ICT Mentorship Core Content - Month 1 - Fair Valuation

Summary

The video discusses concepts of fair value and fair evaluation from a market maker perspective to understand price action. It covers key ideas like equilibrium as fair value in a trading range, liquidity gaps creating future fair value areas, distributions versus accumulations, conceptualizing discount versus premium areas, and viewing moves from a market efficiency paradigm. The goal is shifting perspective to anticipate institutional order flow, identifying manipulations and areas of value, rather than reacting based on retail assumptions.

Takeaways

• 😀 Fair value is about equilibrium between highs and lows, not what retail traders think is fair
• 😯 Liquidity voids show where price moved quickly with little trading
• 🔎 Current price swing ranges indicate where we are relative to highs/lows
• 📈 Buy at discount/lows, sell at premium/highs for best trade entries
• ⬇️ Down candles before up moves are bullish order blocks signaling support
• ⬆️ Up candles before down moves are bearish order blocks showing resistance
• 😊 Consolidation near equilibrium suggests pending price expansion
• 💡 Breaking recent swing highs signals upside bias; swing lows signal downside bias
• 📉 Deep discounts below equilibrium indicate good areas for buyers/longs to accumulate
• 🔻 Scaling out positions should occur at premium prices/highs to exit fairly

Q & A

What are the two perspectives on fair evaluation discussed in the transcript?

The two perspectives on fair evaluation discussed are: 1) Fair value in regards to equal distance of a high or low, also called equilibrium. 2) Fair value from the perspective of market makers and valuation.

What is a liquidity void and how can you identify it?

A liquidity void is when the market makes a sudden large movement lower or higher with very little wicks or time spent at each price level. It indicates the price was in a hurry to get to another level where it starts trading more efficiently back and forth.

What is the difference between equilibrium and fair value?

Equilibrium refers to the equal distance price point between a defined high and low range. Fair value refers to the perspective of market makers on efficient price levels to accumulate or distribute positions.

Where should buy stops be placed to take advantage of a move upwards?

Buy stops should be placed above recent swing highs, as that is where resting buy orders will be that can push price higher when triggered.

What indicates the strongest move out of a consolidation period?

The hardest move out of consolidation on higher timeframe charts indicates the likely directional bias for the next price swing.

Where is an optimal area for market makers to sell or exit long positions?

An optimal area for market makers to sell or exit long positions is at a premium, after having accumulated positions at a discount.

What is the difference between how market makers and retail traders view price levels?

Market makers view price levels in terms of efficient areas to accumulate or distribute positions. Retail traders tend to chase moves and buy at emotionally-driven premium levels.

How can you anticipate where price is likely heading next?

By understanding key levels like equilibrium, voids, gaps, etc. and identifying where market makers are likely accumulating or distributing, you can anticipate the next probable swing.

Why should you define price action in terms of current trading ranges?

Defining current trading ranges allows you to identify key levels like equity, premium areas, discounted areas, and determine the market maker perspective and bias.

What is the basis for calling projected price targets?

Projected price targets should be based on identifying key fair value levels and gaps where market makers will look to accumulate or distribute positions.

Outlines

00:00

📈 Defining fair value for market makers

This paragraph discusses the concept of fair value from the perspective of market makers. It covers how fair value is established after liquidity voids when price moves quickly, leaving gaps that will likely fill. It also discusses fair value in terms of equal distance between highs and lows.

05:02

📉 Filling liquidity gaps

This paragraph elaborates on liquidity gaps and how price is likely to fill gaps where only downside price action occurred. It explains why this is considered fair value for market makers.

10:04

🔼 Identifying discount areas

This paragraph analyzes being in the lower part of a range as an area of discount relative to a recent high and low. It discusses how this, combined with being below equilibrium, creates fair value for market makers to build long positions.

15:05

📈 Selling accumulated longs

This paragraph covers how market makers accumulate long positions at discounts and then sell into areas considered fair value when price moves back up. It analyzes price hitting specified areas that represent premiums relative to where positions were accumulated.

