90% OF CRASHES IN 2023/24 LOOKED THE SAME (5 AUG) - SPY SPX QQQ OPTIONS ES NQ SWING & DAY TRADING
Summary
TLDRIn this trading-focused video, the speaker dissects market movements through the lens of intraday algorithms, emphasizing the importance of recognizing institutional selling patterns and market liquidity. They highlight key moments such as the 'tapering teal algorithm' and 'engulfing red candle' as pivotal for identifying trading opportunities. The narrative stresses the significance of patience, strategic trading, and avoiding overtrading to ensure profitability, while also underscoring the necessity of understanding market structures for long-term success in trading.
Takeaways
- 📈 The video discusses how to identify institutional selling and market clues for trading profits.
- 🔍 On August 1st, the speaker had previously identified a market trend that led to a 20-point drop, indicating the importance of recognizing patterns.
- 📊 The script emphasizes understanding intraday algorithms and translating them to larger time frames for better trade setups.
- ⏰ At 9:48 a.m. on a Friday, a 'tapering teal algorithm' was identified, leading to a profitable trade based on market structure.
- 📉 The video mentions a 'green selling continuation algorithm' as a strong indicator of selling pressure on that day.
- 🛑 The speaker advises to stop trading when there's a lack of continuation in the market structure, especially towards the end of the trading day.
- 💡 It's crucial for traders to learn when to stop trading and not to overtrade, focusing on profitability rather than the number of trades.
- 🎯 The importance of patience in trading is highlighted, with the goal of finding profits in the charts regardless of market direction.
- 📚 The script encourages viewers to train their eyes to identify trading algorithms and structures for consistent profitability.
- 🚫 A warning against relying on signals alone, as they can be detrimental, emphasizing the need to learn and master trading skills for the long term.
- 🌐 The video concludes with a reminder to watch previous videos for a better understanding of the discussed trading concepts and strategies.
Q & A
What is the main focus of the video script?
-The main focus of the video script is to discuss market analysis techniques, specifically identifying institutional selling patterns and intraday trading algorithms to make profits in the stock market.
What is the significance of the 'teal algorithm' mentioned in the script?
-The 'teal algorithm' is a trading pattern that the speaker identifies as significant for building liquidity and forming a 'cup and handle' structure in the market, which can be used to predict market movements and trade accordingly.
What does the script suggest about the importance of understanding intraday algorithms in relation to larger time frames?
-The script suggests that understanding intraday algorithms is crucial as it allows traders to translate these patterns to larger time frames, which can help in identifying potential trading opportunities and setups.
What is the 'engulfing red candle' mentioned in the script and why is it important?
-The 'engulfing red candle' is a specific candlestick pattern that signals a strong bearish trend. It is important because it indicates a potential shift in market sentiment and can be a clue for traders to anticipate further selling pressure.
What is the 'taper' mentioned in the script and how does it relate to trading?
-The 'taper' refers to a decrease in the intensity of a trading pattern or algorithm. It is significant in trading as it can indicate a potential change in market direction or a pause in the current trend, prompting traders to adjust their strategies accordingly.
How does the script define 'overtrading' and why is it discouraged?
-Overtrading is defined in the script as engaging in too many trades within a short period. It is discouraged because it can lead to increased risk and decreased profitability, as traders may not have enough time to analyze each trade properly.
What is the role of the 'magenta algorithm' in the script's trading strategy?
-The 'magenta algorithm' is identified as a stronger pattern that can indicate a potential liquidity grab in the market. It is used to identify short-term rallies and potential entry or exit points for trades.
What does the script suggest about managing risk in trading?
-The script suggests that managing risk in trading involves being aware of market structures, understanding when to stop trading, and not overtrading. It emphasizes the importance of patience and discipline in trading to ensure profitability.
What is the significance of the 'green algorithm' in the script's discussion on market trends?
-The 'green algorithm' is highlighted as a strong selling continuation pattern that can limit the market's upside. It is significant as it provides a clear indication of potential resistance levels and can help traders manage their positions accordingly.
How does the script advise traders to approach the concept of 'profitability' in trading?
