![How To Start Day Trading In 2026 [Full Tutorial]: video thumbnail](https://i.ytimg.com/vi_webp/yiuFUp0kFz8/maxresdefault.webp)
How To Start Day Trading In 2026 [Full Tutorial] transcript
TJR · @TJRTrades
Words
21,168
Runtime
6:40:35
Speaking pace
53wpm
Reading time
88min
53 words per minute, below the 160 25th percentile of 349 measured videos. That distribution comes from the 349-video hook study.
Opening (first 30 seconds)
This is going to be a complete guide on how to start trading in 2026 as an absolute beginner. So, if you guys are brand new to
27 words, the words spoken in the first 30 seconds at 53 words per minute.
Sentence shape
| Measure | This transcript |
|---|---|
| Sentences | 1,631 |
| Average words per sentence | 13.0 |
| Longest sentence | 104 words |
| Questions asked | 284 |
| Sentences containing a number | 108 |
Most used terms
- guys217
- okay165
- market164
- high118
- trading114
- price113
- money102
- people97
- orders95
- low83
- highs81
- buy79
Filler phrases
303 in total: like 142 · actually 36 · right? 27 · you know 27 · um 23 · literally 16 · kind of 12 · I mean 8 · uh 8 · sort of 4.
A literal whole-word count of the same phrase list the Prepublish browser extension uses, so a phrase inside another word is not counted and a phrase used in its ordinary sense still is. It is a count and not a judgement.
What this transcript is
Every word below is the caption track YouTube publishes for this video, pulled from the video itself and reproduced unchanged. It is not Prepublish's writing, not a summary, and not a re-transcription: it is the video's own published captions. English captions, generated automatically by YouTube, in the video’s original language. Source: the video on YouTube. A channel that would rather this page did not exist can ask for its removal through the contact page, and it is removed.
Transcript
This is going to be a complete guide on how to start trading in 2026 as an absolute beginner. So, if you guys are brand new to trading or if you guys are just now getting into trading, this video is literally going to be every single thing that you guys need in order to get on the right track and learn how to trade from A to Z. If you guys don't know me, my name is Tyler or people on the internet, they call me TJR, and I've been full-time trading for the past couple years, and it has completely changed my life.
I've also been blessed with the opportunity to be able to teach thousands of students for free on the internet through YouTube videos and then also teaching direct students through mentorships to help change their life with trading as well. In this guide, I'm going to provide you guys with literally hours upon hours upon hours of all of the best information that I have on trading and compiled it all into one massive video so that you guys can get off to the right track.
Because I know personally when I was trying to learn how to trade, when I was an unprofitable trader, that I would have literally killed to have an opportunity like this to be able to watch this video and to have myself put on the right track because I know the younger unprofitable version of myself, I literally had to scour on the internet for who knows how long, bro. It was probably months trying to search through every single video required for me to actually get a full grasp on what trading was and to have all the tools necessary.
So, what I wanted to do for you guys was to put it all in one place. So, make sure you guys stay until the end of the video because there's a whole lot of information in here and I wouldn't leave anything out of this if it wasn't required. So, I'm going to put every single thing that is required and leave all of the BS out. So, right now, we're going to start with the absolute basics. So, whether you guys have been trading for the past 3 years or you guys are just now getting into trading, this is going to bring you guys up to speed so that we're all on the same page.
So when we actually do get into all of the other concepts and when we actually get onto the charts, you guys aren't freaking out like what's a candlestick, what's a candlestick wick or oh my goodness, liquidity sweep, I have no clue what that is. So for all of the beginners, this is where you guys are going to start. This is going to cover the absolute base fundamentals of what a candlestick is, what a chart is, how it moves, and then we're going to transition into what is trading, what is liquidity, what are fair value gaps, all of these things, all these concepts that you guys have seen everywhere online.
With this first video, the last one that I filmed that I kind of scrapped, it was like sappy kind of just saying like, you know, new year, new you. this is why X and Y reason why you guys need to be starting today and you know like this is how trading changed my life and I hope that the same thing can happen to you and it's true I do feel that way but at the end of the day man like you you clicked on this video for a reason you clicked on this video because you do not enjoy the current life that you're living and I'm not going to sit here and [ __ ] you guys and try and persuade you to watch through this entire video series.
You know, it's just not it's not my place to do that. I'm here to give you guys free information, free value to try and help you guys change your life. Personally, I think it's pretty embarrassing for me as a YouTuber who has already changed his own life and who has actually already changed many other people's lives, like thousands of people's lives from his YouTube videos alone, let alone my paid mentorship. for me to try and get on here and like beg for you guys to have the motivation to be willing to change your own life.
I think you guys need to look at yourself and just get real with yourself, man. Because I was looking back on like that that video that I scrapped and like it was stupid. I was just thinking like if somebody actually wants this [ __ ] they're going to go and do it for themselves. I shouldn't have to get on here and tell you trading has changed my life. You've seen how it's changed my life. I shouldn't have to get on here and tell you about how beneficial this is going to be for your life.
If you see it, then you see it. If you know you are built and if you know that you are destined for a greater life, then you shouldn't need that motivation. You should already feel it in your soul. And that's exactly how I felt when I was learning how to trade. I knew that I was destined for a better life. I knew I was destined to do great and big things. And we're living in this age of edutainment. And unfortunately, I fall into this category where people enjoy watching me or learning from me because I'm a young dude that sometimes funny, you know, but that's just this new age of YouTube, man.
And people watch these videos on trading, watch strategy videos, watch confluence videos, but they never [ __ ] do [ __ ] about it, bro. Like, you you're making it's it's almost like a like a feel-good videos. Like, we as creators are putting out the videos trying to genuinely help you guys. And you guys are watching it not to try and help yourself, but just ju just to [ __ ] entertain yourself, just to make yourself feel good as if you you think that you're you're just making yourself feel like you're learning something and then you never go and apply it.
It's honestly like this first video of this series, I kind of just want to make it just talking about you and yourself and how disrespectful it is to yourself and your creator. for you guys to be given the gift of life and for you guys to waste it and [ __ ] squander it by living your life for other people's opinions. By living your life that was given to you for other people and not for yourself. By living your life in quite literally the worst way possible.
