All language subtitles for 6. S_D Flip Zones (Walkthrough Part 1)

right so now that we've looked at the theory of flip zones as always now it's

time to actually you know apply those theoretical concepts to see how they

actually play out in reality because of course we're not always going to get

those nice perfect utopian examples in the market so

if we just go back to the the chart layout that we've been using

uh thus far right as we've been building upon these uh with each concept that

we've looked at your chart may look something like this right with having

your structure mapped out and your structural supply and demand zones

drawn on so of course i'm going to go through every little bit of price action

and draw on every single zone um but i'm just going to kind of go through

reasonably briefly and kind of just show you how we can validate some of these

structural zones even further by looking at potentially if they caused uh an s d

flip as well so if we just look at this zone here right

and now and imagine in the live market we were at this point back in

the start of 2018 and price was approaching um you know making sort of

new highs up here right weekly chart is clearly in a bullish market all right

high high high low high high and we would be looking after we had that

weekly break of structure where potentially the weekly may want to start

to pull back or of course potentially reverse which is what ended up doing so

what do we do we look left and we look at potential supply zones right and

there can be supply all the way up this leg right all the way up to

you know pretty much this swing high here so how can we increase the

probability of knowing which one um is likely to hold and have a pullback well

of course this is kind of the last buy before the cell that actually led to

that previous break of structure so that's a pretty decent zone it is the

decision zone but does it actually cause an s d flip well this is where we have

to look left and start to build the story a little bit okay so if we look at

this piece of structure down here what do we have we had the by for the cell

that kind of broke that more minor low okay so we obviously have some weekly

supply there so if i just refine that kind of whole

range just to that last pivot candle there

and then we have some weekly supply so then what happens when price came into

that supply press pull back it reacted remember the reaction is key it tried to

make a lower low but then boom right the demand stepped in in order to take out

that supply so now we have a supply to demand flip right so now what we can do

is draw on that entire range right from the reaction to the low point of the

action and then we can draw that across as demands that may be used in a future

point so then when we drag that across what can we see right price came down

here had a little bit of a reaction and then

eventually this pivot here right that blast by before the cell candle is where

then the supply stepped in to take out that demand and take out the actual

structural low so that is literally just what those flips are just kind of

building the story um you can go back as far as you want and let you just see how

it's just a constant exchange between supply and demand until one is taking

control right until we then come down lower before the buyers start to

step back in again i mean moving quickly just down here what did

we have right we had um the supply down supply zone down here right from that

pivot candle price comes into it right it's a very

subtle one but it's a bit more of a small reaction one bearish candle and

then burn the demand steps in right so at that point the reaction fails but it

takes a little while before you actually get that change of character up there so

what does that mean it means that we can then use

this candle here as a potential flip right and then we do see um you know a

reaction is a short-lived reaction right we never know how big the reactions are

going to be whether it will be just a small bounce or you know a bit more of a

sustained pullback or even a reversal that's obviously why we have to pair it

with um a hell of a lot of other compliments right market structure

multi-time free market structure um you know yeah all the concepts that we have

been looking at so yeah that's pretty much just you know the basic premise of

it um let's just kind of go to the more

recent price action and have a look i mean even down here

right there's just flips going on constantly right so we obviously have

this uh buy before the cell that takes out this low here and then what happens

pretty much the next few weeks price point pulls back into it it tries to

make a lower low it fails to do so first take out the slow and then the demand

steps in to take out the reaction and it leads to that breaker structure right so

we get a lot of demand comes in that then starts that new uh bullish trend so

yeah at some point literally anywhere within this entire range so from the

reaction point down to this low is a valid flip zone right it's quite a large

zone obviously we can be aware of it even when price ever reaches back down

here or you know you can start to refine it to even that kind of last pivot there

or potentially even the inside bar right so on and so forth or maybe you want to

do the last fractal refinement so if this is the reaction point and we

want to look at kind of where that last bit sort of failed um you could be then

looking at those buy to sell wicks here right should probably be clear on the

daily or arguably even potentially that last little bit up here but you can see

you know all of those i've just drawn or valid whether you take the whole range

you take the little pivot you take the inside bar or you're going to take these

by to sell wix um obviously the more refined you go

you may as well kind of use multi time frames to your advantage at

that point right this is more a skill set you would need if you for whatever

reason you were locked into one time frame and you couldn't drop down but

because we do obviously have the benefit of being able to drop down time frames

um this is when i'm personally just a little bit more looser and i'll just

take a larger range like that and i'll just be aware that when price comes into

here then i know i'm within a larger weekly demand zone right a supply to

demand flip and then i'll drop down the time frames to obviously help refine

those turning points in the market so yeah obviously that pretty much brings

us to the current range we're at so let's just dump down a time frame and

take a look at the daily chart i'll look at some of the more sort of obvious flip

