Part 2 High Precision Secrets To Intraday Price Action transcript

34 years this November. Okay, I've been looking at the market with these types of interests. Like I want to see how does it form the high? How does it form the low? How is it forming session highs and lows like the AM session? How's it forming the high in the low in the 2-hour 7:00 in the morning to 9:00 in the morning period? And by studying these things and collecting information on the process of how it creates them.

What does that mean? What I just showed you here. If you're not logging and journaling like this and actively pursuing the mechanisms upon which how the market books price and you're just listening to people like myself where I say I'm going to use a fair value gap here, you're not doing yourself any justice by just saying, "Okay, he's he's good at picking them." I'm telling you how to go on and find the information and grow a measure of trust in it because you're no one's going to say what you discover that has consistency isn't active or valid.

No one No one's going to be able to do that. Just like nobody that has spent time with me years behind the paywall or before the paywall or after the paywall and you've been spending time with me and I'm calling the market live, you see it. You see what my students are able to do. When you start doing these things, when you're back testing and you're logging and you're studying how do highs and lows form in sessions, daily highs, weekly highs because you're going to see these same repeating phenomenon.

They're not random areas. But until you start looking at wicks the way I teach them, you'll never see it. You'll never see it. They put these books out there and they let authors get popular leading people astray. If you have all these people around the world constantly telling everybody the the sky is really green and don't believe these people that call it blue. Enough people, I'm convinced, especially now in the state of the world, there's going to be more people out there saying, "Don't you call the sky blue?" That's how we are right now as a society.

They've put us in a position where lunacy is achievable with given enough time and influence over it. I'm just trying to be a voice of reason saying, "Listen, you see me keep doing these things all the time, all the time, all the time. And I can get real, real close to the daily high and low doing what I'm teaching here today." I showed you I showed it to you. I literally executed and showed it to you. And I used to do this behind the paywall when I was teaching.

And if I was failing there, they all would have came forward and said, "He wasn't able to do that at all." But you see them? You see them come forward? I was a I was a charter member. I was there for this year. I joined this year. Every single day I was held to this expectation that I had to call the market where it was going to go. What key levels would it respect? Think about it. You don't ever see anybody coming forward with anything saying that that didn't happen.

And now you're seeing the same thing that I was doing behind the paywall. You all get to see it now. I told you. >> [sighs] >> I'm the only person I can sit out here and tell you with great confidence that my stuff isn't going to fail. I could mess up and do something different and I'll have to course correct and then I'll be fine. But everything else is guesswork. Everything else is a religion. Like you're subscribing to a view that has absolutely no merit or basis as to why price is going to go up.

It doesn't matter how many times you find it it it worked here, it worked there. When I talk about the market and my concepts, I'm very, very specific. I'm explaining it in a manner where when you really understand it, it is an absolution. It's not a guestimate. It's not a assumption. It's not a ambiguous zone. Okay? So, while there's a clustering of certain things in here, let me go back down this and I'll end this video cuz it's really getting too long.

Could go on with It's Saturday. I want to get out and do some things. If we have the ranges in here like this, okay? That's been defined and we have a level here, a level here, and a level here. If we see that, we can take the highest one to the lowest one and measure it like this. Right on here. I'm just going to eyeball it. I ain't going to spend a lot of time trying to make it perfect. And then put it right on the lower one, right?

There. Okay? So, now we have this level right there and we'll make it a solid line and we'll make it blue. And it's the biggest one, right? Yeah. Look where the body stops. Think about that. Look at that. And think about the logic that I teach you in regards to order flow. If it goes down to half that, even though it wicks and goes past it, but the body comes right back here and closes, this is our range. Okay? And then in that range, the high and the low, we have a very specific one right here.

And then, you can do measurements and gradients. I ain't doing all this, bro. Just give me an overbought and oversold indicator. Okay. Go do that. Have fun. I hope you're I you're profitable. Hope you're able to you know, meet your ends and and live well. And no no complications in life. I would love nothing more than to see all of you be successful. It's not imperative that you use my stuff. I'm just trying to encourage you to just think outside the box, okay?

