Navigating High Resistance Liquidity Run Conditions transcript

Morning folks, how are you? I'm going to go long here. I'll put four contracts on initially. And I'm going to put this stop opens at this candlestick's low right there. Right there, plus a or minus a tick or two. Okay? And then uh we'll look to add two more. Uh I'm inside this here. I'm trying to view this as a inversion fair value gap. It's a little disorganized this morning. But uh we'll see what we get. I think we're running back to midnight opening price for New York.

Uh now if it can come back down and kiss the high of this inversion fair value gap again, I'll add two more contracts. Okay, we're using the stop up now just below the midpoint of this. Let me get ready to add those two. Come come down and give that a kiss. Let's go. Come on, come on, come on, come on, come on. Come on. Come down. Come on, just a little bit more. Come on. And there you go. Thank you so much. Just for good measure.

Put another one there. I'm watching this wick right here. So if you grade that, I don't want to see any bodies buried south of its consequent encouragement levels. This, this, and we'll make it blue. Right there. Okay, so I don't want to see the bodies buried. Well, I can do this, that's fine, but it can't leave the body below it. I'm actually going to add two more to that. Simply because we came back down into the deep end of this gap.

So, it should now start on this candle or the very next candle needs to show immediate willingness to go up and gravitate towards taking out this short-term high and this short-term high. And as you can see, we are not using market replay. Okay? Market [clears throat] replay is not required. If you know what you're doing, you don't need market replay. All right, so this wick Let me Let me make this broader so you can see it. >> [snorts] >> It's a little disorganized this morning.

Uh we have a lot of heavy [snorts] hitting uh news on Wednesday and Thursday, CPI and PPI. So, this wick right here is underneath where price is and where I started entering my orders. You can see where I got in at the low end of that inversion fair value gap there. And we added all into that right at the high where I said I told you I wanted to see it do that. So, my average across all those orders is essentially the high of the inversion fair value gap there.

So, now I can raise the stop up to the low of the inversion fair value gap and minus a tick. Okay? So, I've reduced some of the risk. And now we're just in striking distance to take out that minor buy side there. And then what are we looking for in a correlation to the upside above that little short-term high? Okay? So, same business I was explaining down here with this wick. Uh we want to see the same kind of thing happening here.

This is the higher one. So, I don't want to see any bodies buried below that. So, that's That's normal for it to come down and hit this and then we want to see no bodies below it. If it does, it needs to show willingness to go immediately higher on the next candlestick. Preferably, you want to see it above close above it. There you go, like that. And now, we want to see this one. It can flirt with with the lower wick.

It can do that, but it's better if it's if we're on side, it won't take out that low. It'll just rip higher. No bodies below this line. That's how we're looking at it. Well, that's my Let's say it this way. Uh that's my interpretation of what we're seeing in price over real price action, not market replay. I don't have the benefit of knowing what's happened already. I have to be on the hard right edge. And it would be like this.

I see you're watching it like that. That's how I used to trade when I first started. That's how everybody had their charts, and I was like we don't have much room to you know, imagine what could happen. You know, you got to have a little bit of empty space out there where you can kind of like formulate an idea or a vision of what price could do and still be okay with the idea going higher or lower relative to your expectations.

All right, so one more time, it's kissing the inversion fair value gap. Actually, I'm going to add on that because I like it. So, we have this wick consequent encroachment and this wick consequent encroachment there. Um you're probably going to see the body close in between these two price points. Here. Mhm. Body will actually look It closed there, but it's better if it goes on like it's doing. We just don't want to see any lower body movement.

Right now, it's kneading it. It talks about what should or could happen in the markets. Like it listens and just does those types of things. That's experience. That's what That's the language I'm teaching you. And if you understand the language, you'll be able to sit in front of the candlesticks like this and watch them live. You don't need to do any market replay stuff. Okay? And now we want to start to start really ripping higher.

We want to see a close above here. As soon as it closes above this, then I'm going to roll the stop and cover costs. And because I'm teaching through the medium of a paper trading account, there really is no cost here. Why do you teach with a paper trading account? Because I'm I'm licensed to give trade advice. And as much as I love teaching all of you, I'm not opening myself up to litigation because I'm not putting in into trades.