zones so if we kind of track back again a little

bit and we look at this uh sort of supply zone here the steady

supply zone that took out these lows here right so it's kind of

the origin of that move that came down and then broke those lows um obviously

mitigated a bit with this wick here so what can we do we can refine it to the

fractal wick there and then if we drag it across what happened price came up

into the supply zone it tried to make a lower low right we had that bearish

pressure come in that's the reaction and then boom the demand stepped in so

before we already had this demand drawn on right just as the decisional that

caused the break of structure but it just gives a little bit more weight to

it now because it actually took out a valid supplies on the right because that

reaction validates that the supply zone you know is is

worthy right because it tried to you can see the bearish pressure coming

in as those sell orders are filled but then demand took that out right so

that's where we get the supply to demand flip and then this gives us a decent

reaction to play that daily pullback right

i mean they just occur pretty much everywhere um

so let's just start from the top of the

price action that we've been uh going through so even this one's a

little bit more advanced it's a little bit tricky to see but just kind of rain

this in just so we can kind of focus on the actual

uh price action so if you think back in the live market

um right as price is moving up and then it

pulls back and then it comes up here right this inside bar means what it

means a bit of a range of lower time frame and then price comes out with this

bullish candle so we have broken a minor high there right so this will have

created um a very minor demand zone on that daily inside bar so that's what i

would have drawn on that time right potentially expecting a small reaction

and as price then comes back down to it potentially price should try to make a

higher high so price comes into it it reacts right intraday you can see in the

fractal refinement it tries to make the higher height with those buy to sell

wicks and then what happens it fails price comes down lower so where you had

this very minor sort of inside bar demand price comes in it reacts and then

the supplier comes in to push through and give us that daily change of

character which is what that four hour um

four hour uh breaker structure would be to the

downside right so then you have a potential flip supply zone here um price

doesn't use it then but remember old supply zones can be used at any

point in the future so you can just be aware that it's there and then if we

drag it across right we can see it just missed it here but then eventually price

tapped into it to then start that next long-term daily reversal back to the

downside there all right again even when price action's

not super clear right it's sometimes a little bit messy but there's obviously

going to be demand of that work on a lower time frame the daily reacts to it

pushes down comes back in there's your flip and then we go even lower right and

then we pull back from that flip zone that we looked at earlier

um yeah just so on and so forth um it just happens all the time right even

down here right we have minor pullback that inside bar creates supply because

it takes out that minor low price then pulls back into that supply right inside

bar it reacts and then it pushes up through

then that old demand becomes used for later to then initiate this pullback

here right so on and so forth um yeah i mean i don't want to go through

every single candle there's obviously a lot more in here that i haven't drawn on

i don't want this video to go on for hours uh but even you know looking at

the more recent price action what did we have we had this inside bar here right

this daily supply it took out this low here price came into it it reacted and

it pushed up through so that's obviously bringing us to the current life price

action but this cell before the buy here i would definitely be looking at as a

future um yeah future demand zone to get a potential pullback or a reversal

obviously depending on how market structure is if and when price

uh yeah reaches that level so tell you what let's jump down to the for

our chart and have a look even more um let's go back to that daily flip zone

that we were just looking at with the the buy to sell wick so just to give you

a quick refresh of what i'm referring to was

this up here right when we got that first um

actual daily reversal right when we came up into that old daily and weekly supply

i just zoom in for you guys so we can definitely see it because

drawings are getting a little bit messy when we have them all drawn on but

remember we had this inside bar that created the demand to take out that

minor height so price comes back into it it reacts and then it pushes down right

so we can see those biter cell wicks is a fractal refinement for what for the

lower time frames so if we go and look on the four hour chart if i

just scroll back across to that area what do we have it's going to be a

little bit clearer right because we can actually see the demand zone so at that

point when the minor daily high gets taken out what is that on the floor

chart it's a four hour swing height so it's that four hour swing break of

structure if we look at the origin of that move right the extreme demand zone

pretty nice nice and clean four hour demand zone down here so what happens

price comes down into that full for our demand zone it reacts remember the

reaction is key it fails to put in its higher height first to do its job then

supply steps in takes that demand and causes that swing

breaker structure there which is what that daily change of character so now

what we have we can obviously take the entire range right like that

just drag that across or we could refine it to the last bite before the cell

right because that's completely fresh it's not mitigated and then if we put

that on right we can then draw that across

right so this is where we could have um helped us to

time this move here right that that that daily move back then but remember um you

