All language subtitles for Lesson 3_classic swing EN

Okay folks, we're looking at less
than three for the February, 2017.

As a team mentorship we're
dealing specifically with

classic swing trading approach

when defining market conditions.

We think in terms of where the price
can reach for both in a rallying and

a decline, this is the foundation to
determining likely market direction.

The PD arrays that have been traded
to or executed on most recently

indicate the opposite PD array.

Spectrum will be reached.

If discount arrays have provided
support for price probabilities

increase, the premium arrays will be
sought after above the market price.

If premium arrays have provided
resistance for price probabilities

increased the discount, any rays will
be sought below the market price.

Okay.

Assume this is the market price.

And this could be in any asset class.

It doesn't make a difference, but
we're going to specifically talk

about, let's say this was Frank and
we're looking at a monthly chart.

What we do is in reference to current
market price, we define the range that

we're presently in, and we look for
the nearest bearish mitigation block.

And we look for the nearest
bullish mitigation block.

Now, again, these arrays may not
exist in current price action, but

this is the spectrum you look through
above and below the marketplace.

In this order above you, you look and
see if there's any bearish breakers

that have not yet been traded up to.

And you look below you for any bullish
breakers that have not been treated.

Above you, you look for liquidity voids
where prices quickly drawn lower or

repriced aggressively, fast, leaving
a big range of only downside delivery.

And conversely, you would look for
any liquidity voids below you where

price has shown a strong, willingness
to rally quickly leaving a porous

wake of only buy-side delivery and
price is an orange, big ranges.

And above current market price, you
would look for any fair value gaps

and below you any fair value gaps.

You'd look for the nearest bearish order
block above you and below you you'd look

for the nearest bullish order block,

and you would look for the candles
to have Wix at short term high.

Any candidate has wicks above it.

We would be noting the bodies of the
candle because there would be liquidity

resting just above the bodies of the
candle and blow you the low, the candles

that have wicks, you would look at the
candles bodies and below it, it would

have liquidity below it, and there
would be rejection blocks, respectively.

And you would look at the old
high or any historical load that.

And you will look for any old, low, or any
historical high that were above framing.

The PDA raise above market price
is in the premium spectrum.

And the raised below market
price is the discount spectrum.

What you're doing is you're going
to be looking at the monthly, the

weekly, the daily, and the four
hour, the same way as I'm outlining.

So when we are referring to
determining the premium arrays

and determine the discount arrays,
this is what we're referring to.

Okay.

This is the PDA rate matrix
and every array above market

price is the premium spectrum.

And every array below current
market action is the discount.

What you're looking for is which
side of the marketplace has most

recently shown a displacement?

Where has price moved away from?

Has it moved away from the
price levels aggressively?

Was there speed involved?

Was there large ranges indicating
to, there's been a massive push by

smart money because we understand that
that entity has more money than us

collectively and it's their business.

So if they push.

Uh, around on these hard timeframe charts,
there's a great deal of probability that

that direction is most likely going to be
at least tradable in the same direction.

K hard timeframe sequence when we're
looking at shorting opportunities.

Okay.

And my free.

Tutorials.

You've always heard me refer
to sell and buy programs.

Okay.

And what is a cell program?

Well, first starts with a monthly
chart and we look for the market to

move away from a resistance level.

That could be a bearish order block.

It could be trading away from an old high.

It could be trading away from a
historical low as resistance, but when

that timeframe is indicated, it wants
to go lower and wants to trade lower.

That is a cell.

Okay.

So we look for monthly trust
to go into a cell program or

come out of a premium spectrum.

And we would look for the same
thing to occur in the weekly chart.

So it would look for premium arrays
in the weekly chart to indicate

that the price wants to reach for
the discount or raised below us.

So that would create a sell
program on the weekly chart.

This continues into the daily chart.

You'd look for premium rates.

Because a cell program or bearish
prices for the daily and for executable

timeframe for swing trading's
it's the four hour chart you would

look for the same thing as well.

On a four hour, you would look for
premium arrays to look for price, to

reject or resist going higher and expand
lower seeking discount, spectrum PDRs.

So for the ideal shorting
conditions and opportunities.

We look for the monthly, weekly, daily,
and for our to be in alignment with

price, moving away from premium PDRs.

