90% OF CRASHES IN 2023/24 LOOKED THE SAME (5 AUG) - SPY SPX QQQ OPTIONS ES NQ SWING & DAY TRADING

Summary

In 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

00:00

📈 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.

05:02

🎓 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.

10:04

📊 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.

Keywords

💡Profits

Profits refer to the financial gain made from a business or investment. In the context of the video, the speaker is discussing strategies to make profits in the market, emphasizing the importance of understanding market movements and trading algorithms to achieve financial success.

💡Intraday Algorithms

Intraday algorithms are trading strategies or patterns that are used within a single trading day. The video script mentions the importance of understanding these algorithms to translate them into larger time frames and to identify profitable trade setups, such as the 'tapering teal algorithm' identified at 9:48 a.m. on a specific Friday.

💡Liquidity

Liquidity in financial markets refers to the ease with which assets can be bought or sold without affecting their price. The script discusses building liquidity with different colored 'algorithms', indicating how the market absorbs and releases assets, which is crucial for traders to identify potential trade opportunities.

💡Engulfing Red Candle

An engulfing red candle is a specific pattern in candlestick charting that signifies a strong bearish movement, where a red (or green in some charting styles) candle completely covers the previous candle. The video mentions this pattern as a clue of a strong selling pressure in the market.

💡Selling Continuation

Selling continuation refers to a market trend where selling pressure persists, indicating that the price is likely to continue to decrease. The script describes a 'green selling continuation algorithm' as the strongest selling signal seen on that day, suggesting traders should be cautious and possibly hold their positions.

💡Tapering

Tapering in trading indicates a reduction in the intensity or volume of trading activity. The script uses the term 'tapering' to describe a situation where the market is no longer showing strong selling or buying signals, and traders should wait for clearer patterns like 'cups to start closing' before making trades.

💡Cup and Handle

The cup and handle is a bullish continuation pattern in technical analysis, where the 'cup' represents a rounding bottom and the 'handle' is a smaller consolidation that follows the 'cup'. The video script uses this term to describe a market structure that can indicate a potential upward price movement.

💡Head and Shoulders

Head and shoulders is a reversal pattern in technical analysis that signals a potential change from an uptrend to a downtrend. In the script, a 'beautiful head and shoulder structure' is mentioned, which could suggest that the market might be nearing a peak before a decline.

💡VWAP (Volume Weighted Average Price)

VWAP is a trading benchmark that averages the price a security has traded at throughout the day, based on both volume and price. The script mentions using VWAP to identify when the market is trending and chopping, indicating it as a signal to stop trading for the day, especially on Fridays.

💡Overtrading

Overtrading refers to the act of making too many trades in a short period, often leading to increased risk and potential losses. The speaker in the video advises against overtrading, emphasizing the importance of patience and focusing on profitable trades rather than the quantity of trades.

💡Trend Indicators

Trend indicators are technical analysis tools used to identify the direction of price movements. The script talks about using trend indicators like the 5-day and 20-day moving averages in combination with the bottom Bollinger Bands to identify market trends and potential reversals.

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