ICT Mentorship Core Content - Month 1 - Fair Valuation
Summary
TLDRThe video discusses concepts of fair value and fair evaluation from a market maker perspective to understand price action. It covers key ideas like equilibrium as fair value in a trading range, liquidity gaps creating future fair value areas, distributions versus accumulations, conceptualizing discount versus premium areas, and viewing moves from a market efficiency paradigm. The goal is shifting perspective to anticipate institutional order flow, identifying manipulations and areas of value, rather than reacting based on retail assumptions.
Takeaways
- 😀 Fair value is about equilibrium between highs and lows, not what retail traders think is fair
- 😯 Liquidity voids show where price moved quickly with little trading
- 🔎 Current price swing ranges indicate where we are relative to highs/lows
- 📈 Buy at discount/lows, sell at premium/highs for best trade entries
- ⬇️ Down candles before up moves are bullish order blocks signaling support
- ⬆️ Up candles before down moves are bearish order blocks showing resistance
- 😊 Consolidation near equilibrium suggests pending price expansion
- 💡 Breaking recent swing highs signals upside bias; swing lows signal downside bias
- 📉 Deep discounts below equilibrium indicate good areas for buyers/longs to accumulate
- 🔻 Scaling out positions should occur at premium prices/highs to exit fairly
Q & A
What are the two perspectives on fair evaluation discussed in the transcript?
-The two perspectives on fair evaluation discussed are: 1) Fair value in regards to equal distance of a high or low, also called equilibrium. 2) Fair value from the perspective of market makers and valuation.
What is a liquidity void and how can you identify it?
-A liquidity void is when the market makes a sudden large movement lower or higher with very little wicks or time spent at each price level. It indicates the price was in a hurry to get to another level where it starts trading more efficiently back and forth.
What is the difference between equilibrium and fair value?
-Equilibrium refers to the equal distance price point between a defined high and low range. Fair value refers to the perspective of market makers on efficient price levels to accumulate or distribute positions.
Where should buy stops be placed to take advantage of a move upwards?
-Buy stops should be placed above recent swing highs, as that is where resting buy orders will be that can push price higher when triggered.
What indicates the strongest move out of a consolidation period?
-The hardest move out of consolidation on higher timeframe charts indicates the likely directional bias for the next price swing.
Where is an optimal area for market makers to sell or exit long positions?
-An optimal area for market makers to sell or exit long positions is at a premium, after having accumulated positions at a discount.
What is the difference between how market makers and retail traders view price levels?
-Market makers view price levels in terms of efficient areas to accumulate or distribute positions. Retail traders tend to chase moves and buy at emotionally-driven premium levels.
How can you anticipate where price is likely heading next?
-By understanding key levels like equilibrium, voids, gaps, etc. and identifying where market makers are likely accumulating or distributing, you can anticipate the next probable swing.
Why should you define price action in terms of current trading ranges?
-Defining current trading ranges allows you to identify key levels like equity, premium areas, discounted areas, and determine the market maker perspective and bias.
What is the basis for calling projected price targets?
-Projected price targets should be based on identifying key fair value levels and gaps where market makers will look to accumulate or distribute positions.
Outlines
📈 Defining fair value for market makers
This paragraph discusses the concept of fair value from the perspective of market makers. It covers how fair value is established after liquidity voids when price moves quickly, leaving gaps that will likely fill. It also discusses fair value in terms of equal distance between highs and lows.
📉 Filling liquidity gaps
This paragraph elaborates on liquidity gaps and how price is likely to fill gaps where only downside price action occurred. It explains why this is considered fair value for market makers.
🔼 Identifying discount areas
This paragraph analyzes being in the lower part of a range as an area of discount relative to a recent high and low. It discusses how this, combined with being below equilibrium, creates fair value for market makers to build long positions.
📈 Selling accumulated longs
This paragraph covers how market makers accumulate long positions at discounts and then sell into areas considered fair value when price moves back up. It analyzes price hitting specified areas that represent premiums relative to where positions were accumulated.
🔻 Contrarian perspective for entries
This paragraph emphasizes viewing the market from the perspective of market makers rather than retail traders. It analyzes how combining overall range, equilibrium, and order blocks provides a framework for identifying long and short entries.
💹 Understanding institutional flows
This closing paragraph summarizes key concepts covered, including liquidity voids and gaps, distribution vs. accumulation, and the importance of a contrarian perspective focused on institutional flows and market maker positioning.