And the opposite said for buying
opportunities, we look for the

monthly chart to be in a buy program.

That means it's moving away from discount,
arrays, and seeking to move higher.

To reach up into premium arrays.

There was, this would be a
buy program on the monthly.

And on a weekly chart, we be looking for
price, finding sensitivity at discount

arrays, moving price into a by program.

So you would expect to see
the weekly chart to be moving

higher or trading higher.

The daily chart.

Also, when it's finding support at
discount arrays, we would expect to see

price moving higher on the daily chart.

And on the four hour executable
timeframe, we would be looking for

sensitivity in the discount array.

For buying opportunities.

So that way we'd get in sync with the
monthly, weekly, daily, and for our all

being in sync for bullish or by program
opportunities when we're swing trading,

the easiest and the most probable
direction setups are when all monthly,

weekly, daily, and for our in alignment.

So when we have the monthly that's
bullish, the weekly that's bullish

and the daily that's bullish and the
four-hour trades down into a discount

and find support at for instance,
let's just say a bull shorter block.

That's a high probability condition
because you had the monthly,

weekly and daily in sync with you.

And.

It's already in an existing up market.

So it's bullish.

Undertones are going to be supporting
the idea on a four hour chart.

And if you're looking for bullet
shorter blocks or buying below an

old low scooping up a cell stops just
like a market maker would or trading

back down into illiquidity void, for
instance, like an optimal trade entry

for a fair value trade, going back
into a fair value gap, same thing.

All these ideas are going to be.

Supported with the notion that
monthly, weekly, and daily are already

bullish and therefore the four hour
should be in agreement with it.

And your buying opportunity
should be high probability.

And the reverse is said for bearish
opportunities when the monthly,

weekly and daily are moving lower
and they're in sell programs.

When you see the four-hour golf into
premium PD arrays, bare shoulder blocks,

bears, liquidity voids bears, fair
value gaps, bears, breakers, or trading

above an old high to run out by stops.

Those conditions are high
probability because you have the

monthly, weekly, and daily ENS.

Looking for lower prices and there's
hard timeframe is going to draw heavily

on that lower timeframe for our chart.

So those probabilities shift to a great
deal of favor for you as the trader that

wants to go short and his condition.

Okay.

So for classic swing trading
approach, the general concept is

what we're going to refer to here.

Now I've given you a sample.

Okay.

And I'm going to give you PDF files in
August that give you different scenarios.

That really completely outlined
everything in a flow chart format.

So certain conditions will lead
you to certain decision points.

And once you get to those decision
points, you have to wait for price to

either confirm or negate the opportunity.

But for instance, for this simple.

Uh, classic, uh, trading approach
model that we're outlining here.

The market is already going to be
pre disposed or poised to trade

higher on the higher timeframe.

Now, this could be arrived at
and determined by your analysis

in the form of looking at the
seasonal interest rate driven.

Obviously this would always be
involved in your trading commitment

of traders report or data.

In other words, large commercial traders.

Are they net long on so strong?

And if that's the case
and they're tracking.

Oh, they're hedging program has indicated
they have been buying long-term and every

time it goes to a net long position, or
if they aggressively lessen their short

positions on the cot commitment traders
report or line graph, when that occurs,

that will be supportive of bullish prices.

So as Frank and or, and through market
analysis supports the bullishness.

Now there's going to be in
the form of SMT divergence.

It could be market structure.

You just need a few things on a macro
scale to support the idea that on a

higher timeframe prices should be trading.

You don't need everything in an agreement.

You just need a small sample size
of a few things and agreements

posing that the higher timeframe
directions should be bullish.

When you have a few things in your
favor, that's indicating that's the case.

At least the interest rates, uh,
you know, I think that's the highest

probability I want in your favor.

So if you have interest rates, For
instance like the interest rate

differential, for instance, like the
most recently in our mentorship, we've

indicated that the New Zealand dollar
and the Australian dollar, because of

their interest rate, being the highest
among all the other current season

countries around the world, it's traded
in the Forex, the differential between

those currencies to other currencies,
they have the higher interest rate.

So therefore the yield is
going to be higher on those

countries in their currencies.

So more people are going to be
more likely to buy those currents.

Then they are to sell them because the
differential between the interest rate

that's available, but let's assume
for a moment we've already arrived

at whatever combination of conditions
that you're using to employ with

your higher timeframe fundamental.

