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Okay books.
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Welcome back.
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This is lesson seven of eight of
the second month of the mentorship.
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We're going to be specifically dealing
with the market-maker trap of false flags.
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Now a false flag.
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Okay.
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Is basically.
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A pattern that classic chartists and
pure chart pattern traders, uh, will
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fall victim to a lot, uh, early on in my
career, I fell victim to this a particular
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pattern a lot as well, because as a new
trader being introduced to the markets
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and the commodity market or asset class I
started with was the commodities market.
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Uh, my way of introduction came
by way of Kent Robertson and one
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of the patterns that he taught.
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And his, uh, manual, uh, world,
most powerful money manual.
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I wouldn't go so far as to
say that, but, uh, uh, it did
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introduce me to technical analysis.
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And one of the patterns that
studying classic chart patterns
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is a continuation pattern.
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And one of the simplest to see in price
action is a bull flag, but unfortunate.
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Not all sudden price rallies
that move into a short term
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consolidation are bull flags.
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And if you don't know what
a bull flag is, don't worry.
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I'm going to give you an example of what
they are, but for now, for the points
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of, uh, of concern, we have to understand
that in a mature bull trend or in higher
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timeframe, distribution levels, price
will post or create or print if you will.
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In our, in our charts, a false bull flag.
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Now retail traders.
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And I'm referring to myself
when I first started and it
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was like a commodity trader.
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Um, I saw this as a classic
continuation by pattern, but it many
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times resulted in a reversal as time
went on in my understanding grew,
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uh, I, I discerned that understanding
hard timeframe charts and what you
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know, now as a premium market, uh,
they assist me in understanding and
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identifying potentially bearish.
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Bull flags.
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In other words, a typical bull flag
would indicate a pause or midway
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point and another leg higher, or
basically a traditional ABCD pattern.
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And.
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It's a measured move type buff, and
I'm not in price action, but I found
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that I would fall victim to this
simply because I was only looking for
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patterns for the sake of patterns.
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Price does not move based on any kind
of pattern, whether it be a word block
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or mitigation block or breaker, or, um,
even classic chart patterns like a head
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and shoulders, or in this case, a boom.
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Now, obviously the opposite side of the
spectrum and when we're bearish, um, in
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a continuation pattern in a nice strong
trend, um, you'll see a quick sudden
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move, lower, a small little consolidation,
and then another equal leg lower, uh,
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prior to the small little consolidation.
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And again, I'll give you some examples
when we, uh, get past this boring part,
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but, uh, not all sudden price decline.
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That move into a short-term
consolidation are bear flags.
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And obviously in mature bear trends
or in higher timeframe, accumulation
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levels, price will post false bear flags.
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And obviously retail traders will see
this as a classic continuation cell
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pattern, but many times it will reverse.
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And again, to take away is
understanding how our timeframe.
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And understanding to discount markets
will assist in identifying when these
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are potentially false bear flags or
when not to expect another leg lower.
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But in fact,
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Okay.
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So for those that are unaware of what
a bear flag or both, I guess this
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is basically a graphic depiction.
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I just simply did a Google on a bull flag.
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And this is one that came up, um, that I
agree with in terms of what it explains
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on how the price action should be viewed.
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Uh, generally you'll see a price
leg up and then there'll be a
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small little consolidation that
consolidation can go sideways.
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Or in this case it can be
slightly slanted lower.
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And then all of a sudden there'll be
another impulse swing higher that would be
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equal to the first impulse swing higher.
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So you have a measured move.
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Uh, the reason why they call these
patterns bull flags is the first leg up.
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That would be viewed as, uh, the flagpole.
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Okay.
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Which is the reason why
it got its name that way.
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And then the, uh, the flag
portion is that small little
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consolidations slanting lower.
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And then you would measure that flag.
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On the first leg up and then add that to
the, the move out of the consolidation.
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And that would give
you your measured move.
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And while when I first started, I
can admit to you that some of my
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grain trades and some might live
cattle and, uh, live hog trades.
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When I was trading, come on.
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Um, they came by way of trading
this simple pattern right here.
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Um, it, it happened to occur when
I had, uh, one hours to Castic
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divergence and, uh, when it
was in agreement, it was great.
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The problem is, is I never really
considered the hard timeframe charts
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or what I understand now as a premium
or a discount market, obviously
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the same thing can be said just
in reverse for, for bear flags.
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Uh, generally you'll see a market
drop off, have a sudden decline.
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And consolidation sideways or in
this case, it can be a consolidation.
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It slopes up diagonally and then
another leg equal to the first price
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swing or impulse swing, lower that
measurement on that first leg lower.