You clicked on this video because you don't enjoy the current life that you're living right now. And you've wasted the past 18, 20, 30 years living your life on somebody else's terms, working underneath someone and disrespecting not only yourself self but also our creator that brought us here. And that's really what makes me upset and it should make you upset as well that you have one life for all we know. It's the only one that we know about.
You sit here and you just let the days go by and you don't feel any sense of urgency to take your life into your own hands and take a [ __ ] risk. Bro, there's too many people in this world that are too [ __ ] too [ __ ] soft to take a singular risk. You think of any successful person in this world, every single one of them had to take risks to get to where they're they're at. It's very very easy in this world that we're living in to live a comfortable life.
Back in the day, you know, if you were if you were broke, you were living a hard and difficult life, but now with the technology and the advancements that we have in this world, it is very very easy to live a comfortable comfortable life while not being fulfilled. We have screens in front of our faces. People are [ __ ] smoking weed to drown out the noise or the anxiety or the disappointment that their subconscious keeps telling them that you deserve better, but people just shut that up by taking another puff, by watching a video like this and then not taking any action.
I want to encourage you guys to get really [ __ ] pissed off. Get very, very, very upset at yourself because every single decision that you have made from [snorts] birth has led you to be where you are at today. And if that does not infuriate you, if that does not make you so very disappointed with yourself, I do not know what will be able to push the needle for you. And I do not know what will be able what what sort of fire has to be lit underneath you to be able to get you started.
Because once you start taking matters into your own hands, once you can take full responsibility, it's not your parents' fault. It's not your siblings fault. It's not your friend's fault. It's not your environment's fault. Once you start taking the blame for everything in your life, whether it was your fault or not, but you put the blame on yourself, no matter what, that lets you dictate your future because now your life is in your own hands.
And now you can actually see life for what it is. Every single day that you wake up and don't do something to help you get towards your dream life or towards your dream version of you, it's not your shitty job's fault. It's not how you grew up. It's not how you grew up. There's people that have literally grew up in the absolute [ __ ] slums that are 100 times 1,000 times richer than me. So to say that you don't have a chance is stupid. to say that you don't have a chance at all in this life is very very very disrespectful to yourself.
That's just kind of been the thing that's been in my head for these past two months as you know people are starting to say, "Hey, let's get motivated for the new year." Everybody's writing down New Year's resolutions. I've had my New Year's resolutions for the past six months. I knew I I already knew what I was trying to accomplish at the end of 2026, halfway through 2025 because I hit all of my goals halfway through 2025.
If you are unwilling to take action to be able to change your life, then don't sit there and cry about how horrible your life is. And I know this video may be depressing or there's people that might take this video in the wrong way because you want to play the victim role, but at the end of the day, those are the people that are never going to make it. So, I don't want you watching my videos anyways. You're not the type of person that I'm here to speak to.
So, leave a hate comment, unsubscribe, and good [ __ ] Riddics, dude. Those are not the people that I want to speak to. I want to speak to the people who want to actually make a change, who are ready to actually take their life into their own hands and who are ready to take action. Like I was saying before, it's going to be one thing for you guys to tune in to these videos every single day and just watch, but that's that's half of the game.
And you're not even you you haven't even taken your first step yet. you just watching the videos isn't even taking any sort of action. You're just digesting the the content. After every single day, you need to be taking active action to do something based off of these videos. And if you are not waking up every single day with a fire lit up underneath your ass, feeling anxious, feeling just like so ready to [ __ ] go because you know time is ticking and you know your time is getting wasted away and there's no better time to start than now.
Then like I said before, I do not want you here. So, if you guys are one of those people that just feels like nobody is there for them, that's what I want to be for you. I want to be your guys's crutch. I want to be your guys's guide. I want to help you guys get to where you want to go in your life because I know when I was trying to make this work, I didn't have anyone to lean on and it was very, very difficult mentally for me.
So, this is for everybody that is ready to take a risk, ready to live life on their own terms, and ready to actually build the dream life that they've always wanted. So, set those goals, set that road map, and we are going to be in for a good new year. And also, I I don't want you guys thinking that whatever, like this is on some New Year's motivation um like [ __ ] I'm going to show up for you guys regardless. I I I showed up all last year um and I'm going to show up again this year and put in the same if not more effort for you guys.
So, I mean, I'm I'm I'm here for you is essentially all that I'm trying to say is that like, you know, you can count on me no matter what. You just have to count on yourself to show up. So, yeah. Um, happy New Year's and let's let's let's take this [ __ ] head on, boys. This is going to be a crazy year, not only for myself, but also for you guys. I know it without a doubt. Without a doubt in my mind, I [ __ ] know it.
And hopefully you guys can light that fire under your ass and wake up every single day ready to take action and ready to go and just take that dream life. Go get it. Let's go and [ __ ] get it, boys. We are going to be talking about the mindset and the psychology that you guys have to have in order to make money with trading. I know a lot of people are probably going to skip this video and say, "This isn't beneficial.
I just want to learn the strategy to make me money. TJR, show me the strategy to help me make money in trading in 2026." Well, unfortunately, strategy is only one step of the puzzle. So, I'm going to pretty much just do an overview and hopefully rewire how you guys think or are thinking about trading so that you guys can have the right headsp space when you're going about taking action and trading. This is mainly focused on trading psychology.
This was a huge mindset shift that literally helped me turn from being an unprofitable trader into a profitable trader. So hopefully this can help you guys out as well. So what I like to do with pretty much all of my concepts, you you'll see me do this with uh every single one of the confluences when I'm explaining and teaching them to you guys. Uh when I'm explaining the strategy, everything for me needs to make sense.
Why are we using this thing? What does this thing mean? Why are we executing an order here? Right? Uh why are we using certain confluences? It's because orders are getting filled or it's showing a continuation in a trend. I need to know the reasoning why. Okay? And that's where I struggled a lot with some of these other strategies that are online like a support and resistance. I didn't I like for support and resistance, you know, it's just like, oh, we break through a ceiling and then we retest the floor, the ceiling turns into a floor.
You don't really know what's going on in in the market versus the way that I trade and the way that I'm going to teach you throughout this entire month, you guys will actually be able to understand like, hey, when we take out a sweep of liquidity, and I know that for some of you guys, if you guys are brand new to trading, this may sound daunting. This may sound intimidating, but don't worry, you guys will be able to understand this.