-The script advises traders to focus on being profitable rather than trying to execute as many trades as possible. It emphasizes the importance of patience, discipline, and the ability to identify profitable opportunities within market structures.
What is the script's stance on the use of 'signals' in trading?
-The script discourages reliance on signals for trading, arguing that they can be detrimental to a trader's development of long-term, sustainable trading skills. It encourages traders to learn and master the skill of identifying market patterns and opportunities independently.
Outlines
📈 Market Analysis and Trading Algorithms
The first paragraph discusses the importance of understanding market signals and institutional selling patterns. It provides a brief on the 'tapering teal algorithm' identified at 9:48 a.m. on a Friday, which led to a profitable trade. The speaker emphasizes the significance of recognizing market structures and liquidity, as well as the importance of not overtrading. The paragraph concludes with advice on managing risk and identifying when to stop trading, especially on Fridays, to ensure safety and profitability.
🎓 Developing Trading Skills for Long-Term Profitability
The second paragraph focuses on the concept of not overtrading and the importance of training one's eyes to identify trading algorithms and structures. It stresses the need for patience and focus to find profits in the charts, regardless of market fluctuations. The speaker encourages members to learn a lifetime skill for consistent profitability, warning against relying on signals and emphasizing the value of mastering the skill for daily five-figure profits. The paragraph ends with motivational advice on maintaining focus and discipline in trading.
📊 Market Trend Analysis and Liquidity Zones
The third paragraph delves into market trend analysis, discussing the use of algorithms to identify liquidity zones and potential reversal points. It highlights the importance of watching for the 5-day moving average to catch up as an indicator for further downside movement. The speaker advises on the cyclical nature of market trends and the importance of using trend indicators wisely. The paragraph concludes with a caution against letting ego interfere with profitable trading and the need for levelheadedness and good intentions in trading decisions.
Mindmap
Keywords
💡Profits
💡Intraday Algorithms
💡Liquidity
💡Engulfing Red Candle
💡Selling Continuation
💡Tapering
💡Cup and Handle
💡Head and Shoulders
💡VWAP (Volume Weighted Average Price)
💡Overtrading
💡Trend Indicators
Highlights
The video discusses how to prepare for making profits by analyzing market lifts and institutional selling.
Introduction of intraday algorithms to identify institutional selling and trading setups.
Explanation of the 'tapering teal algorithm' and its significance in identifying market structure on 9:48 a.m. Friday.
The importance of understanding market liquidity building with teal and orange algorithms.
Identification of a strong selling continuation algorithm with increasing volume as a sign of selling strength.
Highlighting the yellow tapering rhythm and its role in signaling a change from selling into strength.
The significance of waiting for cup closures and additional structure in trading strategies.
Analysis of the green algorithm limiting upside potential and its impact on trading decisions.
The concept of market chopping and the importance of recognizing when to stop trading, especially on Fridays.
Advice on managing risks and the importance of not overtrading for consistent profitability.
Emphasis on patience and focusing on profitable trades rather than the number of trades.
The role of the 5-day moving average in catching up to support further downside in the market trend.
Discussion on the cyclical nature of market trends and the importance of trend indicators.
The importance of not letting ego interfere with trading decisions for the sake of profitability.
The long-term skill of trading and its potential to be life-changing, both financially and personally.
Encouragement to learn and master trading algorithms for consistent profitability.
A recap on institutional selling and the importance of understanding market trends from previous videos.
