ICT Forex - Market Maker Series Vol. 4 of 5

Summary

In this educational video, the presenter discusses time and price theory in forex trading, using the GBP/USD hourly chart as an example. The focus is on market maker buy models, optimal trade entries, and how to identify buying opportunities during specific days and times of the week. The video also covers the impact of news events like FOMC on trading and emphasizes the importance of understanding market manipulation by central banks.

Takeaways

• 📈 The video script is part of a series teaching time and price theory in forex trading, focusing on GBP/USD.
• 🌟 Emphasis is placed on the importance of applying trading theories to real-time market charts to understand market behavior.
• 📅 The script discusses the significance of daily and weekly trading patterns, particularly the first half of the week for potential buying opportunities.
• 🕒 The role of time in trading is highlighted, with specific attention given to New York midnight time as a reference point for chart analysis.
• 📉 The video explains that in a bullish market, the low of the week typically forms on Monday, Tuesday, or by Wednesday's New York session.
• 📈 The concept of 'optimal trade entry' is introduced as a pattern that repeats and is associated with time of day and specific price levels.
• 🚫 The instructor advises against trading during high volatility news events like FOMC for new traders due to the risk of whipsaw.
• 📊 The script stresses the importance of understanding the relationship between the opening price and buying opportunities below it.
• 📉 It is suggested that Thursday and Friday tend to create the opposite end of the weekly range, cautioning against buying on these days in a bullish expected week.
• 🌐 The influence of the opening price at midnight in New York time is discussed, and how buying below that opening price is ideal for accumulating longs.
• ⏰ The video concludes by emphasizing the importance of time and price in trading, and how they should be used to create a narrative or scenario for trading decisions.

Q & A

What is the main focus of the Inner Circle Trader Market Maker series?

The main focus of the Inner Circle Trader Market Maker series is teaching time and price theory, applying it to live market conditions, and analyzing the GBP/USD currency pair.

Why is it important to watch the series in order?

It is important to watch the series in order because each video builds upon the concepts introduced in the previous ones, and watching them out of sequence could lead to confusion or a lack of understanding of the material.

What is meant by 'market maker buy model' in the context of the script?

The 'market maker buy model' refers to a situation where market makers, or large institutional traders, are accumulating long positions, creating a scenario that is expected to drive the price higher.

Why is it recommended to set the chart to New York local time?

Setting the chart to New York local time is recommended because it aligns the viewer's perspective with the algorithm's, making it easier to follow the teachings and understand market movements.

What is the significance of the daily dividers on the chart?

The daily dividers on the chart are significant because they delineate each day's trading activity, allowing for the analysis of the weekly range delivery and identifying potential trading opportunities.

What is the 'optimal trade entry' mentioned in the script?

The 'optimal trade entry' refers to a specific price pattern that repeats frequently and is considered a high-probability entry point for trades, often associated with time of day and market conditions.

Why are Mondays, Tuesdays, and Wednesdays important for bullish trading?

Mondays, Tuesdays, and Wednesdays are important for bullish trading because there is a 70% chance that the low of the week will form on these days, presenting opportunities to buy at lower prices.

What is the 'kill zone' mentioned in the script?

The 'kill zone' refers to specific time frames during the trading day when significant price movements are expected. For London, it's 2 AM to 5 AM New York time, and for New York, it's 7 AM to 10 AM New York time.

Why should traders avoid buying on Thursday and Friday in a bullish expected week?

Traders should avoid buying on Thursday and Friday in a bullish expected week because these days tend to create the opposite end of the weekly range, potentially leading to lower prices and less favorable trading conditions.

What is the role of the opening price at midnight in New York time?

The opening price at midnight in New York time is significant because it serves as a threshold for determining high-probability buying opportunities, especially when the market is trading below this price.

How does the element of time influence trading decisions according to the script?

The element of time is crucial in trading decisions because it dictates when the market is likely to move in a specific direction. Traders should focus on the first element of time to set up their analysis and expect price movements during certain time windows.

Outlines

00:00

📈 Introduction to Time and Price Theory

The speaker introduces the fourth part of a five-part series on the inner circle trader market maker series, focusing on time and price theory. They emphasize the importance of applying this theory to real-time market conditions, using the British Pound versus US Dollar as an example. The speaker reviews the market maker buy model and explains the significance of daily dividers set to New York local time. They discuss how to identify market trends and trade setups using time and price theory, and how to incorporate these elements into trading strategies.

