.

Obviously the big picture perspective.

You usually have that at the beginning of the week and the intermediate term

perspective, you usually have that at the beginning of the week, too.

It can happen or change gears in the middle of the week, relative

to Tuesday and Wednesday, but usually the short-term perspective.

That's the one that usually changes on a day by day basis.

Okay.

So I understand that while we're doing a lot of our homework and the big picture

perspective and Amy and term perspective, and we can do that on the weekends.

Uh, your nightly or daily procedures will be largely in this list that you see.

So when we do like, um, live sessions, okay.

I'm operating from this scale right here.

I'm looking for three things that come in agreement.

And that's why when I call a specific move in the marketplace, they usually

go there and I'm using this right here.

They are all linked to my understanding of what I arrived at for my intermediate

term perspective and my big picture.

Okay.

But once you understand price action extremely well, and

yeah, you operate as a scalper.

Okay.

And I'm not trying to induce the notion of scalping as a, as

a, uh, an ideal way of trading.

But I know someone you're going to take my information and do that in variably.

Um, you can just use what you see here, and you can be a very efficient

scalper if you understand what is being shown here and what specifically

that we do with this information and you understanding what the quarterly

effect is, what the monthly effect is, weekly range, daily range and time.

Understanding what SMT divergence is and correlate SMT divergence and understand

what that cracking correlation means for you as a trader, and then obviously

understanding institutional or foe, whereas the stops and why those stops

would be necessarily up for grabs.

Why would the market go there?

And that's what the market efficiency paradigm is.

So again, this is the only thing that you need to be worrying about in terms

of trade plan development for the ICT mentorship, all of these things come by

way of very, very short amount of time looking at price and you'll come away

with what you want to do right away.

And initially you're going to write down these things.

Okay.

I, I believe that, uh, the big picture perspective is I believe that it's

going to be this, this and this.

And then you're going to go into enemy term perspective.

And, you know, you come away with your analysis on what you believe there.

When you see the short-term perspective, you go through these same processes here.

Uh, basically what you saw me doing with the exception of not bringing

out the SMT diversions, um, studies in September, because I was looking

at it, but you just didn't see it.

The, uh, I was operating on this, this short-term perspective.

That's how that's my, this is my model.

Okay.

So as a day trader as a short-term trader and as a one shot, one kill trader,

this is all the information I need.

I don't need anything else outside of this page.

You're looking at right here.

I just need three things to come in agreement with that.

And then I'll understand where it short term perspective is and

where the market's going to go.

And that's why I'm like 90 plus percent accurate.

In the month of September, we pretty much had a hundred percent hit rate

when everything, when I asked the market to show us in terms of where it was

going to go and why it would go there.

It's not always going to be that easy.

There's going to be transitions obviously on an intermediate term

basis and even a long-term basis.

And that will cause you to have hiccups or speed bumps,

if you will, or barriers okay.

On the short-term perspectives.

And that's where the losses are going to be.

You're going to find that your losses are not incurred so much by

way of trading in the intermediate and long-term perspective.

The big picture when you're trading a, those higher timeframes, those trades

generally will serve you very well.

You will still have losses, but you're going to find it.

All of your trades that have the majority of the losing side

it's going to be because you're in this short-term perspective

and you either force something.

That market's in transition and yet to allow for that.

Okay.

So if you're focusing on the higher timeframe perspective and

your trades, that is an advantage.

So while we see me operating a lot with the 15 minute timeframe and the four

hour and the one hour chart, um, the things that we talk about are largely

on the weekly and the daily chart.

And if we do that primarily in all of our trade setups requiring a big

picture perspective and intermediate term perspective and a short-term

perspective in alignment and agreement, that means all three, uh, we come away

with a reason for expecting that outcome.

In other words, higher prices or lower prices.

Um, thinking about what we have here, we have to have seven things in agreement to

make a high reward, trade scenario, okay.

For a high reward trading setup, it has to be four things in agreement.

That means you have to have two things.

In agreement from the big picture perspective, you have to have two things

in agreement with the intermediate term perspective, then you have to

have all three that's listed here.

Okay.

You have to have one from each one of these three to come in agreement

with all three perspectives, the big picture to intermediate term perspective

and the short term perspective.