Transcripts
come let us prepare make some good
profits today Market lift has some Clues
right here we will be talking about that
in today's video now in case you missed
it I talked about this on 1st August
1029 right here where I talked about how
you can be identifying institutional
selling and just take a look we went
down 20 points from then but there are
more clues that the market has left for
us let's talk about that in today's
video but before that inod analysis it's
important you understand the intraday
algorithms that you can translate them
in the larger time frame and also to
identify your five figure trait setups
9:48 a.m. on Friday we identify the
tapering teal algorithm right here now
you see how the teal algorithm started
forming that cup and handle and you see
how beautifully the market gave us
absolutely beautiful structure here off
that yow low 534 exactly as it is giving
us a beautiful first trade of the day
this trade Five Points absolutely
beautiful so it's important you
understand to see how the market was
building liquidity with the teal and the
orange ory them and traded only as
structure demands now one of the bigger
Clues was this beautiful engulfing red
candle once we started retesting that
teal algorithm right there and you'll
just have to see that this head is
waiting for a liquidity grab on the
break here now once we started breaking
you see how the volume started
incrementally increasing now this is a
show of strength of selling into
strength right here giving us that
beautiful Green selling continuation
algorithm this was the strongest selling
algorithm that we have seen at that day
so you have to hold your Runners if you
understand how to be looking out for
algorithms with strength like this now
there after
1047 we identify this yellow tapering
rythm right because we were not selling
into strength anymore and I showed you
that that we stopped selling into that
stronger selling algorithm right there
right you don't see that anymore you see
that we are starting to taper right here
now when you see the tapering all you
have to do now was to wait for cups to
start closing once the Cup starts
closing wait for more structure right
here you see how the yellow and the
orange arithm was still building more
liquidity but this time with a stronger
magenta arithm here so if you manage to
catch this trade you will catch it here
on that beautiful liquidity grab as well
as here or even here with the magenta
but this was very short L rally because
we identify this green algorithm that
limited our upside right here I will
show you this green algorithm in a while
so this is very important you have to
understand that there is a lack of
continuation even though we were
tapering this is a clear sign that the
market is going to chop as I showed you
here as well
11:33 right we also had this green
algorithm that is limiting our upside
right here we had the beautiful green
and teal algorithm and giving us a
beautiful Head and Shoulder structure
right here there is a micro structure
here if you manage to catch it yeah
beautiful right shoulder liquidity but
you see the market once again not
willing to go down and you have four 45
minutes right here to manage your risks
because this was just absorbing all the
orders and it's not going anywhere near
to end of the day they started covering
the shorts and this is where the average
of the day is let me turn on vwap and
you see how the market started trending
and chopping the vwap this is your
indication to stop trading for the day
especially on Friday so it's important
to understand where the safety is in the
charts and understand especially with
the lack of continuation structure you
need to learn to know when to stop
orders were soaked up we had strong
structure but not heading down in the
strongest selling orm and we were
looking out for at least the orange 45
minutes of order soaking up and we had
the shorts that cover back all the way
to Safety in vwap and this is when you
have to call it a day you cannot be
overtrading this is why I always tell
you to wait for the ranges especially if
there's no continuation structure but
you cannot lack the patience to do this
now members who did well this week you
trained your eyes to be looking at the
orms and you traded a structure demands
you were patient and you remained
focused to be finding profits in the
charts you didn't overtrade some of you
one and done every single day that's
what you need to be doing stay focused
on being profitable not overtrading you
have to remember your objective of
trading and that is to be profitable you
are not trying to get in as many trades
as you can so you have to learn and stay
focused on not overtrading some of you
one and done maximum three trades a day
stay focused so you can understand how
to be training your eyes to be looking
at the algorithms identifying structure
and most importantly finding profits in
the charts doesn't matter in day trading
where the charts are going up and down
up and down it's exactly it it's going
up and it's also going down all you have
to do is to learn to identify profits in
the chart and once you can do that and
you stop over trading and you train your
eyes to look at the algorithms I can
guarantee you you will be very very
profitable and consistently so so well
done members it's about learning this
skill this lifetime skill so you can do
this for the rest of your life by
learning to find five figure profit
trades and I've shown you it's very
possible to do it but it's a longterm
skill you need to learn so don't rush
this and most importantly please do not
join even looking for signals signals
will ruin you you need to learn the
skill for a lifetime so you can do this
every single day for the rest of your
