Video 9
Summary
TLDRThe video script delves into the complexities of market analysis, emphasizing the importance of understanding and operating within different time frames and order flows for successful trading. The speaker highlights their commitment to sharing knowledge by posting analysis 24/7, covering markets in Asia, London, and New York. Through detailed explanations of highs, lows, and structural points in market movements, the script explains how to identify and interpret key signals for bullish or bearish flips, and the significance of violating structural lows or highs. The narrative underscores the critical role of higher time frame analysis and not relying on the DXY for trading decisions, offering insights into the dynamics of order flow changes and the importance of adapting to these changes for trading success.
Takeaways
- 📈 The mentor emphasizes the importance of understanding and operating their trading system consistently across different market sessions (Asia, London, New York).
- 📍 Explains the significance of identifying highs and lows in market trends and how a violation of these levels (body close below a low) indicates potential market direction changes.
- 🔧 Introduces the concept of validated highs and lows, stressing that not all highs and lows are equally significant, and that understanding the difference is crucial for market analysis.
- 💬 Discusses the concept of 'order flow' and how it shifts when structural lows are taken out, highlighting the transition from following a minute order flow to a higher time frame analysis.
- 🤖 Mentions the importance of not using the DXY (US Dollar Index) for direct correlation with trading decisions, emphasizing trading based on one's own chart analysis.
- 🖥 Offers insights into how trading strategies should adapt when a daily low is taken out, leading to a change in market behavior and the initiation of a ranging period.
- 🚩 Explains the concept of 'bullish flip' and how failing to put in a new low can quickly lead to a reversal and uptrend, demonstrating the fluidity of market movements.
- 💡 Highlights the importance of experience and knowledge in trading especially volatile or 'ugly' market days, suggesting that not all trading opportunities are suitable for beginners.
- 🏆 Shares his teaching approach on mitigating an area multiple times and how this strategy plays into understanding market structure and making informed trading decisions.
- 📊 Elaborates on the interplay between different time frames (one minute, fifteen minutes, four hours, daily) in trading analysis, emphasizing the need to recognize and adapt to the dominant time frame's influence on market movement.
- 💥 Ends with a discussion on how the violation of key structural points (like higher time frame lows) ushers in a new order flow, stressing the dynamic nature of markets and the importance of staying attuned to these changes.
Q & A
Why does the mentor post about market operations 24/7?
-The mentor posts 24/7 to cover different market operations across various time zones, including Asia, London, and New York, to demonstrate the applicability of their system in real-time market conditions.
What is the significance of identifying highs and lows in market analysis according to the mentor?
-Identifying highs and lows is crucial for understanding market structure and order flow. It helps in predicting future movements by observing how current prices move in relation to these established points.
What does it mean when the mentor mentions 'violating a low'?
-Violating a low refers to when the market price moves below a previously established low point, indicating a potential shift in market direction or momentum.
How does the mentor use the term 'validated high' in their analysis?
-A 'validated high' is a peak that has been confirmed as a significant point of resistance or a turning point in the market. It is used to gauge future bullish movements only when prices move above this level.
Why is the DXY (Dollar Index) not recommended for use in the mentor's analysis?
-The mentor advises against using the DXY because it is a composite index of several currencies and may not accurately reflect the movements of individual currency pairs or the specific market being analyzed.
What does 'failing to put in another low' indicate in the mentor's strategy?
-Failing to put in another low suggests that the market may not have enough bearish momentum to continue downward, potentially indicating a reversal or bullish trend initiation.
How does the mentor describe the process of a 'bullish flip'?
-A 'bullish flip' occurs when the market transitions from a bearish to a bullish trend, often identified by surpassing a significant high after failing to create a new low.
What is the importance of 'order flow' in the mentor's analysis?
-Order flow is crucial for understanding the direction and strength of market movements. It helps in determining the entry and exit points by analyzing the flow of buy and sell orders.
Why does the mentor emphasize trading based on 'higher time frame targets'?
-Higher time frame targets are emphasized because they offer a broader perspective on market trends and potential reversal points, aiding in more strategic and informed trading decisions.
What role does 'mitigating an area multiple times' play in the mentor's trading strategy?
-Mitigating an area multiple times refers to the practice of trading in a zone that has been tested several times for support or resistance. It suggests that these areas are significant for predicting future price movements.
Outlines
📈 Understanding Market Structure Through Daily Trading Patterns
The speaker discusses the importance of having a mentor and a consistent system for trading, emphasizing the necessity of understanding and operating the system daily across different markets (Asia, London, New York). The focus is on explaining market structure through the analysis of highs and lows in the market, demonstrating how to identify and interpret key trading patterns. The explanation includes detailed analysis of market movements, including the significance of body closures below specific levels and how these patterns inform trading strategies. The speaker also introduces the concept of 'validated highs' and explains their relevance in identifying bullish market structures.
