just copy this, don't even think, this is how you trade

mentfx
17 Jul 202421:20

Summary

TLDRThe video script discusses a systematic approach to trading, emphasizing the importance of patience and discipline. It details a strategy for identifying and following market trends, using price action to determine entry and exit points. The speaker urges viewers to avoid the common pitfalls of frequent trading and instead focus on clear, well-defined setups that align with the market's structure. The script provides a step-by-step walkthrough of a trading plan, highlighting the significance of understanding market context and sentiment to maximize returns and minimize risks.

Takeaways

  • πŸ“ˆ Consistent Trading: The speaker emphasizes the importance of following a consistent trading system and strategy until it fails or the market conditions change.
  • πŸ’‘ Building Net Worth: The script encourages traders to use the discussed system to build up their net worth or to start with a funded account.
  • πŸ€” Patience and Discipline: It highlights the need for patience in trading, waiting for the right setup and not forcing trades when the market is unclear.
  • πŸ”„ Market Sentiment: The speaker talks about using tools like the sentiment viewer to gauge market sentiment, which can help in making trading decisions.
  • 🚫 Avoiding Random Trades: The script advises against trading randomly and instead focusing on clear market moves that align with the trader's strategy.
  • πŸ“‰ Handling Losses: It's mentioned that losses are part of trading, and traders should be prepared to take them when trades don't go as planned.
  • πŸ“ˆ Stage One and Two: The concept of stage one and stage two in market movements is discussed, indicating the importance of recognizing these patterns for trading opportunities.
  • πŸ”„ Surfing the Market: The term 'surfing' is used to describe riding the momentum of the market's movement, either upwards or downwards.
  • πŸ“Š Technical Analysis: The script includes detailed discussion on using technical analysis tools like the SMA (Simple Moving Average) and price action to make trading decisions.
  • πŸ’Ό Risk Management: The importance of risk management is stressed, including setting stop losses and taking profits to protect and grow capital.
  • πŸ“ Trade Management: The speaker provides insights into how to manage trades once entered, such as moving to break even and trailing stops to maximize profits.
  • πŸ”‘ Key to Success: The script concludes with the message that patience, discipline, and following a proven system are keys to success in trading.

Q & A

  • What is the main focus of the speaker in the video script?

    -The speaker focuses on a trading system, emphasizing the importance of understanding and following it to build net worth or a funded account.

  • What does the speaker advise against doing in trading?

    -The speaker advises against following anything else besides the discussed system, paying for unnecessary services, and trading without a clear understanding of the market context.

  • What is the 'three candle rule' mentioned by the speaker?

    -The 'three candle rule' is a trading strategy the speaker uses, where they look for strength in the market after three candles have formed, potentially signaling a continuation of the trend.

  • What is the significance of the 'clear market' concept in the speaker's trading approach?

    -A 'clear market' refers to a market with well-defined trends and patterns that the speaker can identify and trade with confidence, avoiding random trades that lead to losses.

  • What does the speaker mean by 'surfing' in the context of trading?

    -In this context, 'surfing' refers to the price action moving along with a particular trend, such as a rising 10 or 20, indicating a potential area of support or resistance.

  • What is the importance of 'tightness' in the speaker's trading strategy?

    -Tightness in price action is important as it indicates a potential area for price to break out or reverse, providing a clearer entry point for trades.

  • What does the speaker suggest doing when there is no clear trading opportunity?

    -The speaker suggests waiting patiently for a clear trading opportunity to arise, rather than forcing trades in unclear market conditions.

  • What is the role of 'validation' in the speaker's trading strategy?

    -Validation refers to confirming the market's direction and potential entry points through the analysis of price patterns and trends on different time frames.

  • How does the speaker manage trades once they are entered?

    -The speaker manages trades by moving the stop loss to break even after initial strength is shown, and then trailing the stop with a rising 10 or 20 to lock in profits if the trade continues in a favorable direction.

  • What is the speaker's view on the importance of patience in trading?

    -The speaker emphasizes that patience is crucial in trading, as it allows traders to wait for high-probability setups and avoid getting involved in every market movement, which can lead to random and often losing trades.

  • What is the 'EVC' the speaker refers to and how does it apply to trading?

    -EVC likely stands for 'Entry, Validation, and Context,' which is a trading methodology the speaker uses to identify entry points, validate the market direction, and understand the broader market context before making trades.

Outlines

00:00

πŸ“ˆ Trading Strategy Continuation

The speaker revisits their overall trading plan, emphasizing the importance of following a system that has been proven to build net worth or fund trading accounts. They encourage viewers to focus solely on this system and not be swayed by other trading methods or paid services. The speaker then discusses the continuation of a previous trade, detailing the strategy of moving to break even and considering partial exits based on market strength. They demonstrate how to adjust visibility settings on trading charts and explain the process of trailing stops with a rising 10-minute moving average. The goal is to manage trades effectively until the rules can no longer be followed, highlighting the importance of patience and adherence to trading rules.