All right, so body upper half. Use the high one. Trades down through upper octant, upper quadrant, and fails to touch the next octant. And then up here. Is that bullish or bearish? Bullish. More so because we have the bodies down here and we can't even leave a body back down inside of this area that was used to try to project the daily low. Now don't let the amount of selection and measurements dissuade you from pursuing something like this.

The way you get good at it is go back and study your old moves like this. Just pick one day a week where you have about, I don't know, 30 minutes. Put some cool, nice, relaxing music on. Zone out everything else and just look into the charts and go in and start studying on the daily chart. That's where the information is derived from. Not the weekly. Not the 4-hour. Not less than a daily. It's always inside of the daily chart.

Because that daily chart is going to give you the cap on the high and the low. Daily ranges are defined by a daily chart. So the information and detail comes from that one particular time frame. So >> [sighs] >> I'll leave it to you, ladies and gentlemen. You tell me, did you see anything marvelous this past week? Did you see see things explained beforehand? Do you feel inspired? Do you feel like you want to dig into this rabbit hole a little bit more?

Spend time with the old man? As I mentioned yesterday in Traders Round Up, I absolutely feel that I'm really going to wind down over the next 2 years. So, not wind down in my pace, but whatever I do over the next 2 years, that's like the the most I'm going to do. And then when I get to two Junes from now, in 2028, um I'll be an empty nester. My wife and I are going to be doing a lot more traveling, and I won't have as much time to be able to engage with all of you.

Uh I want to do at least a week weekly, you know, thing with y'all cuz I just want to keep it active. But, as far as a daily engagement videos like you've been like you've seen now, I I I just I'm not going to be able to do that. And I'm actively pursuing things that we're going to get involved in as a couple, and it's going to take a lot of our time. And my time as an educator will be minimized because of that. So, it's kind of like the the golden era of ICT.

You know, I I I just been a few times I wanted to walk away from it, but I'm getting older, folks. My wife's getting older, and we won't have any kids in our home. So, we're just going to get out and you know, get stuck in it. So, All right, folks. Now, we're going to focus on applying the opening range gap. So, I got to go to 9:30. Right there. Okay, so that's the opening price at 9:30 Eastern time and it's the high of the opening range gap.

And then we have regular trading hours. Click on that. And then we'll go down to right there. We'll add that and the price is 28,324.75. So that is the opening range gap low. Now we can go back into electronic trading hours. All right, so now we can measure and grade that range here down to there. Make sure it's the same levels. Check everything. Okay. For the high we have 28,576 3/4 and for the low we have 28,324 .75.

Everything is copacetic. So now we have to make sure everything is highlighted. So we don't need that yet. The levels are there and now we're going to move this over. Make sure everything goes to the right just enough to show where is important. Okay. So right now we have our opening range gap. We have it graded out. Consequent encroachment is here. So half gap 70% of time gets traded to by 10:00 a.m. It trades to it here at 9:43.

Now we have PD arrays that are over here during that 7:00 to 9:00 a.m. We're going to blend things here. We have not only a fair value gap right there. That the 9:30 opening price, that that's the tethered level. Okay, so our horizontal levels like this, in other words, the price relative to time. Time is 9:30 opening to 10:30. Here. So, we have another time base range. It's the first hour of trading. Okay. There. Okay?

So, we have a low and a high. We have to subscribe to whatever price is going to do in here, and then we'll come back to that information. But, for now there's the hour long trading. So, first hour dealing range. Low. And we'll make this uh purple. Why always picking purple? Listen, didn't you like Prince's album Purple Rain, man? Like, that was a great album. We lost a a genius when he passed away. Right? And then now this is the first hour dealing range high.

Incidentally talking about Prince, um his song um Oh, I said another story. I'm going to go down a rabbit trail. It's probably not appropriate for for YouTube anyway. Maybe I'll bring it up on X at another time. I know it was one of those cliffhangers. Man, why you do that to me? Now it's going to bother me all weekend. You know how it is, man. Old man likes to get you talking. So, there's your range high and your range low for the first hour's dealing range.