🔍 Analyzing High and Low Patterns for Market Prediction
This paragraph provides an in-depth analysis of trading patterns, focusing on the significance of 'wick' movements and their impact on higher time frame structures. The speaker emphasizes the importance of understanding order flow changes and how they relate to higher time frame lows. Through detailed examples, the speaker illustrates how trading patterns on different time frames, such as one-minute swings, can influence larger market movements. The discussion also covers the concept of 'structural lows' and how they differ across time frames, which is crucial for interpreting market direction and order flow.
🚫 The Misuse of DXY in Trading Strategies
The speaker advises against using the DXY (Dollar Index) as a correlation tool for trading, explaining that it comprises a basket of currencies and should not be used to guide trading decisions. The emphasis is on trading based on individual chart analysis rather than external indices. The paragraph transitions into a discussion on the Euro and its influence within the DXY, reinforcing the message to focus on personal trading charts and strategies without relying on the DXY for market correlation.
🔄 Market Dynamics and Trading Adjustments
The speaker explains the dynamics of bullish and bearish market flips, illustrating how specific market movements and structures dictate trading strategies. The focus is on understanding how to interpret and react to different market conditions, including how to recognize when a market is mitigating against an area multiple times. The explanation covers how to identify significant market shifts and the importance of adjusting trading strategies accordingly, emphasizing the practical application of these concepts in London trading sessions.
📊 Integrating Time Frames for Comprehensive Market Analysis
This paragraph delves into the importance of integrating multiple time frames into market analysis, from one-minute to daily structures. The speaker illustrates how different time frames can influence trading decisions and highlights the significance of understanding the interplay between various market dynamics. The narrative explains how higher time frame lows and highs affect market order flow and trading strategies, particularly emphasizing the need for precision and clarity in trading based on these insights.
💡 Recognizing and Reacting to Market Order Flow Changes
The speaker discusses how to recognize and react to changes in market order flow, especially after violating higher time frame lows or highs. The focus is on understanding how different time frames influence market movements and the implications for trading strategies. The paragraph provides insights into how volume and time of day, particularly during the London session compared to the Asian session, can significantly affect market behavior and trading outcomes.
Mindmap
Keywords
💡Order Flow
💡High and Low
💡Break of Structure
💡Bullish Flip
💡Mitigating an Area
💡Time Frames
💡Structural Low/High
💡Order Block
💡Daily High/Low
💡Volume
Highlights
The importance of operating a system daily in different market sessions: Asia, London, and New York.
Explanation of market highs and lows with a focus on violation and body close below points.
Introduction to the concept of validated highs and the criteria for bullish market structures.
Discussion on the significance of structural lows and highs from different time frames.
The explanation of order flow changes upon taking out a structural low.
Highlighting the importance of not using DXY for currency trading due to its composition of a basket of currencies.
Explanation of a bullish flip in market structure and the conditions for its occurrence.
Mitigating areas multiple times and the implications for market direction.
Importance of higher time frame lows and highs in determining market order flow.
Explanation of the concept of mitigation and its role in market analysis.
The technique of trading based on one minute order flow to capture higher time frame lows.
Discussion on how a failure to put in a new low indicates a shift in market order flow.
Explanation of how market order flow is governed by higher time frame lows and highs.
The concept of trading from the origin of the move and its significance in market analysis.
The role of demand creation in market movement and the significance of equal highs above demand.