Like if we take out a a draw on liquidity, that means, hey, we have the potential to fill orders. What does the potential to fill orders give us the possibility to do? It gives us the possibility to reverse the trend. If we're going to reverse the trend, then I'm going to start looking for more confluences to show confirmation that the trend is reversing and then I'm going to look to enter. See how see how much more of a sense that makes compared to just oh like this is just some random chart pattern and you have to blindly press buy and just like hope that it works out.
For me, I like to actually understand why we're doing things and that's what I want to talk about in today's video. This is strictly going to be talking about what is trading, what like genuinely what are we doing when we are trading. So, the mindset that most of you guys have when you guys got onto the first video and started watching through this series is you guys were thinking, "I want to make money in 2026. I want to have a better life.
I want to be a millionaire. I want to live life on my own terms. I want to be free." And all of those things are are great. You know, it's good good to be thinking that way, but it's it's it's the wrong way to think when we're when we're getting into trading. Okay? So all of you guys are getting into trading to make money. Okay, so you're saying why are we trading? To make money. Most people think that's the objective with trading.
That's not the objective with trading. And a good analogy that I like to give is, and you guys will hear me give a bunch of these basketball analogies. I played basketball all throughout high school. Um, one of my favorite sports. And it it's very comparable to trading because trading is a skill set. Basketball is a skill set. It's very easy to correlate the two. But anyways, let's think about LeBron James, okay? Was he thinking when he was getting into basketball, I want to make money or was he just playing the sport and was he just trying to get better at the skill?
He was trying trying to get better at the skill. Maybe, you know, he was thinking in the back of his head, hey, if I get good enough at this skill set, there's going to be money at the at at the end of the road for me. But what does he have to do first? He has to get good at the skill. He's not thinking when he's on the basketball court in high school, he's not thinking, "Oh, this bucket is going to make me 10 bucks down the line," or, "Oh, this assist or this pass that is good is going to make me $15." He's not thinking like that.
He's just thinking, I want to play to the best of my abilities. And then when he's practicing, is he actively thinking, oh yeah, if I put up a 100 shots during practice, that's going to make me a hundred bucks. Or is he thinking, "No, by me putting up a 100 shots during this practice, it's going to make me better at at playing basketball and it's going to increase my skill set at the skill of being a ba good basketball player." And then in turn, what's the side effect of being a really good basketball player?
You can potentially make money and a lot of money from it. So, how does this correlate to trading? So, every single one of you guys like, why are you guys getting into trading? Why did I get into trading in the first place? It was to make money. Everybody wants to make money and unfortunately trading is very strongly and very closely correlated to making money. The biggest issue with this is that that causes us to take incorrect action when we get onto the charts.
Because if I get on to the day trading charts and I'm thinking all I want to do today is to make money, that can lead me to take a plethora of actions that are going to be detrimental to my account balance, to the funded account that I'm trading on to cause me to potentially lose money. So, if I get into the market and I'm sitting there and I'm thinking I want to make money today, um, you know, I'm going to press buy right when market opens off of some sort of fear of missing out because I want to make money, right?
How do I make money? I'm going to leverage my entire account. I'm going to put my entire account on the line and I'm going to press either buy or sell. And that has the potential to make me money. But is that what we should be doing? No. We need to be going into trading with a strategy. We need to be taking trades based off of price action, based on the candlestick charts. And that's what this entire series is going to teach you guys what to do.
So, in turn, when we get into the market, and if we're thinking, hey, I'm only here to make money. That's going to cause us to take multiple trades that we shouldn't be taking. It's going to cause us to risk more than we should be risking. And in turn, it's going to lead us to a reward or consequence that we do not desire, which is actually losing money and not being able to predict where price wants to go. And that's actually what trading is about.
How do we make money from trading? Well, we have to get good at the skill set of trading. So, what is trading? What is day trading? Day trading is having the ability to predict where price on any sort of asset class is going to go with a high probability on a daily basis. That is how you become a skilled day trader. And the best side effect in the entire world of gaining that skill set is making money. So when we get onto the charts, are we thinking I want to make money today?
No, because that's going to lead us to take poor action. However, if we get onto the charts and we think, how can I predict where price is going to go with a high probability today? That's going to cause us to take much safer, much calmer action, and in turn, it's going to lead us to a desirable result, which is potentially being a profitable trader. Okay. So, how do we predict where price wants to go with a high probability?
Well, that's what I'm going to teach you throughout this entire YouTube series of how we can use different confluences, build a strategy that gives us high probability of predicting where price wants to go and then to be able to do it on a daily basis, to be able to execute this strategy, to be able to predict when one thing happens and where price is going to go following that. That is what trading is. Trading is about being able to predict price action with a high probability on a daily basis.
Okay? And that's all trading is. We have to get really freaking good at predicting where price wants to go. We we aren't trying to get good that that's the thing with everything every successful person, every single skill set in the world. People say, "Yeah, that dude's really good at making money." No, he just has a lot of skills. That dude's really good that like, think about it. The best best basketball players in the world, they're really good at making money.
But why are they good at making money? because they're the best at their skill. The best day traders in the world, they're really good at making money. Why? Because they're the best at their skill. You think about the best artists in the world making a [ __ ] ton of money or most of them are dead. So, that's kind of a bad example. Um, but you think about any other skill set, somebody who's the best at something in the entire world.
I mean, depending on what category that skill set is in, they're going to be able to maximize it and they're going to be able to monetize it and they're going to be able to make a lot of money compared to everybody else in their field. You know, the the worst basketball players in the world, are they making are they making any money? Not through basketball. They're not. Okay. So, that's how we need to be thinking about trading. when we're thinking about trading, we're we we I need you guys like write this down in your notebook, whatever it is, you guys need to get it through your head that day trading is not I repeat, it is not about making money.
So, when you guys are going through this YouTube series, you guys need to remove the thought process of, okay, by me learning this confluence, is this going to help me make money today? No, it's not. But what is it going to help you do? What are all of these videos going to help you with in your trading? They are going to help you build your skill set as a trader. And in turn, if you guys can become a skilled trader, if you guys can build the skill set of being a being able being able to predict price action with a high prob jeez, being able to predict price action with a high probability on a daily basis.