📝 Study examples to master concepts
This final paragraph stresses studying multiple examples to fully grasp the concepts and phenomena discussed. It emphasizes these repeat themselves regularly, allowing traders to anticipate forthcoming moves once concepts are learned.
Mindmap
Keywords
💡fair value
💡equilibrium
💡premium
💡discount
💡liquidity void
💡order block
💡consolidation
💡distribution
💡accumulation
💡market structure
Highlights
Fair evaluation comes in the form of two perspectives - fair value in regards to equal distance of a high or low, and fair value for market makers.
Areas where the market moves quickly away, leaving little trading activity, are called liquidity voids. These create fair value gaps.
At equilibrium after a liquidity void, price could go either way. Look at recent market structure breaks to determine the likely direction.
When price returns to fair value after a drop, it signals an area where buyers are likely to return.
Market makers view fair value differently than retail traders. It's where they can efficiently accumulate or distribute positions.
Use range analysis to determine if price is at a premium, discount or fair value for market makers.
After breaking a swing high, returning to equilibrium signals high probability of an upside move.
Voids create fair value gaps to fill. Markets want to return to trade in these skipped areas.
Scaling out positions after accumulation happens in areas of fair value.
Hard moves out of consolidation signal directional bias.
Use perspective of a market maker - where to efficiently accumulate longs or shorts.
Discount areas let market makers build new positions. Premium areas let them liquidate.
Markets move between fair value, discount and premium from the maker perspective.
Learn to anticipate breakouts by identifying where price consolidation will expand.
Exit longs at fair value after marking accumulation entries at a discount.
Transcripts
welcome back folks this is ict with a
sixth installment of the eight teachings
of september 2016 ict mentorship
we'll be specifically dealing with fair
evaluation in this teaching
and fair evaluation comes in the form of
two
perspectives
fair value in regards to equal distance
of a high or low or what we would call
equilibrium
or fair value for the perspective on
valuation in regards to
market makers
and combined both of them to give you
the perspective that you have to have
when you look at price
this is actually a chart that we mapped
out
in advance talking about a lot of these
very specific things here
in the week
of this
tutorials production
uh september 24 2016.
we called australian dollar higher based
on the things that i'm going to cover
here i was aiming for
76.65 as a weekly objective
and you can clearly see here
the market did in fact hit that
what led to these ideas behind me giving
these upside objectives
from an area down here
well
first you have to understand there's a
lot of
overlap from what we just covered in the
previous two sessions that being
equilibrium to discount and equilibrium
to premium
obviously if you're a buyer if you want
to be buying you want to be looking at a
discount market that means trading in a
lower third
of the current trading range that the
market
presently are currently created in its
most recent impulse lag or impulse price
swing
the
cells are best taken in the most current
trading range or
impulse price swing
upper third portion of that range
okay that's a premium market we're
selling at a premium
when the market returns back to an area
of fair value
that is a fair value
for the market maker to either sell or
buy
in this case we're going to cover again
both
concepts in regards to equilibrium and
the fair valuation for market maker
participation in price action
this
swing here is making this high here the
market broke down
and it quickly ran away
and this is what we call a liquidity
void
where the market makes a a sudden
movement lower and large ranges
very little wicks very quick movement
that is avoid that means the price spent
very little time trading at these price
levels and it was in a hurry to get down
to this area here where it started
trading more efficiently back and forth
on both sides of the candle
and ultimately having a retracement
this range
in here
as soon as we see
pockets of price action where
there's sud movement lower
just like we saw a quick sub movement
lower here
this up candle
at the bottom of that that's where we
start watching and measuring
fair value
and the down candle here
very next candle is up candle so we
start looking at the range between
this up candle and this up candle
between those two up candles there's
what's referred to as a fair value gap
okay a fair value gap
the reason why this is important is
because there was no up candle or up
movement between the break of that low
and the high of this candle here
it was all just straight down movement
so nothing filled in this area once
price broke this low it left it
open basically it's like a gap
the same thing occurs here when this up
candle
is broken here on this candle once it
started breaking lower there's a gap
between this candle's low
in this candle
body or wick okay so i defined it by the
body i like to use those
the
range in which it causes
this
void
okay when price is below that
this is going to be fair value
okay the market's going to want to come
back to that because there was very
little trading in there just like we
said there was a gap because there was
no movement up in this area here between
this up candle's low and this up candle
is high this area in price action only
saw down movement
didn't have any up candle movement only
down movement
all this down here is down candle price
action only big ranges so this is a
liquidity void the fact that it creates
it in big ranges and speed that's what
defines it
now because price moves so quickly in
these areas fair value