But now let's focus in on the opening range gap. So, right inside of here, let me take this away. >> [snorts] >> I can leave it there. Get two. You're overly concerned. So, inside this little box we'll shade it. Dude, you could have taught this with less uh less time. No, you wouldn't have learned anything. The fact that you're trying to look for a shortcut. You can't appreciate someone literally sharing their craft with you.

Uh then you don't deserve to be taught. There's that. All right, so we have the opening price at 9:30 and then we drop down from my short, which I don't expect majority of you to be in that, okay? Price returns back to 9:30 opening. So, we trade below it. Then we trade up, fall short of it, and then we open lower and trade right up into it. This is occurring at the same time we are in an old gap here. That's going to act as its first utilization, which is sell-side delivery.

That means when we're bearish, it's going to be a premium PD array to send price lower. It's being respected there and there. In addition to we have >> Okay, there we go. Okay? I'm going to take the midline out cuz it'll make it a little easier to see everything. Nice. All right, then we have another level here, which is the upper octant, so 9:30 level. Then we have the upper octant. Upper octant trades up into this one here and this one here.

So, this is very significant cuz it's touching two of them. And we'll get to that in a moment, but for now, we're going to borrow this as well. Where are the bodies? In this gap. Over here. In this gap. Staying below. Once we close below it here, we opened, traded all the way up to that fair value gap, and then drops down. Open below it, trades up into it, trades lower. We have a gap in here that forms at the upper quadrant.

It's a breakaway gap. Why? Because it's above consequent encroachment of the opening range gap. Remember, opening range gap is here to here. So, half of that is this red level here. And above it, we're in a premium. If we get a gap after leaving a consolidation where we have one, two candlesticks working inside of a range between two PD arrays, then we have displacement lower. We want to see this act as a breakaway gap.

Okay? So, nothing gets traded back up into there. We have this candlestick laying on top of consequent encouragement. Over here, we have buy side imbalance sell side inefficiency that was salient at this time. Project it over. It's first utilization was what? Buy side delivery. That means if the market's bullish, if it's above it, it trades down into it and sends it higher. That's what we see right there. 9:01 Now we're looking for prices to try to get back down into where we're trading hours opening range gap low or what I tweeted my objective was I want to see it get down to 28,400.

So if we're here, first utilization was bullish. We're bearish now, it's going to act as an inversion fair value gap. See how the logic is very simple. It's it's complex when you don't know the details and you're not interested in learning any of it. So it's reasonable for you to feel like you're disjointed and you can't connect with it. It takes a little bit of effort. You got to study it, okay? We trade lower, we open down here, come up into it, wick, leave nobody in it, and come back down.

Is that bullish or bearish? Bearish. Now we have this level here. This is the lower octave below consequent encroachment of the opening range gap for Friday. So we're looking at time wise we're from here to here. Okay? We know these levels. Okay? So don't get tripped up. You don't know if it's going to go down to that level because this is hasn't happened yet. The opening range gap is there. It's it it's there. Like you you would see it like this.

So that gap is definitely there. So if we know that gap and we grade it, we know how the PD arrays should form. Where are they going to form? At what level are they going to react off of? And that's these levels, the high quadrant, I'm sorry, upper octant, upper quadrant, octant, consequent encroachment, octant, lower quadrant, octant, and then the low at the uh regular trading hours to marine's gap low, which was Thursday's settlement price for regular trading hours at 4:14 p.m.

Eastern Time. And then the market uses this level in here is anchored to this candlestick right there. And nothing is happening until we get to this run there with that wick. Trade up into the upper half, and the bodies are left below here. And we open right where the beginning of this wick is. We open up there and sell straight off this level is that sell-side liquidity pool that I tweeted here. I'm going to take that level off cuz it's accomplished the method there.

And now in here, we have this up-close candle laying directly on the lower octant, the one directly underneath half of the gap or consequent encroachment. So, when we open here and we trade up, what we're doing is we're trading up into this order block. This is a bearish order block. Trades up to it and then sells off. So, the market just drifts down and gets to our regular trading hours opening range gap low. Came around in here back and forth, and then finally gives up the ghost and breaks lower.