The awesome side effect of having that skill set is the ability the ability to make money from the markets and that and and that that's how we need to be thinking about trading. And it's very very difficult to remove that from your headsp space because that's why you guys clicked on this series. You guys are trying to change your life. How what do you guys think about changing your life? It's boom life-changing money.
How can we change our life? Money is a tool. Money is energy. Money helps us do things. Money can help us get places that we want to be. Okay? It gives us leverage, but we are unable to make money with no skills. The only way to be able to get to the money is by building skills that help us get there, that help us create and generate wealth. And that's what I want to do within this YouTube series. But you guys have to ship.
I I can promise you literally without a doubt in my mind that if you guys go into the markets thinking I want to make money today or how can I make money today, you will never be a profitable trader. No matter what, if you as you guys have that headsp space, if you guys keep that mindset throughout your entire trading career, you will never make money from the markets ever, ever, ever, ever, ever, you will never be a net positive day trader.
You guys have to remove the mental attachment that you guys have from money in order to find success within day trading. That's the only way that you guys are going to be able to make this happen. Okay? And by doing that, it's going to help you guys one, not be focused on making money so early because again, this is a skill set. This is difficult to learn. I would be lying to you if I told you guys that. Yep. right after you guys go through this entire YouTube series, you guys are going to be freaking millionaires.
No, that's not the case. Like I said on day one, this is a 50/50 transaction. You I'm making these videos for you. I'm going to show up every single day. It's up to you guys to watch the videos, but then also up to you guys to take action on these videos. If you guys aren't taking action on these videos, then you're going to go nowhere. You guys, I'm providing you with the knowledge and the education to help you guys build the skill set in the best way possible, but it's up to you guys to take action to actually start building the skill itself.
Cuz I can't do the work for you. You can. And that's really what I want to focus today's video on is just removing the mental and the emotional attachment from money. And the second that we remove the emotional and the mental attachment from money within trading, the second that it's it's just okay, I don't care if I lose a trade. Why? Because first of all, you guys should be trading on a demo account. You guys are learning how to trade.
You guys should be trading on an account that isn't real money. That's how you guys can build the skill set. Okay? So, when you guys lose, you don't care because first of all, you're not actually losing real money. And then also you're actually happy that you're that you lost because that's a lesson and that's room for growth. That's room for improvement and that gets you closer towards what our actual end goal is with trading is to be very highly proficient about predicting where price wants to go with a high probability on a daily basis.
You guys are going to hear me repeat that over and over and over again throughout this entire series because that is what trading is. That's why the title of the video is like this. What is trading? It's predicting where price wants to go with a high probability on a daily basis or at least that is what a high-skilled trader does. They do not make money. Making money is a side effect of the skill set that they have. So our goal with this entire series and with learning these confluences, learning the strategy, reinforcing our psychological discipline and learning the riskmanagement strategy that we've built out, it helps us get better at the skill set of day trading and not get better at making money.
Okay? There's no such thing as as being good at making money. Somebody that's good at making money just has a lot of skills. Okay? Okay. And if you're bad at making money, you have no skills. So again, we need to be thinking if we lose a trade, are we sad? Are we mad? Are we disappointed? No. We should be happy because that's a lesson learned. That's a mistake that we can never that we can try and never make again. And then what is that going to cause us to do?
It's going to cause us to grow and it's going to cause us to build that skill set of trading. Okay. So, when you guys win, what are you going to do? Are you going to be happy because you made money? No. You shouldn't be you shouldn't be happy about it. I mean, granted, you can you can pat yourself on the back, but what you shouldn't be focused on the money. You should be looking at what did I do correctly on this trade.
Why? Because our focus is not to make money. Our focus is how can I repeat that winning trade? How can I replicate that? So, I'm going to look back at my trading journal and I'm going to say, "Okay, what are all the things that I did correctly so that I can do this again?" Because what does that help me do? It helps me become more proficient at predicting where price wants to go on a daily basis. If I'm able to predict where price wants to go on one day, I'm going to analyze the [ __ ] out of that trade.
I'm going to look through my trading journal and I'm going to say, "How can I do this again tomorrow?" You want to analyze your wins, analyze your losses. Losses are lessons. Mistakes are lessons that ideally you never make again and that is going to cause growth. You look at the wins. You look at the the pros that you guys have. Okay? You look at the good thing that the good things that you guys have done within the market and then you replicate it.
You do more of the good, less of the bad. That is how growth happens. That's how we build skills. Now, just like with any skill, after learning these confluences, are you guys going to be marking them out correctly? No. That's like giving me a piano and setting in front of me. I've never played piano in my entire life and telling me, "Hey, play this Beethoven piece and putting a freaking sheet in front of me and I'm just going to be clanking away at the keyboard." And I'm going to absolutely suck.
But then, let's say I watch a YouTube video on how to play piano. It's a beginner beginners whatever YouTube video. And I say, "Okay, now I know a couple notes." the next day that I go and attempt playing Beethoven's thing. I'm still going to suck and I'm not going to do it correctly, but hey, at least I know a couple notes and at least I I'm I'm I'm better than I was yesterday. And then I keep learning. I keep watching YouTube videos.
I keep practicing. I keep practicing. I keep practicing. I keep failing. I keep failing. I do less of the fail. I do more of the good. I keep working and I keep working on my skill set. And then eventually I am going to be good at playing piano. It's the same thing with trading. It's the same thing with basketball, okay? LeBron James didn't wake up and just become the best basketball player overnight, okay? It was a lot of hours in the gym.
It was a lot of like it it was just literally like putting in more work than anybody else. Just putting in putting in significant significant amounts of work. Obviously, he's the goat. He's got some nice genetics attached to his body. But with trading, trading, trading, oh man, trading truly is a skill-based game. There's no genetics involved. There's nothing involved. It truly is who can put in more work and who can put in the most amount of work to the point where it is unreasonable for them to not be a skilled trader.