Transcripts
foreign
if you have a mentor that has a system
you need to be able to see how to
operate that system every single day in
the market that's why I post 24 7. I
post in Asia because I get a post in
London Post in New York uh
my trigger finger my Twitter fingers I'm
always posting
um I actually wanted to explain this
Lowdown here too
did we take out this time
so I actually wanted to explain this I
told procharge that I would explain this
look at these highs and lows going down
for yesterday
you guys see this we have this low
and we have this high
and we come down and we violate it right
body close below it right
so now
let's make our way down
you have this low right here
you put in this high right here
you put in this low right here
you put in this high right here
we trade all the way down into this area
right
put it in this low right here
be putting this eye right here
we put in this low right here
we put in this high right here right
here you see that I got the little red
markers to it if you guys not following
along
you see
when we trade below this
we have this high
that takes us below this low but we know
that the validated high is right here so
we're not looking for anything bullish
remarkable structure class until we come
up above here and I'm saying free market
structure class because that's what I
taught in the free market system class
so we have this high right here right
keep going where's the validated High
here
we have this load that we put in here
we have this high that we put in here
now here's where you have to okay
pay attention
so look we took out this low right
running this low is a structural low
this is a low that does not belong to
this time frame
so we have
this low here
we have this High here
that's from another time frame that's
not from this time frame
just because how large the range is how
large the swing is from this low to that
high above and then we violate it down
over here right
so
if you look at the sizes of these highs
and lows being created that's a 34 point
low to that high region up there right
this is a 34 point
low sorry 34 22 Point low to that high
up there
when we take out this structural load to
the left
order flow changes
because
we're following one minute order flow
to deliver us to a higher time frame low
when we take that higher time frame low
we're no longer following that one
minute order flow
because the low was violated
so
this slow here
and this High here
would be like a wick tapping back into
this swing
like we tend to do
let me see if I can find one
like this
let me show you how it looks on the
higher time frame just from a one minute
swing
so let's say this is the larger swing
that I'm talking about right here
and we take out that low
this is a
a wick
we trade back into it
then you have this candle
trade down again that's what's
equivalent to what happened on a higher
time frame
y'all don't believe me
here's the low
right
[Music]
let me let me I I know I'm teaching let
me stop so look here's the low we train
below it
a wick let's say Wick right oh Wick we
got a wig right a wick
comes and tops back into it
And Trades us down
the order flow We are following is no
longer
this
because this delivered us to the low we
were looking for already
so now we need to see what our higher
time frame is saying
because we just ran a higher time frame
low
so if we go into the four hour we see
that this is also a four hour low right
and if we go up to the deli
good
in the mentorship I teach about
these higher time frame targets these
daily highs daily lows the daily targets
what a day is set to achieve and how we
often see a reversal after that and
that's whether it's on the top side but
there's some Bob the bottom side it's
what the date is set out to achieve
we got that here in London
right here right
or or Asia or or whatever whatever I
don't remember
but
we see that we took out a daily load
right
let me go back
and upon taking out that daily low what
happens
that high that low that high there
we begin to accumulate or arrange or
whatever it is that you guys look to
calling
We Begin the range
oh
all right all right all right I said I'm
going to stop
so somebody somebody rushed and took
their remote and him you really fast
so look we
you see that we we have this high
we have this low we have this high
we have this low we trade
up above
first of all first of all let me let me
just let me just open this up
I'll show you what's happening in here
this high this low sorry you guys I
really didn't got dyslexia I'm always
calling these lows highs I don't know
this low this hot we got this low here
we got this High here remember
we took out a Strokes real low this
belongs to a different kind of order
flow here now
we're not utilizing the same thing up
here
so look at what happens
foreign
this low right
we put in a series of highs up above
here
what happened here
it's so hard to not
nope nope don't use dxy at all nope
I know other mentors preach about it and
say to use it don't use it at all trip
is on your truck don't use dick try for
nothing at all nothing
even if it looks
all right even if it looks like is this
is moving
with indices or is moving against
indices or whatever it is you're not
using that you trading what's on your
chart not what's on another chart
because that dxy is a basket of
currencies that are in it right
basket of currencies that are in it the
Euros in it the pound is in it the yen
is in it the cat is in it all of these
different currencies are are within that
so to use that to correlate absolutely
not don't do it but
let's get back to this the Euro has the
highest percentage that's sending it but
let's get back to it so
look at what happens
we fail to put in another low
and you see us quickly run up sorry
you see us quickly run up and take out
this high
right here right
so
we now have
a swing of bullish flip that's what we
call it right as we call it right
[Music]
now this is London it was looking really
ugly today
could you trade this yes do you need
experience to trade this yes
but one thing we have going on within
this
[Music]
yeah I know I teach a lot about
mitigating an area multiple times
[Music]
I teach a lot about that
you see that we're just mitigating this
area multiple times then we fail below
it
and what happens after
we trade up above it
where is our swing
and what is this reaching into within
our swing
[Music]
you see we tap right into the 30 percent
your confirmation is this High taken out
always talk to you about the previous
hobby being flipped if you didn't want
to use that because you said that
Candlestick high is risky
here's the high that brought the low
you got another swing a dip inside of