20:06

🔻 Contrarian perspective for entries

This paragraph emphasizes viewing the market from the perspective of market makers rather than retail traders. It analyzes how combining overall range, equilibrium, and order blocks provides a framework for identifying long and short entries.

25:08

💹 Understanding institutional flows

This closing paragraph summarizes key concepts covered, including liquidity voids and gaps, distribution vs. accumulation, and the importance of a contrarian perspective focused on institutional flows and market maker positioning.

30:10

📝 Study examples to master concepts

This final paragraph stresses studying multiple examples to fully grasp the concepts and phenomena discussed. It emphasizes these repeat themselves regularly, allowing traders to anticipate forthcoming moves once concepts are learned.

Keywords

💡fair value

Fair value refers to price levels where market makers view it as equitable to buy or sell. It is fair for them to accumulate positions at discounted prices and exit at premium prices. The video explains fair value from the market maker's perspective at various points.

💡equilibrium

Equilibrium price is the midpoint of a defined high-low range. When price consolidates around the equilibrium level, it indicates the market maker is building positions and fair value exists. The video analyzes equilibrium zones.

💡premium

Premium refers to the upper portion (top third) of a current trading range. It is an area where the market maker can fairly liquidate long positions. Retail traders also buy at a perceived premium.

💡discount

Discount refers to the lower portion (bottom third) of a trading range. It is an area where the market maker can fairly accumulate long positions at undervalued prices.

💡liquidity void

A liquidity void is created when price moves very quickly through an area, spending minimal time trading there. These zones often fill in later as fair value areas.

💡order block

An order block is a single candle preceding a directional move. A down candle before upside is bullish order block where buying support resides.

💡consolidation

When price trades sideways in a range, it is consolidating and building equilibrium/fair value. Breakouts from consolidation indicate likely future directional moves.

💡distribution

Distribution refers to market makers scaling out or liquidating previously accumulated long positions, often around fair value premium areas.

💡accumulation

Accumulation refers to market makers building or establishing new long positions around fair value discounted areas.

💡market structure

Market structure refers to the sequence of swing highs and lows that show which levels have been tested or broken recently.

Highlights

Fair evaluation comes in the form of two perspectives - fair value in regards to equal distance of a high or low, and fair value for market makers.

Areas where the market moves quickly away, leaving little trading activity, are called liquidity voids. These create fair value gaps.

At equilibrium after a liquidity void, price could go either way. Look at recent market structure breaks to determine the likely direction.

When price returns to fair value after a drop, it signals an area where buyers are likely to return.

Market makers view fair value differently than retail traders. It's where they can efficiently accumulate or distribute positions.

Use range analysis to determine if price is at a premium, discount or fair value for market makers.

After breaking a swing high, returning to equilibrium signals high probability of an upside move.

Voids create fair value gaps to fill. Markets want to return to trade in these skipped areas.

Scaling out positions after accumulation happens in areas of fair value.

Hard moves out of consolidation signal directional bias.

Use perspective of a market maker - where to efficiently accumulate longs or shorts.

Discount areas let market makers build new positions. Premium areas let them liquidate.

Markets move between fair value, discount and premium from the maker perspective.

Learn to anticipate breakouts by identifying where price consolidation will expand.

Exit longs at fair value after marking accumulation entries at a discount.

Transcripts

welcome back folks this is ict with a

sixth installment of the eight teachings

of september 2016 ict mentorship

we'll be specifically dealing with fair

evaluation in this teaching

and fair evaluation comes in the form of

two

perspectives

fair value in regards to equal distance

of a high or low or what we would call

equilibrium

or fair value for the perspective on

valuation in regards to

market makers

and combined both of them to give you

the perspective that you have to have

when you look at price

this is actually a chart that we mapped

out

in advance talking about a lot of these

very specific things here

in the week

of this

tutorials production

uh september 24 2016.