Okay.

I'm using my fingers to
make quotations here.

Your fundamental outlook on price.

I want a higher timeframe.

And it's an agreement with, um, a
measure of intermarket analysis.

Okay.

Supporting that bullishness,
the market will rally higher.

And then where we waiting for a
retracement, we have to take our hands

and sit on them until we wait for
the retracement to come to fruition.

Once that retracement occurs, then
we have the stage for the setup, the.

So in other words, we have a
condition in the marketplace that

outlines bullishness longterm.

And then we wait for markets that
have these conditions to already.

We want to see them rally, okay.

This is the highest probable direction
type trading for swing trading.

And when the market right.

Okay.

Or it shows displacement
as an impulse price swing.

It moves away from some
specific price level.

Maybe it's a level we were
anticipating support to come in.

Or we were waiting for an old low to, to
not see further slides, lower in price.

Maybe we were looking
for a turtle suit by now.

It was a false break, blown old, low,
but we don't really want to buy that yet.

We just haven't built
up her confidence yet.

And we're not as a student in price
action, as we would hope to be at

our current, uh, development stages.

So we're going to wait and see if price is
going to give us clues and confidence that

it has made a low and ran out to stop.

And then it starts to go higher.

When that rally occurs, we just
simply wait for a retracement.

Once that retracement occurs, then
you have a stage at which the market

will be setting up a condition that
permits you to take a trade entry.

So there is a condition.

Then there's the stage portion of taking
the trade and then there's the execution.

When the market expands up
to higher prices, that's what

you're trying to profit on.

So the normal procedure
is, as you're looking for a

market, that's predisposed to.

You have higher timeframe,
macro ideas behind the idea that

that market should go higher.

The market has to rally first and in
order to it has to be displacement

market creates an impulse price swing.

When that impulse price swing
occurs, we wait for the retracement.

So in other words, that's just, okay, for
instance, we're looking at the marketplace

and we think that Swiss Franc should
be rallying from this point of origin.

When we see price move higher, we
noted there is a displacement there.

So we have an impulse price swing.

In this entire rally during this
time, the public or less informed

traders or reactionary traders are
going to be dog piling on this thing.

We do not do that.

We wait, we look for conditions in
the marketplace while it's rallying

up, where it could offer resistance.

And this is going to be
in the form of premium.

And otherwise it could be a bear
shorter block, a breaker mitigation

block, void fair value gap, old high,
old, low something to that effect

that we wait and we anticipate the
market to start topping out and

eventually giving us a retracement.

We're not trying to time the retreats.

But during this small retracement back,
if this is a monthly chart or a weekly

chart, that red area of retracement,
that could be a countertrend opportunity.

Now I'm not teaching that for swing
trading here, but you will be given

those ideas in August going to a
PDF portion of our time together.

So you'll have a, when to counter
trend, swing trade, and it

would be basically during this.

Periods shown graphically
in the move in red.

So you'd be taking shorts there,
but we're looking primarily look

for high probability long entries.

So when the retracement occurs, what
we're looking for is we're looking for

specific levels, specific price levels
at which we would expect and anticipate

sensitivity for Bush, buy opportunities.

During that retracement we're hunting,
we're looking for things that line.

For us to get in sync with the long-term
analysis that we've arrived at, that

we believe that the higher timeframe
is going to be moving up or bullish

from where we're at now and eventually
price we're anticipating this portion.

This is going to be the expansion swing.

Nowhere to this portion is where price
reaches for some higher timeframe,

resistance level of some sort.

We have our range defined by our
point of origin and the intermediate

term high prior to the retracement.

Once you identify those two markers,
what you're doing is you're all you're

doing is just making that range defined
in terms of discount to premium.

Everything below that high down to the
point of origin is going to be referred

to as your discount PD array matrix inside
that range, you're going to be looking

for all of the things we looked at.

And mapped out for the discount matrix.

First thing you would look for,
is there any mitigation blocks?

Is there any bullish breakers?

Is there any liquidity voids?

Is there any fair value gaps?

Is there a bullish order block?

Is there any candles that have long wicks?

So we can look for the market
to seek liquidity below the

bodies of those candles and
ultimately what's the ultimate.