05:01

📊 Analyzing Weekly Range and Opening Prices

In this segment, the focus is on the weekly range and the importance of the opening price each day. The speaker explains how to identify bullish trends and buying opportunities throughout the week, with specific emphasis on Monday, Tuesday, and Wednesday. They discuss the significance of the opening price at midnight New York time and how it can influence trading decisions. The speaker also shares insights on how to avoid buying on Thursday and Friday to prevent missing trades and protect investments.

10:02

🌐 The Influence of Time Zones on Trading

The speaker delves into the influence of time zones, particularly New York and London, on trading activities. They discuss the concept of 'kill zones' and how these time frames present optimal opportunities for trading. The speaker explains how smart money accumulates longs and the importance of buying below the opening price during specific time frames. They also touch on the potential for profit-taking models and how to anticipate market movements based on time and price analysis.

15:02

📉 Avoiding High Volatility Trading Days

Here, the speaker advises against trading on high volatility days, such as those influenced by FOMC announcements, for developing students. They stress the importance of understanding the element of time in trading and how it is crucial for reading price movements. The speaker also discusses the concept of 'dead time' and how the market behaves during these periods, emphasizing the need to anticipate consolidation after significant price movements.

20:04

📈 Time and Price Theory in Practice

The speaker applies time and price theory to the current market scenario, explaining how to identify the best times to buy based on the opening price and time of day. They discuss the importance of focusing on Monday, Tuesday, and Wednesday for bullish trading and how to use optimal trade entry points to increase the probability of successful trades. The speaker also highlights the need to have a trading plan and to understand the narrative of market movements based on time and price.

25:05

🌟 Market Manipulation and Algorithmic Trading

In the final paragraph, the speaker addresses the misconception that retail traders can significantly influence market prices through buying and selling pressure. They assert that markets are manipulated and controlled, and that the state of a country's economy and the actions of central banks are not determined by retail investors. The speaker reinforces the idea that understanding time and price theory is essential for successful trading, as it allows traders to anticipate how the algorithm will move prices within specific time frames.

Keywords

💡Time and Price Theory

Time and Price Theory is a concept used in trading to analyze market movements based on specific times and price levels. In the video, the speaker teaches how to apply this theory to the GBP/USD currency pair, using the hourly chart to demonstrate how market behavior can be anticipated by considering the time of day and price levels. This theory is central to the video's theme as it provides a framework for understanding market conditions and making trading decisions.

💡Market Maker

A market maker is an individual or institution that provides liquidity in a market by facilitating trades by buying and selling securities. In the context of the video, the speaker discusses a 'market maker buy model underway,' which refers to a situation where a market maker is accumulating a position, indicating a potential upcoming price increase. This concept is integral to understanding the strategies discussed for trading in the forex market.

💡SMT Diversions

SMT Diversions likely refers to 'Smart Money Trades' or significant market movements that deviate from the norm, often influenced by large institutional investors. The speaker mentions these in relation to market movements that have cleared out daily sell stops, suggesting a shift in market sentiment. This term is used to highlight the influence of large players on market dynamics, which is a key aspect of the video's discussion on market analysis.

💡Daily Cell Stops

Daily cell stops are a type of order placed by traders to limit potential losses. In the video, the speaker mentions that 'we've cleared out daily cell stops,' indicating that the market has moved past the levels where these stop orders were placed, likely leading to a change in market direction. This concept is important for understanding how stop orders can influence market behavior and the timing of trades.

💡Consolidation

Consolidation in trading refers to a period where an asset's price remains relatively stable and moves within a certain range. The speaker discusses a consolidation phase in the GBP/USD chart, suggesting that after a period of stability, the market is likely to move in a particular direction. This concept is crucial for identifying potential entry and exit points in the market.

💡Relative Equal Highs

Relative equal highs are price levels on a chart where the price has previously reached similar highs. The speaker mentions aiming for a run 'above these relative equal highs' as part of the market maker buy model. This term is used to identify potential resistance levels that, if breached, could signal a significant price movement, which is a key element in the video's trading strategy discussion.

💡New York Midnight Time

New York Midnight Time refers to the start of a new trading day at midnight New York time, which is used as a reference point for setting up charts and analyzing market data. The speaker emphasizes setting charts to New York local time to align with the teaching and to understand market movements better. This concept is important for synchronizing market analysis across different geographical locations.