we called australian dollar higher based

on the things that i'm going to cover

here i was aiming for

76.65 as a weekly objective

and you can clearly see here

the market did in fact hit that

what led to these ideas behind me giving

these upside objectives

from an area down here

well

first you have to understand there's a

lot of

overlap from what we just covered in the

previous two sessions that being

equilibrium to discount and equilibrium

to premium

obviously if you're a buyer if you want

to be buying you want to be looking at a

discount market that means trading in a

lower third

of the current trading range that the

market

presently are currently created in its

most recent impulse lag or impulse price

swing

the

cells are best taken in the most current

trading range or

impulse price swing

upper third portion of that range

okay that's a premium market we're

selling at a premium

when the market returns back to an area

of fair value

that is a fair value

for the market maker to either sell or

buy

in this case we're going to cover again

both

concepts in regards to equilibrium and

the fair valuation for market maker

participation in price action

this

swing here is making this high here the

market broke down

and it quickly ran away

and this is what we call a liquidity

void

where the market makes a a sudden

movement lower and large ranges

very little wicks very quick movement

that is avoid that means the price spent

very little time trading at these price

levels and it was in a hurry to get down

to this area here where it started

trading more efficiently back and forth

on both sides of the candle

and ultimately having a retracement

this range

in here

as soon as we see

pockets of price action where

there's sud movement lower

just like we saw a quick sub movement

lower here

this up candle

at the bottom of that that's where we

start watching and measuring

fair value

and the down candle here

very next candle is up candle so we

start looking at the range between

this up candle and this up candle

between those two up candles there's

what's referred to as a fair value gap

okay a fair value gap

the reason why this is important is

because there was no up candle or up

movement between the break of that low

and the high of this candle here

it was all just straight down movement

so nothing filled in this area once

price broke this low it left it

open basically it's like a gap

the same thing occurs here when this up

candle

is broken here on this candle once it

started breaking lower there's a gap

between this candle's low

in this candle

body or wick okay so i defined it by the

body i like to use those

the

range in which it causes

this

void

okay when price is below that

this is going to be fair value

okay the market's going to want to come

back to that because there was very

little trading in there just like we

said there was a gap because there was

no movement up in this area here between

this up candle's low and this up candle

is high this area in price action only

saw down movement

didn't have any up candle movement only

down movement

all this down here is down candle price

action only big ranges so this is a

liquidity void the fact that it creates

it in big ranges and speed that's what

defines it

now because price moves so quickly in

these areas fair value

is established because there's going to

be a willingness to want to see price

trade back up into these levels and here

and close in all this in other words

there's going to be up movement later on

it won't happen immediately always

sometimes it takes a little bit of time

sometimes depending upon the time frame

you're looking at it may take a great

deal of time but when price starts to

move higher we know that we'll try to

trade into this range here and fill that

in at a later time

that is where market makers view fair

value now equilibrium

or

fair value in regards to equidistant uh

range between high and low of a defined

high and low range

that being if we have this low here

and this high here if we define that

with fib

okay

we have equilibrium right here or 50

percent of that range from this high

this high

to this low

there's equilibrium

okay look how the bodies that again will

stay above that but we have a lot of

work around that equilibrium price point

that in it that in itself is significant

because it's showing you that the market

ran through a short-term high

once it ran through it

it came back down

right back to the middle of the range or

fair value which is equilibrium

at this moment price could stay in this

consolidation for a period of time of

any length we don't know how long price

is going to stay in a consolidation

but at equilibrium

you need to refer to where the most

recent price swing took place in other

words if we're at equilibrium here

or at fair value the market can go

either way at this price level the

easiest way to determine where its most

probable direction is is where did

market structure

break most recently did it break a swing

high or did it break a swing low most

recently

well there's no swing low in here of any

significance but there is a swing high

up here

that it broke through here so when we

made this low price ran through it

clearing out these highs right on this

up candle

price come back down into equilibrium do

we define the range from here to here as

you're looking at price you always want