05:00

πŸ€” Waiting for Clear Market Moves

The speaker discusses the importance of waiting for clear market moves before entering trades. They explain that traders should look for well-defined patterns and avoid impulsive actions. The speaker also talks about the concept of 'surfing' a rising 10 or 20-minute moving average, which indicates a strong market trend. They emphasize the need for patience, as traders should only enter trades when there is a tight range and a clear setup. The speaker also mentions the importance of managing trades by moving to break even and using the EVC (Every Volume Cluster) rule for potential partial exits. The focus is on avoiding forced trades and ensuring that each trade aligns with a trader's strategy and risk tolerance.

10:02

πŸ“‰ Analyzing Market Structure and Demand

The speaker delves into the analysis of market structure, focusing on demand and supply interactions. They discuss the importance of identifying clear setups and managing trades based on market movements. The speaker uses the example of a failed setup and explains how to adjust strategies accordingly. They highlight the need to protect capital and wait for high-probability trades. The speaker also discusses the concept of 'surfing' above a moving average and the importance of recognizing when the market is likely to move in a particular direction. The emphasis is on understanding market dynamics and making informed decisions based on clear market signals.

15:04

πŸš€ Capitalizing on Market Opportunities

The speaker continues to discuss the importance of capitalizing on market opportunities by identifying clear and tight ranges that signal potential trades. They explain the process of setting up trades through highs and managing them with stop losses based on moving average positions. The speaker emphasizes the need for patience and the importance of not forcing trades. They also discuss the concept of 'surfing' with rising 10 and 20-minute moving averages, indicating a strong market trend. The speaker highlights the importance of managing trades to break even and waiting for the right moment to take profits. The focus is on understanding market movements and making strategic decisions to maximize profits while minimizing risks.

20:04

🌐 Trading in a One-Sided Market

The speaker concludes by emphasizing the importance of trading in a one-sided market and executing trades patiently. They discuss the need to identify clear market trends and avoid trading on every piece of action. The speaker highlights the importance of following a proven trading system and not getting swayed by random market movements. They also discuss the results of trading over the last three days, demonstrating how a consistent approach can lead to positive returns. The speaker encourages viewers to be patient, wait for the right setups, and execute trades with discipline. The focus is on understanding the market context and making strategic decisions that align with a trader's overall strategy.

Mindmap

Keywords

πŸ’‘Trade Plan

A trade plan is a strategy or set of rules that a trader follows to guide their trading decisions. In the video, the speaker emphasizes the importance of sticking to a well-defined trade plan, particularly one that focuses on understanding and utilizing a specific trading system to build net worth or fund a trading account. The speaker also discusses adjusting the trade plan based on market conditions, such as moving to break even or considering partial exits in response to market strength.

πŸ’‘Lower Time Frame

In trading, a lower time frame refers to shorter intervals on a price chart, such as minutes or hours, as opposed to daily or weekly charts. The speaker in the video uses a lower time frame to analyze market movements and make trading decisions. This approach allows for more frequent trading opportunities but also requires more active monitoring of the market.

πŸ’‘Price Action

Price action is the movement of a security's price over time, reflecting the collective behavior of all market participants. The speaker in the video repeatedly refers to price action as the primary factor in determining trade entries and exits. Price action analysis involves studying price movements to identify patterns, trends, and potential trading opportunities.

πŸ’‘Break Even

In trading, breaking even means that the profit or loss from a trade is zero, meaning the trader has neither gained nor lost money. The speaker discusses moving to break even as a strategy to protect profits in a trade. This involves adjusting the stop loss to the entry price once the trade has moved in a profitable direction, ensuring that the trader does not lose money on the trade.

πŸ’‘Partialing

Partialing refers to closing a portion of a trading position, typically to lock in profits or manage risk. The speaker mentions considering partialing in the event of additional market strength, which would allow the trader to secure some profits while still maintaining exposure to potential further gains.

πŸ’‘Sentiment Viewer

A sentiment viewer is a tool or indicator used by traders to gauge the overall market sentiment, which can influence price movements. In the video, the speaker mentions the sentiment viewer in the context of maintaining a consistent approach to trading, suggesting that it is a tool that helps in understanding market sentiment and making informed trading decisions.

πŸ’‘Stage One and Stage Two

The speaker uses the terms 'stage one' and 'stage two' to describe phases in a market trend. Stage one might refer to the initial phase of a trend where a new direction is established, while stage two could indicate a continuation or consolidation of that trend. The speaker discusses how these stages can be identified and used to inform trading decisions, such as when to enter or exit a trade.