life and we're talking about $10,000 a
day not a month mind you every single
day the skill is worth every oun of your
energy and determination to learn and
master it's not going to be easy why
should it but it is possible stay
focused run this race strong it will be
lifechanging not just financially but
you will see how trading will make you a
better person stay focused we got this
now where do we go from here now it's
important a quick recap now I talked
about institutional selling right here
and you have to watch yesterday's video
have more understanding especially this
week's video where I talked about this
entire downtrend and how we managed to
catch it here very important you have to
learn to train your eyes using the
algorithms and they are not just silly
lines like most people say now if you
learn to see them you can never and see
them again and I talked about from there
we had that strong Green selling
algorithm right here and I want you to
see we had couple of rejection here
right and the only breakout was when we
broke out of that green but you see the
other selling continuation structure
right we had more rejection before we
started breaking out now this was after
2 p.m. so we need to explore what this
is whether these are the Bears or these
are the Bulls but I also mentioned very
clearly that this was trending back to
the average where the vwap is so you
have to be extremely mindful of that so
that being said we are still in that
very strong selling continuation
structure you see the market and the
Bears can still be building liquidity
here yeah so this is a beautiful
liquidity Zone if you can identify it
what you want to be looking at is
whether the Bears need to build more
liquidity on the way down on the break
here especially at that orange 532 now
if this wants to continue heading down
preferably we head down in that green
the strongest so far that we've seen
Green selling continuation structure
otherwise there's another orange one
here that we have not even breached at
all so you have to be very Mindful and
look out for that orange right there now
at this point here yeah if there is any
further downside we can also grab
liquidity very quickly from that orang
algorithm giving us more selling if the
market does indeed want to continue
selling here now if we do start
weakening in our selling right so for
example you see how the market starts
weakening here and you have the magenta
Rhythm and we start pushing down maybe
we have a gap down but the market
doesn't have sufficient liquidity to
head down you will see how the market
can grab liquidity back at this red 530
level with that magenta them so pay
close attention to that otherwise look
out for cups to close that's what I want
to see if this wants to head up here the
first being this orange 532 look out for
some micro structure right here and you
want to see the orange and magenta
building liquidity we have a second one
where this is a very beautiful 536 pink
level here we have the magenta rhm as
well and this is what you want to be
looking out for if there is a certain
reversal on the way out here so level by
level organms by organms if you want to
be calling for the reversal now we take
a look at the daily chart right here you
see how we have retested bottom
Ballinger and if this wants to continue
trending down as I always mentioned we
always wait for the 5day to catch up the
5day will eventually catch up and this
is what I want to see if I want to see
further downside if I want to see
further downside I do hope that the
market trends down 5day moving average
close to where a major liquidity levels
are especially at this pink 536 look out
for the handle to start forming with the
beautiful head and show the pattern here
with the yellow and orange or Rhythm
here now if this continues to Trend down
where that 536 pink is this may be where
I want to be looking out for the cup and
handle as well so wait for cups to close
it's never too late if you want to call
for the trend reversal you need to be
waiting at least for 5day moving average
to turn into some sort of support
otherwise as I've always mentioned 5day
and 20-day in combination together with
your bottom Ballinger now if you take a
look at previous times it happened now
once here the 5-day pushing down and the
bottom Ballinger you see it's always
waiting for the 5 day before it starts
contined trending down this where it
gets this liquidity from likewise here
again you see how the 5day will catch up
in order for the bottom Ballinger to
continue trending down that's where most
of the liquidity is once more here as
well 5day and you see how the market
continues trending down here beautiful
once more here again I think I've made
my point and this time we had a support
and this time we had an involvement of
the 20-day moving average as well botton
balling are trending down right there
and you see whenever it bounces up 5day
firstly turn into some sort of support
and thereafter 5day crosses back above
20-day moving average so it is cyclical
it is rotational some of you will call
it and this is exactly how you use the
trend indicators to be looking at that
so before then do not be so caught up
with trying to call the reversal right
from the bottom it serves no good except
for your ego and that's not what's
trying to feed your family isn't it you
have to always remember to remain
profitable and you have to be
levelheaded and know how to be trading
with good confirmation with the right
attitudes and intentions and thereafter
you can make money because of that be
very careful not let your ego get into
the way or your desire to be right it
doesn't feed your family so thank you
very much for watching I will see you
closer to opening bell
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