💡Weekly Range

The weekly range is the difference between the highest and lowest prices an asset reaches in a week. The speaker discusses the delivery of the weekly range and the expectations for a bullish week in GBP/USD. Understanding the weekly range is essential for strategic planning and setting targets for trades over the course of a week.

💡Optimal Trade Entry

Optimal trade entry refers to the most favorable point at which to enter a trade. The speaker mentions looking for optimal trade entry points, such as when the price trades below a certain level during specific time frames. This concept is critical for the video's theme as it provides a method for identifying high-probability trade setups.

💡FOMC

FOMC stands for the Federal Open Market Committee, which is responsible for managing monetary policy in the United States. The speaker discusses the impact of FOMC announcements on market volatility and trading strategies. Understanding the influence of FOMC decisions is important for anticipating market reactions and managing risk during high-impact news events.

💡Kill Zone

A 'kill zone' in the context of the video likely refers to specific time frames during the trading day when significant price movements are expected. The speaker mentions the London and New York 'kill zones' as periods of high market activity. Recognizing these periods is essential for timing trades to align with expected market volatility.

Highlights

Introduction to the Inner Circle Trader Market Maker Series, focusing on time and price theory.

Analyzing the GBP/USD hourly chart to apply time and price theory to current market conditions.

Explanation of the importance of setting charts to New York local time for consistency.

Teaching the concept of daily dividers to understand market movements throughout the week.

Discussing the bullish trend of the GBP/USD from July 26 to July 30, 2021.

Highlighting the 70% chance for the low of the week to form on Monday, Tuesday, or by Wednesday's New York session in a bullish market.

Emphasizing the significance of buying opportunities on Mondays, Tuesdays, and Wednesdays in a bullish week.

Introducing the concept of optimal trade entry and its relation to time of day.

The role of the opening price at midnight New York time in accumulating longs.

Avoiding buying on Thursdays and Fridays in a bullish expected week to protect from market moves.

Teaching the relationship between the opening price, time of day, and buying opportunities.

Using the 15-minute time frame to identify optimal trade entries and short-term lows.

The significance of the London and New York 'kill zones' and their impact on price movements.

Warning against trading during high volatility news drivers like FOMC for new traders.

The importance of the element of time in reading price and market direction.

Explanation of how markets are manipulated and controlled, not by retail buying and selling pressure.

Final thoughts on studying market behavior and the reliability of the taught methods over time.