πŸ’‘Validation

In the context of trading, validation refers to the confirmation of a trading signal or pattern. The speaker talks about using a validation time frame to confirm that a trade setup is likely to be successful. This involves looking for specific price behaviors or patterns that support the trade idea before committing to it.

πŸ’‘Entry

An entry in trading is the point at which a trader initiates a new position. The speaker discusses the importance of having clear and defined entry criteria based on price action and market structure. This helps in making objective decisions about when to enter a trade, rather than relying on impulse or emotion.

πŸ’‘Stop Loss

A stop loss is an order placed by a trader to sell a security when it reaches a certain price, limiting potential losses. The speaker mentions adjusting the stop loss in relation to the market's movement, such as moving it to break even or placing it under market structures like moving averages, to manage risk and protect profits.

πŸ’‘Patience

Patience is a crucial trait for successful trading, as it involves waiting for the right opportunities to trade rather than acting impulsively. The speaker emphasizes the importance of being patient and waiting for clear, well-defined trading setups. This approach helps in avoiding unnecessary risk and ensuring that trades are based on solid analysis rather than emotion.

Highlights

The speaker emphasizes the importance of understanding and using a specific trading system to build net worth or a funded account.

Traders should follow the same context repeatedly until it fails or the desired moves no longer deliver.

The speaker discusses moving to break even and considering partialing on trades in the event of more strength.

The importance of patience in trading is highlighted, waiting for the right setup before entering a trade.

The speaker explains the use of a three-candle rule in trading and how it influences the decision to partial a trade.

Discussing the strategy of waiting for a down candle to close before taking action in a trade.

The concept of 'clear markets' and the importance of recognizing them for successful trading is explained.

The speaker advises against trading in a choppy market unless there is a clear setup.

The importance of managing trades and the strategy of moving to break even when the market shows strength.

The speaker discusses the use of the hourly chart to identify larger stage one and stage two in the market.

The concept of 'surfing' in trading, where the market moves impulsively in one direction, is explained.

The speaker explains the importance of not forcing trades and waiting for the market to prove its direction.

Discussing the use of a six-minute chart for validation and how it can indicate potential moves in the market.

The speaker advises on waiting for a clear move before entering a trade, emphasizing the importance of patience.

The concept of 'buy stopping' above a high and the strategy behind it is explained.

The speaker discusses the importance of managing risk and being prepared to exit a trade if it fails.

The strategy of waiting for a market to make clear moves before trading, rather than reacting to every fluctuation.

The speaker emphasizes the importance of executing trades patiently and not being part of the crowd that trades randomly.

Transcripts

play00:00

Okay so yesterday we left off on our

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overall trade plan and looking at a

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lower time frame based trade plan right

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here this is actually where we left off

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and actually before we continue here's

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that same video the one where I'm

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literally begging you guys begging you

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to use this system truly understand it

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don't really follow anything else don't

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pay for anything if you don't want to

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and just use this system and this

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understanding to build up your net worth

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or to build up your first funded account

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to start getting funded and I did that

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for 2 days in a now and today I want to

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continue in the event that the price

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action actually continues because as you

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know what we do as Traders is we simply

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follow the same context over and over

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and over again until the context either

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fails or the moves that we're looking

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for no longer deliver right because

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that's literally what makes a Trader you

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find things that are moving well you

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follow the things that are moving well

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and then you keep following them if they

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continue moving well and you make money

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from them here's gold it hasn't really

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changed the overall screener and for the

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Free People the sentiment viewer has

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remained to be the same so this is where

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left off and I told you guys we'd be

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moving to break even and we would

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consider partialing on this in the event

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that we saw some more strength come in

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so we could partial into the validation

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and then keep going from there so all

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we're going to do is we're going to pick

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back up from where we were and we're

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just going to keep following the rules

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until we can no longer follow the rules

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anymore what I'm going to do is I'm

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going to make this around 30% because I

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don't like seeing it or being in my way

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um I just like to see it very faintly

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okay so this is where we left off and at

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the moment as you guys remember we

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didn't look to take any partials yet and

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this was from yesterday this was the day

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day before and all these videos were

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uploaded working you through it and

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showing you exactly how my team

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personally traded it as well so we look

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for a little bit of strength and that's

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all we do first and right now we don't

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really get anything so we wait until it

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comes back or until it starts pumping

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higher now because I do have that three

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candle rule we kind of have this one two

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and maybe if a little bit more strength

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comes in we can partial but what I'll do

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is I'll actually partial because of the

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fact that we've been in this trade for a

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while and often times my rule is met in

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the first few candles so happily partial

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this at 3.34 which puts us at around 1

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Point well here we go again

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3.34 at 1.67 so plus 1.67 and the rest