is established because there's going to
be a willingness to want to see price
trade back up into these levels and here
and close in all this in other words
there's going to be up movement later on
it won't happen immediately always
sometimes it takes a little bit of time
sometimes depending upon the time frame
you're looking at it may take a great
deal of time but when price starts to
move higher we know that we'll try to
trade into this range here and fill that
in at a later time
that is where market makers view fair
value now equilibrium
or
fair value in regards to equidistant uh
range between high and low of a defined
high and low range
that being if we have this low here
and this high here if we define that
with fib
okay
we have equilibrium right here or 50
percent of that range from this high
this high
to this low
there's equilibrium
okay look how the bodies that again will
stay above that but we have a lot of
work around that equilibrium price point
that in it that in itself is significant
because it's showing you that the market
ran through a short-term high
once it ran through it
it came back down
right back to the middle of the range or
fair value which is equilibrium
at this moment price could stay in this
consolidation for a period of time of
any length we don't know how long price
is going to stay in a consolidation
but at equilibrium
you need to refer to where the most
recent price swing took place in other
words if we're at equilibrium here
or at fair value the market can go
either way at this price level the
easiest way to determine where its most
probable direction is is where did
market structure
break most recently did it break a swing
high or did it break a swing low most
recently
well there's no swing low in here of any
significance but there is a swing high
up here
that it broke through here so when we
made this low price ran through it
clearing out these highs right on this
up candle
price come back down into equilibrium do
we define the range from here to here as
you're looking at price you always want
to get a feel for where you're at in
regards to the most current trading
range
also notice
that we are in
the lower portion of the range defined
by this high
in this low
so we're in a real low area where it
would be deemed
over
sold
so we have a
range concept blending
with
the fact that we're moving back in the
middle of a smaller consolidated trading
range
with a market structure break of recent
high in here broke that high and it came
back to equilibrium so the highest
probability in terms of direction is
going to be
going short or going long well obviously
it's going to be going long but the
mechanics behind it was that the fact
that we broke this swing high
we have this void in here
okay we had weakness in the dollar which
we're not going to talk so much about
correlation between dollar based uh
analysis but we're only specifically
dealing with price action alone here but
what led to this bullish move in the
ulti dollar this week
was the fact that we moved back into a
fair value or equilibrium
so that way
it's fair value for the market makers to
build in long
positions or build a net long book
that means they're building accumulating
long positions
the down candle right before this move
up through a short-term high that is a
bullish order block so price comes down
into that hits it at the same time it's
hitting at equilibrium
and it's deemed fair value it's fair
value because the market traded back
down into an area where it would be
bought again and where it should be
expected to see buying pressure come in
we don't want to buy it up here because
we've already broke a swing high what
are we doing up there we would be we
would be buying at a premium
that's not what you want to do so you're
going to blend a couple things when
you're looking for high probability
setups to get fair valuation
going to be looking at the current range
from high
to low in this area right here we're in
the lower end of that range
so we have a lot more upside to build in
a premium like we just discussed in the
previous tutorial
okay market will go to a premium okay
the market's buying at a discount
okay
and it's at equilibrium it's at fair
evaluation because we're in the low end
of the range from this high to this low
and we have all of this open price
action right in here so the markets want
to we're going to want to come up here
and close that in it doesn't have to
come all the way back up to this
candle's low which is a bearish order
block this up can write for the down
move
all this is needed
to give us a directional bias
we have a swing high in here where we
know what's going to be resting above
that
buy stops
so we know that there is a strong
likelihood that because we're in the low
end of the total range which is this low
to this high so this is the parent price
point this high to this low we created a
short-term load that was higher we broke
through a swing high came back down into
equal distance of the high
to the low
that is equilibrium we are now at fair
valuation for what
for longs so market makers can build a
net long book at this price level now if
they're going to do that they're going
to look for fair value
above the marketplace where they can do
what
sell their positions at a fair value for
them
up here if traders are buying this
chasing price are they buying at a fair
value
no they're buying at a premium remember
that we just discussed in regards to
equal equilibrium to
premium
the range from this high
to this low
we're above 50 level and here we're in
that upper portion of the optimal trade
entry or 62 to 79 cent tracing level
i'll show you what that looks like
the low
to the high
79 percent adjacent level 70.5
62 tracing level so the mark goes right
up into
79 retracement so we're in premium here
we're we're below
equilibrium here
so we're at a discount down here
relative to the range