Transcripts

oh

all right folks welcome back this is

volume four a continuing series of five

parts

on the inner circle trader market maker

series

i'm gonna be teaching time and price

theory

all right keeping in sync with our

present market conditions and what has

transpired this week in

pound dollar no better way to learn how

to do something than to

apply it to a chart that's actually

trading and you watch unfold this week

we have the hourly chart here on british

pound versus us dollar

and with all the things that were

mentioned covered in the previous

volumes of this series if you haven't

watched obviously

part one two and three of the series

then you should not be watching this

video yet because it's kind of

requirement before you get to this

but the backdrop behind it is we've had

smt diversions

down here we've cleared out daily

cell stops so we've accumulated we have

a market maker buy model underway

and if that's what you're expecting and

your analysis leads to

a run above these relative equal highs

and above the original consolidation

here in the market maker buy model

let's incorporate the elements of time

and price

so now i have the daily dividers on and

how i did this in case you're wondering

if you're new

all i did was create a vertical line and

dropped it on

the zero zero level

on the time axis down here that's going

to be

midnight new york time if you have your

time

it's important that you have your chart

set to new york local time

that'll make understanding what i teach

easy to follow along because your charts

will look like mine

and also you'll be looking at through

the lens of the algorithm

so new york midnight time

is delineated each day so we're looking

at obviously today's

trading in friday thursday's trading

wednesdays trading

tuesday and then finally monday's

trading of this week

now when you're looking at this go back

and

look at your notes and we've outlined

how

this week of trading july 26 2021

to july 30th 2021 was bullish

four pound dollar i made the case for

why it was bullish

i pointed to where it was going to go

how it was going to trade there and we

have it here

now in hindsight so if you look at

each individual day as

one-fifth of the weekly range each of

these days have specific characteristics

that are

repeating in nature now they're not

always exactly the same

each week but what i'm going to teach

you here i've

covered in other lessons in this youtube

channel

but for continuity sake and kind of like

bring everything that you should have

collected along your

journey through all my videos here

we're looking at the delivery of the

weekly range and if we're bullish

the expectation is that there's a 70

percent

chance that the low of the week

is going to form on monday

tuesday or by wednesday's new york

session now right away you're probably

thinking oh that's

that's a pretty wide envelope of time

you got a lot of ways to you get it

wrong

well consider what we have here we have

monday's trading

we're already in a consolidation and we

left the consolidation

so is it likely to come back down

and go below this low here when it's

already taken out a low

there remember what i've taught you so

far in this series

before price movements that are

directionally driven

typically opposing stop losses

will be taken and then price will be

allowed to deliver

in your expected direction in layman's

terms

if you're bullish look for swing lows to

get traded below

and then it starts to move higher short

term low

trades below it then it starts to trade

higher okay

each day of this week was

predominantly bullish until we get to

friday obviously that ends the week

so if we look at a open high low close

perspective of the week we see the week

opening here

small little movement lower creating the

low of the week on monday

a retracement and a buying opportunity

on tuesday a retracement buying

opportunity on wednesday

and then thursday creating a short-term

high of the week

and then friday we went just above the

thursday high but not by much

and then we traded off the high and

we're probably going to close

anywhere between 139 20 and 139 big

figure

okay so going back to what i mentioned

here and what i've taught in other

lessons on this youtube channel is that

we want to be buying on monday

tuesday and at the best case scenario if

we missed buying opportunities on monday

and tuesday

we want to try to buy on wednesday in

the new york session okay

but we'll talk more about other things

that were factors

this week as we go into the series in

part five but

for now i want to bring in the opening

price each day

here at midnight so we have this opening

price here extended out in time

how far is this going out it's just

showing until 10 a.m

you can take it out till 11 a.m which

basically is the heart of london close

so the idea is if you're bullish you

want to be buying at or below

or very close to the opening price

each day we see it trade below the

opening price and rallies up

day here opens and trades down all

through london

and then rallies higher on the day

opening price here

we initially start to go higher but then

we trade down below it

and then we have another whip saw below

the low here on fomc

and then trades higher and then on

thursday we're not incorporating the

opening price on thursday and this is

for your notes make sure you

write this down we're only looking for

the influence

of the opening price and buying below or

at it

in a bullish expected week on monday

tuesday and wednesday

thursday and friday they tend to create

the opposite end of the weekly range

okay so try not to be looking to be a

buyer on thursday

try not to be a buyer on friday with the

weekly range expectation if you do that

you're going to miss trades yes but by

far and large you're going to protect

yourself

by avoiding being a buyer in a market

move it's already been moving

okay obviously there's going to be days

where it just continues on thursday and

then friday really explodes even higher

i've seen it happen in my own trading

i've missed pretty big moves on friday

but i generally keep a small piece on as

i

illustrated this week with trading the

fomc

day so i bought on this day i bought on