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very Simply Now gets trailed with a

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rising 10 so what I'm going to do is I'm

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actually going to turn this on and put

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it on for minutes up to the 6 minute

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just like this and I'm going to turn

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this one and make the visibility on this

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one a one minute up to like three so we

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can just see it on the one minute okay

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perfect so we should see the SMA is not

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great and again now we will Trail now

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that the strength has finally come in

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with the rising 10 we'll see if we can

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do that and see what happens so you can

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see if we waited a little bit we would

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have gotten a better trade but that's

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okay waiting for a down candle to close

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this thing

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out and yeah just waiting for it to

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close below this thing right now and

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there we go looks like we got a close

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Okay we get to close right there about

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3.68 so we get

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3.68 over two putting us at plus 1.84

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and subsiding that trade and then we go

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back to square one where we basically

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take a look at the context the

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validation and then the end entry to

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find if we can take another trade so at

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the moment we know the context is very

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very likely to be clear as per this area

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we spoke about yesterday it's coming out

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of some larger stage one and starting a

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stage two and if we look at the hourly

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we're going to see exactly that

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represented right we had this longer

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term stage one stage one and now you're

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in clear stage two you're actually

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moving in a very very heavily delivering

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stage two so we'll just keep that in

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mind as we keep going but theoretically

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the six minute starts making a nice push

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higher we should start to see setups now

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if we take a look at this you've already

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had a setup here a setup here kind of a

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low-key setup here so really this is

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this wants to pull back deeper and then

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maybe make a setup around here or wants

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to pretty much fail down and then set up

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a new move again just like we saw here

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just like we saw back here every single

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day because the market doesn't do

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anything new all it does is it repeats

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clear moves on Clear markets and the

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problem with a lot of Traders is waiting

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for the clear moves and most importantly

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knowing when there's a clear Market a

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lot of people will trade anything I

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teaching you not to do that so we wait

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again we wait for a clear move to come

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in we wait for a clear surface this is

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starting to do what we want to see right

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so you can see it starts to kind of

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serve higher starts to put in a little

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bit of a tight range so this is really

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good because now if we can start to

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validate higher that should produce an

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opportunity for an entry but as this is

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happening as you might as you might see

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right we've had clean moves prior very

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clean moves when it moves when it moves

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higher and then goes sideways and moves

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higher and goes sideways and moves

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higher it tends to do so very

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impulsively most recently when it's

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moved sideways and moved higher moves

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sideways and moved higher it started to

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chop around more it has become more

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choppy and as a result the expected

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stage ones and twos are likely to also

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deliver more choly right this may not

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make a move like this it may just go up

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a little bit so that's something to keep

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in mind because that instantly removes

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the the high likelihood of a better

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trade happening and if we look at the

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timer now about 8:00 p.m. so honestly it

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could set up into London or whatever

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since we are trading a lower time frame

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so it's not terrible and we can check

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out a lower time frame but it's

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something to remember about what's

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happening now right because that's a

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contextual clue about the market so if

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we take a look at the one minute chart

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again what I'm doing is I'm looking for

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structural narratives of what's

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happening at the moment I see nothing

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worth buying so I'll give this a chance

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to continue to get clear right because

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on that higher time frame it's still

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probably very clear it starts to move up

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very heavily it just comes right up if

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it pauses and comes down a little bit

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there should be an opportunity but right

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now again it's moving in tandem with

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what we expected with overall loose

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action so if I go to a six minute yeah

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so I mean in this case it does take off

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but it doesn't give me the kind of

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opportunity I personally want to look

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for and that's okay I will miss trades

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so all I have to do is sit back and wait

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for the next potential opportunity

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there's nothing really for me to do so

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price just kind of takes off you know

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goes a little bit sideways here again

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these are harder areas of trade but

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there is impulsiveness behind this which

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is good because money is coming in which

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means that if we do get now a sideways

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bit of action we should see that

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impulsiveness continue forward so that's

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what I would wait for right so I'd wait

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it looks like it just goes goes goes

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nothing really to do comes down and

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right now all we're waiting for is some

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clear surf with a tightness across the

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top on our validation time frame because

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that's going to set a precedent for a

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new move otherwise there's not much to

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do right now so it starts going sideways

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com com down a little bit so right now

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the hourly is likely going to be as you

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know going sideways about a stage one

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what we'll do is we'll find the uh is

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this the SMA one I believe it is right

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yeah we'll actually increase this to the

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hourly as well there we go yeah so if

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we're taking a look at this you can see

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um we are still in a very clear stage

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two we're undergoing stage one so if

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price starts to reach higher it

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definitely can go into stage two so

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there's not much to worry about in that

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respect right the contact time frame is

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clearly there to continue making a

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potential move but what matters now is

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that on our validation or in this case