That's how you guys should be thinking about this. That's how you guys should be thinking about this series is how can I watch these videos and then how can I put in so much work to the point where if I don't become an to the point where me becoming a profitable trader or me staying unprofitable is very unreasonable to happen. you need to be putting in so much work to the point where you guys becoming a profitable trader should be expected.
Like I know that's how it felt for me where it's like dude I've been I put in years of work, hours of chart time. So the time that I turn like when when I turned profitable I wasn't like jumping for joy. I wasn't excited. I was just thinking it's about damn time because I've been doing all of this work and I just knew that it was going to happen. Like you guys see all the freaking YouTube plaques up behind me, you know, and this is this is something else.
Like I I think about my growth on social media and when I hit 100,000 subscribers, I wasn't excited. I was like, I I I already knew that was going to happen. When I got my million million subscriber plaque, I was like, you know, this is great and I really appreciate the love and the support that I get from my followers. But for me as a personal accomplishment, did did I feel anything about that? Hell no. Because I knew it was going to happen because of the unreason because of all the [ __ ] work that I put in.
I I knew that I was going to get that plaque because I was putting in the work required to get there. And that that's exactly how you guys should be thinking about trading where it's like the the work that you guys are putting in on a daily basis needs to be like if if you guys are looking at your end goal of becoming a profitable trader or making money from trading. It's not a matter of like oh I'm I'm like so excited to become profitable.
It's like uh I just I know that I'm going to be a profitable trader and it's just only due time with the amount of work that I'm putting in. So that's what I wanted to talk about in today's video is reshaping the way that you guys think about one making money, two going about trading because I know for a fact I mean bro I was a victim of it too and victim of it for a long time until I actually got through my head like hey day trading is about predicting predicting these charts not about you know trying to make $500 every single day you know not not everybody can have a green day every single day. there's losses that are involved with this.
So the second that you just disassociate trading the direct correlation and that's the super unfortunate thing with trading. It's like hey you either made money today or you lost money today and there's just a direct correlation versus like any other business. You know LeBron has a bad basketball game. Does that immediately mean he's going to make he's he's he's going to make less money? No. He just had a bad game. He could have a hundred good games and then one bad game.
Does that make him a bad basketball player? Hell no. And it's the same thing with trading. We can have a 100 green days and then one red day. But if we dwell on the red day and say, "I should have made money today and oh, trading is all about making money." Then on that red day, I [ __ ] up and I'm no longer a good trader. So, we need to start start disassociating trading and the skill of trading with making money itself.
And it's more focused on, hey, what's my win rate? How often am I winning compared to losing? because that's showing a direct correlation to the skill set of trading. What what's my risk-to-reward? How much am I risking compared to what I'm winning on a on on a on a trade-to-rade basis? Okay. And then risk-to-reward and win rate combined together, that's going to spit out whether you're a profitable trader or not, or realistically whether you are a skilled trader or not.
And that's what I'm going to I'm going to show you guys kind of how we can break down mathematically with data, how we can look at some of these online trade journals where we can input and feed in all of our broker statistics in there and it can spit out what our win rate is, what our risk-to-reward is, how we can optimize risk management based off of those numbers. We're going to get super super down into like the nitty-gritty of stuff like that and like show you guys what percentage win rate you need uh and what risk-to-reward you need in order to be considered like a profitable trader or actually to be making money consistently from the market.
We're going to get into all of that, but the first thing that we need to do is we need to separate the emotional and the mental attachment that we have to money. And um once we do that, that's when the game actually begins. Because instead of thinking I want to make money today, it's I want to get better at trading today. And that is our first step in the right direction to learning the skill set of trading. So with that being said, I love and appreciate you guys.
We'll get into some actual trading stuff tomorrow. Peace. What's good, boys? Welcome to the beginner side of things. This is going to be an introduction to Trading View. How to read a candlestick chart. So, we're going to be going over how to understand candlestick anatomy, how to identify highs and lows in the markets, and then how to identify trends in the markets. And then from this we will start delving into kind of what most people are going to want to be a part of this series for which is liquidity explained, fair value gaps explained, advanced liquidity concepts, inverse fair value gaps, advanced imbalance concepts, [ __ ] SMT divergences, time theory, all of this stuff that actually helps us become full-time traders and actually helps us get good at trading.
And if you guys remember yesterday's episode, what is trading? is being able to predict where price wants to go with a high probability on a daily basis. So, in order to do that, we need to actually see price. Okay, there's two different types of traders, and I'll preface this before we get into looking at the chart. This is just super quick. There's two different types of traders. There's technical analysis traders, which is what I am.
Okay, I do the majority of my trading purely based off of what the chart is telling me. So, what price is telling me? And then there's fundamental analysis traders. Okay, these are people who very rarely actually are looking at the chart and are more so looking at the news. So, there's several good examples of this, but somebody like Warren Buffett, for example, he's doing his investing off of just the global news or the news around the company, you know, he's reading earnings reports, all that stuff.
He's not necessarily focused on like, hey, this candlestick closed this way and then this candlestick closed this way. So, I'm going to look to invest right now. He doesn't do any of that, okay? He focuses on the fundamental, the big macroeconomic side of things. Um, and again, he's more of a long-term, you couldn't even call him like a swing trader. He's just like an investor, you know, like buy and hold, you know, hopefully that you're you're right over the long long period of time.
Um, but for us, we are actively trading price, right? That's how I explain what trading is. That's what day traders do. We are just trying to buy low, sell high, sell high, buy back low, right? And that's how we're going to make money. Obviously, there's going to be mistakes involved, but in order for us to do this, we have to be able to see price. And this gets us to Trading View. Okay? So, this is the first time that you guys are going to be looking at a chart.
What I want you guys to do, whether it's during this video or after this video, whatever, you guys can follow along with me. You guys are going to go to tradingview.com. This is the o I mean the only kind of charting platform that I would use for active live charting. Okay, there's a couple back testing softwares that we'll get into much much later down the line in this series to help you guys practice this skill set.
But in terms of live trading and reading the live market, Trading View by far has the cleanest UI. Everybody in trading uses it. I I literally don't know anybody that is an active day trader that doesn't look at Trading View charts. So, when you guys go to tradingview.com, this it it's not super overwhelming. You'll see a get started for free tab right here. Um I'm going to click this and then all my information is going to pop up.