So, we filled the gap. Now we're breaking beyond the gap. So, when I see that, I teach you also that you can do the 9:30 opening price down to the previous settlement price and I'm just going to rough eyeball it, okay? And then we'll add the negative 50 level and that'll give you an area in which you can expect a retraction down to that level. And then we can also do it on the negative one. Okay? And you'll see there's your low projecting that and we got real close to that.

You see that? Real close to it. And then traded up and we're back inside of all this. So all this opening range gap here and we'll do this. Extend to the right. Premium is at this or higher in the opening range gap. Premium traded back down in, consolidate during the first hour of PM session. And we rally out, take out buy side cuz it's relatively equal highs here and trades you right up into where's the bodies? Look.

Where are the bodies? Below upper quadrant. And then it breaks lower. What's this? It's buy side imbalance sell side inefficiency prior to relatively equal highs being taken out. There. Okay? So you see these guys on the internet, they're they're all over YouTube teaching you smart money concepts, this this this and you know, this is where the real fair value gaps that none of that none of these guys know anything. They don't know the real fair value gaps.

I'm teaching you literally how to get it. This gap is prior to these relative equal highs being taken out. Okay? There's people out there that will say, "This is the a fair value gap. Once it breaks out of here, if it comes back down into that fair value gap, that's where I'm really interested to go long." Now, that's not me. I'm interested that for another reason. It's become a bearish inversion fair value gap. And that's seen like this.

Yeah, I got to make sure the old man's eyes are showing what the candlestick is actually provided. Face it out here. So, we have a volume imbalance definitely here. And there is no volume imbalance there. So, this needs to be anchored to the wick low. And we'll drop this right as it should be. And look at that. Look at that. We break lower after we've taken out relative equal highs up here. The bodies are stopping at the upper quadrant of regular trading hours opening range gap on Friday.

And then we have this big displacement lower. And we enter into this area here. We close below midpoint. We open, trade up, and come back down. Opening, trading up, drop back down. So, immediate rebalance is something I teach. That like for instance here to there. It's If you have this candlestick here and this candlestick closes, the very next candle can come right back to that and be an immediate rebalance. Let's say for the sake of argument that this one didn't touch that candlestick's low.

It would need to be the very immediate candle after that. And both of them actually do it here. And they're not putting the body above the midpoint of this inversion fair value gap. So, it's the gap that's prior to while bearish, looking for relative equal highs to be taken out. That That's your gap right there. Now, think about it. Is this hard to see? There's no other gap in here. How do they hide that from you? How How are they going to hide that?

Go back and look at all moves, even before you started trading. It's always there. Always. Why you whispering? It's creepy, guy. So, there's your inversion fair value gap. And you got to include the candlestick that has what? The volume imbalance. So, this candlestick is touching and and is tethered to the consequent curtailment level. Oh, the regular trading hours opening range gap. There's your short for PM session.

And settlement MOC type thing, if you're um I traded it once a hold on past that. Opening range gap for trading hours. Low. Take that shaded area off now cuz it's not helping me. It's distracting me. And we break lower and trade down below it. So, just a wonderful opportunity of seeing how it behaves here. And then after hours rips through here. Straight down into this low. These are relative equal lows. That's That's pretty obvious there.

And then it closed right in here. Below opening range gap low. So, >> [sighs and gasps] >> again, >> [snorts] >> I'm going to leave it to you, ladies and gentlemen. Very close uh call for a projection to simply using the opening range gap high at 9:30 to the low at previous day's settlement at 4:14 p.m. Eastern time. You can do something like this, also. Um it when you have a a climax reversal high like that, where it's moved to a the zenith point of a turning, that high and then we'll drag the fib to the low right here.

Okay, see that? So, this is your price range. This becomes a fulcrum point. A fulcrum point is like a hinge. Okay, imagine all of this rally here is a door and the hinge point is right there. And if the door could swing around and go past this low, it would swing equally right down to that price level right there. And notice how it's also getting very close to where the market had a turning point. So, when you get all these things kind of like blending together, it gives you a um a really rich tapestry to anticipate significant price runs in the opposite direction or at least be settled for the day.