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If you add it to I'm sorry,
if you subtract it to rather,
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uh, the breakout, um, huh.
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And the consolidation that will
give you your projected low.
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And again, when markets are in a nice,
strong trend and they're not mature and
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they still have more legs to go lower.
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Okay.
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Uh, this pattern is
pretty, pretty consistent.
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The problem is when you're not aware
when the trend is mature or where you're
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in areas of accumulation, uh, nowhere
it's the market's probably coming under,
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uh, aggressive buying by smart money.
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Uh, these patterns will
materialize near the line.
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And you'll see a lot of folks see
this as a continuation pattern.
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You'll, you'll see it on Twitter.
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You'll see it on social media.
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That there'll be a particular expectation
to see new leg, uh, lower in price.
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But many times it won't go down or
if it does, it'll just go down and
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just a small little bit and then
reverse abruptly and go higher.
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Now looking at another Google example.
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Okay.
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Just give you a little bit more framework.
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These are not my charts.
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I just simply grabbed them off of Google
and you can actually do Google searches
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on your own and get a little bit more,
um, examples of what, uh, a bull flag
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and a bear flag look like in practice.
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But I, I liked this one here
just for a quick, uh, an idea
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of what we would be looking for.
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In other words, what the flagpole
measurement would be and adding it
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to, or subtracting it from, uh, that
consolidation that give us a price target.
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And that's great.
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Well, I'm not trying to teach you the
continuation pattern here because it's
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obviously pretty general knowledge.
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I want to teach on how the markets
can actually give us these false
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patterns and we can take advantage.
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So here we have a classic set up where
the market has moved up aggressively,
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suddenly moved up higher and we have
what we have a small load consolidation
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after that immediate rally up higher.
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Well, when you see that, obviously
in the first thing comes to mind, if
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you knew a bull flag pattern is a,
well, this is obviously a bull flag,
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and then you would measure the, the
flag pole or the impulse price swing.
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And then you would add that to
the consolidation area and it
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would give you a projected high.
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So we would like recently, if we
were just pre uh, pattern trading
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or looking for continuation class.
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Yeah.
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The patterns, if you will, uh, we
would be looking for higher prices.
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The problem is, is if we're just
looking at one timeframe and just
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only focusing there that's a problem.
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You have to have a certain measure
of top-down analysis and using
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higher timeframe charts, monthly,
weekly, daily, and at least a
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four hour, but preferably a daily.
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Uh, that will give us, um, the, the
indications that there's going to
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be a little bit more information
that needs to be considered.
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So when we see that clearly it's
viewed as a classic bull flag.
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Okay.
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And if we were going back in time
in a time machine, if someone would
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have given me this chart in my first
six to eight months of trading,
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I clearly would have expected.
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Uh, market to go higher based on
just this simple pattern alone.
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And unfortunately, like I said, in
the past, um, when I first started
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trading, everything was in a bull
market and I can only understand
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buying low and selling high.
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I've never understood rather the, uh, the
concept of selling short, my, you know,
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my first year, I just couldn't grasp it.
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So I would only be a buyer, but I
could tell you as a nutrient in my
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first year, I would have looked at
this and consider this as a boy.
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Problem is, is that's what would
generally end up happening?
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So clearly we see that this
bull flag was the opposite.
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It gave us no, uh, advancement higher.
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The only thing it did was just breached
above a previous area of consolidation.
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So let's take a look about this
specific area and what was behind the
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scenes that led to this overall price.
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Okay folks, let's take a closer
look at this particular false flag.
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Okay.
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We have a price showing a clear classic
bull pattern in here and Bush flag.
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And what would cause this
market to break down like that?
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Why did it not continue and make it equal
leg up here added to the new move up?
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Why would, why didn't we
get a measured move higher?
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Uh, again, why did the bull side fail?
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Well, let's take a look at things
a little bit closer and let's
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focus primarily on the bodies of
the candles and the price action.
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First, forget this wick for a second.
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Okay.
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And we'll look primarily
at the body to the camera.
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Right in here as price dropped the
lower, we rallied up, tried to get a
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little bit lower again, and finally
ran through everybody that trades
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bull flags would have been excited
about this move here, breaking out.
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The only thing it did was
trade just above this old high.
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Okay.
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If we were going to use this area
right in here, we're going to
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note that and shade it within.
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In the area of the highlight it, and
we're gonna go out to a daily chart.
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Okay.
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So we'll have the daily chart here.
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And what I want you to look at is we
have a price swing from this high down,
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and then we have a retracement up.