And if you frame your trades with this mindset, what that does, is it

number one, it gives you clarity.

Number one, it gives you an understanding of what it is that you

should be expecting to see in the marketplace and why which is important.

Okay.

It's not important to understand every dynamic behind what's being shown here

for each perspective on the marketplace of study, that's going to be taught

to you, but understanding that you need to have seven things, okay.

Seven things that build high reward traits.

Okay.

This is not execution.

This is not entry.

It just gives you the framework.

What makes that trade high probability or basically high reward.

You still have to wait for a entry signal.

And again, that's the least of your concern right now.

So that's what I'm saying by looking at this information like this, even without

going into great detail about each individual component, you can see clearly

that there is a method behind what I do.

Okay.

Folks that are on the outside, they'd look at what I do.

And they say, well, it's, there's no real structure here.

There's no real, um, plan of action.

Now there's no way of knowing what it is that I should be doing

from the beginning to the end.

And that is because they have not been exposed to what you're being exposed to.

Now, there is a method, there is a rhythm, there's a routine that

you go through, but they have to come by way of a process oriented.

And this is how I break the market down.

This is how I internalize it.

And I do it through the process of going through these three perspectives.

And by doing that, it gives me everything that I need in

terms of arriving at a decision.

And once you have that same process of, uh, thinking, okay, you'll have no

problem going through the marketplace, finding scenarios and setups, and in

picking out what gives you your unique trade set up that you like to trade.

If you find very easy and the clarity will be exactly as you imagined it would be.

And when you get in front of the chart, it just jumps off at you.

Okay.

That's how it will be for you as a new trader.

You don't get exposed to these types of thinking.

You don't get exposed to these process, uh, you know, uh, uh,

procedures where you have to look at things conceptually, because

number one, it doesn't sell courses.

It doesn't make you want to watch that YouTube.

You don't want to listen to this one.

Okay.

But this is where the real meat is.

Okay.

You have to know why these things make a difference and why it's important that

you understand what you need to be doing for individual perspectives of study.

And then once you go through it and understand it it's like anything

else, no one wants to read the driver's manual to learn how to drive.

No one wants to look at the instruction manual on how to put that TV standard

together that you had to buy.

Cause your wife said you had to have it.

Okay.

And you just want to look at the parts and fit it together so

you can quickly get through it.

You can't do that with trading.

Okay.

You have to go through this boring stuff.

And it means a great deal.

Trust me, if I would have been told this initially I would have ignored it too.

I would have just pushed it aside.

And I was looking for, give me the buy signals and give me the sell signals.

Cause that's how I thought too.

Once I felt the pain of not knowing what I was doing, then I suddenly got interested

in what makes traders think the way.

And then what's the process of why they think they way they think.

And why, why did they build their trading plans around that?

And if you think about it, what do you not see in the marketplace?

When people sell things and they sell courses and stuff, what is it?

They don't sell.

They never sell you an actual trading plan.

They never sell you a step-by-step.

This is what you're going to do.

And this is the reason why it should do this.

No one does that.

That was my goal for this mentorship.

I want to show you what specifically I do as a trader.

Now I'm going to give you all kinds of ideas on how you can refine

that and make it uniquely yours.

And you can define your own trading model around that, because I believe

just like Chris, Laurie has said, and I was in agreement with him when he

said it, you can't copy someone else.

You can't do it.

And some of you want to be just like me as a trader and do this and do that.

You're only really asking to be able to call moves and track.

Did a levels, like I call it an advance.

So it's not that you want to trade like me.

You want to have the ability to read and interpret price acts in the same way I do.

And that's what you bought and paid for.

And that's what you're going to get as a delivery.

By the end of this mentorship, you're going to have everything

that I do, why I do what I do and how I arrive at understanding

is what it has been shown here.

There's no secret sauce.

There's nothing outside of.

What's been shown here, the theory behind why they all blend together.

Okay.

That's what we'll be building on.

And at the end, once we understand intimately what each one of these

perspectives we're looking for and what criteria lends well for

the decision-making process for each individual perspective and

individual respective component.

Once we have that, then we have the building blocks.