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our 6 minute and here's the EVC rule in

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terms of multiplication very very simple

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we want to see that setup and right now

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I see absolutely nothing I just see a

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choppy based market so I wait right

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because there's nothing else to do if

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money wants to come in it will come in

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otherwise I will just stay out of this

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action right and then we have money come

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in very very clearly that's good that's

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a first step but this does not mean I

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can trade right because there's a

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specific thing that I want to look for

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so I have to wait and I have to allow

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price to make a setup so now it's

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starting to do a little something right

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so right now you can see it's surfing

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higher along kind of the rising 20 the

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Rising 10 but it hasn't really put in a

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tight range hopefully over the next few

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candles it'll move sideways which is

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again the big part of patience and then

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we can get a trade the problem that

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people experience here is that they

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start seeing this and they go oh my God

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I got to go I got to trade I got to

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trade and again even if this works it's

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not about the fact that it might work

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you know some people will see this and

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go okay I got to buy it now okay this is

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rushing the process at least in my book

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so for me I have to wait for something

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that looks in line with what I've seen

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before I need to see some kind of

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tightness or some kind of area that

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makes sense for price to reach Beyond so

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this is now becoming like even one

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candle in this case made this a lot

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clearer why because we have our move now

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we have the surfer higher and now we

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have pauses right before the area that

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we would expect price to expand from so

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we can expect that again a stage two

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into a stage one a stage two should

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result in some kind of delivery that

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will be worth getting involved in so we

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can get ourselves managed protected and

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hopefully positioned for a win so now I

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may take a look at the one minute and

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see what's going on and as we take a

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look here structurally we have beautiful

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highs into higher lows into side

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structures that are delivering now and

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creating a buy stoppable high in the

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form of an MB so that is very very

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happily in an area I'll take an entry

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and see if it wants to tap me in so you

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can see price just fails down instantly

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this becomes a cancellation very simple

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move back to the 6 minute and keep

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watching it because this may now start

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to serve a rising 20 or 50 now when I

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talk about surfing a a rising 10 2050

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the reason we look for that is because

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if large money is getting involved

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behind something or truly wants to be

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behind it and the compsite operator is

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truly accumulating and moving that asset

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higher on any given time frame what's

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going to happen is with the large moves

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which is basically large demand drying

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up Supply and moving higher they will be

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resupport at these points because what's

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happening is new money wants to

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continuously get in and protect the

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previous orders while also taking it to

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its its granted high that it actually

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wants to get to so if the price wants to

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get to 2500 2480 whatever it is then

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it's going to stop stop at these points

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it's going to put in that sideways it's

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going to build up new Dumb Supply while

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accumulating that demand and then

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continue moving in demand higher which

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is why we use a few time frames to see

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that so right now I don't see really a

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clear tight range right so usually I'll

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get rid of lines when this is happening

