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all right hello everyone hope you're
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doing all right welcome back to this new
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video now we are slowly starting to get
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into the more advanced stuff and I'm
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absolutely loving it I'm very excited
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for it so in the previous seven episodes
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so the first seven episodes that you
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watched on the A to Z guide
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they were touching on PD erase so that
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is premium erase and discount arrays so
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either bullish arrays or bearish arrays
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and these BD rays are where price can
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reject off of where price can
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potentially push a higher from or push
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lower from so these PD Rays what that
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creates is a PD array Matrix now
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obviously that's just a very fancy word
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and I'm going to dive into price and
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show you exactly what that is ETC now in
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the top right you can probably tell
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there is flood and there is lot that is
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first line of defense and last line of
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defense so if we take a look at this
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price action lag right here
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we have a swing high right here and a
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swing low right there dead in itself so
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this right here is a price action lag
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that is a price action lack we are
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focusing on right now again swing High
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swing low is something we will get into
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don't worry just keep in mind that this
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is a price action lag inside that price
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action lag inside that price action lag
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we are scouting in this case obviously
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also with the help of hindsight we are
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looking at bearish prices so we are
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scouting for all premium arrays so
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please do me a favor and go over all the
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premium Rays inside that price action
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lag
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there is verify Gap right there
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overlapping with this order block then
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we have this River Gap but there is also
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a BPR and then the last one is
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that high and that high is a liquidity
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pool
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so in this case we have a first line of
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defense what is our first line of
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defense here
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Dead Further Gap overlapping with that
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order block that is our first line of
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defense now we can even argue of course
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at the absolute first line of defense
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right here is this fair value Gap
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because the order block line is a little
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bit higher as you can see right there
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and then the last line of defense is
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what
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that high
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so when we have a retracement and we can
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see the retracement is happening right
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there when we have that retracement one
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of those PD arrays should hold so right
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there we have a first line of defense
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and the last line of defense and that is
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very important for you to understand so
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if we move on right here we are having a
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new price action lag lower we have this
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swing High we have this swing low inside
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that what do we create
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we are creating an order block
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right there we are creating a fair value
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Gap right there then we have some sort
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of rejection block I like the big wick
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right there
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and then the last line of defense would
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be
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that high right there
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the first line of defense would be dead
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that verify again right there
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what happens right here
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we are disrespecting this last line of
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defense so what does that create a new
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price action lack something new that we
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can work with what is the recent price
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action lag right there
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swing low swing High what is the first
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line of defense
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that fair value Gap right there what is
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the last line of defense
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that a low That Swing Low right there so
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ideally we should not come below that
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swimming low and again remember the
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liquidity pulls we can come below this
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low right here but we shouldn't stay
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below that low
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so that is very important so we have a
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first line of defense and we have a last
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line of defense obviously inside of that
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first line of defense and less line of
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defense we have even more discount
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arrays as in that high and this or block
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as well and that makes it interesting
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because then we can get a clearer view
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of where price will likely reject off of
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because obviously we now have a lot of
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PD arrays inside One Price action lag
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and I already told you in the previous
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videos on where we can expect price to
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actually reject off of and we see the
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perfect example in this price action lag
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and in this price action lag
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and even in this price I can lag as well
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right whenever there's multiple
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overlapping PD rays that is exactly that
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is the most beautiful place where we
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want to see price reject off of what do
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we have here
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we have that high and we have this
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verify Gap what makes it two PD arrays
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two discount race
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what do we reject off of here we have
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that verify Gap and we have this
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overlapping order block what does that
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make
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premium race
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what does this right hair make we have
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this first line of defense
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but right here we have a verify Gap and
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we have
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that order block right there
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what does that make two discount arrays
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and then right there this would be your
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last line of defense That Swing Low
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and this is your price action lag
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obviously swing low to swing high so
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whenever the first line of defense is
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holding you can probably notice a
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certain pattern it is usually nine out
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of 10 times it is overlapping so
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whenever you see that first line of
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defense holding and usually first line
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of defense is 9 out of 10 times it is a
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fair value Gap and the thing I want you
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to focus on
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when we have that first line of defense
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and it is usually a fair value Gap
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is that fair value Gap overlapping with
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another premium or discount array
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if yes there's a high chance that the
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first line of defense will hold if it
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doesn't hold we have certain PD arrays
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in the middle and then we have that last
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line of defense that last line of
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defense should not get violated should
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not get invalidated alright so if we
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take a look at a bit more price action
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right here we are having right there we
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have an order block and
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a fair value Gap right perfectly right
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there
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right there this high is the first line
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of defense right that old high so this
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high would be your first line of defense
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so in this case it isn't the fair value
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Gap but if we take a look just a bit
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lower
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what do we see we see two discount
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arrays overlapping with each other
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and that is what I'm trying to tell you
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that is what makes it so strong
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now what is your last line of defense
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right here
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dead right there
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that is your last line of defense this
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load shouldn't get invalidated now
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the thing I want you to understand is
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we need to think in probabilities so yes
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sometimes it might bounce off of a fair
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value Gap without an overlapping PD
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array yes sometimes it might not even
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get into different value Gap and it
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might just take off yes sometimes the
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last line of defense will get violated
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and price will still continue in that
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intended direction that we first had and
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that is completely normal because this
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stuff this trading stuff is not binary
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and that's where a lot of people go
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wrong they think it is binary they think
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when I tell someone it is low
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probability conditions that you should
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100 lose because low probability
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conditions oh you should lose it's
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binary and that's absolutely not the
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case
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trading is probabilities
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and when I tell you it is either high
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probability or low probability it is
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about probabilities it is not binary yes
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you can still win in low probability
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conditions yes you can still lose in
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high probability conditions but the odds
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in high probability conditions are way
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more in your favor so let's say we have
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an 80 win rate
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in high probability conditions and we
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have a 20 win rate in low probability
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conditions yes there is still a chance
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that we can win in low probability
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conditions but always ask yourself if
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you had a million in capital or even 10
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million in capital would you risk it on
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a day where you know the odds are not in
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your favor
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and that's the same for those fair value
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gaps when these fair value gaps are not
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overlapping with another PD array just
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know yes they could still play out but
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the probabilities are way higher
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when you wait for it to come into effect
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that is overlapping with another PD
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array and that is so crucial for you to
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understand
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that these these things are not binary
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and that's what a lot of people think
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and it might seem very obvious what I'm
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saying right here but but I've seen so
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many people that are trading low
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probability conditions and they tell
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others oh but I'm winning in low
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probability conditions yeah
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yes you are getting very lucky the
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probabilities are still there's 20 you
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can win absolutely
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so you just dodged a bullet but if you
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do it on the long run
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that is likely not going to end very
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well and that's the exact same with
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overlapping PD arrays etc etc all right
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I want you please to study this
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study the price action lag study the PD
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Ray Matrix the first line of defense
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last line of defense and also study what
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happens if that last line of defense
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does get violated and again remember
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right last line of defense yes we can
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take a liquidity pool before we move
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lower or before we move higher but
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there's a certain type of invalidation
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and again that's where you're studying
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comes in as well and I've mentioned it
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as well so study that when does the
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first line of defense hold if it doesn't
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hold why doesn't it hold
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see the probabilities play out then on
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Sunday we have a live stream 8 30 a.m
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New York local time so feel free to tune
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in
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and we can just have a little chat and
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if I don't see you at the live stream I
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will see you on next Tuesday on the next
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episode on the A2Z guide alright study
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take care and thank you
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foreign
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[Music]19449
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