down here we're at
discount okay in terms of looking at the
low
to high
this is where the premiums built in
if we reverse it
and look at the range in opposite
terms
defining it
from low to high
we're below the 79 tracement level so
we're really at a deep discount
really really deep discount because
we're below equilibrium relative to the
range high
and the low
we're even below the 79 level here
so in terms of really being suppressed
in terms of the total range
high to low
we are a deep discount in the middle of
a current small little trading range
from this high to this low so we're at
equal distance
price measurement of
high
middle
low
and into total end or lower one-third of
the range of the parent price swing that
we see here
right in here okay
even if you didn't see this high to low
as the parent price wing
this price swing
high to low still gives you the same
context just in a slow a smaller scale
so you have high to low we're in a lower
one-third here
and we're in deep discount
here's equal distance for equilibrium
we're below it so we're a discount
so fair evaluation for the market makers
to build a book long would be so many
overlapping factors there
they could be building
long positions or accumulating long
positions here
looking for what liquidity above the
marketplace that means where above these
highs that initially
sold off of
then you have the buy stops about here
so the market runs through that takes
those stops
runs through this short-term high here
and then what does it do
it goes into consolidation
now if it's a turtle soup and it wants
to go lower after blowing out buy stops
it should go lower quickly it doesn't do
that it's staying in a sideways
consolidation in fact during this week i
actually gave live sessions explaining
how this market was going pointing to
higher prices
it went back into consolidation which
means it's going back into
what
it's
building
equilibrium
okay so equilibrium is building again in
that small little range
so you define the high
and the low
right there
and look how much price taxes spend
around the middle point at equilibrium
price point okay so it's hanging around
fair
value okay one spike move lower
doesn't see price go lower any aim it's
any significant doesn't break the range
and it expands to the upside
once it expands the upside
it starts filling in all of this
again this is another area of fair value
the market's fair
for those long positions
for the market maker that have already
accumulated longs on it's
this is a good area in this shaded area
i'm going to extend this out in time
over here
all of this is a good place for them to
sell
the lungs that they started accumulating
down here look how much time they whip
back and forth in that range all these
wicks
okay they're selling they're selling
they're selling all the positions
they've accumulated here accumulated
here and down here on the initial run
down into the support
once this range is closed in the next
area of concern is above this short term
high
so our void filled in right here it's
filled in so this is no longer of area
of interest no no more now we still look
for higher prices why would we still
look for higher prices because they went
long here
okay
so if they're gonna look to sell their
position where would they look to sell
their positions at discount prices are
premium
premium
but the premium price that speculators
would trade at by buying and chasing
price
it's a premium to
price chasers
people that feed off the desire of being
in a price to move it's already been
moving higher
it's fair value to the market maker to
liquidate their positions at
this small little pocket between this
lows
this up candle is low and this up candle
is high so we can now create a new
specific area of fair value
for the market maker to liquidate their
long positions in here right in here
to draw that out in time
that's what you see here price coming
right into the bottom of that candle
hits it perfectly
to the pit
bodies of the candle are still deep
inside the shaded area for fair
evaluation what makes it fair is because
they bought it at a deep discount
and they're liquidating at a premium
it's fair for them to accumulate here
and it's fair for them to liquidate
see market makers have to deal in terms
of valuation for their longs and their
shorts and they have to do that same
evaluation for their exits on both sides
of the marketplace
so when we see inefficiency in price
like we see here with these candles just
only going down no up movement
only going down here not moving in until
later on
all of this area they're scaling out
their positions that they accumulate
down here here and here
when price moves
in defined trading ranges
there's going to be
equilibrium
equilibrium
is in itself fair value that means the
market makers are holding it in a
consolidation when that consolidation
gives way
the strongest move out of that
consolidation on alarm on a hard time
frame chart will give you a great deal
of prognostication for directional bias
so what i mean by that is if we look at
price
and we take a look at it like this
we can look at price like
from this high
down to this low
to have a range defined there okay
the markets in this range here
consolidates it goes right back to
equilibrium hangs around equilibrium
dips down below the equilibrium so even
if we're monitoring this range from this
high to this low we're below the
equilibrium price point so are we at a
premium right here or are we at a
discount
we're at a discount
traders on a retail level they're going
to see this as a selling point they're
going to want to get short
because they're going to see this high
to this low coming up to 62 percent
retracement level like remember i said
in the last two sessions it's not enough
let's look simply looking at fibonacci
you can get tripped up in fibonacci if
you don't understand what price is
actually telling you so getting short