to get a feel for where you're at in

regards to the most current trading

range

also notice

that we are in

the lower portion of the range defined

by this high

in this low

so we're in a real low area where it

would be deemed

over

sold

so we have a

range concept blending

with

the fact that we're moving back in the

middle of a smaller consolidated trading

range

with a market structure break of recent

high in here broke that high and it came

back to equilibrium so the highest

probability in terms of direction is

going to be

going short or going long well obviously

it's going to be going long but the

mechanics behind it was that the fact

that we broke this swing high

we have this void in here

okay we had weakness in the dollar which

we're not going to talk so much about

correlation between dollar based uh

analysis but we're only specifically

dealing with price action alone here but

what led to this bullish move in the

ulti dollar this week

was the fact that we moved back into a

fair value or equilibrium

so that way

it's fair value for the market makers to

build in long

positions or build a net long book

that means they're building accumulating

long positions

the down candle right before this move

up through a short-term high that is a

bullish order block so price comes down

into that hits it at the same time it's

hitting at equilibrium

and it's deemed fair value it's fair

value because the market traded back

down into an area where it would be

bought again and where it should be

expected to see buying pressure come in

we don't want to buy it up here because

we've already broke a swing high what

are we doing up there we would be we

would be buying at a premium

that's not what you want to do so you're

going to blend a couple things when

you're looking for high probability

setups to get fair valuation

going to be looking at the current range

from high

to low in this area right here we're in

the lower end of that range

so we have a lot more upside to build in

a premium like we just discussed in the

previous tutorial

okay market will go to a premium okay

the market's buying at a discount

okay

and it's at equilibrium it's at fair

evaluation because we're in the low end

of the range from this high to this low

and we have all of this open price

action right in here so the markets want

to we're going to want to come up here

and close that in it doesn't have to

come all the way back up to this

candle's low which is a bearish order

block this up can write for the down

move

all this is needed

to give us a directional bias

we have a swing high in here where we

know what's going to be resting above

that

buy stops

so we know that there is a strong

likelihood that because we're in the low

end of the total range which is this low

to this high so this is the parent price

point this high to this low we created a

short-term load that was higher we broke

through a swing high came back down into

equal distance of the high

to the low

that is equilibrium we are now at fair

valuation for what

for longs so market makers can build a

net long book at this price level now if

they're going to do that they're going

to look for fair value

above the marketplace where they can do

what

sell their positions at a fair value for

them

up here if traders are buying this

chasing price are they buying at a fair

value

no they're buying at a premium remember

that we just discussed in regards to

equal equilibrium to

premium

the range from this high

to this low

we're above 50 level and here we're in

that upper portion of the optimal trade

entry or 62 to 79 cent tracing level

i'll show you what that looks like

the low

to the high

79 percent adjacent level 70.5

62 tracing level so the mark goes right

up into

79 retracement so we're in premium here

we're we're below

equilibrium here

so we're at a discount down here

relative to the range

down here we're at

discount okay in terms of looking at the

low

to high

this is where the premiums built in

if we reverse it

and look at the range in opposite

terms

defining it

from low to high

we're below the 79 tracement level so

we're really at a deep discount

really really deep discount because

we're below equilibrium relative to the

range high

and the low

we're even below the 79 level here

so in terms of really being suppressed

in terms of the total range

high to low

we are a deep discount in the middle of

a current small little trading range

from this high to this low so we're at

equal distance

price measurement of

high

middle

low

and into total end or lower one-third of

the range of the parent price swing that

we see here

right in here okay

even if you didn't see this high to low

as the parent price wing

this price swing

high to low still gives you the same

context just in a slow a smaller scale

so you have high to low we're in a lower

one-third here

and we're in deep discount

here's equal distance for equilibrium

we're below it so we're a discount

so fair evaluation for the market makers

to build a book long would be so many

overlapping factors there

they could be building

long positions or accumulating long

positions here

looking for what liquidity above the

marketplace that means where above these

highs that initially

sold off of

then you have the buy stops about here

so the market runs through that takes

those stops

runs through this short-term high here

and then what does it do

it goes into consolidation