know there's a always a lot more orders within here so even if sometimes

a zone is just tapped on the distal price can still use more orders within

the zone later on so if we drag that across we can see that then that's where

that daily reversal then finally kicked in but remember

if this zone has been tapped into the way can we can refine this for our zone

to the the part of the orders that are still fresh is kind of what the daily

refinement then helped us with right because if we then looked at the daily

buy to cell wicks we could see at that point it didn't quite touch it and

that's just another way you could kind of then refine that zone but don't worry

massively about that it's a little bit more kind of you know getting lost in

the detail here um it's you know it doesn't massively matter at this stage

if that seems a little bit confusing so i'm just going to delete that just to

try and keep the charts a little bit um yeah a little bit more clean so let's

kind of go a bit more over to the more recent price action um

from kind of where we were started to play around with the four-hour chart in

the prior lesson so if you remember down here

right where the price was bearish we got that lower low so we pretty much have

that entire range or you can refine it to um you know even the wick right that

four hour wick right because you can see that's where

the the price actually pull back now this is a point hopefully if i haven't

made it here already i'll make it clear again of

you know you're going to see supply demands as everywhere right and we know

you know it can seem a little bit confusing at first because you may be

asking yourself you know do i take the entire range do i try and take one

candle do i do fractal refinements the wick and you know you can draw on

multiple ones but when you're in the live market

don't stress about it too much because you use price action to help tell you

you know what price is reacting to you just wait for it to happen right so at

this point you know it's likely there's going to be you know i believe this was

a daily inside bar candle as well you know it's likely there's there's a lot

of four hour supply within here but we don't always have to know the exact

candle exact area in which price is going to react because we just wait for

price to show us away so when you start to see that for our change of character

you would see in the 15-minute chart of the 15-minute chart starting to switch

bearish then we can look left and go okay well actually do you know what

oops didn't mean to go that back far back that far

well well we've let price action tell us that

it's that you know that that fractal wick that uh is being rejected and then

we can kind of refine wherever we've drawn our whole four-hour zone on

whether you know we had the entire range we can then refine it to that wick um

because price action has told us that way so don't worry it's not this you

know i don't have a super nice crystal ball and foresight of me knowing exactly

which fractal refinement or candle price is always going to react to i will

usually have multiple drawn on but then as price starts to react and starts to

to kind of you know confirm what i'm saying then you can start to kind of

make those refinements with a bit more accuracy right and that is why we use

confirmations and multi-timeframe market structure to help us do that but

anyway as we see price start to pull back what should it do right it should

go on to make a lower low so then when we see price go up right what's happened

it's taken out the reaction it's led to that four hour breaker structure which

was the daily change of character so now we know anywhere within this whole buy

to sell range um is a decent uh supply to demand flip zone right but of course

what we can do is uh refine that to this candle here

all right that four hour zone and then obviously price just shoots away so

we're not going to use it then but it can still be used at a later date right

it generally will remain valid so then we can use that flip zone right that for

our zone within this larger daily flip zone because remember

that zone we've just been looking at on the four-hour chart is literally this

price action here so you can see how the time frame's clear all of that up that

we're just looking at that previous four hour supply was this daily inside bar

right price came into it it reacted and it went off so this is why you've got to

use multiple time frames to your advantage so you know back in

later on when prices come down here around july and we know we have this

daily zone here we know it's a pretty decent zone to look for a potential

pullback or even a potential reversal we can go okay let's try and refine us even