this day here

and i recorded and shared the fmc trade

and put it on my telegram channel

you can see that and left a small piece

on it got me out at 139.50 on a limit so

you can design this

any way you want you can create a model

where you get in

on a tuesday after you've seen monday

prove that it's wanting to go higher and

then trades down below some short-term

low

picks up the stops and we have optimal

trade entry here

and you can be a buyer there and

basically allow money to trade without

you

or if you're hardcore and you're in

consolidation like this and you think

you are in a

move where it's here and you start to go

higher rate from monday's beginning of

trading

then obviously you can put a small

little position on there

and then consider maybe taking a larger

position once you have a better

confirmation of the weekly range

unfolding to the upside and a

retracement down

as a new student or a new trader when

you see a day like this

and most of you probably have one in

five minute charts up on your chart

you see this decline like it's heart

stopping

especially if you don't have any

experience you're thinking there's no

way i could be a buyer or that

well we have relative equal highs the

bottom line is it's going down to pick

up the sell stops

flood the market with sell stops

allowing smart money to buy those sell

stops

and then it takes off and goes higher

each day or this week

between monday and wednesday is offered

a buying opportunity

to get us above our target that was

established for the weekly range

was trading above here for the buy stops

so let's strip this down and go a little

bit closer

so we're zoomed in on an hourly chart

you can see here's monday's trading

tuesday's trading sweeping below that

short term low there

and rallying and we drop down here on

fomc wednesday

it starts to come down and give us a

buying opportunity here but then on

fomc two o'clock in the afternoon new

york time

the market whips down knocking out

traders that would have already

trailed their stop loss right below that

low it gets

tagged and then it runs aggressively

higher above that

original consolidation which is that red

line here so above that red line

is our buy stops that we were aiming for

that i started teaching you about in

earlier parts of the series

in the earlier portion of the week

then ultimately we trade creating a

short-term high on thursday

slightly higher on friday and then

profit-taking

model kicks in and you can see it

returning back to

that original consolidation

study the relationship of the opening

price at midnight in new york time

and how buying below that opening price

is ideal this is where smart money

accumulates longs

this is where smart money accumulates

longs and this is where smart money

accumulates longs

they distribute their longs on thursday

and friday if it offers higher prices

and then you expect price to come off

that and trade back down into the range

which is the highest high formed

intra-week

to the low and we're seeing that here

now if you look at it on a 15-minute

time frame

i'm going to incorporate day of week and

time of day

here's that opening price at midnight

the market trades down creating the low

in london

rallies comes back down in for an

optimal trade entry

if you don't know what optimal trade

entry is there is lots of videos on this

youtube channel

and you can study and find out what that

is it's a really simple pattern repeats

all the time

so it creates an awful tradition right

there you can be a buyer there

and then trades back down again we have

a short term low here

and a short term low here and this low

is during

new york open so short term low here

to high down in and taking out a short

term low

what's occurring they're taking out

short term stops right below here

and optimal trade entry rallies in new

york and continues higher

the next day the market trades back down

into the range that was established

in the previous day this right here is

the reason why

most of the time i'm leaving monday's

trading to

everyone else because if i establish

along here

and it starts to rally up i may make the

mistake of

trailing my stop-loss up to here and

then they take it on tuesday and then i

gotta go back in and reposition myself

so i wanna study on monday what they do

and then

on tuesday generally that's my action

day

and you can see there's a lot more

animation in price on tuesday

but look what they do they drop it down

into london creating the low of the day

taking out this short term low again the

previous day

and if you look at the low to high

you're getting optimal trade entry there

the key is ote or optimal trade entry

is associated with time of day

a kill zone these little hyphenated

segments of annotation on the charts

london is delineated by 2 a.m to 5 a.m

new york time so again if you're setting

your time on trading view to

local new york time always set it to

that no matter what

location you are in the world always

look at trading view

through the lens of new york period

if you do that everything i teach you

will make perfect sense you won't be

confused

but london kill zone is two o'clock in

the morning to five a.m

new york is seven a.m to ten a.m

and if you want to use the new york

session time

not the new york kill zone the new york

session time is 8 30 in the morning till

11 a.m new york time

but each turning point that occurs at

these kill zones

sets up a really nice run in price see

that little short term low right there

it trades down below it and takes off

so we're seeing this element of time

which is also associated with the day of

the week because

day of the week is still an element of

time

it's a it's a calendar reference point

to time

it's a block of time that we call

monday tuesday wednesday and so forth

so the element of time and price is

important because

you need to focus and expect your

analysis

to be rooted on the first element which

is time

the markets will not generally give you

setups that pan out

between these two windows

there'll be a quiet little period even

though we have a nice run in here

sometimes that will occur

most of the time it won't be like that

it'll be consolidation