there and we trade up above it
we come back to tap into the imbalance
responsible for the shift
and then we trade out of it that's
London what happens next
we break down what is the early sign of
us breaking down when we violate the s d
responsible for the break of structure
this is all of the videos in my course
that I'm running through on exactly this
so when we violate the s d responsible
for the break
what do we usually do
we go back to the origin
we go back to the origin of the move
the origin of the move is here
what do you see us do
we fail to put in a new loan because
guess what
though this is a four hour low or a
daily low
we have a 15 minute low here a 15 minute
High here
we have a 15 let me actually put
different colors
foreign
we have a 15 minute
High here we have a 15 minute low here
we have a 15 minute High here
we violate
the 15 minute
low protected love
while we're understanding that
anything within here
comes from a higher time frame so we're
not drawing out
[Music]
the order block from the top of the hill
to see a price come in and short it down
back to the lows because we understand
that we're within different time frames
we are working within multiple time
frames the four hour of the daily to the
left one minute bringing us down the New
Order flow that begins after we check
out the higher time frame High the
higher time frame low sorry
the highs and the lows from the one
minute
that are trading into London's
accumulation the 15-minute highs and
lows that are being created and broken
oh
that's a lot right there's a lot right
there's a lot I know that's a lot
[Music]
so
[Music]
we trade back below it
and we fail you see I wrote fail here
that was this morning that was before we
even had this whole push up and we'll
fail
f
bail
so when we fail
now upon the failure of taking the low
one minute bullish order flow begins
again
one
one minute bullish order flow begins
again
so we put in this low here
what's the high that sent it down there
not that one
a 15 minute high is responsible for
sending it down there
actually
correction
a one minute high is responsible for
sending it down nip
I say that because if you look below
this Wick
biswick low this high
to get a closure below it we got it
right here
so from this low
we traded up above and we came back down
this Wick Wicked down but we got a body
closure below right there
y'all see that
right there's the body closure that
validates this high
so we're not looking for anything
bullish
until we break this high with what a
body closure
so
we know again
where our one minute swing is right
and this is probably the five minute but
I'm gonna leave it as in one minute
you trade back into the 50 of the move
we trade back into the s d responsible
for the break
here
and actually
no no I'm not gonna go that's a little
too technical for you guys
you see we come all the way down into it
almost take out the low but we leave it
and then we trade higher out of there
we come back into it again guess what
first up break structure second tap
double bottom right
we get that
and we trade out
so when we take the next High
we trade up above it
here
now
with this happening here
these these Wicks flailing up above it
and then you see this closure right here
this is the closure
that I would consider
taking out this High why because this
High doesn't belong to the one minute
well look at when the closure happened
so we trade down below we have multiple
highs and lows within here multiple
highs and lows within here
and what do we have restarted again
where do we trade from
tapping back into the zone
we trade up above
we tap back into the 30 percent here
we trade out of it
we trade out of it again
we trade out of it again
we trade out of it again what did I say
about when a demand is created
what did I say
about when a demand is created
Ray I know you here girl what's up what
did I say about this
I said anytime we have a equal high
above a demand or even you see some
consolidating happening above the demand
it gives reason to dig back inside of it
so we dig back inside of it
and then you see your straight out again
now if you look
within here
this is another low on the 15 minute
this is a high on the 15 minute
and This Is Us trading below it
so if we're following structure if we're
following the order flow
we're following the order flow
we're then we're using one minute order
flow we're using 15 minute order flow
but what's governing us
the higher time frame we just came below
a higher time frame low
so the one minute is a different Beast
because
the one minute it delivers
all it delivers the order flow all time
frames above it but it delivers it in a
specific manner
specific manner
so not only that
[Music]
I told you guys about us mitigating an
area multiple times right
what do we have here
bounce
bounce
bounce right
[Music]
and we trade up
[Music]
that happened what was it two days ago
on stream the same exact thing these
areas that we mitigate multiple times it
often looks like support term resistance
resistance to support all of those you
know
Concepts that the people who follow that
really don't work out
um
so
this here if you can't understand when
this happens stay out of it wait for
something clearer
what do we have that's clearer over here
we have this one minute low
and we trade up and fail to put in a new
high
we trade below this low we tap back into
the area and you see her short
and the whole time we stay short
we trade it up
back down into here we stay short right
what do we notice
about
our 15 minute
low again
from London
here
we failed here
we put in this low trade it up to put in
a new high right here
we failed here and then we failed here
three failures
prices does not want to go down with
this
so because we failed to close below
you see This ferocious move up
at 9 30.
and we begin to take out
foreign
all of these highs to the left
we trade up above all of that
so
what we need to understand with this
is that
these highs and lows belong to different
time frames and once a higher time frame
low or a higher time frame high is
violated a different order flow begins
it's not the same one that brought it
down there it achieved its its low it
achieved this delivery
now we have to watch and see what comes
of it next and what session we're into
because you're not going to get this
type of volume in Asia there's been a
few Asian sessions where we had tons of
volume in it but for this one in
particular this is London here you're
not going to get this type of volume in
Asia so if Asia does take out a higher
time frame low
you want to wait to see what London is
doing
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