now if it's a turtle soup and it wants

to go lower after blowing out buy stops

it should go lower quickly it doesn't do

that it's staying in a sideways

consolidation in fact during this week i

actually gave live sessions explaining

how this market was going pointing to

higher prices

it went back into consolidation which

means it's going back into

what

it's

building

equilibrium

okay so equilibrium is building again in

that small little range

so you define the high

and the low

right there

and look how much price taxes spend

around the middle point at equilibrium

price point okay so it's hanging around

fair

value okay one spike move lower

doesn't see price go lower any aim it's

any significant doesn't break the range

and it expands to the upside

once it expands the upside

it starts filling in all of this

again this is another area of fair value

the market's fair

for those long positions

for the market maker that have already

accumulated longs on it's

this is a good area in this shaded area

i'm going to extend this out in time

over here

all of this is a good place for them to

sell

the lungs that they started accumulating

down here look how much time they whip

back and forth in that range all these

wicks

okay they're selling they're selling

they're selling all the positions

they've accumulated here accumulated

here and down here on the initial run

down into the support

once this range is closed in the next

area of concern is above this short term

high

so our void filled in right here it's

filled in so this is no longer of area

of interest no no more now we still look

for higher prices why would we still

look for higher prices because they went

long here

okay

so if they're gonna look to sell their

position where would they look to sell

their positions at discount prices are

premium

premium

but the premium price that speculators

would trade at by buying and chasing

price

it's a premium to

price chasers

people that feed off the desire of being

in a price to move it's already been

moving higher

it's fair value to the market maker to

liquidate their positions at

this small little pocket between this

lows

this up candle is low and this up candle

is high so we can now create a new

specific area of fair value

for the market maker to liquidate their

long positions in here right in here

to draw that out in time

that's what you see here price coming

right into the bottom of that candle

hits it perfectly

to the pit

bodies of the candle are still deep

inside the shaded area for fair

evaluation what makes it fair is because

they bought it at a deep discount

and they're liquidating at a premium

it's fair for them to accumulate here

and it's fair for them to liquidate

see market makers have to deal in terms

of valuation for their longs and their

shorts and they have to do that same

evaluation for their exits on both sides

of the marketplace

so when we see inefficiency in price

like we see here with these candles just

only going down no up movement

only going down here not moving in until

later on

all of this area they're scaling out

their positions that they accumulate

down here here and here

when price moves

in defined trading ranges

there's going to be

equilibrium

equilibrium

is in itself fair value that means the

market makers are holding it in a

consolidation when that consolidation

gives way

the strongest move out of that

consolidation on alarm on a hard time

frame chart will give you a great deal

of prognostication for directional bias

so what i mean by that is if we look at

price

and we take a look at it like this

we can look at price like

from this high

down to this low

to have a range defined there okay

the markets in this range here

consolidates it goes right back to

equilibrium hangs around equilibrium

dips down below the equilibrium so even

if we're monitoring this range from this

high to this low we're below the

equilibrium price point so are we at a

premium right here or are we at a

discount

we're at a discount

traders on a retail level they're going

to see this as a selling point they're

going to want to get short

because they're going to see this high

to this low coming up to 62 percent

retracement level like remember i said

in the last two sessions it's not enough

let's look simply looking at fibonacci

you can get tripped up in fibonacci if

you don't understand what price is

actually telling you so getting short

here is not what you want to do even

though you've seen price movement going

lower it's only coming down to an area

of fair value for the market makers to

accumulate longs

in an area of discount

so you're having an overlap of three

things you're looking at total range

from this high

to this low or this high to this low

we're in the lower portion or one third

of the range so we're in high

probability for a discount market to be

in in effect

you're also below the equal uh

price point or equilibrium between the

low to this high so

it's consolidating near that but it now

it went below it again

so we are in an area where the market

makers can buy especially if you combine

that with areas of institutional

overflow so if you're looking to buy

what would you be looking for an area to

run out below the stops in other words

cell stops below an old low we don't see

so much of that happening here it

doesn't need to do that it's only

returning down to this down candle which