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So as price was running up into that
blue shaded area, we had on a 15 minute
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timeframe, you're inside of this big
up candle, which is bearish or block.
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And we also have.
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If we take our fib and we draw it from
the high down to the low right here, which
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is right before this price went up, we
can clearly see that we are in an area of
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distribution.
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And what that means is that
we are in an area of premium.
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All through here.
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The market is
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in a premium market.
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The relatives is a range.
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We have this old high it's old, low.
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So now what we know about the market
now we're going to drop down into okay.
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For our chart.
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So we're focusing primarily here.
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And when we look at this down,
move in here, we have a rally up
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creating a liquidity void, and then
we have another liquidity we're
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going down midway through that.
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It's going to be the equivalent of what
would be viewed as a bear shorter book.
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So since we're in a premium market
where we should be seeing distribution,
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we have two areas at which the market
created liquidity voids running up
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then running down this entire range.
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Okay.
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It's going to be viewed in, in the
scope of a bearish order block.
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00:13:57,925 --> 00:14:01,975
So we'd be looking at like
a mean threshold if we drop
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down into a one hour chart.
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00:14:04,705 --> 00:14:05,035
Okay.
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00:14:05,485 --> 00:14:05,875
So we have.
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00:14:06,885 --> 00:14:10,665
Price coming down and right in
here, we're gonna look at it a
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00:14:10,665 --> 00:14:16,635
little bit more detail by dropping
down into a 15 minute timeframe.
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00:14:16,844 --> 00:14:17,145
Okay.
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00:14:17,235 --> 00:14:19,814
We have the gap between the opening
of this candle and the close
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00:14:19,814 --> 00:14:21,045
of this candle right in here.
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00:14:22,995 --> 00:14:23,385
Okay.
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00:14:23,745 --> 00:14:25,145
So we're going to focus primarily on that.
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00:14:25,194 --> 00:14:32,165
We're gonna zoom in on a five
minute chart to refine and
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00:14:32,165 --> 00:14:33,615
you can see this one upcoming.
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00:14:34,485 --> 00:14:36,255
Prior to the down move here.
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00:14:36,584 --> 00:14:42,405
Now there's two candles going up right
before the move lower and this up move
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00:14:42,405 --> 00:14:47,775
here with these up candles one and
two, that only trades right back up
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00:14:47,805 --> 00:14:55,545
into the institutional order flow of
this low here in this low here, the
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00:14:55,545 --> 00:15:01,554
low in this candle comes in at 77 14.
231
00:15:03,015 --> 00:15:04,605
The high comes in at 77, 14.
232
00:15:04,965 --> 00:15:09,285
So it closed in, uh, liquidity void
in here relative to what was offered.
233
00:15:09,444 --> 00:15:14,895
The market was posting bullish
prices are offering higher for the
234
00:15:14,895 --> 00:15:19,845
buy-side when it got down through it,
they offered it one more time here
235
00:15:19,855 --> 00:15:21,855
to be sold, filling in that range.
236
00:15:21,855 --> 00:15:26,145
So from this low over here, cut through
this candle and you'll see to the
237
00:15:26,145 --> 00:15:29,175
actually, uh, IPTA filled in that range.
238
00:15:30,194 --> 00:15:30,435
So.
239
00:15:31,305 --> 00:15:33,435
We have one, two candles.
240
00:15:33,915 --> 00:15:37,545
If you take those two candles and
you measure that range from the body,
241
00:15:38,775 --> 00:15:43,635
blow to the body high between the two
candles, you get equilibrium right here,
242
00:15:43,725 --> 00:15:47,685
which is that level I have highlighted,
which is also the bottom of that last
243
00:15:47,685 --> 00:15:49,815
up candle on a five minute timeframe.
244
00:15:51,225 --> 00:15:52,395
So that's why that levels here.
245
00:15:53,265 --> 00:15:53,505
Okay.
246
00:15:53,505 --> 00:15:57,345
So by having that level
and also I'm framing.
247
00:15:58,185 --> 00:15:59,505
This swing high here.
248
00:15:59,925 --> 00:16:02,595
So we have a little bit of a
fair value gap right there.
249
00:16:02,985 --> 00:16:08,505
You can see price creating this potential
bull flag here, and it starts to come
250
00:16:08,505 --> 00:16:09,525
up, but what does it really dealing?
251
00:16:09,525 --> 00:16:14,115
It's only clearing out the bodies of
the candles over here and this big wick
252
00:16:14,145 --> 00:16:17,415
that we saw on a 15 minute timeframe
is not being considered at all.