play09:13

and I'll just keep an eye on it but

play09:15

something may build up so right now as

play09:16

you can see right we're building these

play09:18

higher lows and now we're starting to

play09:19

put in a little bit of a tight range

play09:20

that's perfect this is perfection in my

play09:23

book so I can step down lower and take a

play09:24

look at if there's some kind of setup or

play09:28

something clear that is worth taking so

play09:29

right now all I see is a potential buy

play09:32

Above This High okay and that's okay

play09:34

right because what we've done is started

play09:35

to validate larger demand and I we're

play09:37

setting up new demand in here now for me

play09:39

personally because I like to be very

play09:42

very clear with my entries what I would

play09:44

rather wait for right now is either

play09:45

price coming up coming down heavily and

play09:47

creating a high that can be easily buy

play09:48

slopped like that or coming up pausing

play09:52

and creating a high around here around

play09:53

that same action that we can then buy

play09:55

stuff right because this is what I'm

play09:56

used to seeing in price so I wait price

play09:59

comes down heavily right it does not

play10:01

look like it's doing anything anyway so

play10:03

we'll go back to the six minute and you

play10:04

can see it fails the the setup that it

play10:06

was undergoing so I'll delete everything

play10:07

that I was looking at because again you

play10:09

don't want to force trades and you don't

play10:11

want to force things in terms of what

play10:12

price is doing and just wait for again

play10:14

price to prove that it wants to be

play10:16

bought up price to create something

play10:18

tight some some area by which a

play10:20

expansion out of it would mean that

play10:21

you're likely going to get a move and

play10:23

wait for that entry to actually get to

play10:25

get positioned right so right now you

play10:27

can see we're kind of Surfing so this is

play10:28

kind of interesting but we're we're

play10:30

surfing above this 50 which is kind of

play10:32

like sideways we're putting in some kind

play10:34

of range and this just put in a little

play10:35

bit of a tight candle so it is putting

play10:37

in some kind of tight range this is a

play10:38

little bit harder but based on what the

play10:40

entry time frame can be telling us now

play10:42

there is an opportunity for an entry

play10:44

because at the same time you can see we

play10:45

kind of surfed that 20 higher we failed

play10:47

just below and then we came right back

play10:48

up so this is moving in order what I can

play10:50

see happening now is either a move

play10:52

coming out of it or maybe even a a move

play10:55

a pause again and then the move so again

play10:57

I'm willing to take the potential loss

play10:59

because I understand I'm getting

play11:00

involved in an area where the second it

play11:02

truly fails I'm no longer going to be

play11:04

part of it and if it works then you're

play11:05

going to get you're going to be able to

play11:07

make a good bit of money right that's

play11:08

literally how that functions so I'll

play11:10

take a look at the minute to see what's

play11:11

going on and yeah I mean this is just

play11:13

this is almost Perfection often times

play11:16

even in these cases like you can see

play11:18

we're literally setting up a high that

play11:19

can be buy stopped right now in line

play11:21

with all of this okay now the one thing

play11:24

that speaks out to me is the position of

play11:26

the Mas right now often times like to

play11:27

see them come a little bit closer this

play11:29

is pointing to me to me at least that

play11:32

price wants to push back down get these

play11:34

to come a little bit closer and then

play11:35

make that push higher okay so again in

play11:38

this scenario I will actually skip

play11:39

taking along here and wait for that to

play11:41

happen now I don't know if that's going

play11:42

to happen or not right price could go

play11:44

without me and that's okay but I want to

play11:46

protect my capital and wait for the

play11:48

moves that make the most sense and

play11:49

especially if I'm trading a lower time

play11:50

frame a lower time frame EVC I should be

play11:53

aware that many moves are going to

play11:54

happen any given day so I want to make

play11:56

sure that what I'm trading is completely

play11:57

in line with trades that I'm willing to

play11:59

get behind so I'll wait for hopefully so

play12:02

again this would be the activation and

play12:03

maybe it works now but I want to wait

play12:05

for this thing to pull back a little bit

play12:06

and create that little bit of Supply

play12:09

perfect for the demand to actually

play12:11

overtake once it comes in and now you

play12:14

can see this tightness has become much

play12:15

clear on that six minute so I'm going to

play12:17

show you the six minute right you can

play12:19

see we're still sailing this thing

play12:20

higher and we started to put in this

play12:21

little range above that's perfection in

play12:24

this scenario here right it can it can

play12:26

even play around a little bit more but

play12:27

I'm more than happy to buy stop the B

play12:29

here throw the stop inside or just under

play12:31

these Mas and look to take it higher

play12:32

let's see if we can get an entry so

play12:35

plays around comes down again the entry

play12:36

is still fully fine and it may even set

play12:38

up a better one right because it's

play12:39

becoming tighter on that higher time

play12:40

frame so we'll keep that in mind but

play12:42

right now this high in terms of demand

play12:45

validation makes the most sense for what

play12:46

price is doing maybe it comes up and

play12:48

pauses again okay so it doesn't pause

play12:50

again it just Taps Us in so at this

play12:52

point all we do is we wait for enough

play12:53

strength where it makes sense to move

play12:55

ourselves to break even granted that we

play12:57

could stay in in the move in the event

play13:00

that it wants to actually move so we'll

play13:01

give it a chance to prove some strength

play13:02

so no strength comes in and actually

play13:04

price just fails down so it's a very