So, I'm just going to put my face back over the screen real quick and then click on this. But essentially, before we before we do that, you can see that you can do you can get started for free. So, I have a premium version of Trading View, but that's literally just so that I can have multiple indicators on um on my chart, and we'll get into the indicators that I use later down the line once we get through all the confluences.
Um I personally don't use any indicators to actually take trades. Um but I use indicators to help me mark out my confluences. Uh but that's besides the point for you guys getting started. The awesome thing about Trading View, you guys can get started for free. So, you guys are going to click get started for free. I'll do the same on my end. All my Okay, awesome. My information hasn't popped up yet. You'll get something like this that shows up.
Okay. And it says free until you're ready. So, you can literally do boom. $0 forever. Sign up. No credit card needed. Um I'm pretty sure for me, I'm on one of these plans. Like I think I'm on the plus or the premium plan. Like I said, you know, I I'm doing this full-time. You guys definitely do not need to be purchasing the premium plan. You guys just go ahead and sign up for free. So, you guys are going to click that, sign up for free, and then this is where all my information pops up.
So, I'm just going to put in just so I can get a like base trading view layout. Okay, awesome. Oh, oops. I signed into my actual account. Let me sign back out. Sign back in. [clears throat] Let's do this account. This account should have nothing lit. Okay, cool. So, once you're signed in, it'll look something like this. Okay, again, pretty overwhelming, but what you guys are going to do, you're going to click on Trading View home, and then from there, there's going to be something that says launch super charts.
So that's what we want to do. We're going to have a watch list full of a bunch of stuff on the on the lefth hand side. We have indexes. We have forex. We got commodities. We got Bitcoin. To the right hand side. This can be super daunting. This can be super scary. But don't worry, we're going to clean this up for you guys. All that you guys are going to do is you're going to click launch super charts. Then that's going to take you guys into something that looks like this.
Now mine my chart I actually have already programmed this to make it look this way. So I want to see if I can reset this to the base. So your guys's will be looking something like this. Okay. And you guys will also probably have some graphs on the back. You guys will have something like this. You guys will have Yeah, this is pretty approximately what your guys' chart will look like. Again, very overwhelming, overstimulating.
So, you're going to do exactly what I did, and we're going to reformat these chart colors. Me personally, I do not like having green and red candlesticks on my chart. So, if we look at what my actual chart looks like, it looks like this, right? And if we go to the chart settings, you guys can do one of two things. You guys can copy my settings if you guys want to use the same candlestick colors as me. But I like to avoid using the green and the red candlesticks for one reason.
It's because it actually the colors of green and red negatively affect our psychology when we're trading. Like we talked about yesterday, we need to find ways to be able to disassociate our ourselves and our mental from the connection to money. And unfortunately on trading, a green candle, what do we associate that with? Making money. A red candle, what do we associate that with? Losing money. Even though we're going to be taking long positions, so buy positions predicting that the market's going to go up and sell positions, short positions predicting that the market's going to go down.
Regardless, we are the the colors green and red are just known psychologically to affect how we think about money. And in turn, that's not good for us psychology psychology-wise. So, I use pretty neutral colors. I use blue and black. Um, I know there's some people that will do like white and black and then change the background to something like a gray. Um, you guys can choose whatever colors you guys want. Okay, this is how I have mine set up.
I have blue and then black all the way through. And then on the back, I have just a solid white, no grid lines. This is what my crosshair looks like. Really, everything else is kind of not really needed. But what I also want you guys to do is notice right here where it says time zone. Okay, we are going to set our time zone to New York time. Even if you guys are in Africa, if you guys are in Brazil, if you guys are in California, we need to be on Eastern time.
Our brains, everything just need to need to needs to be programmed to e Eastern time. Well, you're probably saying, "Well, I live in Africa and I don't live on Eastern time." Well, the market lives on Eastern time. So, in turn, we have to live on Eastern time. At least our charts have to live on Eastern time. Because when we're explaining market open, I'm going to say, "Hey, market opens at 9:30." 9:30 a.m. Eastern time.
For me, living in Puerto Rico, market opens at 10:30 a.m. Eastern. Saying Eastern time, cuz my head is so like lock just built to be on Eastern time. But for me, market opens at 10:30 a.m. Puerto Rico time. But on the charts, market opens at 9:30 a.m. Eastern time. And we just need to be on the same time time zone or time frame as the market because when we're explaining session opens, session closes, like when does the New York Stock Exchange open, when does pre-market open, I don't want you guys to be on Sa Paulo time, okay?
And me saying, "Hey, market opens at 9:30." and for you guys to be putting a line at market open, but you're on Sa Paulo time and I'm on New York time and you're like, "Hey, the strategy doesn't work." And it's like, "Well, yeah, because you're you're you're 3 hours behind or you're 2 hours behind." So, we need to set this to New York time. All right. And once we've done that, okay, we're going to have Let's reset this and let's remove this.
Okay. We're going to have something that looks like this. Now, again, this can be very daunting and I don't really want to talk like about how do we even figure out where the [ __ ] price price is going to go off of this. We're going to we're going to learn that in due time over the course of these next two weeks. Okay? We're going to be figuring out like, hey, price comes up, took out this high, and then went down. Why did that happen?
I could explain that all to you right now, but it would be a little bit confusing. So, we're not going to talk about that right now. We're going to talk about what do each one of these candles represent? How can we identify highs and lows in the market? And then how can we identify trends in the market? Because that's the first thing that we need to do. It's the bare minimum because on these charts, every every single one of these charts, no matter what what time frame you're on, whether you're on the daily time frame, the weekly time frame, the hourly time frame, these candlesticks make up and show us every single second of price movement throughout the day, throughout the hour, throughout every single 5 minutes.
And if you guys are unable to understand the cand the Japanese candlestick anatomy, okay, then we it's like we're not even going to be able to go anywhere. Okay, that's another thing. There's a bunch of different ways to read these charts. Okay, there's bar there's bar candles, there's hollow candles, there's volume candles, there's line charts, there's step line charts, there's columns, there's high lows, there's volume footprint, all of this stuff.