253
00:16:18,525 --> 00:16:21,915
But when price starts to break
down, all we have to do is go back
254
00:16:21,944 --> 00:16:23,595
in and look at price action here.
255
00:16:24,074 --> 00:16:24,824
Look at the upcoming.
256
00:16:25,725 --> 00:16:26,085
Okay.
257
00:16:26,085 --> 00:16:29,025
The up candles start with their
bodies and their wicks on the low end.
258
00:16:29,415 --> 00:16:32,295
That's where all the sensitivity
on selling short will be.
259
00:16:34,005 --> 00:16:36,975
So when we get into areas of heavy
distribution like this, and we see,
260
00:16:37,005 --> 00:16:42,795
oh, quick rally up in a consolidation
or slight dropping lower, which
261
00:16:42,795 --> 00:16:44,505
would look like a bull flag.
262
00:16:45,525 --> 00:16:48,045
We don't see that as a Bush scenario.
263
00:16:48,105 --> 00:16:50,505
What we're doing is, is we're
looking for it to create a false.
264
00:16:51,314 --> 00:16:52,814
Move in break lower.
265
00:16:53,385 --> 00:16:55,094
Now one of two scenarios can happen.
266
00:16:55,094 --> 00:16:59,775
One, you can get a turtle soup
scenario where it'll start to come up.
267
00:17:00,405 --> 00:17:00,625
Okay.
268
00:17:00,625 --> 00:17:01,814
And then start to break down.
269
00:17:02,265 --> 00:17:05,024
That's the easiest one to trade
because you'll actually see it.
270
00:17:05,024 --> 00:17:07,754
Go up, get people tripped up
thinking it's going to go higher.
271
00:17:08,024 --> 00:17:10,214
And then it rolls over once that happens.
272
00:17:10,244 --> 00:17:12,734
You want to sell the first
return back to a bare shoulder
273
00:17:12,734 --> 00:17:15,944
block that comes in way of.
274
00:17:20,130 --> 00:17:22,829
The opening comes in 76 97.
275
00:17:24,810 --> 00:17:28,799
The high comes in at 76 97.
276
00:17:29,190 --> 00:17:30,390
That's where your short would be.
277
00:17:31,020 --> 00:17:31,320
Okay.
278
00:17:31,350 --> 00:17:34,530
Once you get that, you'll put your stop
above what would be considered a bull
279
00:17:34,530 --> 00:17:40,110
flags high, that WIC that's what would
be, that would be your, uh, your risk.
280
00:17:40,590 --> 00:17:41,420
So in terms of.
281
00:17:42,240 --> 00:17:44,010
Uh, risking a lot of pips.
282
00:17:44,010 --> 00:17:45,300
It's not much at all.
283
00:17:45,870 --> 00:17:48,750
And you would just simply wait
for it to come back down to trade.
284
00:17:48,750 --> 00:17:51,389
And closing first objective would
be to close with the Coolie void
285
00:17:51,840 --> 00:17:55,530
that the bowl flag creates or
the false flag that it creates.
286
00:17:55,530 --> 00:17:58,710
Rather, if we go out to
a 15 minute timeframe,
287
00:18:02,280 --> 00:18:07,230
you can see, even on this timeframe,
we have the last up candle right before
288
00:18:07,230 --> 00:18:08,730
us district starts trading lower.
289
00:18:09,659 --> 00:18:10,429
The opening on that.
290
00:18:12,005 --> 00:18:15,965
Is 76 97 against the low as well.
291
00:18:16,295 --> 00:18:23,135
And obviously we've already shown that the
high is 76 97 here on this candle here.
292
00:18:23,495 --> 00:18:26,855
Two price breaks down, closes in it's
boy goes right to the bear shorter block,
293
00:18:27,155 --> 00:18:28,475
and then we can see that as a sell-off.
294
00:18:29,045 --> 00:18:29,495
Okay.
295
00:18:29,795 --> 00:18:31,565
So what am I showing you here?
296
00:18:31,565 --> 00:18:35,945
I'm showing you that there's going
to be times when we break our market
297
00:18:35,945 --> 00:18:37,415
down from a top-down perspective.
298
00:18:38,235 --> 00:18:42,045
By defining the market in
terms of discount or premium.
299
00:18:42,435 --> 00:18:42,855
Okay.
300
00:18:43,125 --> 00:18:47,085
And understand the hard timeframe as
we shown with the daily chart here
301
00:18:47,355 --> 00:18:50,865
and walking our way down to a lower
timeframe that we can execute on.
