Original subtitles

all right hello everyone hope you're

doing all right welcome back to this new

video now we are slowly starting to get

into the more advanced stuff and I'm

absolutely loving it I'm very excited

for it so in the previous seven episodes

so the first seven episodes that you

watched on the A to Z guide

they were touching on PD erase so that

is premium erase and discount arrays so

either bullish arrays or bearish arrays

and these BD rays are where price can

reject off of where price can

potentially push a higher from or push

lower from so these PD Rays what that

creates is a PD array Matrix now

obviously that's just a very fancy word

and I'm going to dive into price and

show you exactly what that is ETC now in

the top right you can probably tell

there is flood and there is lot that is

first line of defense and last line of

defense so if we take a look at this

price action lag right here

we have a swing high right here and a

swing low right there dead in itself so

this right here is a price action lag

that is a price action lack we are

focusing on right now again swing High

swing low is something we will get into

don't worry just keep in mind that this

is a price action lag inside that price

action lag inside that price action lag

we are scouting in this case obviously

also with the help of hindsight we are

looking at bearish prices so we are

scouting for all premium arrays so

please do me a favor and go over all the

premium Rays inside that price action

lag

there is verify Gap right there

overlapping with this order block then

we have this River Gap but there is also

a BPR and then the last one is

that high and that high is a liquidity

pool

so in this case we have a first line of

defense what is our first line of

defense here

Dead Further Gap overlapping with that

order block that is our first line of

defense now we can even argue of course

at the absolute first line of defense

right here is this fair value Gap

because the order block line is a little

bit higher as you can see right there

and then the last line of defense is

what

that high

so when we have a retracement and we can

see the retracement is happening right

there when we have that retracement one

of those PD arrays should hold so right

there we have a first line of defense

and the last line of defense and that is

very important for you to understand so

if we move on right here we are having a

new price action lag lower we have this

swing High we have this swing low inside

that what do we create

we are creating an order block

right there we are creating a fair value

Gap right there then we have some sort

of rejection block I like the big wick

right there

and then the last line of defense would

be

that high right there

the first line of defense would be dead

that verify again right there

what happens right here

we are disrespecting this last line of

defense so what does that create a new

price action lack something new that we

can work with what is the recent price

action lag right there

swing low swing High what is the first

line of defense

that fair value Gap right there what is

the last line of defense

that a low That Swing Low right there so

ideally we should not come below that

swimming low and again remember the

liquidity pulls we can come below this

low right here but we shouldn't stay

below that low

so that is very important so we have a

first line of defense and we have a last

line of defense obviously inside of that

first line of defense and less line of

defense we have even more discount

arrays as in that high and this or block

as well and that makes it interesting

because then we can get a clearer view

of where price will likely reject off of

because obviously we now have a lot of

PD arrays inside One Price action lag

and I already told you in the previous

videos on where we can expect price to

actually reject off of and we see the

perfect example in this price action lag

and in this price action lag

and even in this price I can lag as well

right whenever there's multiple

overlapping PD rays that is exactly that

is the most beautiful place where we

want to see price reject off of what do

we have here

we have that high and we have this

verify Gap what makes it two PD arrays

two discount race

what do we reject off of here we have

that verify Gap and we have this

overlapping order block what does that

make

premium race

what does this right hair make we have

this first line of defense

but right here we have a verify Gap and

we have

that order block right there

what does that make two discount arrays

and then right there this would be your

last line of defense That Swing Low

and this is your price action lag

obviously swing low to swing high so

whenever the first line of defense is

holding you can probably notice a

certain pattern it is usually nine out

of 10 times it is overlapping so

whenever you see that first line of

defense holding and usually first line

of defense is 9 out of 10 times it is a

fair value Gap and the thing I want you

to focus on

when we have that first line of defense

and it is usually a fair value Gap

is that fair value Gap overlapping with

another premium or discount array

if yes there's a high chance that the

first line of defense will hold if it

doesn't hold we have certain PD arrays

in the middle and then we have that last

line of defense that last line of

defense should not get violated should

not get invalidated alright so if we

take a look at a bit more price action

right here we are having right there we

have an order block and

a fair value Gap right perfectly right

there

right there this high is the first line

of defense right that old high so this

high would be your first line of defense

so in this case it isn't the fair value

Gap but if we take a look just a bit

lower

what do we see we see two discount

arrays overlapping with each other

and that is what I'm trying to tell you

that is what makes it so strong

now what is your last line of defense

right here

dead right there

that is your last line of defense this

load shouldn't get invalidated now

the thing I want you to understand is

we need to think in probabilities so yes

sometimes it might bounce off of a fair

value Gap without an overlapping PD

array yes sometimes it might not even

get into different value Gap and it

might just take off yes sometimes the

last line of defense will get violated

and price will still continue in that

intended direction that we first had and

that is completely normal because this

stuff this trading stuff is not binary

and that's where a lot of people go

wrong they think it is binary they think

when I tell someone it is low

probability conditions that you should

100 lose because low probability

conditions oh you should lose it's

binary and that's absolutely not the

case

trading is probabilities

and when I tell you it is either high

probability or low probability it is

about probabilities it is not binary yes

you can still win in low probability

conditions yes you can still lose in

high probability conditions but the odds

in high probability conditions are way

more in your favor so let's say we have

an 80 win rate

in high probability conditions and we

have a 20 win rate in low probability

conditions yes there is still a chance

that we can win in low probability

conditions but always ask yourself if

you had a million in capital or even 10

million in capital would you risk it on

a day where you know the odds are not in

your favor

and that's the same for those fair value

gaps when these fair value gaps are not

overlapping with another PD array just

know yes they could still play out but

the probabilities are way higher

when you wait for it to come into effect

that is overlapping with another PD

array and that is so crucial for you to

understand

that these these things are not binary

and that's what a lot of people think

and it might seem very obvious what I'm

saying right here but but I've seen so

many people that are trading low

probability conditions and they tell

others oh but I'm winning in low

probability conditions yeah

yes you are getting very lucky the

probabilities are still there's 20 you

can win absolutely

so you just dodged a bullet but if you

do it on the long run

that is likely not going to end very

well and that's the exact same with

overlapping PD arrays etc etc all right

I want you please to study this

study the price action lag study the PD

Ray Matrix the first line of defense

last line of defense and also study what

happens if that last line of defense

does get violated and again remember

right last line of defense yes we can

take a liquidity pool before we move

lower or before we move higher but

there's a certain type of invalidation

and again that's where you're studying

comes in as well and I've mentioned it

as well so study that when does the

first line of defense hold if it doesn't

hold why doesn't it hold

see the probabilities play out then on

Sunday we have a live stream 8 30 a.m

New York local time so feel free to tune

in

and we can just have a little chat and

if I don't see you at the live stream I

will see you on next Tuesday on the next

episode on the A2Z guide alright study

take care and thank you

foreign

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