And, or is there a historical high
that we may find support at all?

Those ideas are going to be looked
inside of the impulse swing from the

point of origin all the way through
the impulse swing that makes that

intermediate term high rate before
it retraces inside the impulse swing.

We're looking for all those
PD erased on a discount based.

We're looking at map out what levels
would be indicative of having strong

likelihood to buy or where we would
see, uh, institutional order flow,

step in and start sending price higher.

Again, once you do this, you've
already outlined what it is you're

looking for and you'll know what
price leverage you're looking for.

And that's how you map out
your discount array matrix.

Okay.

The swing trade procedure.

Okay.

What are you going to be doing
is on the monthly and the weekly.

You're looking for the nine
to 18 month market profile.

Are we in a training environment or
are we in a range-bound consolidation?

And if we're in a consolidation and
what you're looking for is a market that

leaves a consolidation aggressively.

In other words, it moves out of a small
trading range and moves aggressively.

Well on a monthly or weekly chart,
and that shows there's a displacement.

We've got to start following that
marketplace because it's most

likely going to want to trend.

And we have to be looking for those
opportunities to come to fruition, where

they determined the monthly PD arrays.

And we're going to refer
to the active discount or.

No worries.

Since we're looking at bullish markets
here, we're going to be looking at what

active discount erased bull shorter blocks
liquidity voids below the marketplace.

Fair value gaps underneath
the market price.

Whereas the old lows at bullish
breakers bullish mitigation blocks.

Now, if the market shows the monthly
discount array is supporting price,

you got to determine now, where are
the premium arrays on the month?

And when monthly discount arrays are
active, that means you're hunting

and you know which ones they are.

You want to be moving down into the
weekly chart and transpose those monthly

levels over to your weekly chart.

You're going to determine
your weekly PD arrays.

And you're going to refer
specifically to the active discount

or raise on your weekly chart

if weekly discount.

Are supporting price determined
that premium arrays on

the weekly chart as well.

And when the weekly
discount arrays are active.

In other words, you've already defined
where the bullish discount weekly chart

bull shorter blocks, liquidity voids
that are bullish, bullish breakers,

bullish, mitigation blocks, old lows,
fair value gets below the marketplace.

Once you arrive at them, you want
to transpose those to your daily.

Okay, then you going to determine
your daily discount erase and you got

to refer it to the active discount
arrays on your daily defining

each on that daily timeframe.

And once you understand where
the daily discount arrays.

They're active, you know,
which ones are not there.

In other words, there may not be a void.

There may not be a breaker, but whichever
ones are active in the discount spectrum,

you take those and you transpose
those over to a four hour chart.

Then you going to determine
your four hour discount or.

Labeling which ones are in the discount.

They may not be breakers.

They may not be avoid.

It may not be a gap, but there are old
lows and there are bullish order blocks.

And those indeed defined they're going
to be referring to the active discount

rates on that timeframe as well.

Now, what you're doing is you're going
to buy all four, our discount rates.

In other words, every bullshitter.

Every bullish breaker, every
mitigation blocked it's bullish.

Every old load it's violated.

We'd look to see, uh, some
buying opportunity that could

be a turtle soup, long entry.

Uh, every rejection block
below candles have wicks.

We look for price to go just below the,
the bodies of the candles and we'll

trade rate below that like a turtle suit.

It doesn't need to go through the wicks.

And when we take these long entries,
we look to scale out at daily,

weekly, and monthly premium arrays.

That's already been defined and
transposed to our four hour chart.

The ideal scenario is that we
look to trade setups that offer

at least three preferably.

Time's the range between your
entry and the closest premium

array from all timeframes.

So if you're looking for a trade that, do
you think that the monthly has the reigns

to go higher and it's in a bike program.

If you're taking an entry on a four
hour, you're really trying to aim for

that monthly level, but you don't hold
everything for that monthly level.

You're going to take something off.

Premium arrays on a four-hour chart and at
the daily chart and at the weekly chart.

And as you get closer and closer to
that premium range on the monthly and

weekly, you want to have very small
portions of your position on and had

already taken profits along the way.

Set up failure protocol.

Now, if the buy set up on
the four hour discount or a.

And the trade results in a loss.

Don't worry about it.

Don't freak out and don't panic.

Okay.