302
00:18:51,885 --> 00:18:56,075
We can use the premise that
others traders are going to
303
00:18:56,075 --> 00:18:57,785
see this as a bullish scenario.
304
00:18:57,785 --> 00:18:58,395
So it's really nice.
305
00:18:58,395 --> 00:18:58,445
Yeah.
306
00:18:58,515 --> 00:19:01,655
Sentiment play in addition
to institutional order
307
00:19:01,655 --> 00:19:02,615
flow and a hard timeframe.
308
00:19:02,975 --> 00:19:06,215
So we're able to see what everyone
else with a retail minded.
309
00:19:07,350 --> 00:19:11,430
Perspective would see here in terms
of continuation on the upside.
310
00:19:12,030 --> 00:19:14,820
But when we start to see the breakdown,
we know we can get right back in
311
00:19:14,820 --> 00:19:19,409
here and sell it short rate at that
moment there, and then quickly price
312
00:19:19,409 --> 00:19:23,370
moves away aggressively and then
closes in it's Boyd right here.
313
00:19:23,610 --> 00:19:26,100
And then ultimately trades up
one more time, closing in this
314
00:19:26,100 --> 00:19:30,060
small little liquidity void here
and ultimately moving lower.
315
00:19:33,990 --> 00:19:35,909
So let's take a look at
an example of a bear.
316
00:19:37,064 --> 00:19:41,324
That would be a false wag and how that
would translate into higher prices.
317
00:19:45,614 --> 00:19:45,975
Okay.
318
00:19:46,034 --> 00:19:47,294
We have one more example here.
319
00:19:48,945 --> 00:19:50,415
Price has a sudden decline.
320
00:19:50,594 --> 00:19:52,304
We're an existing downtrend here.
321
00:19:52,814 --> 00:19:53,294
Okay.
322
00:19:53,804 --> 00:19:56,804
Price goes into a small consolidation
and look, we're having that saw
323
00:19:56,834 --> 00:19:58,485
consolidation sloping higher.
324
00:19:59,235 --> 00:19:59,415
Okay.
325
00:19:59,415 --> 00:20:03,975
By all intents and purposes, this would
be deemed as a classic bear pattern.
326
00:20:04,304 --> 00:20:04,635
Okay.
327
00:20:04,665 --> 00:20:05,235
Or bear flat.
328
00:20:06,180 --> 00:20:07,050
Uh, continuations.
329
00:20:07,740 --> 00:20:12,660
So one would reasonably expect to see
a move from this high, down to this
330
00:20:12,660 --> 00:20:15,360
low, from this high projected lower.
331
00:20:15,750 --> 00:20:17,310
So we could potentially see a move.
332
00:20:21,075 --> 00:20:22,665
To about 73, 55.
333
00:20:22,695 --> 00:20:27,825
If we were looking at, uh, pure,
uh, chart patterns in the form of
334
00:20:28,065 --> 00:20:33,875
classic patterns, and problem is
the market traded down into 74 42.
335
00:20:33,875 --> 00:20:34,955
So what's significant about that.
336
00:20:35,735 --> 00:20:36,065
Okay.
337
00:20:36,065 --> 00:20:41,975
Well, I'm going to show you by having
our hard timeframe perspective, we're
338
00:20:41,975 --> 00:20:43,145
going to highlight this little area.
339
00:20:43,445 --> 00:20:43,655
Okay.
340
00:20:43,655 --> 00:20:46,445
That's where a bear flag
is or our pseudo bear flag.
341
00:20:47,045 --> 00:20:47,135
Okay.
342
00:20:49,179 --> 00:20:52,510
I want you to see what's actually
happening here when the market trades
343
00:20:52,510 --> 00:20:54,730
into that level, we're going to get
into high timeframe, but I want you to
344
00:20:54,730 --> 00:20:56,470
see what happens right from the price.
345
00:20:56,860 --> 00:21:02,540
At this point here, suddenly the
bear flag doesn't look so bearish.
346
00:21:03,649 --> 00:21:04,040
Okay.
347
00:21:04,550 --> 00:21:09,169
So by having this, let's go in
here and take a look at the daily.
348
00:21:11,140 --> 00:21:11,470
Okay.
349
00:21:11,920 --> 00:21:14,740
Here's that area where
that verified will appear.
350
00:21:15,040 --> 00:21:18,700
Like we were just showing on
a one hour chart, look at the
351
00:21:18,700 --> 00:21:19,930
bodies of the candles over here.
352
00:21:20,500 --> 00:21:20,770
Okay.
353
00:21:20,830 --> 00:21:24,820
All these wicks trading down
here, again, all the heaviest
354
00:21:24,820 --> 00:21:26,380
volumes inside of the Wix.