And we booked pretty much the the low around those levels that I've shown so far in this lecture. Admittedly, you know, the average student isn't going to be this interested in it. Um maybe you're not interested in it right now, but once you get better at trading the simple stuff, by exploring the market with these types of perspectives and seeking a little bit of depth into where key highs and lows form and how are they forming and doing standard generic measurements on the PDA arrays and the things I'm teaching you, I wish there was another book or a teacher or an author that had, you know, done these things cuz I could very easily say, go look at this person's stuff in addition to what I'm showing you here, it'll help you.

But I don't have any help. Like like this is just mine. And I I said it many times, I'm not the best teacher. Like I'm the I'm the only person that has this information in his head and understanding. And I try to do my best to try to come up with a way where I can explain it to you. And I pray all the time that God gives me more wisdom and in a way that I can transfer the information. Don't fall victim to someone taking my my teachings and the things I say in between that are helpful from a psychological standpoint or maybe I'll say something in jest or whatever.

Um they take my videos and they'll take all those parts out. And you think you're getting the easier way, the best way, the short distance between A to B, and you're you're you're you're getting it diluted down to what works, but you're not listening to what makes it work. Like everything I've shown the majority of what I showed you here today, like if you take out any part of that stuff where the details of why should look at this versus that, there's no way to to condense it down from that.

That's that's the purest form of what it is I do. And there's no shortcut around that. And if you're if you're going to try to work towards a measure of precision where you can short the high of the day or buy the low of the day or hold for both points of reference, it's going to take some study time and [snorts] it's going to be my material that you have to study because nothing else out there gives you that. And if they if it existed, it would be the hottest thing.

Everybody would be flocking to that. Everybody would be talking about that. You would see everybody on YouTube, you know, mentioning that stuff. And it's not happening. It's not happening at all. So, I share this because I want to inspire you to pursue greater understanding in your own hands and you'll maybe get an um an epiphany. Finding something that maybe helps answer a question you have that's just knowing at you.

And maybe it's something that you don't even know how to ask the question for. You just don't feel like something's been given to you. I've given it to you. What you're What you're experiencing is I'm giving you the science. Okay? I'm giving you the technical textbook definitions of everything. And a lot of you, much like you do in college, you want to go out and buy the Cliff Notes version of it to be familiar with it just to get a passing grade.

I don't want to teach traders just to get a passing grade. I want traders to learn from me to be able to read these price moves and anticipate before they form and have confidence in knowing their analysis is likely to be delivered with a a measure of sheer precision that is mind-boggling to anyone that sees you do it. And believe me, you'll never get tired of it. >> [laughter] >> It's so fun. It's so fun when you're able to do these things.

And for decades, I sat back and I watched people on the internet talk a good talk pretending got something that's the the bee's knees, right? And I'm literally I hear looking at price action and I'm seeing this stuff. And everybody else is out there looking at diagonal trend lines, breakouts, head and shoulders patterns, and bull flags. Come on now. Th- Th- Th- That's that's literally ridiculous. Like it it's nonsense.

None of that stuff has any merit in price action. No matter how much emphasis and and and belief you place behind it, all you're doing is talking yourself into a religion. That's it. You're converting yourself to a cult or religion. I'm bringing technical science. It's time and price. We take that time, we split it up, and grade it. And then we look for very specific things to form. By knowing these key levels, measuring out, you know, a range and then grading it.

When you do that, you're preparing yourself to anticipate a particular formation that would support the idea of where price is going, which you've already arrived at. You start the day with an idea. Where's the market likely to go? Just a real easy low-hanging fruit objective. Okay? If you strip it down and say, "Okay, I I'm I'm going to I'm only going to be interested in the market if it does this." Okay, cuz you I know some of you are looking at this saying, "That's it.

I'm never doing with ICT. This guy's ridiculously overcomplicating things." And again, I when I hear that or I read that, I see someone that is lazy as Okay? That's lazy. And lazy isn't making millionaires. It doesn't happen. You might make a little bit of money here and there, but that's grocery money. I'm talking about legacy legacy wealth. People that chase that, they're not going to be satisfied with give me a moving average and a crossover and an overbought so and there it is.