and then after running close you get

these consolidations like this

this is like dead time again same here

dead time same here dead time

so we're looking to engage if we're

bullish like we were

teaching in this series pound dollars

bullish

monday creates the low of the week

tuesday creates a buying opportunity

new york on wednesday nice buying

opportunity but you have to have a wide

stop

and if you get stopped out here you can

use

obviously other approaches to getting

involved

with the marketplace with fomc but i'm

going to teach you

and remind you that you should not be

trying to trade fomc if you're a

developing student

because it's too much of a whipsaw and

you're going to get caught up with the

short-term volatility

and you're going to be more paralyzed by

fear even with a demo account

and left confused than that of if you

just simply study it from the sidelines

and don't engage it at all

okay but the element of time is the

first

crucial factor to reading price

price when it gets to these levels

that we look for below the opening price

okay what price is important below the

opening price

what time of day during london open this

these are buying opportunities here

this low trading below this low is a

reference in terms of

price by itself doesn't mean anything

sometimes you can see a short term low

like this

we have these lows here all three of

them one two three look at this we went

down below it

so that's one of those times where ict

talks about oh this is when

we went below the lows and expect price

to blast off

no because we're inside of a time window

that's not

important it's not salient to the

underlying

bias because it's dead the

time when the algorithm is sitting still

it's going to just

mark time it's all it's doing going

sideways just like it does here

and like it does here okay so the

element of time

is crucial because that's when the

market will

start to spool that means the market

will start unraveling

in one direction or another just start

shooting off into a specific direction

aiming for a particular price but

when you're looking for price to behave

a certain way

it needs to be inside of one of these

kill zones for the highest probability

after running close each day you should

train yourself to anticipate

consolidation unless we get something

like fomc

days which is obviously you know this is

something that is not an every week

instance but you need to be looking at

your academic calendar because if you

don't

you'll be caught off guard with these

types of events and

either want to be protecting yourself by

not being in the marketplace or taking

considerable amount of your position off

ahead of it

so that way if it does reverse on you

you've paid yourself

but time is the first element keying up

on

monday tuesday or wednesday for your

trading now this is a bearish week

same thing we'd be expecting a high to

form on monday tuesday or wednesday by

new york session

but after wednesday's new york session

probabilities start to fall off

precipitously about catching

shorts or trying to nail the high the

day when you're in bearish market

environments

this week we're going to stick with the

narrative that we've outlined initially

is that this week was bullish we've

outlined why

i gave you examples on telegram

and i showed you the fruits of it

using this information this little

exclamation point is just highlighting

the release of fomc data

okay this is two o'clock in the

afternoon new york time

expect the volatility and even though we

had

the run below these lows here and start

the rally up this is classic fomc

this is exactly what non-farm payroll

does generally too

so if this was 8 30 in the morning on

friday on non-farm payroll

this is what you would expect to see on

non-farm payroll if you're in an

underlyingly bullish market

same scenario so i'm but i digress

so looking at this from the element of

time and price

we know how to group an expectation

and perception of analysis when we look

at

time we know there's so there should be

something occurring

but we have to anticipate that something

rooting it to the bias what's the bias

do we think the weekly range is going to

be higher or lower

we don't care about that weekly closing

price i don't care where it's going to

close

where is the volatility going to send

price mostly higher

or mostly lower over the course of the

days of this week

if i'm thinking bullish i'm going to be

focusing on monday tuesday and wednesday

because i know the algorithm generally

presents the

really choice setups if it's bullish to

be a buyer on monday tuesday and or

wednesday but

by wednesday's new york session now

because wednesday had a high volatility

news driver with fomc at two o'clock in

the afternoon

that gives us a little bit more energy

likely

after two o'clock on fmc's release

and we see that happen here and it rolls

over into thursday's trading and

so on but knowing

where you should be trying to buy if

you're bullish you're trying to get

below the opening price at midnight

that's that's a threshold

that makes your trade higher in

probability

doesn't guarantee profitability it just

means it's higher probability

that you're buying a really cheap market

and you're buying it when smart money

buys it

you're looking at prices that trade

either to an optimal trade entry to an

order block or runs out

stops if we're bullish

when you're trading your your plan okay

you have to have plan right

the plan is every time you create a

short term low

notice to see if it does a run below

that while you're bullish

inside of one of these kill zones

relative equal lows you see that you

trade down below that

in london and below the opening price by

itself that's a buy

now you probably won't trust that

because you want to have indicators you

want to have moving averages

you want to have all these other things

that you put your faith in

all that faith that you established on

retail logic

and indicators and harmonic this and

supply zone that

just reappropriate those

faith tendencies only what i'm showing

you here because this is the truth

it's not about me okay it's not it's not

true because michael says it

it's true because this is the truth and

