NQ Consolidation Day Algorithmic Rules In Action transcript

Welcome back, friends. How are you? Hope you're doing well. Um, it's fighting off migraines still, so in case you're wondering. I know we don't want to hear about it. But daily chart here. I'm going to go through this as quickly and succinctly as I possibly can. And then the majority of the video will be the trade execution at real time as it happened. So, you can watch and study your tape reading with it and what I was doing and all that business.

Okay. You can also weigh out the logic I was using because again most of the things I'm trading with that notepad. If you don't have a notepad, you're not equipped. So we have this low right here. Okay, it happens to be August 6th, 2026. And I mention I called this out uh the other day on on X and I said that there was some relative equal lows on intraday between August 6th and 7th and it came down and hit that rather handsomely.

Um on a daily chart obviously from where we were up here and it traded lower. Uh we made our way down into that low. All right. So just be mindful that that low again comes in at 29,241.25. 25. Okay. So, just remember this is what I'm referring to when we go down to the one minute chart. Everything is hinging on this low being traded to at a very specific time in a specific manner. All right. So, let's go down into the one minute time frame.

All righty. So, we're in the one minute time frame for NASDAQ. Again, this is September delivery contract 2026. And I taught you, it's very important for me to like review this portion because if you don't take notes, if you don't keep tabs on the things I'm giving in terms of rules, um certain caveats, certain uh quirky little things that mean a whole lot in terms of why and why not and what's important, when is it not important, when to dismiss something and discount something over something else. um those are things that are found in the long dry portions of my lectures and that's why the majority of individuals on the internet do not do well with me because they don't want to listen to that stuff.

They they yeah they value their time and I I can appreciate that. But you can't learn what it is I'm doing in its entirety if you don't apply the entirety of the the the logic. Right? So, if you look at the time I told you we were focusing on for I don't know several months now, uh 7:00 a.m. Eastern time, New York local time to 9:00 a.m. Eastern time, New York local time. And if you're ever in doubt, make sure your charts are shown with this time frame.

Okay? So, that time zone is active. What we do is we get a measurement. And I'll move this line over. It's deliminating the at 7:00 right there. So that's the highest high between that and this vertical line. Okay. So this candlestick and this candlestick right there. Okay. So because we have those two specific highs and lows, low being here, the lowest between those two vertical lines and the highest up here. Question is this.

When I taught the importance of the pre-market session and again scour through all of your textbooks and all of your mentorships that you all heard about before me, right? uh they're never going to talk about this, but the rule is the algorithm will absolutely go into a consolidation during the AM session if 7 to 9 is trending. Would you call that trending? I know it's a hard stretch to, you know, work it out, but that looks like a trend, doesn't it?

So if it's trending, stop being so condescending, jerk, whatever, pal. So if we're looking at the trend between those two hours, then we are reasonable to assume, well, it is reasonable to assume rather that the A.M. session is 9:30 to 11:30. It will likely go sideways. It will likely frustrate you. It will likely chop you up. You'll see folks that don't have all that much experience complain and get frustrated. If they're streaming, they'll probably be very animated and complain about why the market is doing this to them.

And I taught you all how to avoid that. I really did. And the rules are simple. If you're going to be trading morning session, you remove 75% of the adversity if you understand this simple principle. See how simple that is? If it's trending between those two hours, consolidation is going to occur in the morning session. Now, it jumps higher in probability that you're going to have a hard market condition if we trade to a key level during that time between 7:00 and 9:00.

And just so happens, look at this right here. Remember, it was 29,241 and a quarter. This low is 2040 even. I'm sorry. 29,240 even. So, it went to that low and modestly below it. Yes. But it still got there. It still got there. So, it met an objective on the daily chart while trending and it stopped right there on the lowest candle. No other candle went lower than that. Now, we close out the pre-market session between 7:00 and 9:00 in the morning, Eastern time.

Market goes into its business and it rallies up. And look what it's doing. This line right here, this is equilibrium of the dealing range between 7:00 and 9:00. That low and that high. So by marking that we know then the market is absolutely in a premium when we trade above this level. Okay. Wonderful. The market also trades higher and gets to the 625 octant. Notice that. But look what the bodies are doing. And more specifically what they're not doing.

They're not touching that octen while we're above in a premium market. clever, isn't it? I I I recall an old man talking about that. When this occurs, it indicates that visual representation inside of candlesticks that the algorithm can't it can't hide it. It's simply going to be visible in in the price delivery. Okay? And I'm going to continue to do this and I've been doing it for decades proving it's there. But you know, some of you just aren't going to accept it, I'm sure.

So, we had this rally up. It got to an octant. The bodies can't even lay down or breach that octant at 625 right here. And again, that's the measurement based on 7:00 and 9:00 in the morning's dealing range. Same logic, folks. Same logic. And look what happens. Market breaks down aggressively right here. So, what is it doing? It's offered a premium. And even though the market's likely to consolidate, we wait for traps.

We wait for traps. Remember that that run down to 29,241 and a quarter, which was August 6th low as indicated here. it was so shallow, it's likely to draw to that again. It's a reasonable target because it may have unfinished business wanting to go a little bit deeper than that. So, wait for the market to lay down traps in that regard. What does that look like? Well, we have an inefficiency up here. So, it's a sell side bounce by side efficiency or cibby and then the market trades down and watch the opening price here.