355
00:21:26,950 --> 00:21:31,390
So if we take our area, we
just highlighted keep it where
356
00:21:31,390 --> 00:21:32,750
it's anchored at for the one.
357
00:21:33,510 --> 00:21:38,430
Set up, you were identifying as a false
bear flag and actually identifying
358
00:21:38,490 --> 00:21:41,370
all the price action below these lows.
359
00:21:42,030 --> 00:21:42,300
Okay.
360
00:21:42,300 --> 00:21:43,650
Now I'm not using the Wix.
361
00:21:44,040 --> 00:21:45,540
I'm using the bodies of the candles.
362
00:21:46,140 --> 00:21:46,590
Okay.
363
00:21:47,130 --> 00:21:52,050
And the expectation is this movement
here, because we're now coming
364
00:21:52,050 --> 00:21:56,940
back down into this area for the
first time in a couple of months.
365
00:21:57,885 --> 00:22:00,105
Well a month and a half
here on the Aussie.
366
00:22:00,795 --> 00:22:03,405
So we're going one more time
back into this area below the
367
00:22:03,405 --> 00:22:07,875
lows, in terms of their bodies
of the candles, not the wicks.
368
00:22:07,965 --> 00:22:08,175
Okay.
369
00:22:08,175 --> 00:22:09,615
So we ignore all these wicks.
370
00:22:10,155 --> 00:22:13,665
We know that the bulk of the
volume is seen in the bodies.
371
00:22:14,085 --> 00:22:18,945
So this rundown below here was really
just making a run one more time
372
00:22:18,945 --> 00:22:21,405
for this stops below these candles.
373
00:22:22,635 --> 00:22:26,264
So if we're seeing that on a daily
chart, We have to consider that when
374
00:22:26,264 --> 00:22:28,064
we go back into the hourly chart.
375
00:22:29,235 --> 00:22:32,804
So when the market starts creating
that pseudo bear flag in here, we
376
00:22:32,804 --> 00:22:36,074
don't see that as a bear flag, we
actually start going in and looking
377
00:22:36,074 --> 00:22:38,985
for reasons to expect higher prices.
378
00:22:39,014 --> 00:22:40,365
Now we don't just simply go by it.
379
00:22:40,814 --> 00:22:42,074
As the market starts to rally.
380
00:22:44,334 --> 00:22:48,205
We want to wait for a swing high to
be created and violated on the upside.
381
00:22:52,810 --> 00:22:54,430
Okay, we get to here.
382
00:22:54,430 --> 00:22:56,920
We have a swing high market
trades up through it.
383
00:22:56,920 --> 00:23:01,570
Here comes back down to the
last bearish candle right here.
384
00:23:02,110 --> 00:23:05,470
So we can take that idea and not
look at it as a bear flag, but
385
00:23:05,470 --> 00:23:07,180
look at it as a buying opportunity.
386
00:23:07,480 --> 00:23:11,440
So we could be a buyer right here
with a stock below the flags low.
387
00:23:11,860 --> 00:23:12,940
So we could be doing this.
388
00:23:19,300 --> 00:23:20,680
You stop moving below there.
389
00:23:21,280 --> 00:23:24,250
You're getting long at
seventy four seventy.
390
00:23:24,280 --> 00:23:28,570
We'll call it seventy four seventy
and the expectation would be, we
391
00:23:28,570 --> 00:23:33,790
would be looking for a range fill
in of all these down candles.
392
00:23:34,510 --> 00:23:38,350
So it looked for upside objective here.
393
00:23:40,565 --> 00:23:41,945
Last up candles, body.
394
00:23:42,575 --> 00:23:47,075
And then we were looking for
the stops above these equal
395
00:23:47,075 --> 00:23:49,415
highs, that clean level here.
396
00:23:49,895 --> 00:23:52,325
Plus we have another
397
00:23:58,605 --> 00:24:01,515
bearish order block here and
then one more right in here.
398
00:24:06,130 --> 00:24:12,190
Then we have equal highs again, so we can
be looking for that for a liquidity pool.
399
00:24:13,420 --> 00:24:17,320
And we can, we can look up here for
another objective if we want to look
400
00:24:18,010 --> 00:24:21,160
for a really longterm type scenario.
401
00:24:23,470 --> 00:24:23,830
Okay.
402
00:24:24,310 --> 00:24:28,060
So going forward price responds
off that level, rather handsomely.
403
00:24:29,745 --> 00:24:34,665
Comes back a little bit retracement
just to populate more buying in here.