play13:05

easy minus one we can delete that and

play13:08

take actually we'll leave it on there so

play13:09

you guys can see it so you can know

play13:11

where it is and we'll go back to the six

play13:12

minute to check out what's going on

play13:14

right and again notice this right when

play13:16

I'm taking the entry I'm aware that if

play13:19

I'm wrong I'm just going to be wrong

play13:20

quickly and there's not much to do right

play13:23

because there's there's not going to be

play13:24

an opportunity to just keep taking entry

play13:26

after entry a lot of Traders take entry

play13:28

after entry after entry after entry

play13:30

somehow and as a result they fail after

play13:32

fail after fail versus take the entry it

play13:35

works or it won't take the entry it

play13:36

works or it won't take the entry it

play13:38

works or it won't take the entry it

play13:39

fails maybe it sets up again and then it

play13:40

works or it won't don't take an entry

play13:43

and then Force entries because a lot of

play13:44

people will do that instead give it a

play13:45

chance to Now set up if it wants to set

play13:47

up it's going to build something cleaner

play13:48

it's going to build something Tighter

play13:49

and it's going to give us a nice entry

play13:51

that's all we have to do okay so price

play13:54

looks like it just comes right down now

play13:55

it's on the bottom side of price so this

play13:57

is where I would basically ignore price

play13:58

until again it starts to make clearer

play14:00

moves away from this and then sets up a

play14:02

trade so right now there's nothing to do

play14:04

um and then it starts making this little

play14:05

move here right within the overall range

play14:07

so you can see this range here almost

play14:09

gets prated it's almost becoming clearer

play14:12

in itself it's moving like together okay

play14:15

so at this moment you're also surfing

play14:18

Rising 10 a little bit so there there is

play14:20

some reason to look at this again I

play14:22

don't like the larger setups I usually

play14:24

wait for them to become clear on the 10

play14:25

so I'll

play14:26

wait okay ignore that guys

play14:29

not too

play14:30

important here we are so now what you're

play14:33

seeing okay is that price is surfing

play14:36

this higher and putting in quite a tight

play14:37

range around here so this is now lining

play14:39

up across a few ranges of stage ones

play14:42

that are that are basically showing you

play14:43

that price is likely again going to make

play14:45

a stage two if it wants to go so I would

play14:47

step down here and take a look at what

play14:49

the lower time frame is telling me right

play14:51

and structurally once again we started

play14:53

coming out of this we came out of it

play14:55

beautifully I apologize for let me

play14:57

actually close this for now there we go

play14:59

we started to create the beautiful

play15:01

structural narrative here

play15:03

now and my whole computer almost shut

play15:06

down there we are and you can see this

play15:08

MB right here and this MB right here so

play15:09

basically the demand validations that

play15:11

rest kind of amongst all these points so

play15:13

what I would do is I'd set up a through

play15:15

this High throw the stop under and look

play15:18

to take it up and see if we can get

play15:19

tapped in so price plays around and then

play15:22

Taps you in right so again same thing

play15:24

the stop loss is based on the ma

play15:26

positions at the time of this setup and

play15:28

again as we set set that up through the

play15:29

beautiful structure Here We Now look for

play15:31

the hopeful strength to to bring us to

play15:34

break even so price plays around

play15:36

strength comes in and we get to move our

play15:38

trade to break even okay phenomenal now

play15:44

we head to the six minute because that's

play15:45

our validation time frame and again we

play15:46

kind of follow the three candle rule we

play15:48

have one two if the third one makes a

play15:50

big candle we can partial a 50% and nope

play15:53

it doesn't do that so instead we just

play15:54

end up taking a break even on this

play15:57

nothing else really it ended up running

play15:58

how much about 3.5 r r but that's okay

play16:00

that's part of the game we take a nice

play16:02

break even and we continue right because

play16:04

now it is making clear moves it's coming

play16:06

out of this larger stage one which is a

play16:07

higher time frame the context time frame

play16:09

the hourly um large price action right

play16:12

which means that now if we can again

play16:13

start to Surf and make something tight

play16:15

there should be a nice entry to take so

play16:17

you can see we continue to serf higher

play16:19

with these Rising 10 and 20 and at the

play16:21

same time this kind of area here becomes

play16:23

right it kind of It kind of puts in this

play16:24

range now this is not clear enough for

play16:26

me it's it's very hard for me to trade

play16:27

this kind of stuff so I'll give it some

play16:28

time it might get tighter and then we

play16:30

can look at it otherwise there's not

play16:31

much to do so you can see you know in

play16:33

this case it might have worked it might

play16:34

have not worked I'm not looking for that

play16:36

I'm looking for things that are in line

play16:38

with the the clean Surfers and the clean

play16:40

stage ones otherwise there's really not

play16:42

much for me to do right money keeps

play16:44

coming in as you can see money keeps

play16:47

surfing this thing higher and puts in

play16:48

this little tight range here so this is

play16:50

one of those moments where it actually

play16:51

would make sense as it's tightening up

play16:53

here to look at that lower I might have

play16:55

just missed the entry but that's okay

play16:57

right so at the moment if we we can get

play16:59

a setup right where price comes down

play17:00

maybe a little bit and then Builds an MB

play17:02

there's a buy stop here or here that may

play17:04

exist otherwise I don't see anything on

play17:06

this and it'll run without us and that's

play17:07

fine so it does put in that little high

play17:09

but it's a little bit too high for me I

play17:10