All you're going to do is simply
look for a lower priced for our

discount or ready to buy it.

Now, if the four-hour chart has no
more discount or raised to buy it,

you want to refer to the daily.

The weekly and the monthly discount
are raised to buy at a lower

price at the lower discount array.

You're going to buy at
50% of the positions.

Of the initial trade or the previous
failed trade that you just utilized,

you do not try to win all of the lost
equity back in the subsequent trade.

It may take a few trades to get back
that loss do not rush, do not force it

always confirm lower timeframe for our
premium arrays giveaway or fail as price

moves in your favor in new discount.

Support price as it moves toward the
premium raise on the higher timeframe.

In other words, you're going to
be looking for bearish breakers.

You're going to be looking for
bearish mitigation blocks the

giveaway, you know, what's the,
they shouldn't hold price back.

You should just be going
right through those.

You should be going through up
candles, which would be noted as

potential bear, shorter blocks.

And you're not going through old
highs and coming back with deep

retracements, you're going through
Ohio and you're expanding higher.

That is a clear indication.

You have a strong trade on your side and
you have institutional order flow behind.

All right.

So let's take a look at this
swing trade progression.

Let's just say, for instance,
this is a monthly chart.

Okay.

Uh, as you have a first impulse
swing, then there's a retracement.

If you're in a bullish market
environment, you would expect another

expansion price swing, and then
a retracement, and then another

impulse price swing, then a retreat.

And another expansion swing, but
all along, making higher highs and

higher lows, that's a normal classic
textbook trend that would be deemed

bullish by anyone's standards.

But what we look for this
say, this is a weekly chart.

Okay.

This could be done on a monthly too, but
let's just for instance, refer to this as

a condition that's in our weekly chart.

If we look at the first impulse swing
to the left, inside that impulse.

Our daily chart.

It may have a smaller impulse
swaying with a deep retracement and

then our secondary expansion swing.

You won't see it on the weekly sometimes,
but if you break the weekly chart,

impulse swing down and look deeper.

You'll see two stages sometimes in
the daily chart, the expansion swing.

That occurs later in this example,
inside that an expansion swing, the

same thing as seen, if this is a
daily chart, we're looking inside

that expansion swing inside that on a
daily chart, because price is fractal.

You would see subsequently smaller
price swings and impulse swing,

retracement expansion swing, and
the impulse swing that occurs

on the right side of our chart.

Inside the impulse swing.

If this was a weekly, that would be a
daily chart that could have a impulse

swing, smaller daily retracement,
and then an inexpensive price swing.

And then the second or last
expansion swing on a larger price.

Move inside that expansion swing.

There will be smaller impulse
swings with retracements and in the

lower timeframe, expansion swing.

So everything in prices.

The very first impulse swing on the
daily that would have a smaller impulse

swing, retracement and expansion.

And then the daily charts, expansion price
swing would have in itself, a smaller

impulse swing, retracement and expansion.

And that would be seen on the four hour.

So the larger impulse swing.

Initially on the left hand side, this
could represent a weekly range or

weekly charts, impulse swing, and in
a smaller range inside of that weekly

could be seen with a daily impulse
swing, retracement and expansion.

And then that daily, each individual
price swing higher up would

have four hour impulse swings
retracements and expansions.

This is seen for every price.

Along the spectrum from monthly,
weekly, daily, and four hour.

Now, with this information, we can
see that there are discount a raise

in each one of these price swings.

If you're buying at any one of these
and they fail, you just simply drop

down into the next higher timeframe
discount array, and you would

look for ideas inside of that, to.

To be in sync with the larger
monthly and or weekly macro uptrend.

So we'd look at price in the fractal
basis, but we also look at it in

terms of defining in terms of PD
arrays on what's premium to discount.

When price pulls back in the algorithm
gets back into these discount rates.

It will look to.

That liquidity below the market price
to allow traders at the bank level

to populate those levels with orders.

And then the market will take off.

Okay.

For bearish markets, the general concepts.

As we have a market is poised
or predisposed to trade

lower on a higher timeframe.

And again, I use the same defining terms.

Uh, we did with a bullish
market conditions.

Uh, it may be a seasonal tendency that
supposes that market should be bearish

or the asset class of your trading
should be having some bear price

activity, seasonally long-term, and
consistently showing that repeats of.