here is not what you want to do even
though you've seen price movement going
lower it's only coming down to an area
of fair value for the market makers to
accumulate longs
in an area of discount
so you're having an overlap of three
things you're looking at total range
from this high
to this low or this high to this low
we're in the lower portion or one third
of the range so we're in high
probability for a discount market to be
in in effect
you're also below the equal uh
price point or equilibrium between the
low to this high so
it's consolidating near that but it now
it went below it again
so we are in an area where the market
makers can buy especially if you combine
that with areas of institutional
overflow so if you're looking to buy
what would you be looking for an area to
run out below the stops in other words
cell stops below an old low we don't see
so much of that happening here it
doesn't need to do that it's only
returning down to this down candle which
is a bullish order block a down candle
before the market moves higher that's
where market support really relies
um we're not really resides in
okay
up candles before the market drops down
that up candle is exactly where
resistance is an institutional basis so
that's where selling occurs
so when we see price action like this we
can define things in terms of fair value
in relationship to how market makers
going to perceive price
the way they value
price in terms of the current
range that it's trading in the same way
the algo delivers price where are we at
in proximity to the current total range
we have a nice impulsive price swing
high
to low here
we are in the lower portion of that
range here
we have built-ins buy stops above this
high above this high here above this
high here and we have value uh
evaluation gap okay a fair value gap
market's going to want to come back up
there because they spent very little
time in this area it was all down
movement all down movement
no no buying was actually occurring in
here
no buying was occurring in here it was
all on the sell side one way flows so
the market ran up into just to close in
where only selling took place and no
real buyers
so now when price comes back up to that
level
and they shoot it up there like that
that's going to make a run on stops
above the swing high
and we're going to close in the range
between this up candle and this up
candle here which is a fair value gap
so when we're looking at price action
it's a couple things you need to keep in
consideration
the total range you're trading in
the equilibrium price point relative to
the most recent trading range high and
low and we defined several of them here
we did this high
to this low
with this high and this low and this
high in this low
so we have multiple things lining up
with the fact that for fair value sake
the market has a deep discount here
and it's most likely going to trade
higher and we have reference points that
we can look for where the market maker
should aim but ultimately this is the
fair value gap that they wanted to get
back up into and the reason why the
basis was of me calling 76.65 for the
week was i want to get just below where
i ultimately think it's going to go and
the level at which
if we look at the high
uh the low comes in at 76.75 and i want
to be about 10 pips or so before the
actual level i think is actually going
to be hit i want to be getting out just
a little bit before that and
one more
instance of the things i've talked about
before it happens in the charts and why
those things actually materialized in
price action
so price returns back to fair value fair
value in the perspective of the market
maker not fair value in the scope of
buying it this is at a premium
okay remember that market efficiency
paradigm i started you all with
how you perceive the marketplace is not
how retail is going to seek price
they're going to see this as
the market's going to probably keep
going up because it's been going up well
this is an area of distribution
you want to be thinking accumulation
down here re-accumulation
distribution
scaling out all through these areas in
here because you don't know if it's only
going to come up in a little bit of that
that range over here in the shaded
liquidity void you don't know if it's
going to fill in that and then go lower
so when you buy things down in here a
deep discount you have to scale some of
it out
but the beginning basis points of
valuation in terms of the market makers
you have to look at the total range
look at where the market has moved away
from quickly in those areas of liquidity
voids and liquidity uh
pools
above old highs
here and here and here
there's that is going to be fair value
for the market maker to distribute long
positions if we were looking at a cell
position or short position we would be
looking for areas in which where the
market in the past has moved up a great
deal with speed
and we would be looking for lows where
stops would be building up below it or
liquidity pools in the in the form of
cell stops
we would look for
the
lower end of the most recent range
for valuation so that way you would know
by looking at things with that market
efficiency paradigm you're not looking
at things like retail you're looking at
in the scope of okay i am the bank i'm
i'm making a book here
where's the most efficient price levels
for me to unload my longs or unload my
short positions
we've already mentioned it so far in
the
teachings just for september
the easiest way to understand
institutional overflow from the
beginning starting point of it all is
understanding that markets move from
buy stops and sell stops and sell stops
to buy stops and it moves from fair
value
to discount to discount
to premium to premium to fair value it
moves back and forth between these three
reference points are we at a discount
are we at a premium or we have fair
value
all those things combined together they
