The 1st thing every trader should know: PD Arrays

Summary

In this video, Ario Janson introduces his trading educational series, 'Money Making Concepts.' He emphasizes the importance of understanding key trading elements like PD arrays, fair value gaps (FVGs), and swing points, all crucial for predicting market direction. The video highlights the significance of these concepts, distinguishing them from algorithm-based trading approaches. Ario also stresses patience, time, and practice for success in trading. The series aims to equip traders of all levels with practical skills for long-term profitability. Viewers are encouraged to study market structures through PD arrays to enhance their trading insights.

Takeaways

• 📈 The speaker, Ario Janson, is a Dutch trader with years of experience, aiming to build the best trading educational company by providing value, even for free.
• 🧑‍🎓 Ario started trading at 17-18 and has been funded by investors since the age of 21, emphasizing the importance of teaching valuable skills, not just selling products.
• 💡 The speaker introduces the concept of PD arrays (Premium and Discount Arrays), key in understanding the direction of price movement in trading.
• 🧭 A PD array can act as a target (magnet) for price movement or as a point from which price continues in a particular direction.
• 💹 The first PD array discussed is the Fair Value Gap (FVG), which is crucial for understanding price direction and hierarchy in trading.
• 📊 The speaker emphasizes marking Fair Value Gaps on daily timeframes and understanding how they act as targets or turning points in price action.
• ⏳ Ario stresses that trading takes time and effort, warning against the misconception of quick profits.
• 🔗 The next PD array introduced is the Fair Value Area (FVA), which is mainly used to trade from rather than toward, and will be covered in future videos.
• 📉 Swing points (highs and lows) are also vital PD arrays, as they represent liquidity points that large market players use to execute orders.
• 💼 The video series will focus on guiding traders from beginner to advanced levels, starting with key concepts like Fair Value Gaps and market structure.

Q & A

What does Ario Janson's describe as the main goal of his educational efforts?

Ario Janson's main goal is to build the best trading educational company by providing maximum value, even for free, to help both beginners and advanced traders.

Why does Ario believe that time is a critical factor in achieving success in trading?

Ario stresses that all good things, including profitable trading, come with time. He guarantees that following the steps outlined in the series will yield results if given enough time.

What is the focus of the 'Money Making Concepts' series?

The focus of the series is to teach concepts that help traders understand price direction in the market, starting with PD arrays (Premium and Discount Arrays), which are crucial in determining market movement.

How does Ario Janson's view the use of algorithms in trading?

Ario believes that focusing too much on understanding algorithms is not the most efficient way to make money in trading. He prefers teaching concepts that allow traders to profit from the market without solely relying on algorithms.

What are PD arrays and why are they important in trading?

PD arrays, or Premium and Discount Arrays, help traders determine the direction of price movement. They can either attract price towards them or cause price to move away from them, providing insight into whether the market is likely to go higher or lower.

What are the three key PD arrays Ario discusses, and how do they function?

The three key PD arrays are Fair Value Gaps, Fair Value Areas, and Swing Points. Fair Value Gaps act as magnets and allow traders to trade towards or away from them. Fair Value Areas are typically used to trade from, while Swing Points represent areas of liquidity and are used as targets for price movement.

What is a Fair Value Gap (FVG), and how is it formed?

A Fair Value Gap is a three-candle pattern where the second candle closes with a body above the first candle's high, and the third candle does not trade back into the first candle's range. This gap in price creates a Fair Value Gap, which traders use to predict price movement.

Why are Fair Value Gaps considered more important than other PD arrays?

Fair Value Gaps are placed at the top of the hierarchy because they are critical in understanding price movement. Other PD arrays, like Fair Value Areas and Swing Points, are ineffective without first understanding and identifying Fair Value Gaps.

What role do swing highs and swing lows play in trading, according to Ario?

Swing highs and swing lows represent liquidity in the market and are important for bigger entities placing large orders. These swing points are targeted because they provide the liquidity necessary for significant market moves.

What case study does Ario recommend to enhance the understanding of PD arrays and price movement?

Ario recommends marking out every Fair Value Gap and Swing Point on a single time frame, such as the daily time frame, to study how price moves towards or away from these PD arrays. This practice will help traders understand price direction in real market scenarios.