would skip this and hopefully again this

play17:12

is one of those moments where it either

play17:13

runs without me and that's okay or it

play17:15

fails down and then sets up the actual

play17:17

entry for me okay there's no reason for

play17:19

me to force stuff so okay maybe it does

play17:21

it does do that let's see and then it

play17:24

just fails down so again there's no

play17:25

reason for me to force stuff because if

play17:27

it's not clear I'm not going to trade it

play17:29

there's not a reason for me to take risk

play17:31

on it okay so as price fails down again

play17:34

it puts itself into a context that's not

play17:35

worth trading so all we can do as

play17:38

traders that are looking for a specific

play17:40

directional delivery on what's going on

play17:41

here okay all we can do as Traders is

play17:45

wait for a clear move to come

play17:48

up and we then get a move down so we

play17:51

actually get a move down a nice Surfer

play17:52

on the downside and just now it's

play17:54

surfing downside so all I expect now is

play17:55

that price wants to just you know keep

play17:57

on going lower and there's nothing for

play17:59

me to touch right unless it starts to

play18:00

shape up and it just keeps going lower

play18:03

and again it's probably going to go

play18:04

lower yeah so again you can see it's

play18:06

surfing on the downside moves lower

play18:07

surfing on the downside moves lower

play18:09

surfing on the downside moves lower now

play18:10

again these are areas you could trade

play18:12

but I wouldn't right because I look for

play18:14

I look for alignment between the overall

play18:15

structure the trend the delivery of the

play18:17

market and then I look to get involved

play18:18

in it and just like that when a when a

play18:21

trend um stalls out or fails to exist in

play18:25

a given moment it does not mean that

play18:27

you're sitting there taking endless

play18:28

losses it actually just means that you

play18:31

actually might even make money right

play18:32

some of these end stalling out Trends

play18:34

might make you money before coming down

play18:36

and that's fine but the the reason that

play18:38

happens is because you have really good

play18:39

rules in regards to getting involved

play18:42

when the picking is good right it's

play18:43

literally like waiting for the apples to

play18:45

be ripe on the tree before you pick them

play18:47

right you just wait and then sometimes

play18:49

when you pick one there will be a there

play18:50

will be a warm in it and you're like

play18:51

damn [Β __Β ] I I I've lost the Apple but at

play18:53

the end of the day when you look in the

play18:55

basket you're going to have a ton of red

play18:57

colorful apples that you can now go and

play18:58

sell for a lot of money right because

play19:01

all you're doing is you're constantly

play19:02

picking apples that you know are over

play19:04

time going to make you money and when

play19:07

they do you make a lot of money and when

play19:09

they don't you lose very little and then

play19:11

again if you take into account just the

play19:13

last 3 days until the market failed and

play19:15

went into this shitty back and forth

play19:16

where you couldn't do anything if you

play19:18

really pay attention to what would have

play19:20

happened in the event that you had

play19:21

traded this Market over and over and

play19:23

over again and showed up to do the same

play19:25

thing every day the reality is you ended

play19:28

up going

play19:29

um in 3 days what the 17 plus the 8 plus

play19:33

the management of this trade that we

play19:34

left off with at the end of last video

play19:37

1.84 plus 1.67 and now you have a minus1

play19:41

with the break even so again over the

play19:43

last few days up to the last 3 days

play19:46

notice that the results of every day are

play19:47

not the same whatsoever because that's

play19:49

how trading works but still despite that

play19:51

if you're following proper rules the

play19:53

result of 3 days of doing proper work

play19:56

showing up to execute a proper system of

play19:59

EVC across the time frames that you have

play20:02

personally picked out and following the

play20:03

price action of what you're used to

play20:05

seeing stage one stage 2 is surfing

play20:07

clearly becoming tight going lower

play20:09

looking at the actual supply and demand

play20:11

interaction of the structure as well and

play20:13

then entering through that and then

play20:14

managing your trades you're up around 27

play20:16

RR over those 3 days and this is how you

play20:19

consistently show up to markets that are

play20:21

proving to be one-sided and you actually

play20:23

trade them when they set up and then if

play20:25

we look at the context now you can see

play20:27

the context has gone into [Β __Β ] right

play20:29

this is nothing to do now you are now

play20:31

going to be waiting for a moment like

play20:33

this one like this one like this one

play20:36

like this one until it finally comes out

play20:38

so as it starts coming out there's going

play20:40

to be reasons to step down lower to your

play20:42

validation time frame and then hopefully

play20:43

your entry time frame so you can follow

play20:45

that higher in the event that it occurs

play20:48

most important language that I want you

play20:49

to understand about even this video

play20:51

right now is that in the event that it

play20:52

occurs you need to be able to execute

play20:54

patiently as a Trader the only way you

play20:57

make money in this market is by being

play20:59

patient about the setups remember to

play21:01

yourself that 90% of everybody that

play21:04

trades is trading every single day on

play21:07

every piece of action on the top side

play21:09

and the bottom side on the long side and

play21:10

the short side and as a result they are

play21:12

getting random results and losing do not

play21:14

be part of that crowd and continue to

play21:16

get and continue becoming and getting a

play21:19

lot better

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Related Tags
Trading StrategiesMarket AnalysisPatience in TradingClear SetupsConsistent SuccessRisk ManagementSupply and DemandPrice ActionStage One TradingStage Two Trading