Video 9

Summary

The 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

00:00

📈 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.

05:01

🔍 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.

10:06

🚫 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.

15:08

🔄 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.

20:08

📊 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.

25:11

💡 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.

Keywords

💡Order Flow

Order flow refers to the real-time flow of buy and sell orders in the market. In the video, it's emphasized as a crucial concept for understanding market movements and predicting future price actions. The speaker discusses following one-minute order flow to identify shifts to higher time frame lows, illustrating the concept's importance in analyzing market structure and making trading decisions. For example, a change in order flow signals a potential shift in market direction, which is critical for traders to recognize early.

💡High and Low

Highs and lows represent the peak and trough prices reached by a financial instrument over a specific period. The video script extensively discusses analyzing these points to understand market trends and make predictions. By examining highs and lows, traders can identify areas of support and resistance, gauge market sentiment, and determine potential entry and exit points. The speaker's analysis of highs and lows going down, violating previous lows, and establishing new highs or lows is central to predicting market movements.

💡Break of Structure

A break of structure in trading refers to a scenario where the market moves beyond a significant high or low, indicating a potential change in market trend. This concept is vital in the video, as it's used to explain how recognizing these breaks can signal the start of a new market direction. The speaker details observing body closes below significant lows as breaks of structure, which suggests shifts in market dynamics and opportunities for traders to adjust their strategies.

💡Bullish Flip

A bullish flip is mentioned in the context of market movements where a previously bearish trend starts showing signs of reversing into a bullish trend. This is indicated by the market putting in a low and then a high that surpasses a previous significant high, suggesting a change to a bullish market structure. The concept is used in the video to highlight specific market conditions where traders might look for opportunities to enter the market expecting upward price movement.

💡Mitigating an Area

Mitigating an area refers to the market retesting a previously established price zone, often after a significant market move. This concept, discussed in the video, highlights how markets often return to test these areas, providing traders with potential opportunities to enter or exit trades. The speaker discusses how the market mitigates areas multiple times, which can be indicative of market strength or weakness, guiding trading decisions.

💡Time Frames

Time frames refer to the duration a chart represents, such as one minute, fifteen minutes, four hours, etc. The video script emphasizes the importance of analyzing multiple time frames to understand market context and make more informed trading decisions. By comparing different time frames, traders can identify more significant trends and better understand market dynamics, as illustrated when the speaker analyzes highs and lows across various time frames to predict market movements.

💡Structural Low/High

Structural lows and highs are significant points in the market that represent critical levels of support and resistance. In the video, the speaker discusses how trading below a structural low or above a structural high can indicate a shift in market sentiment and potential trend reversal. These points are pivotal for traders to understand market structure and identify potential turning points in price movements.

💡Order Block

An order block is a concept in trading that refers to a significant accumulation of buy or sell orders at a particular price level, suggesting areas where large market players have interests. Although not explicitly mentioned in the script, understanding this concept is crucial for interpreting the speaker's analysis of market movements and areas of potential reversal or continuation. It's related to how traders might anticipate market reactions around key price levels.

💡Daily High/Low

Daily highs and lows refer to the maximum and minimum price levels that a security reaches within a single trading day. The video touches on the importance of these levels in setting targets and understanding market sentiment. The speaker discusses how taking out daily lows can signal significant market events, influencing strategies for trading reversals or continuations based on these critical price points.

💡Volume

Volume in trading refers to the number of shares or contracts traded in a security or market during a given period. The speaker notes the importance of volume, especially in different trading sessions like London or Asia, indicating the strength behind price movements. High volume during a break of structure or trend reversal can confirm the market's commitment to the new direction, serving as a critical factor in trade decision-making.

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