More than it does a trade higher
that seasonal in Tennessee should

have an influence on price,
not by itself, not fantasy.

And that's not a, it's not
a be-all end-all, but we

use it as a supporting idea.

Whereas I said a roadmap, if you will,
obviously, interest rates would be a

strong deciding factor here on a macro.

And maybe commitment of
traders, their commercial

positions are heavily net short.

So therefore we're looking for
continuation or they have been hedging

over the last six or the nine months
or so on the weekly chart, you can see

how they have worked a price lower.

Every time they went net short,
it pooled price, heavily lower

in a downtrend, and it may be now
your market, your trading has.

As commercial traders being heavily
net short, if that's the case, then you

have seasonal tendencies on your side.

Then you have interest rates on your side.

That would be a drawing price lower.

And the commitment traders report with
a heavily net short position by the

commercials commercials are large hedgers.

And we'll talk about that.

When we get into commodities, the
intermarket analysis supports the idea to

this is a institutional market structure.

This is SMT divergence.

Those.

The market will have a decline lower.

Okay.

And it moves away from a point
of origin and we may have already

expected that move lower, or we
may be surprised by that move.

It doesn't make a difference.

We look for displacement that first
price swing is the impulse price swing.

That's what's drawing price away from
a level that we either expected to

see bearishness or again, If we're
surprised by something we didn't expect.

Now we have to say, okay, well,
what's, what's going on in here.

Is there going to be a retracement?

The market goes in the retracement.

And if we go and look at the higher
timeframe or something changes that we

didn't notice before, or it's a pair
that we, we just caught our eye, we are

seeing the impulse price swing, and now
we have the retracement we're expecting

or anticipating the expansion price swing.

That's where we look to.

But we have to go into the
marketplace during that retracement.

Okay.

We're we're going to be studying
price and defining in terms of PDRs.

So we go back to the point of origin
and the short term low, we saw

price bounce out that causes that
retracement to come to fruition.

We then take those low at the short-term
low L we up to the point of origin.

And we define that in the terms
of premium PD array matrix.

In other words, this is where all the
bearish order blocks bears, liquidity

voids, bears, breakers, bears, mitigation
blocks, bear fair value gaps, old highs,

the sell above and rejection blocks,
which are candles that have long wicks.

And we look to sell just above
the bodies of the candles.

What we do is we go into the marketplace
and we do this on a monthly, a

weekly, daily, and four hour.

So we define and determine all of the
premium arrays or all those timeframes.

And we transpose them over
to the lower timeframe.

Okay.

The swing trade proceeds.

Again, you're determined the
nine to 18 month market profile.

Preferably you want to see price
moving out of the consolidation,

not being in a range.

You want to see it wanting to trend.

Uh, the more likely the market
is trending and trending lower.

The higher, the probability
is that you're going to get a

nice swing trade on a short.

You're going to determine
the monthly PD arrays.

You're going to refer it to the
most active premium arrays at

Williams on a monthly chart.

Did we just recently move away
from, from that point of origin?

Was that a bear, a shorter block?

Was that an old high?

Was it an old historical load
that acted as resistance?

What was the framework
that caused that move?

And if the monthly premium arrays are
resisting price, we determined now

to discount or raise on the monthly.

So now it's where should
price reach down to?

And when the monthly premium arrays
are active and which we defined what

they are on the monthly levels, we
move those levels to the weekly chart.

Then we take the same thing.

We apply to the weekly.

We break down the PDA
res and a premium basis.

And then we refer to all of the
active, what would be seen as

premium arrays on the weekly chart.

If the weekly premium
array is resisting price.

We determined where the discount
rates are on a weekly chart.

So we're defining our range in terms of
premium to discount on the weekly as well.

When the weekly premium arrays are active.

Now, once you defined what they
are, if there's bare shorter blocks,

if there's, uh, breakers that are
bearish, uh, old highs, where they're

at, where the rejection block would
be any fair value gaps above you,

uh, that is transposed to the dealer.

And you determined a daily premium
arrays and going to refer to do

most active premium rates on the
daily and Lawrence, is there a

bear Spreaker on the daily chart?

Is there mitigation blocks
above us on the daily chart?

Is there a fair value, uh, gaps or voids?