Okay? That That's not it. That That's That's not it, man. So, I want to know what I'm looking at, what I'm trading, where the risks are, what can it do that turn around against me? Why would it turn against me if I'm going to take the trade? Where's the problem areas? What would I anticipate as a threshold that needs to be breached while in profit and I've partialed, but then I want to see an acceleration in the underlying position I'm holding the see momentum and speed and magnitude increase where I get potentially more opportunity to get profit of that that trade.

But from the beginning basis is if you just simply look at it like what I'm going to show you here. This is the shortcut version. Still using my concepts. You don't have to know the highest high. You don't have to predict it. You don't have to trade it you don't have to short it at the high and buy it at the low, okay? When you have a gap just like that. Regular trading hours this is where we open up on 9:30 Eastern time Friday morning and this is where we settled Thursday evening at 4:14 p.m.

Eastern time last print. You're using the closing price, okay? >> [sighs] >> If you are a little bit more comfortable, you can say okay, where was the close and did it create a short-term high? If we gap higher, if we create a short-term high just in close proximity to where the closing price is for instance like right here. You can do this. There's nothing inherently wrong. I actually started my trading like that. Like I looked at the last bit of trading and say okay, um this is the high at 4:00 when the bell rings ding ding ding ding and everybody's clapping their hands like they did something special all day.

Um like they earned something. The that candle's higher low okay, that if it's higher than the closing price then I then I used to use that. When I was trading S&P back in the 90s. And I used that as my my gap fill. And then I'll later transition to final print at 4:14. Okay, so there's two reference points there. But you have this one also which is the finite opening at 9:30 Eastern time. All right, so now by knowing that we have specific price levels and we can measure from settlement previous day to open.

And we'll take that off that off that that. I love this stuff. I don't care what anybody else says. Like I don't care if any of you watch my stuff. I I I still do these things. I still log things. I mean I don't you know, take pictures of stuff like this and cuz everything I do is is hand drawn. And I'll I'll give you an example in a moment. So here we have the gap settlement low regular trading hours opening range gap low because 4:14 p.m.

Thursday is lower when it closed than where we opened Friday morning at 9:30 Eastern time. So there's your there's your gap, okay? And now we can do this. So we have two points of reference here. Okay? We have low-hanging fruit objective. And then we have consequent encroachment based on 4:14 p.m. Eastern times the standard final print as your opening range gap low. So these two levels are going to be important. The market should drop down into it.

But the easiest one to get to is here. Wouldn't you agree? Cuz it's higher than that one. So now we can go into electronic trading hours. Go over to the opening range. All right. So now we have 9:30 open. Once we traded back down into the range, we can trade the retest of that 9:30 opening price there. And small little gap right there. That would be your short. Very simple. Not hard. Not hard at all. And you're expecting the easiest objective which would be the higher level midpoint which is there.

So your entry would be inside this fair value gap. It's so complicated, man. Why don't you just give me something easy? All right. There you go. There's your short. Now, in this case efficient entry Okay, man, I'm doing a clinic today. Good grief. I should be collecting money, okay? Straight up. I should be getting paid for this. And the way you pay me is hit the like button. I promise it doesn't cost you anything. So, we have the volume imbalance high.

See that little small little volume imbalance between the bodies? And then we have the candle wick high. There's There is no volume imbalance here. The This close is lower than the open on that. So, there's no volume imbalance. So, if you're trying to get this as a short okay, where would I start my shorting at? Good question. You read my mind. The wick right here. As soon as we breach that midpoint, I'm going to toss in one contract.

I'm going to I'm going to I'm going to take it and say I'm going to go one contract right there. Now, scroll this over. See this wick? That's a gap. Measuring from the volume imbalance high down to that wick high, that's your full range sell side imbalance buy side inefficiency. Entry starts here. So, we can do something like this. We'll We'll assume for a moment that um I'm going to have to do this. All right. We'll short at upper quadrant, which is above midpoint of this wick.

Okay? And we'll say we're going to toss in one contract. Around about there. Right there. Okay, so you can get a visual representation of I'll toss in a single contract right there. And then what I want to do is I'll wait and see if it can hit in between these two wicks. So, look at it like this. As soon as we get in there and we get above 9:30 opening, I'm going to try to nail something right there, too. So, we'll say right around 9:30 and above right there.

