Original subtitles

Okay in this video we're going to be discussing equilibrium

zones. Now before we carry on I want you guys to take note of

all of these things they come together. Now there's going to

be quite confusion at first to understand all of the zones but

we only have daily and weekly zones and support and

resistance zones. Okay. That's it. Now we're adding

equilibrium zones. Okay so don't don't get confused. Just

stick with just watching these videos. Each of these videos

are solely just I'm explaining the concept. In phase three

we're going to put everything together. So I'm just basically

introducing the concept to you guys. And then after that we

going to be putting everything together. Now the equilibrium

zones are solely done on the daily time frame and what it is

basically it is just the middle of each and every candle. The

clean range candle. So for example this candle we we take

the high to the low then it this middle is our equilibrium

zone. Now what does the equilibrium zone mean? It is

the average price of the day. Now banks they use this zone or

they keep track of this zone because they then can see where

50% of the capital for the majority of the day has been

formed. Okay. So they can then see where the capital they talk

about the cash flow. Uh where the cash flow has been inserted

50% prior or post the day is 50%. So the equilibrium is

extremely important because then you know all right we

going we above 50% of the previous day. So our volume is

bullish or we're below 50% of the previous day. Let me show

an example. Let's take this candle high to the low and We

draw our 50%. Okay. Now where's the market currently? The

market is below the 50percent. So what does that mean? That

means that we are definitely perish for the current day. But

that when we out of session currently. So that means during

the session we can revert to the 50 percent. We can either

respect it or we can come through and retest and go up or

we don't even have to wait for the retest. It can solely just

break this zone and we can start looking for buyers. Okay.

But I found this zone works best when it's up with the

support resistance but that we're going to discuss that

later. So that is basically what the 50% is about. Let's do

some more examples on gold. I know we currently have one. So

the previous on Friday we had this big candle to the upside.

We take the high, we take the low and this is our 50%. So the

50% is most probably one of the most important zones because

the market tends to respect it a lot. Okay. So what that means

is if we come down on this short and we break this 50%

chances of us going to the downside are are extremely

high. Okay. So Um I want you to go and practice this. Let's use

an example in history.

As you can see let's use this one. We used the high. We used

the low. And we tracked the 50% look. It came and tested that

50% right over there. Um another one.

Let's just delete these zones. Let's take this big candle. We

draw the 50%. Look at where it came and retested. Let's let's

go to that market on the lower time frame. As you can see it

tested this market. There wasn't any support here. There

wasn't any resistance. Well the resistance won't make any sense

but there wasn't a trend line. There wasn't a Fibonacci point.

There wasn't supply and demand. It the market retraced off from

that 50% because they grabbed liquidity. They knew the 50%

liquidity buyer pool is right over here. As they reached this

50% they went up to the resistance. Okay. So the 50% is

definitely well the equilibrium as I like to call is very

important because it then is a key level for us for the next

day. Now the question I can obviously can't wait to get is

how how often do I draw it and as often as you see it for

example you use the previous day you obviously won't use any

of these ones in this zone. Why? Because This is the

previous camera and already took out each and every one of

these candles. You would use this candle and this candle.

You won't use this candle because this it has been

obstructed. So we only want a clean range. We only want a

clean range. For example this candle we will use

And it will stay up here. As the market is currently

respecting it. I won't go and use this candle right over here

because once again the market is too far away from it. But

the previous daily candle is definitely the most important

one but if we are extended then you would use the nearest one.

Okay. So definitely use the nearest one and I need you.

This is an exercise. I need you to go and back test the you

using the 50% body. And the 50% wick. I need you to get back to

me and tell me which one you found was more important. So

this is a small exercise I need you guys to do. And then you'll

start to realise the importance of it. So you can either use

the body. Just track the body's 50 percent. Or you can use the

wick. Uh I know which one I'm using and I know which one

makes sense. But I need you guys to go and practice this.

Okay. And is going to be in the assessment where you need to

attach screenshots so don't worry about it. Um as we can

see we're using this one. And it then went later to be

respected. Okay so you need to go and figure out which one

makes more sense for you. The wick or the body. So that's

definitely an exercise that you guys need to use. Let's have a

look at this one. So I'm currently focusing on these two

right over here. As we can see we did track the 30%. Ah 50%.

Sorry about that. And the market closed above. So just

straight off the back what is that telling us? That is

telling us bullish momentum because it closed above. It did

not close below. So let's go to the 30 minute. And we can see.

Alright. Remember we only trading in session. So this is

still our support zone that we marked up. The market respected

our support zone and then in it closed above our 50% rule. So

that indicated for us that it is bullish market. Look how

it's respecting this 50% the entire time. Okay. So if you

combine this with the fifty moving average. I know this was

something I used to trade often but we going to use the

confluences later. I just want you guys to understand this

entire concept. Okay so definitely go ahead and back

test this equilibrium zones. It's just something extra that

we add into our calibre of tools. So don't overthink it.

Don't underthink it. It's just a previous day or the the

closest day is 50percent. We use it in conjunction with our

other zones.