is a bullish order block a down candle

before the market moves higher that's

where market support really relies

um we're not really resides in

okay

up candles before the market drops down

that up candle is exactly where

resistance is an institutional basis so

that's where selling occurs

so when we see price action like this we

can define things in terms of fair value

in relationship to how market makers

going to perceive price

the way they value

price in terms of the current

range that it's trading in the same way

the algo delivers price where are we at

in proximity to the current total range

we have a nice impulsive price swing

high

to low here

we are in the lower portion of that

range here

we have built-ins buy stops above this

high above this high here above this

high here and we have value uh

evaluation gap okay a fair value gap

market's going to want to come back up

there because they spent very little

time in this area it was all down

movement all down movement

no no buying was actually occurring in

here

no buying was occurring in here it was

all on the sell side one way flows so

the market ran up into just to close in

where only selling took place and no

real buyers

so now when price comes back up to that

level

and they shoot it up there like that

that's going to make a run on stops

above the swing high

and we're going to close in the range

between this up candle and this up

candle here which is a fair value gap

so when we're looking at price action

it's a couple things you need to keep in

consideration

the total range you're trading in

the equilibrium price point relative to

the most recent trading range high and

low and we defined several of them here

we did this high

to this low

with this high and this low and this

high in this low

so we have multiple things lining up

with the fact that for fair value sake

the market has a deep discount here

and it's most likely going to trade

higher and we have reference points that

we can look for where the market maker

should aim but ultimately this is the

fair value gap that they wanted to get

back up into and the reason why the

basis was of me calling 76.65 for the

week was i want to get just below where

i ultimately think it's going to go and

the level at which

if we look at the high

uh the low comes in at 76.75 and i want

to be about 10 pips or so before the

actual level i think is actually going

to be hit i want to be getting out just

a little bit before that and

one more

instance of the things i've talked about

before it happens in the charts and why

those things actually materialized in

price action

so price returns back to fair value fair

value in the perspective of the market

maker not fair value in the scope of

buying it this is at a premium

okay remember that market efficiency

paradigm i started you all with

how you perceive the marketplace is not

how retail is going to seek price

they're going to see this as

the market's going to probably keep

going up because it's been going up well

this is an area of distribution

you want to be thinking accumulation

down here re-accumulation

distribution

scaling out all through these areas in

here because you don't know if it's only

going to come up in a little bit of that

that range over here in the shaded

liquidity void you don't know if it's

going to fill in that and then go lower

so when you buy things down in here a

deep discount you have to scale some of

it out

but the beginning basis points of

valuation in terms of the market makers

you have to look at the total range

look at where the market has moved away

from quickly in those areas of liquidity

voids and liquidity uh

pools

above old highs

here and here and here

there's that is going to be fair value

for the market maker to distribute long

positions if we were looking at a cell

position or short position we would be

looking for areas in which where the

market in the past has moved up a great

deal with speed

and we would be looking for lows where

stops would be building up below it or

liquidity pools in the in the form of

cell stops

we would look for

the

lower end of the most recent range

for valuation so that way you would know

by looking at things with that market

efficiency paradigm you're not looking

at things like retail you're looking at

in the scope of okay i am the bank i'm

i'm making a book here

where's the most efficient price levels

for me to unload my longs or unload my

short positions

we've already mentioned it so far in

the

teachings just for september

the easiest way to understand

institutional overflow from the

beginning starting point of it all is

understanding that markets move from

buy stops and sell stops and sell stops

to buy stops and it moves from fair

value

to discount to discount

to premium to premium to fair value it

moves back and forth between these three

reference points are we at a discount

are we at a premium or we have fair

value

all those things combined together they

give you the clues as to what we're

seeing in terms of the market makers

action are they accumulating

are they manipulating are they

distributing

all these factors we're going to be

bringing those closely knit ideas

into a more

easily understood premise when we look

at price we'll be able to see these

things unfolding in in advance and

you'll be able to see what should take

place and it's very encouraging to see

your study and these individual