Okay? May or may not have gotten filled. But, I'm just telling you the logic of what I would be doing. I think I earned the right to talk like this, by the way. The the uh if it was to go higher, let me go back down up to this volume balance. And then spread this out a little bit. If it get real close to that and enter into this lower portion of that wick at that wick low and just above it, I would throw in more. So, I would start pyramiding the position in in drawdown.

Some of you might not be able to do that with some of the prop firms because you're adding to a position that's already negative. Okay? That's fine. Just don't trade this way then. But, you know, I I I don't I don't trade in prop. I've never traded in prop ever. So, I don't have those rules and constraints. But, let me toss this in there to all the partners with the prop firms that joined me in the St. Jude charity that you're borrowing my ICT and I'm pushing your your prop firm advertising for that charity.

Again, thank you for that. All the money that's going into that, if you use ICT as your your discount code for the participating prop firms, all of that money goes to St. Jude. It never comes to me by way of electronic transfer or a check, nothing. It's all that going 100% to St. Jude. So, I just want to thank all of you that were participating in that. But, the stop loss would have to be above consequent encroachment of this wick.

And that's sweet how this rolled that right in there like an ad. I'm like a natural. So, the stop loss would have to be just above there. So, stop would be something like this. Okay? So, on a high volatile day like that, if you're looking at this and saying you're entering here and your stop's got to be up here, dude, that's too much. You That's why you should be trading micros. Okay? And you wonder why you're getting roasted and you're blowing your accounts.

That's how I would manage it. And then once it would leave this area and then completely take out that candle's low, then you can start moving this stop a little bit closer and closer and closer and closer and closer. And this candle takes out that low of that body on a closing basis right there. So, the stop can then roll from here originally down to consequent encroachment of the fair value gap and then right above this high and then it stays there.

It lives there and resides there until we get to our target of half gap. And those two levels first objective here and then that's the easy one to get to and then the next one here, which is the classic which you've been seeing me use and teach with. This one here is using when we gap higher, if there's a short-term high that's higher on the 4:00 candle, use the high of that candle. It's easier to get to it. It's It's faster to get to it.

In this case, it hit both of them the same 1 minute, which is fine. Sometimes it won't be like that. But, you want to have your trading when you're first starting to be low threshold. That means low hanging fruit, easy targets. You're not in the trade that long because it's going to be very hard for you to hold it. And you're you're going to graduate into holding positions longer by learning to do the things I'm telling you to do.

Okay? And the only way you get that is by conditioning yourself, just like when you go to the gym, just like when you exercise good eating habits, you're not going to see results until you do time doing those functions and protocols and processes. It's not an immediate gratification. And being comfortable holding trades for a longer period of time comes by way of you practicing that way. You got to stretch beyond the boundaries of your your comfort.

If you're if you're a 100 handle trader and you want to get to 250 to 500 handle runs, you're just going to have to take the majority of your trade off at your 100 and leave a runner and have no concern with what it does. If it turns back and after it runs another additional 100 handles and it comes back and stops you out and you didn't make anything extra, that's still progress. You've you've increased the boundaries of your comfort.

And that's how you get these bands of scar tissue that you have in fear, you have to break them by pressing into that fear. You have to go beyond what you're comfortable doing and be systematic about it because you're going to desensitize yourself by doing these things with an indifference to the outcome. For instance, let me give an example. If you believe we're going to do a full gap closure, which is what you should always try to expect, okay?

But you got to learn to take something out of the marketplace in in terms of a profit. I'm looking for the black line and it's I did it with purple. If you're shorting the opening range gap high here and managing as I I'm indicating here with hypothetical, okay? We get to the first target, you want to take a partial there. Okay, that's done. And it gets down to standard consequent encroachment of the trading hours opening range gap.

That there once it hits that, you're done. 80% to 75% of your position should be off. This is how you graduate to okay, I'm going to wait for full gap closure. And then when it gets there, close the entire position or if you want to stretch your boundaries, if you can take one partial off and leave something still running after that, take a partial at full gap closure plus a little bit for spread. Okay, so in other words, you're not trying to get the the 28,367.

