Midnight ET Principles In Relationship To PreMArket Session transcript

Oops, welcome back. So, I'm going to do a brief little lecture here. Uh if you've been a student of mine for any length of time, you know that teach several specific openings. And one of them is the midnight Eastern time. So, in other words, New York midnight local time. And that's denoted here. And you can see there. And at 7:00 a.m., that starts the pre-market session. It can really start technically around 6:30. I usually if I'm awake, I'll spend the next 30 minutes uh between 6:30 and 7:00 kind of like getting a a read on what it could do, what it likely may or may not do.

Uh but officially, it's 7:00 a.m. Eastern time up until 9:00 or so. And obviously, you know that we were looking at that uh relatively equal low on the daily chart. And I'll take you out to the daily chart and show you again what that is uh before I close the video, but I wanted to look at this here where we have a midnight open at Friday. And we have a unrealized objective or draw on liquidity down here. So, we were all watching this based on my analysis and my commentary.

And by having a hard high time frame draw on liquidity, that's very high probability. Uh it's likely to get down there and and do that. Like I was outlining the last few days, explaining why I felt and gave you all guidance on how we would see lower prices on Nasdaq. And here we have it. It happened again. And the midnight open price generally can act as a like a fulcrum point. And like the book end or a beginning point of the daily range expansion.

So, in other words, if we were bearish, normal ICT power three concept would be open go above the open at midnight and then drop lower and go lower for the day. And then close somewhere off the lower or whatever. But here we have this open at midnight and then as we enter into Frankfurt and then London and whatnot uh we had these relative equal highs here. So, we did drop down to around 4:40 a.m. but we're getting close.

We only got 20 minutes left of the London open kill session. kill zone rather. And then pulls right back up into that inefficiency that's seen right here when we go into a 1-minute chart. I use the 5-minute chart simply because it's allowing me to show the whole panoramic view. And then we'll break it down on the on a 1-minute chart, but just be aware that this high and this high is significantly lower than the opening price while yet not having traded to our daily objective, which is the relative equal lows on Nasdaq's daily chart.

So, we retrace back up in here and then we'll hit this inefficiency. The fact that we are entering 7:00 a.m. This is when it accelerates. And then runs down through and gets that daily relative equal high. I'm sorry, relative equal low, excuse me. And then we have a massive short covering because the entire internet was watching ICT outline this is where it was going to go and they all covered their short there. Okay.

So once again you know, in my clairvoyance in my ability to the interpret and predict the buying and selling pressure cuz there's no algorithm, right? I'm able to predict everybody's buying and selling pressure. And we had this huge massive short covering rally. It takes us back above and cleans up these relative equal highs. Lots of liquidity in here. So it notice what it does, it goes up and comes real short to the midnight opening price but then falls short.

Okay. So what am I teaching here? Whenever we go into London and we have relative equal lows like this and then right before 7:00 a.m. we get this one more time don't hold with the expectation that we're going to go all the way back up to the opening price. It's not necessary. It can but it's many times not going to do that. Uh but looking for your target once it does that then go just for the relative equal highs. And then in here you can take some from profit.

Now notice that the fair value gap that forms here it's easily done. Wades up. Fails to get the bodies at consequent encouragement. Sells off. You know, order block here. On the financial chart change in state delivers right there. Once it passes through it right on that candle it need not like it does here close below it. We don't need to see that. Okay. You see these guys teaching my order block theory or attempting to and they're saying it's got to get a close.

No, it does not. Okay. It does not need to have that. Yeah, your your narrative has to be correct. And then the market rallies one more time up into it there and here and then finally gives up the ghost and we're back inside this area. I would be content and be done with today's trading. Um but we'll see what happens at the close. I'll give you a short little recap if the time permits today. Uh it may not be until around 5:08 5:00 p.m.

Eastern time though. But if I don't have it up by 6:00 p.m., just expect something tomorrow as a you know, as a recap. We have minor sell-side liquidity pool here, which is just above our daily relative equal low draw of 20,512. And we had a nice sell-off aggressively runs into it. And then once we have that, we come all the way back up into these relative equal highs. So, I want you to think about what you saw this week.

Okay? I gave you very specific things that we'll be looking for each day. Very specific weekly draws on liquidity. New week opening gap, then it would particularly um focusing on the Nasdaq only. I wasn't really giving you anything in terms of ES or or the Dow or any other markets cuz I wanted you to focus on one market with me all week. Now obviously you can argue and say, "Well, you only talk about Nasdaq." That's not true.

Okay? But I wanted to dilute your attention and focus on just one specific market. So that way you can hold the flame to my feet and say, "Okay, let's see what this old man can do. Is he Is he accurate? Is he able to see this stuff? Are these tools really speaking? And can you find clarity with their use? And I would humbly submit that, you know, look at what I gave you this week. Every single day. Every single day. Exactly what the market was going to likely do.

And you can argue and say whatever. Okay? But the simple facts are the entire internet has it at their fingertips to see as it was done beforehand. Okay? So, I'll let you guys stew on that and I'll come back later on this evening after the market settles down and closes for the weekend. And until I talk to you then. Be safe.