i'm just the

sounding board for it okay once you

understand this

and you start studying it like this

you're gonna see

it's always been there always

but these three days and this element of

time

that is crucial and what price where's

the price

factor in price is when you're taking

out stops returning to an order block or

an optimal trade entry

that's it there's three little things

there okay three little things that you

need to worry about

and not all three form at the same time

so you need not worry about well how do

i know if it's going to do this and how

do i know if it's going to do that

well look at you have a low here forming

and then it trades down below it again

that might be what you're waiting for

for your model you may not want to trade

older blocks you may not want to trade

optimal trade entries

you just want to see a low and then wait

and see if it runs below that low

during london at a time when we're

bullish on a tuesday

or wednesday and you could be a buyer

there expect price to rally up to

10 o'clock to noon which is london close

and that's usually when it's the

opposite end of the daily range don't

take my word for it go through your

charts and study it

that's what the algorithm will generally

try to do

on mondays tuesdays and wednesdays when

the market is

predominantly bullish for the week

now obviously if there's an objective

that we're looking for on the week and

it hits it on tuesday okay so we

bullish on monday and tuesday it rallies

up say it went above

that red line which is that that buy

stop

liquidity pool that i've outlined

earlier in this series

and say it ran through that 20 30 pips

that would mean we have the potential

for the market to go into consolidation

the rest of the week or have a deep

retracement

whereas we see on tuesday we didn't get

to the high yet and sweep those stops

yet

on wednesday we didn't get to it until

here after fmc

but did it do it convincingly above no

it just went

really lightly above shallow shallow run

right there

and then later in the day when nobody's

really paying attention

it starts to rally straight on up

so you gotta factor the element of price

for where you think price is going to

reach for

so time and price theory you're blending

these things together to come up with a

narrative that you want to follow and

you want to see if price is sticking

to that narrative that you've outlined

or

scenario i guess it would be a better

analogy you're creating a scenario where

you think

based on these times of the day and

these days of the week

and the logic that this market's likely

to go higher to where

that weekly by stop liquidity pool

i've outlined in this series that we've

been harping on

every time we had a video

we're watching how all these things come

together to give

us a narrative that is delivering in

price

and nothing here's random it's exactly

how it should be

if it's bullish when should it create a

low to go higher

in one of these if not all of them

london and new york kill zones

just look at the chart right here these

windows of

time i taught this over 10 years ago

for free right on baby pips taught it

and they still worked today they were

working before i taught it

they're going to keep working okay the

reason why is because the flows that

come in

at that time of the day creates the

opportunity

for the algorithm to move around the

flows or buying volume and selling

volume

is not moving price the algorithm

is operating on the time window it knows

the

trading volume increases then it's not a

derivative

of okay lots of buyers are coming in so

i'm gonna

start seeing price go higher because of

that no that's not what it is

and i don't care who told you otherwise

it's not what's going on

these markets are absolutely manipulated

controlled

period the

the state of a country's economy

and the solvency of a central bank

is not going to be put in the hands okay

of

reddit i mean if everybody around the

world said hey look

here's what we're going to do we're all

going to buy the british pound

and we're going to keep buying and no

matter what

you really think that's going to be the

catalyst for the british pound to go up

and keep on going up

no matter what no way

but if you read social media today

that's what they want you to believe

that stocks are going to go to the moon

because

a handful of people on reddit are buying

it that's not

what these markets are doing okay these

are

the commodity these are the products

of a central bank their business is to

control

everything everything

and we as traders will never absolutely

never ever ever push price higher or

lower

because of buying and selling pressure

it's not going to happen

if they don't want to go higher it

doesn't matter how many people buy it

it isn't going higher that's it

so on the latter part of the week you

can see here on

wednesday's fmc we rolled into

thursday's trading

nice little optimal trade entry here on

london sticking to the theme

and we ran up 80 pips above

the 139 big figure the 139 10 level is

where that bicep liquidity pool was

basically linked to on the weekly chart

so we went 70 pips

above that that's a pretty good run and

here it is

we're on thursday in new york session

and then finally

london close creates the high the day

starts to drift lower

and then finally one more pump up in

london

on friday running just a little bit

above thursday's high

and then we have a breakdown and we'll

look at that on a five minute chart

but we'll look at that when we get into

the last part of the series

but each day has signatures that it

follows responds to in terms of time

and price it's not

something that is random it's

fitting specific logic that

has been taught in this youtube channel

i can't take

over 100 some different videos and

compress it into one

video and say this is all the moving

parts all at one time

but everything i'm showing you here has

been amplified in other teachings

introduced obviously in teachings and

also

shown by example and now here it is

again

being shown to you where it's still

working we're going to take a closer

look

into lower time frames in the final

volume on this

series until then be safe