I'm teaching price action. Okay? Same thing I did when I was dealing paid mentorship. I was teaching price action. That's all this is. All right. So, we want to see it really extrapolate above this. And then we want to see it get to midnight overnight. Midnight, uh midnight, rather. Um Monday's New York local time midnight price. Where we opened up at. And that is seen over here. Right there. So, that's midnight on that candlestick right there.

So, open is 29,878.25. And that's what we get over here. So, we're looking for that. Uh this is the pre-market session. I'm going to teach you this later in the afternoon. So, don't worry about that. I got you covered. Okay? And obviously the best case scenario would be to see it go up to Monday London session relative equal highs that buy side. Uh but I'm going to take off Um let's take off five just below that midnight opening price.

Okay, so that's that and now we close above so I can rule this out to cut costs. All right, not bad. Not bad, old man. So we're looking at the potentially get to and through midnight opening price. Uh If it goes there and comes back down in, uh my stop is at a location where it's pretty it's pretty sound cuz what am I anchored to? I'm anchored to the high of the inversion fair value gap that was already used. It was qualified here.

Confirmed, confirmed, confirmed and now we're way up here like we were expecting to see it do. And no reliance on market replay. As you can see, it's again all live price feed. Everything's happening on the hard right edge. I don't have the benefit of knowing what's already happened. The countdown to the candlestick close, you cannot do that with market replay on TradingView. Try it yourself, you'll see. And I'm showing you the entirety of my screen.

There's no There's no buttons down here. I mean, look I mean, the Here's the time. Click on that. Where's the buttons that tells you you can press play for market replay. It's not there. Okay? So that's that. >> [snorts] >> So it's important if you if you're going to learn my smart money concepts, it it's it's advantageous for you to know you're learning from someone that knows how to do it. And since it's my stuff, I I pretty much know it, right?

And anyone that teaches through market replay, I think is someone that needs to up their game. And if that means it's one of my students, then that's what it means to them, too. It's There's no exception to that rule. Cuz if you understand what you're supposedly teaching, you'll be able to do it over live price feed. And walk it out. I just have a little bit of a buy side and balance sell side inefficiency. I'd be I'd be pleased to see some of this stay open, meaning like this right here.

It's not inherently bad if it completely fills it in, cuz we're still low in the in the cycle of the of the run. But we want to see it preferably leave something open while being bullish still. Cuz that's one of the strongest signatures that the market still likely to go higher cuz it's leaving these little tiny spaces like this. Of that gap. This is the portion that was left open. You see that? So, that's the type of stuff we want to see in there.

Let's see how it's behaving. It's running right up into first partial. And at that point, you know, it it doesn't matter what the trade does then. It doesn't make a difference if it comes all the way back down to stop me out um on the final portion. It doesn't make a difference to me. Because it's done what I hoped it would do as initial idea for investment. Okay, so there's that. No market replay, okay? >> [sighs] >> Uh the midnight opening price is something I teach.

It's like a magnet. It's a very strong draw on liquidity. And anticipating and and looking for very specific characteristics in price action leading towards a bias, okay? It doesn't need to be the daily bias, but a session bias, okay? Like for instance, this morning uh the market opened at So, where we at here? 9:30, right there. So, we opened the right there. See that? And it just so happens to be very close proximity to the high of the inversion fair value gap.

And then the market behaved by going lower, trapping people short. One more time for anyone that wanted to use that low as a breakout go short. Okay, and smart money would buy those initial sell stops. And then it rallies up, goes back above on this candlestick it qualifies and confirms this candlestick to this candlestick right here. That's an a bearish fair value gap when bullish becomes an inversion fair value gap.

That's confirmed right there with that close. And then it trades back down through it. Inversion fair value gaps can see this happen. And then rallies back through. This candlestick we close above, so they have two qualifications for this now while expecting it to go higher. The next candle we open to we trade down. And then back up and close around the high of it. So, that confirms this open trades down, comes back up and closes here.

So, that qualifies two times this inversion fair value gap after it gives you what you're looking for before you anticipate utilizing it for entries. Notice that my entries are here. There. And all of these are all inside of this. They're not just at that closing price. There was some down in here. And then right there in the upper quadrant. I told you I wanted to add cuz I like that. It was going down here and it could not even touch the consequent encroachment of the inversion fair value gap.

Notice that? So, if this price right here, okay, like that. Right there. What's that price say on the black price axis? 29,796.25. And the low 96.25. So, it's it didn't make it there. See that? So, we ripped through as we were expecting these relatively equal highs. Then we want to see a strong extrapolation above this, with a higher close. We got that there. I told you I wanted to see some of this gap that is indicated by this.