components start to flesh out and have a

greater understanding about price action

so

in closing

fair value

is not fair value in the realm of retail

it's in the realm of fair value of

liquidating or accumulating

from the market maker's perspective

fair value

and discount is fair value for buys for

market maker buying

fair value in premium is fair value for

market makers selling

either establishing new shorts or

exiting on scaling out long positions

discount

the low equilibrium

in the lower end of the range

that's a discount market that's an area

at which the market makers can buy or

look to cover their short positions

do not look at the marketplace in this

retail mindset that we're all trained to

do we we have the same

well we drink from

it's the same regurgitated stuff but

it's wrong

to understand how these markets are are

delivered to us in the in the form of

price action when this price is

delivered to us it's not random it's

very specific of where it wants to go

why it wants to get there that's that's

what we're giving you in this

mentorship it's very specific detailed

perspectives

that are generic they repeat themselves

over and over again and because they

repeat themselves because they're the

same

phenomenon that take place almost on a

daily basis

there's nothing for you to fear

if you mess it up and you don't get to

trade to pan out right or if you miss a

move

do not worry about it wait for the

market to give you indications of where

fair evaluation is then you'll be able

to anticipate the market makers next

scale in or scale out

it may be the liquidation of a long

position that's been underway

that may give you uh prognostication for

a future move it may be the the

inception of a new price leg while

you're waiting for this area to be

retreated to

we'll build on this idea for now but i

want you to think in terms of where are

we at relative to the most current range

are we in the lower end

are we near the low of that current

range and are we working around an equal

distance equilibrium price point between

a recent high and low by defining price

in current trading ranges like this

you'll be able to see where the market

makers will expand the price

so when there's expansion

you know

prior to that expansion there's been

what is consolidation so as you study

more examples of when markets are in

consolidation

you'll be able to

forecast the next movement out of the

consolidation we don't we don't play the

breakout game we anticipate the breakout

we know that the indications through

price action will give us clues as to

what side of the marketplace is going to

break out

and when we get into commodities we'll

have actually a great advantage of that

without using open interest but for 4x

you don't need it so much you can still

see it in institutional order flow

so i'm going to close this teaching here

with the promise that we're going to

come back at the end

of this

series of eight sessions

in your notes that will accompany your

month's summary you'll have great detail

of uh

specific notes and

things that you need to be aware of as

it relates to fair evaluation uh

liquidity pools voids uh liquidity gaps

all those things we'll be building more

foundation on that and in month two

we'll actually go in to how to find

these things not just giving you one

chart's perspective and and

basically uh you know trying to teach

the whole thing in one one chart it

can't be done so you need examples of it

you need to see it uh called for in

advance like we did this week not so

much

why into this great detail but i gave

you the areas of which price should

reach for

we talked about the area here we talked

about this void here i mean not

obviously we don't even need to talk

about the highs because we understand

that that's where the buy stocks are

going to reside so

think in terms of fair value for the

market maker if they're going to go

higher

where is it a fair value for them to

exit their loans

okay it's a fair value for them to do so

they do not want to liquidate their

loans at a discount or when retracements

going lower you look for expansions on

the upside when they expand when price

expands they should be reaching into an

area fair value for price to be

liquidating smart money longs that's the

only reason our markets go up that's the

only reason why price is allowed to be

delivered at higher prices because the

market makers the banks have books

on their books they are net long

and it's in their interest in the price

higher

it doesn't matter how many of us buy

the price is going to be set by the bank

and they're going to do things to line

their own pockets and not yours

so it takes a perspective

shift and it gets back to that market

efficiency paradigm i started you with

in this mentorship that you have to view

things from the smart money's

perspective not what retail

should be doing or what retail is doing

if you do that you're gonna you're gonna

miss the actual clarity that comes

through looking at price action

studying it through a contrarian

perspective

saying okay this is what the retail

minds should be

thinking now

and by contrasting that with what you

see in the charts for fair value

liquidity gaps liquidity voids liquidity

pools all these things the market's

going to seek that liquidity and run

against

the less informed crowds opinion

so with that i'm going to close and wish

you good luck and good trading