There's hyenashi candles. There's Renko candles. Okay, all of these different types of candlesticks. But for us to be able to read the market, Japanese candlesticks are by far the most valuable because they tell us four different things about every single time frame. So, what we're going to do is I'm going to draw out a candlestick for us here. This is going to be a green candle. Okay. So this is what this is what an up candle looks like.
Okay? And this is what a down candle looks like. Now Japanese candlesticks tell us four different things about what h about what happened during during this period of time. So, every single candlestick represents a period of time, depending on what time frame we're on, and I'll explain that a little bit later, but every single candlestick represents a period of time where price went during that time, where price opened, and where price closed.
So, we'll go over time frames right now. If we go up to this left-hand side up here, we can see that there's a bunch of different time frames. Okay, there's the 1 second, there's the 5-second, there's the 1 minute, there's the 5 minute, there's the 1 hour, there's the 1 day, there's the one week, there's the one month. Okay, whatever time frame we click on. Okay, so right now we're on the daily time frame. That represents the period of time that every single one of these candles represents.
So right now we are on the 1 day time frame. That means every single one of these candles represents 24 hours worth of price action and price movement. Now, what are the four key price points that these candles tell us about what price did within the 24 hours of the time frame that we're on the bottom of a green candle of so this right here we see the filledin this is what we call the body of the candle. Okay. So from this line up to this line, this is what we call the body of the candlestick.
And these little lines, these are like snail trails. Okay? So imagine you're a snail. You got a leaky butt. Okay? You got like booger booger semen serum coming out of your butt and you scooted your butt all the way up here and then you came back down. There's going to be a little snail trail showing on the mud or on whatever the concrete that hey, there was a leaky butt snail that went all the way up here at some point in time.
Same thing with this wick down here. Okay, leaky butt snail at some point in time during pretty much candles are leaky butt snails essentially, but specifically the wicks. Okay. So, at some point in time during this 24 hours, Leaky Butt snail went all the way down here and said, "Oh, I'm going to turn around and left a little snail trail on the concrete showing, hey, there was a there was a snail with a leaky butt that went down here at some point in time." And that's essentially what it's showing us with price.
Okay, price has a leaky butt. Like, uh, if like wherever price goes, this candle is going to show it. Okay, so the bottom of the body. Okay, so again, from here up to here is the body of the candle. This is the top wick. This is the bottom wick. The bottom of the body of the candle is the candle open. The top of the body of the candle is the close. The top of the top wick is the high and the bottom of the bottom wick is the low.
So again, this can be a little bit confusing. So let's walk through it. We are on the daily time frame. So that means every single 24 hours, a new candle opens. Okay? So let's say boom, 24 hours is up. Or let's say this this candle just closed. When this candle opened, it opened at this price right here. So if we look to the right hand side, we can see the price at which it opened. $30,241.50. That's where this candle opened.
And over the course of the 24 hours, price came down. This was the lowest point that it got to during the 24 hours. So, $29,777.50. And then also at some point in time during that 24 hours, price came up to this high, which is at $32,227. And then at the end of the 24 hours, where did price close at? It closed right here. So at the start of the 24 hours, where was price at? Right here. Sometime during the 24 hours, the lowest point of the 24 hours 24 hours it got to was $29,714.
The highest point that it got to during those 24 hours was $32,214. And then at the end of the 24 hours, it ended right here. So this was the start of the 24 hours. This was the lowest point that price got to during the 24 hours. This was the highest point price got to during the 24 hours. And then at the end of the 24 hours, price closed right here. Now for a down candle, it's the exact same except this up here is the open, right?
Because over the course of 24 hours, if we open at a high price and we close at a lower price, what's what's that going to make this candle? It's going to make it red and it's going to be a down candle. So on a down candle, this is the open. This is still the highest point that price got to during the 24 hours. This is the lowest point that price got to during the 24 hours. And then once the 24 hours was up, this is where price was and ended up closing.
So we can see on a bullish candle. Boom. We can even show you guys in real time markets right now. So this is another nice thing about trading view. If you look to the right hand side, you can see the time that is left for this candle to close. So this candle is still forming. So let's do a little lesson right here. Where was the open of this candle? This is a down candle, right? So the open was right here where the body is, where the body starts at $25,478.
Where was the highest point that prices got to within the past 19 hours and 30 minutes that this candle has been open? Right? Because it hasn't been a full 24 hours yet, or else this candle would be closed and wouldn't still be forming. The highest point that this candle has gotten to, look at this snail trail. Oh, price came all the way up here to $25,86. And throughout the 19 hours and 30 minutes, where was the lowest point that price has gotten to? right here, the bottom of the wick at $25,294.
And right now, at this point in time, where is price currently? Well, we can see it on the right hand side. It's at $25,391.50. So, each one of these candlesticks represents a day's worth of price action. So, we can look at yesterday. Where was the high? Where was the highest point that yesterday got to over the course of 24 hours? Right here at $25,716. Where was the open? The open was right here. So price opened at $25,683 at the start of that 24h hour time period.
Where was the lowest point that price went to during that 24h hour time period? Down here at $25,429. And then at the end of the 24h hour time period, where did price close? It closed down here at $25,456. This gives us a very good look again, as we were just explaining, of what price did throughout 24 hours. Now, let's say we want an even closer look. We can just go down into a lower time frame. So instead of looking at things on a [snorts] 24-hour scale, we can look at things on a 4hour scale.
Now by me changing the time frame, what does that do? Now instead of every single candlestick representing a day's worth or 24 hours worth of price action, now every single one of these candles represents 4 hours worth of price action. So now with that in mind, we can say, all right, we we know that every single one of these candlesticks represents four hours of price action. And then on the right hand side, what can we see about this current candlestick?
Well, when did it open? It opened around 2 hours and 30 minutes ago. Okay, because it's it has an hour and 25 minutes left for it to close. If we look at the candlestick beforehand during this 4hour time period, where was the highest point that this that price went during this 4 hour time period up to here? Where was the lowest point that it went to during this 4 hour time per period? Down here. And if we zoom in real freaking close, where did price open?
This is a bullish candlestick or an up candle. It opened right here, right? Because it closed up. It's a blue candle. So, we know that it opened lower and then closed higher. So, it opened at $25,730 and then where did it close? Right here. So, during the 4 hour time time period, it opened right here. During the 4 hours, it got all the way down here. And then also during the 4 hours, it came all the way up here. But at the end of the 4 hours, it closed right here.