Okay? You're trying to maybe do 28,000 370. Nobody's going to laugh at you when you shorted it up here and you're getting out down here. And if they do, they're an idiot. By by taking the put position off and leaving one runner just to see if you can get an overlap of the opening range gap and then send it lower, and start retracting lower, and then reaching for things like this. Watch. These will be familiar for those that have been studying for a while under my tutelage.

We have the opening range gap measured just ballparking it. It doesn't have to be perfect. I ain't got time for that stuff. Um negative 20. Okay? Very, very easy low low threshold just outside the scope of the opening range gap. Very, very nice little handsome little reaction there. Isn't that nice? Okay, I taught that before. Go back a couple years in the teachings, you'll see it's there. Then you have the 50 level.

Down here. And it creates a little fair value gap there and it trades up into that and then sells off and goes even lower. And then the next one is standard deviation one. Right here. So, using just the opening range gap as your entry, your framework, and then expanding beyond that, how far can you reach for it? Right in here. It goes a little bit more, but you're going to get mad about that cuz you didn't get all that when you had this as your final exit?

Or if you know that you can potentially try to hold for these positions, the bulk of your position gets taken off at full gap closure. Something gets off at half gap. The bulk of your trade gets off at full gap closure. Then negative 0.2, there's another partial. Because it could just go below the gap low and then rip up higher. That's why you take that. Then you take off at negative 0.5 a partial and leave something.

So that we can reach for one standard deviation negative 1.0. And that's what this level was here. And then if it goes beyond that a little bit and keeps on going, who cares? You literally went in there systematically and shorted the high of the gap. Partialed halfway when it's 70% likely to do so and you give yourself that cookie. Okay? And then you remove the risk. Put your stop in a position where it covers costs and buys you a pizza dinner.

And then let it go. And then when we get the full gap closure the bulk of your trade that allows you at least to have three contracts of like a micro, okay? Three micro contracts still left on once you take everything else off at full gap closure. Zero, I'm sorry, negative 0.2, take a partial. Negative 0.5, take a partial. Roll the stop above here and see if you can get that negative zero, I'm sorry, negative one. When you get it close trade.

Be done. Walk away. Moonwalk out of there. Kiss your wife. And or ever smack her ass. Tell her we're going out to dinner tonight and there it is. Okay? Don't do that. She'll probably get you for domestic abuse. But the point is this. When it gets to these levels you got to have a anticipate anticipatory price skill that tells you this is an action point. It's not a watch and get greedy and oh, it's going to keep going lower.

It's going straight to hell. No. You got to do something with it. It means take it off. Or if you are thinking it's going to continuously go lower cuz it could happen like that. What do you do when when it gets down to here? Roll your stop up just above here. And when it goes down here like this and so as soon as you breach on a closing basis between that level and that level, which would occur right there, save the stop.

Cuz it's probably going to come back and take that out. So you're going to you're going to risk that final little partial that could have been perfectly taken off here and a better exit than where this would be indicating that you're going to have to you'll have to kill it. So the difference between where you kill it here and where you could have got out when it hit that, that's the stuff that you're going to have to live with, folks.

That's trading. There's many times I've been in trades where I've had a unrealized profit on remaining portions of a trade and my gut, my experience, my intuition was telling me just to close it. But I just wanted to see if I can capture a little bit more out of it. And if it didn't give it to me, still had the lion's portion of the move already in my bank. Like I don't care really if it turns around. But then when it happens, it's like, yeah, I knew I I knew I should have did that. >> [laughter] >> So you're like Larry Williams said, you're never right in this business, okay?

You're never right. You're never never never right, okay? But if you aim for precision and you operate with processes and protocols that leads towards that goal, but you're realistic with your engagement with price and you're not beating yourself up, you're going to do very very well. I hope you learned something today. I hope you were inspired this past week. I hope you uh see that there's a whole lot more that's available with you spending time with the old man.

And I don't know when I'm going to talk to you again um cuz I might be able to put something up tomorrow. I may not. But if I don't have something over the weekend, I will touch base with you Lord willing on Monday. Enjoy your weekend and be safe.