more so just on the daily chart alone you could just refine that to the wick

or we can jump down to a lower time frame so that's when we would go and

investigate right this whole daily zone here like this kind of larger slightly

lighter gray box i know it can get a little bit messy now we will then look

okay how can we refine a bit more well we can see that this was the origin of

that four hour flip zone so we could draw it on the candle or you

know if you want to be even more refined you could draw it to the wick and

essentially would be your 15-minute zone um

which of course then you have to accept that price isn't always going to come

down to the most refined point but that's when you can see that 15-minute

demand holding on later on right so then price reacts from here

and then what you get you get the buy before to sell where uh demand flips to

supply and then we push down and then price comes back into supply here right

it reacts but it fails to do its job and then it pushes up higher so then what

you can do is then draw on your demand zone right

you can take the whole range or refine it to that last candle so this demand

should hold right because it took out the supply zone price comes into it

right it reacts and then it pushes down so then you have a fractal refinement

within here right where demand has then flipped back to supply and supply is in

control and then boom what happens right this was a news announcement where we

had a bit of volatility and manipulation but you can see right even though you

know the markets are random we never know which way price is going to go and

when it's going to go but what isn't random is where you know

a lot of those big orders are sitting in the market so though we get this big

volatile spike during a news announcement that happened back on the

18th of august right 6 p.m so probably around fomc or something like that what

happens price spikes up it seeks where those orders are

we know we've just worked out we've just painted the story of why these vital

cell wicks are relevant and then boom enough supply to continue that movement

down right and then what we would have this whole

large buy to sell candle is in fact supply price comes into it tries to make

that lower low and it flips to the upside right so now we have a four hour

flip zone all the way down here all right so on and so forth

again we've got this biter cell candle here right a bit more of a decision on

the middle of the leg not the cleanest of zones but it did lead eventually to

that break of structure all right so as price comes up into that

zone we tap into it we'll react we should try to make a lower low we do

spike that low so we do get a four hour change of character but it's not

convincing right it doesn't close below in fact this kind of you know sell

before the buy this demand here ends up holding and what that ends up doing is

actually taking out the reaction so as we come up here we now have a failed

reaction right on the four hour chart so it's not you know at that point when we

have a failed reaction i've said this before right when we come up here it's a

good sign that this supply zone is going to fail but it's not a guarantee because

price could come up you know all the way up to the towards this wick essentially

fill up more orders right you can see here it tries to fill up more orders you

can see that selling pressure come in but when we do get that first initial

reaction failing it just gives us a high probability that

it will fail it's just not a guarantee okay so when you see that happen you see

price try to go lower it fails demand is holding still right this demand zone is

holding price pushes up higher it closes above that failed reaction then what do

we have we have a flip zone right so there's potential now that we can look

for longs within here right and then we can try and target this higher high and

potentially even higher right so on and so forth so

yeah hopefully that starts to make a little bit more sense um just go and

practice on this on your charts go through all the zones that you've looked

at kind of the structural zones that you've drawn on and just see you know

was there was there um you know flips within there

and that can potentially validate the ones that failed and the ones that that

worked did it increase the probability um and can you just spot them even more

i mean there's even like you know a really clear one here on the four-hour

chart so obviously clearly bearish right we create supply to break those lower

lows right so we have the supply um within here price comes into that supply

right it reacts remember the reaction is key it tries to go lower and then price

breaks up to the upside so now what do we have we have that supply to demand

flip price then pulls back all right we come

in we get plenty of time as we start to get those lower time frame changes of

character right break to the upside there'll be plenty of buying

opportunities to get in long now if you can get this you get that four hour

pullback pro trend into a flip zone you know below the eq and you could get your

lower time frame entry you're golden you've done the hard work that you want

to do be doing is targeting those four hour swing highs and that is how you

make a ton of our a ton of percentage and it's those trades those pro swing

trades that is really going to give you not even those compounding

compounding growths of your account but really those big large quantum leaps

right but suddenly you're going to start banking those 20 30 40 50 are based on

logic right now again not saying these will be easy you're still gonna have to

deal with the psychology of kind of you know holding on to those big trades and

trying to hold on as much volume as possible and obviously these these pro

swing trades um are not always going to come along every single day right but i

can show you example on every single one of these four hour pullbacks and these

higher lows or lower highs in the bearish trending market of how you can

get into them time and time again so i'll tell you what

no don't just take my word for it let's actually go through this recent like a

price action and i'll just show you session by session right

the exact same things happen again the exact same patterns that we've looked at

in the theory module right of how we just look for those pullbacks into our

higher timeframe areas of value and then we look for our lower timeframe

confirmation right flips upon flips upon flips we just use more refinement and

more refinement to get in and then use our knowledge on the hard time frame

structure to target those higher highs or target those lower lows so what i'll

do is i'll probably split this video into two videos just so it doesn't go on

for super long yeah and i will see you in the next one

you