Uh, where's the old highs at, is there
any candles that have long wicks on them?

Uh, we're going to be focusing on the
buys of the candles, just to Pierce

above that, just to do a turtle
soup idea, then you gonna take the.

And when that's active, you're going
to take those premium arrays on a daily

chart and going to move them over to
your four hour chart and transpose those.

They're going to do the same
thing on your four hour chart.

You're going to determine
where the premium arrays are.

Bare shoulder blocks, old highs,
bears, breakers, mitigation

blocks that are above you.

All of those premium arrays.

You're going to take them and
determine which occur or appear in.

And then you're gonna refer to the active
premium erase for that timeframe only.

So otherwise you're going to only
focus on the ones that are in the

four hour chart, because there
may not be a breaker it's barest.

It may not be any mitigation blocks in
the current range that you're looking

at for our chart, but whatever ones
that are active in your current market

environment, that's what you take.

And you label those for
your four hour chart.

You're going to sell every
four hour premium array.

It means bear shorter block, uh,
there's Spreaker mitigation block, uh,

trade back up into fair value, closing
a range or fair value gap, or you'll

sell short and old high or a candle.

That's bold, which is very
short little wick at the top.

You'll look for the price
to trade through that high.

Uh, the key is, is you want to look for.

To not go through the Wix many times.

And that's the rejection block.

When you see the long wick candles
and your bearish are started, probably

won't go above the wicks many times.

We'll just go about the bites of
the candles and then fail there.

That's the rejection block.

You'll sell it.

All of those on a four hour basis and
any level that's been transposed from

the daily, the weekly and the monthly.

As you sell short, you're going to be
looking to take profits at the daily, the

weekly and the monthly discount arrays.

In other words, all the bullish ideas
that would support price as you reach

them and prices moving in your favor
to the daily and the weekly and the

monthly you're gonna be scaling out.

I should get to those.

And the more you get to the
monthly and weekly discount rates.

Well, in those timeframes that less
likely price will continue going lower.

And you want to be at your
smallest portion of your trades.

At that time, you don't want to be
holding your biggest portion then

because of price read traces or reverse
it all together, you get back a lot

of open profits and that's never fun.

Okay.

You're gonna look to trade set ups that
offer at least three preferably more times

than the range between your entry and the
closest discount array on all timeframes.

So you're basically framing your risk.

To be at least for $1 risk, you
were trying to make $3 or more.

Preferably you want to look for
scenarios between you and I.

You want to look for things that
have like five to one reward to risk

set up failure protocol.

It's a cell set up on the
four-hour premium array fails

in a trade results in a loss.

All you have to do is don't panic.

Except the walls, but now you just
going to simply look for the higher

priced for our premium array to sell at.

In other words, maybe you sold short at
what you thought was the mitigation block

and it just ran right on through you.

Go to the next premium array
and you look to sell it again.

Again, we're focusing on monthly, weekly,
and daily conditions that are bearish.

So if we're executing on a four
hour, you make it stop out at

you and your initial trade.

Not always, but sometimes you will.

If it happens, you just simply go up
to the next higher priced premium.

Right?

In other words, there may
be a bear shorter block.

It needs to trade to
trade through an old high.

You take every single one.

If the hour chart has no more premium
arrays to sell that, refer to the daily,

weekly, and monthly premium mores to
sell at a higher price than you currently

have at the higher premium array you're
going to sell with 50% of the position

size that you use from your initial
trade or previous failed trade that you

utilized do not try to win all the lost
equity back in the subsequent trade.

Get what you can get from the trade.

Don't try to force it all back.

If the trade only pans out and it slips
to less probability and you have 60%

of what you lost, be happy with the
60% it's at least you're mitigating the

losses always confirm lower timeframe
for our discount arrays, giveaway or

fail as price moves in your favor.

And new premium arrays resist price
as it moves towards discount or

raise on the higher timeframe charts.

In other words, basically what
this means is you want to be

looking for bullets, shorter blocks
or down candles to be broken.

Every support level, be broken.

You want to see new resistance
levels found at old up candles.

And as long as you keep seeing that
you're seeing institutional sponsorship

on your side, and that's a great
condition to be in when you're.

So now we're going to take a look at
some specific setups that we can use

with this idea for swing trading.

I'll see you in lesson number four.