404
00:24:35,925 --> 00:24:40,635
Price comes up, sweeps out
these equal highs we're here.
405
00:24:40,995 --> 00:24:42,584
So these highs in here were cleared out.
406
00:24:42,584 --> 00:24:48,045
The high on this candle comes in at 75 68.
407
00:24:49,455 --> 00:24:52,935
The high on this candle
here comes in at 75 73.
408
00:24:52,935 --> 00:24:54,044
So we cleared those stops.
409
00:24:54,885 --> 00:24:55,155
Here.
410
00:24:55,155 --> 00:24:57,165
That's what we saw a little
bit of a rejection here.
411
00:24:58,065 --> 00:25:03,225
And ultimately we see price rally
up into closing this range here
412
00:25:03,705 --> 00:25:04,905
and then blowing through the tie.
413
00:25:05,355 --> 00:25:08,205
And then the next area of liquidity
would be this liquidity pool here.
414
00:25:10,005 --> 00:25:11,325
It trades through that here.
415
00:25:12,990 --> 00:25:18,360
Small little consolidation again,
and ultimately seeing that run
416
00:25:18,360 --> 00:25:21,060
up into that rejection here.
417
00:25:21,180 --> 00:25:24,180
So is that bearish order block
we finally looked at and it
418
00:25:24,210 --> 00:25:25,290
swept through that as well.
419
00:25:25,290 --> 00:25:27,810
And ultimately just for good measure,
cleared out the old highs are here.
420
00:25:27,870 --> 00:25:28,110
Okay.
421
00:25:28,110 --> 00:25:32,340
So it's not the fact that we're
looking for chart patterns.
422
00:25:32,730 --> 00:25:33,150
Okay.
423
00:25:33,150 --> 00:25:34,470
And especially if.
424
00:25:35,300 --> 00:25:40,970
The idea of looking for a continuation,
actually, if I just scrolled over, didn't
425
00:25:40,970 --> 00:25:42,950
even realize, but we have one more here.
426
00:25:43,130 --> 00:25:43,460
Okay.
427
00:25:43,490 --> 00:25:47,180
Price trades down creates a small
little consolidation, slightly higher.
428
00:25:47,180 --> 00:25:48,200
That would be viewed as what?
429
00:25:48,830 --> 00:25:49,430
A bear flag.
430
00:25:50,300 --> 00:25:50,570
Okay.
431
00:25:50,630 --> 00:25:52,190
Well, we're actually going to
do is we're going to wait for
432
00:25:52,190 --> 00:25:53,570
a swing high to be violated.
433
00:25:54,500 --> 00:25:54,980
Okay.
434
00:25:55,340 --> 00:25:59,660
And we have a swing high here, even
though it creates a lower low, it
435
00:25:59,660 --> 00:26:01,760
would have been looking like, oh,
this is going to keep going lower.
436
00:26:02,030 --> 00:26:03,170
All of a sudden they put
the brakes on and go.
437
00:26:04,430 --> 00:26:08,060
Can we have a swing high Wiley
there till we get down to the
438
00:26:08,060 --> 00:26:09,470
last down candle right here.
439
00:26:10,040 --> 00:26:11,030
Draw that out in time.
440
00:26:11,060 --> 00:26:11,750
There it is.
441
00:26:11,780 --> 00:26:14,780
There's your buy in issue?
442
00:26:14,780 --> 00:26:17,240
Run up higher prior to the down move.
443
00:26:17,240 --> 00:26:19,040
We just identified barefoot.
444
00:26:19,040 --> 00:26:20,510
That was a suspect.
445
00:26:20,600 --> 00:26:20,810
Okay.
446
00:26:20,810 --> 00:26:21,860
It's a false bear flag.
447
00:26:22,340 --> 00:26:25,760
So when I look at price action, this is
what I'm going to give you as a takeaway.
448
00:26:26,450 --> 00:26:30,440
When I'm looking at price action, I'm
looking for reasons why other trades.
449
00:26:31,365 --> 00:26:34,095
Well view the opposite
side of the marketplace.
450
00:26:35,175 --> 00:26:39,465
So I'm not always just looking for
what would make me take the trade.
451
00:26:39,555 --> 00:26:44,535
I'm also looking for the marketplace
to suggest to me how retail minded
452
00:26:44,805 --> 00:26:48,195
traders are going to be things
in the form of classic chart
453
00:26:48,195 --> 00:26:50,805
patterns in the form of indicators.
454
00:26:51,135 --> 00:26:51,345
Okay.