The flow chart for every model of trading that there can be day trading, scalping,

swing trading, one shot, one kill, you know, position trading, all those things.

It's easy for me to have a flow chart and say, okay, XYZ, do this, or do that.

You'll know what I mean by that.

And that's what I said.

If I, if I put the flow chart up on the website right now, and you

wouldn't be able to do anything with it, it would be no use to you.

You couldn't do anything with it, but by breaking down these individual components

intimately you'll know what I mean when I say, okay, do this or do that.

Okay.

You're okay.

Well, I understand what that means.

And then I know how to arrive at the decision relative to those.

Points of reference.

And then by doing that, you'll work through the flow chart.

And you'll either come to the decision point where you take action or you

stand and you wait for more information or you go back to the previous stage

and you wait for more information there and it makes it very binary.

You need your trading to be just like that.

It's boring.

And that's exactly what you want.

You do not want high excitement in your trading.

Only do that on the weekends.

When you had a really good smashing week, when you just killed it,

that's when emotions are allowed.

But throughout the week, when the markets are still trading, you can not allow

your emotions to get ahead of yourself.

You can't get crazy and you want your trading to be boring.

You want it to be monotonous.

You want it to be mundane and routine.

Yeah, nothing exciting about it.

That's when you know that you're going to be forced by emotion.

You're not to be drawn in by fear and greed.

It's this business as usual.

It's the same thing all the time.

And you hear it sometimes when I'm talking, uh, you know, I'll

talk about associate level, the markets start screaming for it.

I'm still talking, you know, I'm not worrying about it because

I've seen it too many times.

The whole time that the room is lit up.

They're like, I can't believe this happening.

Look how it's moving.

Look at it went right to the PIP.

You're all experiencing that for the first time.

You, especially in December, everyone that was watching on a day to day by basis.

That's not something that I get excited about unless, you know, I see a real new

trader when they get in there and they start looking at it and their response

is then I can get to relive that moment.

But when we go through the process of breaking down the markets and we're

looking for high reward trading scenarios, you have to suppress that desire.

Don't be in a rush to get to that feeling of you were right.

And look at the market.

Don't do that.

And by having a process oriented thinking, you're thinking binary

it's X or it's oh, it's on.

Or it's off it's black or it's white.

That's how your trading has.

And if you can work your trading model into that area of study and execution, you

will have no problem with fear and greed.

You won't rush, you won't have any issues at all.

And just like we've mentioned in the previous teaching, uh, if you have a

loss, there's no reason to worry about it.

It's very easy to get it back.

And even if you have a string of losses, it doesn't take long to recoup that.

But if you lose your mind, okay.

Thinking all of a sudden the markets are, you know, are not

going to work like this again.

And there's no reason to think that way.

You'll see by the end of this mentorship, you'll know everything you need to know

and how to operate and execute and engage the marketplace on a day-by-day basis.

And you'll know what exactly you're going to do.

Right.

But it comes by what we just described here and all the framework

that's been shown here, nothing outside of this, no secret stuff.

Okay.

Everything refined to great detail, minute detail.

And then what that all allow us to do is to have specific processes

that will lend well to specific conditions that we'll talk about.

And then all that will give us our trade scenarios and setups, but the

ingredient behind it all is what's been shown here in this tutorial.

And it's important that you understand that this is exactly

what you would be wanting to know, but you just didn't know it.

And it doesn't sound sexy.

It doesn't make a good course.

It doesn't make a good video YouTube.

Um, if, if you were to just explain this, if someone was to show just a

PDF file on this video, maybe like this is telling me nothing, but it really

is when we're going to build on it.

It's exactly the, the framework or the backbone of how.

How I'm able to call the markets and why they go, where they go and

beforehand, how I showed 59% in one month, you know, with my FX book for

October, so far, all that is because of, what's just been shown here and my

implementation of all that information.

So I want you to understand it.

We're going to build on this individually, conceptually, and then

once we flesh it all out, it'll be easy to be able to provide a PDF file and

you'll know exactly what that means.

When you look at the PFO, why these information reference points are

influential in terms of decision makers.

Okay.

And once you have that, you'll be exactly what you signed up for.

Independent thinking, efficient trading.