This is the inversion. I'm sorry, this is not an inversion. It's a bullish fair value gap. Uh when we're on side and we're expecting price to continuously go higher, which it could, and we're I'm lea- I'm leaving the the invitation for higher prices still, with my position being still open. When we see a buy side imbalance sell side inefficiency like this, we don't want to see it trade completely down, because then it makes it harder for it to prove that it wants to keep going higher.

Versus by leaving that small little portion open like it did, then it got to my first partial and I mean my opening price. So, same thing in here. This this little gap in here with the volume imbalance perfect world, we want to see it leave a portion open or don't even trade into it at all. Then it acts like a breakaway gap or measuring gap. Indifference to where that gap forms from the inception of the price run, which is clearly down here, but then utilizing the smart money concept to anchor in and like tether yourself to the idea that the order flow is bullish and then then look for high probability areas to enter and to participate in that.

All right, so we have seven on. I'm going to take this and set it up so I can do singles for partials in the event that I feel inspired to do so. Uh if we can get above the intraday high that I have here and then we take out Let's go to the left again. Scroll through here. So, we already bumped above here. So, the next order of business is this. This could act Well, this so far holding price down a little bit. It's inversion on this right there.

And next one is this. So, we could see a little bit of messiness in here. So, we have two potential inversion fair value gaps against strong gap and a gap that hasn't been tested yet. We just got down to the high of it there. And then we have a minor buy side liquidity pool right there. So, let's take a look at that. All right. So, we have buy side at 29,009. We'll just call it 920. So, I'll take a I'll take two off.

Just above that. I think that's reasonable if we can get there. See, I told you it it get a little messy in here. Made its way up into that inversion fair value fair value gap over there that formed at uh 7:29 this morning. >> [sighs] >> I'm going to increase my paycheck to just below that wick high right here. So, that way if it turns on me, at least I've banked a little bit more in the price run. I'm looking for Immediately, I should have probably took off one there for teaching purposes, but my interest is if we can get higher and draw to those overnight swing highs that are relatively equal.

I'd prefer to see that. I don't want to empty the magazine on everything this far lower than these relatively equal highs. So, this went down the consequent encroachment here on this small little buy side imbalance, sell side inefficiency that has a volume imbalance at the high. So, we want to see it really if it can close above half of this wick, which is consequent encroachment. That would be bullish. So, watch this level in here.

I know there's a whole lot of lines here, folks. Let me just take some of this stuff off cuz those are still measurements and left them on. Got wrapped up in the commentary. So, in this gap, you can see that we've had this much oops, this much left open. See that? So, this candlestick's high and this candlestick's low. That's the portion that's been left open. Part of this inversion fair value I'm sorry, I keep wanting to say inversion fair value gap.

A bullish fair value gap that has a volume imbalance at the high end of it. See that? So, either this candle or the next one needs to start really marching higher. See that little volume imbalance right there? As a reminder again, no market replay. Okay, everything's the hard right edge. I know I know some of you like these kind of teachings, but then the others that are here to just want to hurry up and learn how to do something right away and they're not trying to learn why it should work, when it will be problematic.

Um they they tend to be I I get they're they're resistant to longer videos. Like as if their trading is going to be inside of 5 minutes all the time. Like if you're going to trade and watch someone that's managing and then managing expectations on price action. So, what we're doing is we're predicting. Do not listen to people that say, "Don't try to predict. Learn to react." Don't listen to that. That is exactly what retail is trained to do.

Retail is trained to react. I'm not teaching you to react. I'm teaching you to anticipate. So, this wick right here, we're watching that now. That is PD array number two. If we close below that, the last bit of defense is this swing low, which is why I have my stop loss just below this wick. Okay? See how we came down and hit the consequent encroachment there? It would be wonderful to start seeing it really rally higher out of that.

We closed just south of that bullish fair value gap, but we closed above in the upper half of this wick. So, we're balancing several things here, okay? If this can completely climb back above and close above its opening price on that candlestick here, so in other words, a close above the open on that price. If it closes above 873.75, or in other words, let's call it 874 even, then it should resume going higher. Otherwise, I have to endure all of this and potentially get stopped out.