455
00:26:51,345 --> 00:26:54,795
And we'll talk a lot about that
later on in this mentorship, but for
456
00:26:54,795 --> 00:26:59,535
now, I want you to take away the,
the study of going back through.
457
00:27:00,284 --> 00:27:04,125
Old data, go through your charts and
find areas where Blair flags and bull
458
00:27:04,125 --> 00:27:10,215
flags were basically looking as if it
would call for lower prices for a bear
459
00:27:10,215 --> 00:27:11,985
flag and it reversed and went long.
460
00:27:12,675 --> 00:27:16,754
And look for opportunities where
the market showed a clear example
461
00:27:16,754 --> 00:27:20,595
of what would be viewed as a
bull flag, but it creates a high.
462
00:27:21,524 --> 00:27:25,544
And what happens is actually is
this, the market goes into a period.
463
00:27:26,925 --> 00:27:30,465
Of after it rallies up or it
moves down for a period of time.
464
00:27:31,425 --> 00:27:37,245
Um, if we have to market
create a run-up okay.
465
00:27:38,024 --> 00:27:42,975
Say it, this creates a quick rally up
then in that, after that rally, the
466
00:27:42,975 --> 00:27:45,044
market will go into another consolidation.
467
00:27:45,764 --> 00:27:46,034
Okay.
468
00:27:46,034 --> 00:27:50,865
And think about if the now
price delivery has been rapid.
469
00:27:51,750 --> 00:27:52,980
On one side of the marketplace.
470
00:27:54,000 --> 00:27:55,470
So the market's going to
go into consolidation.
471
00:27:55,470 --> 00:27:58,740
It's going to pause for a couple
of periods in that period.
472
00:27:58,740 --> 00:28:02,040
It's going to be relative to what
it needs to do, and you never know
473
00:28:02,040 --> 00:28:05,399
exactly how long that time period
is, which again, I've already proven.
474
00:28:05,399 --> 00:28:06,090
We don't care.
475
00:28:06,210 --> 00:28:07,620
We're just going to wait
for the indications.
476
00:28:08,040 --> 00:28:11,190
The market's going to reach for a
specific level of liquidity above
477
00:28:11,190 --> 00:28:12,270
the marketplace or below the market.
478
00:28:13,140 --> 00:28:17,190
So if we get that big run-up and it starts
consolidating and it can consolidate
479
00:28:17,190 --> 00:28:20,760
going slightly lower in a diagonal
pattern, like a classic bull flag would
480
00:28:20,760 --> 00:28:25,680
be what's actually happening is, is they
rally price up to get traders thinking
481
00:28:25,680 --> 00:28:27,450
what it's going to keep going higher.
482
00:28:28,140 --> 00:28:29,070
Then they pause it.
483
00:28:29,880 --> 00:28:33,210
What many times you'll see is
the market will just do that.
484
00:28:42,200 --> 00:28:47,900
Just make us short, slightly
short term, higher high, and then
485
00:28:52,260 --> 00:28:52,920
collapse.
486
00:28:54,300 --> 00:28:57,480
This is the basis of turtle soup.
487
00:28:59,130 --> 00:29:00,180
And you see that here.
488
00:29:01,170 --> 00:29:01,590
Okay.
489
00:29:02,070 --> 00:29:02,970
We have a consolidation.
490
00:29:04,080 --> 00:29:06,870
Price rallies up and
then it falls through.
491
00:29:07,500 --> 00:29:07,830
Okay.
492
00:29:08,700 --> 00:29:10,230
The scenario is seen here.
493
00:29:10,710 --> 00:29:14,010
Price drops down,
consolidates, it drops lower.
494
00:29:14,010 --> 00:29:15,150
So this would be like this.
495
00:29:27,200 --> 00:29:27,380
Okay.
496
00:29:27,380 --> 00:29:30,140
The pattern would be a
decline consolidations.
497
00:29:33,795 --> 00:29:37,875
Then an initial leg lower just
by little bit, the short-term low
498
00:29:37,875 --> 00:29:39,285
violate and these loads right here.
499
00:29:39,795 --> 00:29:44,145
So when we see that it's going to
look like it's been validated for
500
00:29:44,145 --> 00:29:47,985
this bear flag to go lower and have
a projected measured, move lower.
501
00:29:48,555 --> 00:29:53,205
But in fact, all it's doing is taking
out the short-term lows here and then
502
00:29:53,205 --> 00:29:58,545
reversing and running the other way,
which is again, the basis of the turtles.
503
00:29:59,205 --> 00:29:59,565
Bye.
504
00:29:59,955 --> 00:30:01,514
And you see that taking place right here.
41927
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