Okay, we opened, we rallied up, went to a premium, gave indication that order flow is absolutely not continuing higher yet. It's not, it's not yet. And we broke lower and we started consolidating around that opening price. It's real important to keep that on your chart or at least know what it is. That way, when you're watching price action, you're constantly getting a reference point to what it's doing and how it's behaving around that level.

And if it's unfinished business down here, that means we have a soft bias looking for lower prices. So we wait for all this consolidation until we get to a macro. The macro that leads us right into the lunch macro is 1050 to 1110. So if we look at uh 10:50 to 11:10 right there. So now we have a time where the market should go up into a premium again, knock out traders that are short because if we're drawing down to get unfinished business down here, then I want to see a market that takes out highs relative equal high here and here.

It bumps into it there. trades softer back down to the 930 opening price again. then rallies right from there creates a positive balance all side efficiency trades through the octant again but now look look what the bodies are doing it's supporting that PD array and it's not overcoming that same business over here it just ran up into the macro got people chasing on a breakout they saw this moving around thinking okay finally it's going go out and I'm going to I'm going to buy it and chase it longer.

And where they going to put their stop loss at? Right below that low. Right below that low. And when price broke out of that, well, we went right back up into it again and I added to that and it broke lower. We got into this B sellside efficiency. So, if I'm aiming here and I'm aiming for middle of this low to that low, that's this level right here, my event horizon. Pretty neat, isn't it? So, these are all not new pro uh products of mine.

It's something I've been teaching for a while now publicly. Uh but if you trained with me, you were learning these things and that's you that's the facts. But here is a wick. Once we traded up into this gap here, we threw a a wick up there, but left the bodies in the lower half. That's exactly what you want to see with real order flow, algorithmic order flow. You can see it in the candlesticks. Okay, market goes up to it here.

Again, look at the bodies. What is the body doing? This is how you know it's coded and it's scripted, folks. You're not going to convince anybody if they start studying the logic I'm giving you and I've given it out to the public. The cat's out of the bag. It's too late now. They can't do anything about it. They can't call it back. If this is going to be bearish based on this inefficiency, the lower half is where it's going to be supported.

So, you're going to see premium sensitivity, which is the lower half of a PD array. When we're bullish, the upper half is discount sensitivity. So, there's a role there. Okay. The wicks are allowed to do the damage, but the body's just saying absolutely not. Can't go up here. You're not allowed. Price goes lower, comes back up, hits the inversion fair value gap again, and then we accelerate down through. And once we get through this wick, I like to teach you to focus on those wicks and the consequent encroachment.

So, it gives you a benchmark to weigh whether or not there's some strength or weakness in a price run, a retracement, something to that effect. And we got through it here, but it only went right back up just falling short of what the 93 opening price. Then it went lower, traded to this low a second time down into event horizon. And it just so happens that is the low candle. And then we monkeyied around back up inside the levels that's shown here.

And this is where we're at. Okay. So, um I I think that it would be reasonable to see them wash out the August 6th low more convincingly. Uh but today's just not a day that you want to be pushing it. You just simply don't want to do it. Now, let's go over here and add the lipstick that you want to see. There's the executions right there at consequent encroachment right there. Look at that. Look at that. That old man gets so lucky right here.

Look right here. Look at that. Good gracious. And then I added to it again. Right underneath that. Right there. You see it right there? Add it to it again. Why? Because this is the upper octant of this inefficiency. Hammers it. And then right after my entry, see you Elvis has left the building. And then we go into our inversion fair. Isn't it interesting in the execution again? You saw an X. I sped it up real quick so that way it's easy and [clears throat] time friendly.

Uh you're going to watch it at a snail pace crawl as it happened after I get done jawbone here in a second. No other extra PDA rays were drawn on the chart. Only the levels that were pertinent. There's nobody, folks. And I mean this, there is nobody out there walking the market like this. It is not happening. Period. End of story. Doesn't happen. And I'm using the logic that I already taught you. I already taught you these things.

These are principles and conceptual ideas that I've codified and I've given to the trading community globally. And I'm using the same logic all the time. It's not changing. It's not morphing. It's not missing. So the importance is I liked how we saw these highs forming. And look what they were doing. They're making all this area here jagged. So where's it smooth? down here and over here. Ain't that interesting? Think about it.

That ripping higher, higher, higher. Anyone that was shorting kept getting stopped out, getting stopped out and they give you this real sharp move here. I love when they do that. I love that's that's Phil. Phil does this. The guy that's really pulling price around, you know, the [gasps] the guy that nobody really wants to believe exists, the boogeyman. Okay. It exists, folks. I don't know what to tell you, okay? The faster you warm up to that idea and make friends with the whole premise.

You're not going to be surprised. You You're going to understand why it's happening. And then you won't be tripped up when you see it go above that high one more time because that's a stop hunt. Everybody else going to see that. It's a bull flag. Oh, look at that. It's a bull flag. It's getting ready. It's getting ready pop the top right here. It's getting No, it ain't. No, it's not. No, sir. Rebop. And if you're smart with your money and you use smart money concepts in your demo account, you'll sell the high day or high candle at key levels right there.

Midpoint right there. That's that's random in the upper octent right there. See, I'm not trading zones. I'm not throwing darts. I'm not playing horseshoes. I'm trying to get as close as possible. That's not what that is. Okay? I'm not I don't use hang grenades. I don't have a hang grenade PD array. I have precision elements and instruments. I'm looking for very specific things. And now you get to watch it as it happens.