And it's okay. Remember, I took five contracts off here at the midnight opening price, part of a position size of seven contracts. So, just about half the position, not quite just the smallest you can get beneath the halfway point of 12 contracts. So, even if it comes all the way down and stops me out, it's it's a win. It's nice. I had a free look. I got paid, you know, hypothetical $4,000 plus to see if it can go higher.

There's nothing wrong with that. And And here, I don't have any immediate concern for Now, see this wick here? We want to see this body close above that midpoint of that wick. See how I'm giving you all the details? Um Al Brooks doesn't do that, okay? I know there's people out there saying, you know, he teaches uh one candlestick at a time, but he's not teaching what I'm teaching you. You'll never hear him take say that kind of stuff.

I promise you, it doesn't exist. >> [sighs] >> So, if we close above that midpoint level, that's actually uh positive if it closes above this opening price. It's extremely positive, as I was indicating moments ago. Why do you have to talk about other traders? I'm not trying to be disrespectful to other people, okay? Oh, he just read my mind. What I'm saying to you is is I read other people, or they will contact me, and they'll say, um what do you say to people that say you did this, or you copied that, or you learned it from this person, or that person?

Um That's why I respond the way I do. So, we didn't get a close above that opening price, okay? And now, we want to see it close above consequent encroachment of this wick. Once it does that, then I'm going to roll the stop just below that low right there. So far, midnight opening price is offering a whole lot of initial resistance. You see that? >> [snorts] >> It spent a little bit of time north of it, went go went lower, tried to get it off on this run here.

This one needs to turn around, or the very next candle needs to show some strong willingness to go higher. Now, when you have things like this, you can do um you can do a stop loss. You can do two contracts as a stop out right here. I have five seven one, rather. So, if I get stopped out with it going below that low, it's kind of like taking a partial on a retracement. It's not ideal, but if it's going to come back against me, I'd rather take two off here and only have five if it comes down to the full stop out.

See what I just did there? So, I'm teaching application in real world with the market's doing based on what I have to deal with based on the price action. So, there you go. I took a partial. I didn't do it on the the ideal side of the curve, which is throwing it above market price while bullish, and it reached to it. That's ideal. But, in this case where it could potentially be coming back against me and to also teach you how to manage those emotions, those psychological tug-of-wars that take place, just put a stop-loss in on partial.

I had seven contracts net long. I put two contracts on a stop right here. So, if it goes below there, it's going to sell two of the seven I had as a partial. So, now if I put more money in the bank perpetual bank of this position by doing so, and it's lessened the load mentally on me on having the need for me to be right. You see what that does? It completely subdues the the aching of please go to my target, or please don't stop me out.

You're managing the position. You're managing it. Okay, so now we have this wick right here. If it goes below that, you know, the only thing it's supporting is this remaining portion of that, and I have a stop-loss right below there. So, if it comes down and stops me out, it's okay. It's okay. Now, what you're going to do is say, "Well, why didn't you take off more here? Or why didn't you do something right here? Why you" Because I'm teaching you the process that I went through and what I go through when I'm in a trade.

You're not going to be able to get the best of the best. You're just simply not going to do that. So, you have to learn to navigate and have rules and protocols and procedures and processes that lead to a decision-making based on you predicting what is likely to happen. Notice that I'm not reacting in panic once it went below that low. I already anticipated and predicted it's probably going good below there. So, if it does, let me get paid.

Two more contracts and then it came back and stopped me out. Now, overall, let's look at the price run. I told you we were probably going to get some messiness in here and we had midnight price. So, all of this is formidable resistance. And then this is the reason why I navigated the way I did. I said this stop loss below here with two contracts of the remaining seven I had on at the time. To me, let me get rid of this limit order.

It made better sense for me to just put a stop loss on two contracts of the seven I'm long on. So, if it stops me out, it also gives me more intel because if it stops it out and then we have a close below the gap here one more time like it did there, then we're probably going to go all the way down. And I'll let that stop happen so that way you can see it in my own hands. Managing it this way, it's better than just simply saying all of my stop loss or nothing.

I'm going to get all my target rather or or get a full stop out. I'm not going to take partials. Partials is for you know, stupid people. I I've read people that say stuff like that. If you don't allow the trades that you're part of to pay you in any means possible by any means necessary, okay? You're not trading. You're gambling. You're insisting that your will be done in the marketplace versus making an allowance for your idea coming to fruition, but not reacting emotionally.

You're predicting. You are predicting things, okay? So, hopefully this has been insightful to you.