give you the clues as to what we're
seeing in terms of the market makers
action are they accumulating
are they manipulating are they
distributing
all these factors we're going to be
bringing those closely knit ideas
into a more
easily understood premise when we look
at price we'll be able to see these
things unfolding in in advance and
you'll be able to see what should take
place and it's very encouraging to see
your study and these individual
components start to flesh out and have a
greater understanding about price action
so
in closing
fair value
is not fair value in the realm of retail
it's in the realm of fair value of
liquidating or accumulating
from the market maker's perspective
fair value
and discount is fair value for buys for
market maker buying
fair value in premium is fair value for
market makers selling
either establishing new shorts or
exiting on scaling out long positions
discount
the low equilibrium
in the lower end of the range
that's a discount market that's an area
at which the market makers can buy or
look to cover their short positions
do not look at the marketplace in this
retail mindset that we're all trained to
do we we have the same
well we drink from
it's the same regurgitated stuff but
it's wrong
to understand how these markets are are
delivered to us in the in the form of
price action when this price is
delivered to us it's not random it's
very specific of where it wants to go
why it wants to get there that's that's
what we're giving you in this
mentorship it's very specific detailed
perspectives
that are generic they repeat themselves
over and over again and because they
repeat themselves because they're the
same
phenomenon that take place almost on a
daily basis
there's nothing for you to fear
if you mess it up and you don't get to
trade to pan out right or if you miss a
move
do not worry about it wait for the
market to give you indications of where
fair evaluation is then you'll be able
to anticipate the market makers next
scale in or scale out
it may be the liquidation of a long
position that's been underway
that may give you uh prognostication for
a future move it may be the the
inception of a new price leg while
you're waiting for this area to be
retreated to
we'll build on this idea for now but i
want you to think in terms of where are
we at relative to the most current range
are we in the lower end
are we near the low of that current
range and are we working around an equal
distance equilibrium price point between
a recent high and low by defining price
in current trading ranges like this
you'll be able to see where the market
makers will expand the price
so when there's expansion
you know
prior to that expansion there's been
what is consolidation so as you study
more examples of when markets are in
consolidation
you'll be able to
forecast the next movement out of the
consolidation we don't we don't play the
breakout game we anticipate the breakout
we know that the indications through
price action will give us clues as to
what side of the marketplace is going to
break out
and when we get into commodities we'll
have actually a great advantage of that
without using open interest but for 4x
you don't need it so much you can still
see it in institutional order flow
so i'm going to close this teaching here
with the promise that we're going to
come back at the end
of this
series of eight sessions
in your notes that will accompany your
month's summary you'll have great detail
of uh
specific notes and
things that you need to be aware of as
it relates to fair evaluation uh
liquidity pools voids uh liquidity gaps
all those things we'll be building more
foundation on that and in month two
we'll actually go in to how to find
these things not just giving you one
chart's perspective and and
basically uh you know trying to teach
the whole thing in one one chart it
can't be done so you need examples of it
you need to see it uh called for in
advance like we did this week not so
much
why into this great detail but i gave
you the areas of which price should
reach for
we talked about the area here we talked
about this void here i mean not
obviously we don't even need to talk
about the highs because we understand
that that's where the buy stocks are
going to reside so
think in terms of fair value for the
market maker if they're going to go
higher
where is it a fair value for them to
exit their loans
okay it's a fair value for them to do so
they do not want to liquidate their
loans at a discount or when retracements
going lower you look for expansions on
the upside when they expand when price
expands they should be reaching into an
area fair value for price to be
liquidating smart money longs that's the
only reason our markets go up that's the
only reason why price is allowed to be
delivered at higher prices because the
market makers the banks have books
on their books they are net long
and it's in their interest in the price
higher
it doesn't matter how many of us buy
the price is going to be set by the bank
and they're going to do things to line
their own pockets and not yours
so it takes a perspective
shift and it gets back to that market
efficiency paradigm i started you with
in this mentorship that you have to view
things from the smart money's
perspective not what retail
should be doing or what retail is doing
if you do that you're gonna you're gonna
miss the actual clarity that comes
through looking at price action
studying it through a contrarian
perspective
saying okay this is what the retail
minds should be
thinking now
and by contrasting that with what you
see in the charts for fair value
liquidity gaps liquidity voids liquidity
pools all these things the market's
going to seek that liquidity and run
against
the less informed crowds opinion
so with that i'm going to close and wish
you good luck and good trading
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