What happens if we scale down to the 1 hour time frame? Now we can see if we go to the 1 hour time frame, we can see that 4hour candlestick instead of just in one candlestick, we can see it in four candlesticks. So we can see that that 4hour candlestick opened on this hourly candlestick and then there's one candle, two candle, three candle, four candles. So every single one of these candles, it's showing us the same price movements, but now we're on the hourly time frame.
So we can see even a deeper look of okay, we know exactly what price did during that during those four hours. But what if what if we want to see what price did during every single hour within those 4 hours? Well, now we can. We can say, okay, price opened right here during the first hour of those 4 hours. The highest point that it got during that first hour was up here. The lowest point that it got to was right here.
And then after the hour was up, it closed right here. And we can get even lower. We can see, okay, over the course of that hour, we can see during 15 minutes. Okay, so now we have four candles that are showing us 15minut time intervals that happened during at that hour that we we were just breaking down. And you can go as low as possible. You can see 5 minutes. You can see 1 minute. Okay, where every single one of these candles is showing 1 minute's worth of price movement.
And it's all showing us the same thing. So on the one the one minute, okay, if we look at this this 1 minute chart, there's no difference in the price movement besides the number of candles that are on the screen, right? Right? Cuz if we scale this back to the 5minut, we're still seeing the same price movement but just on bigger candles because they're representing larger times. If we scale back to the hour, it's still showing us the same time movement just bigger candles because each candle is representing a larger period of time.
And then if we scale all the way back to the daily time frame, we can see one day's worth of price action encapsulated in one candle. I'm going to get in deeper as this series goes on on what time frames are going to be beneficial for us, what time frames we want to be looking at, all of that stuff. But I don't want you guys to get overwhelmed today. I know when I was watching my first video explaining candlestick anatomy and time time frames like I was freaking out.
All you guys are probably freaking out right now. Don't worry. Take a deep breath. It's all going to be okay. you're going to understand this very soon. Um, there's no reason to get overwhelmed just yet. Okay? Just yet. Just yet. There's no reason to get overwhelmed because I know you guys are probably thinking, "How the [ __ ] am I supposed to remember all of this?" Trust me, eventually it's going to become second nature.
Just like basketball. Like, you learn how to dribble a basketball, you're bouncing it off your foot, you're hitting it off your knee, and you got to look down to make sure that you're dribbling it correctly. But eventually, once you get good, you're not even you're not even looking, and it's just second nature. You put the ball on the ground and you know exactly where it's going to come back up to your hand. You're hitting it between the legs and you don't have to look down at the ball.
Like you're able to do all these moves like subconsciously without even having to think about it. So that's that's eventually where you guys are going to get to. Don't worry. Right now this seems super overwhelming, but don't worry. We we are going to help you guys progress and get you to where you need to be. Now let's talk about now that we understand candlestick anatomy and a little bit about time frames we are going to talk about highs and lows in the market.
Now we need to understand highs and lows in the market because this is going to be very key in our strategy and understanding where price wants to go and being able to predict price action with a high probability on a daily basis to make us good traders. We also need to understand trends, okay? And order flow. All right? [snorts] So, I know all that those things sound daunting and sound um scary. They're really not. It's very very simple.
I'm going to explain to you guys highs and lows right now. So let's just think if you guys think about a high and a low typically what does if if we if we were to make if you were to just imagine what does a high consist of? Well, is it just constant moves up forever and always? Well, not not really because in order to establish a high, what do we need? We need we need I mean not price but really anything to give us a peak, right?
And it's the same thing with trading. So we can't just move up forever and always. There's always going to be a move up and then eventually followed by a move down. And following the move down, that's when we create these peaks and those are highs. Okay? And then if we think about a low in the market, it's the same thing. We can't just move down forever and always. Eventually, we are going to get a move up and then this looks like a low.
This doesn't look like a low, right? Because it's like where where's the low? Where does where does it end with a move up? That's all it is. Highs and lows consists of move ups, moves up or a high, we'll do high first. A high consists of a move up followed by a move down. A low consists of a move down followed by a move up. Okay, pretty simple concept, right? It's just a high is a move up followed by a move down. A low is a move down followed by a move up.
Congratulations. You guys know what highs and lows are in the market. I know. I know. Probably the most difficult thing you've ever learned. This is this is this learning this is going to help you make more money than your college educa education will ever be able to get you. Believe it or not, move up then a move down that's a high. Move down then a move up that's a low. Now why is this important? Because highs and lows make up trends in the market.
Now this is important as well because trends are what move the market, right? There's uptrends, there's downtrends, and then there's consolidation. Okay, so we're going to talk about three different ways that the market can and is able to move. And it sounds dumb, but it's I mean, it's true. Okay, the market can move up or down. Crazy, right? Or sideways. Okay. And there's three different ways to identify whether we're move or sorry, there's ways to identify whether we're moving up, whether we're moving down, or whether we're moving sideways.
And the way that we identify that is through being able to identify highs and lows in the market. Like I was just mentioning, a high and a low consists of a move up, then a move down. A low consists of a move down, then a move up. Well, how are we supposed to identify a move down then and a move up? Well, awesome. We just learned about candlesticks. So, what does that mean? Well, we need an up candle followed by a down candle to create a high.
We need a down candle followed by an up candle to create a low. Let's go on here and let's look for them. We have an up candle followed by a down candle. That's a high. We have a down candle followed by an up candle. Awesome. You take the lowest point of those two candlesticks. So, whichever wicks wick is lower, boom, this is a low. We have an up candle followed by a down candle. We take the highest point of those two candlesticks.
So, this is the highest point that this candlestick got to, but this is the highest point that this candlestick got to. So, this is our high. Again, I don't want you guys to get overwhelmed, but what I want you guys to do is to be on your trading view and mark out five different examples of a high and five different examples of a low. So, we have a move up, then a move down. What do we do? We mark the highest point of those two candles.
Which one has the higher wick? This first candle does. Awesome. This is our high. We have a move down, then a move up. Lowest point of those two candlesticks. Boom. This is a low. Now, to be able to identify trends in the market, now that we know how to identify highs and lows in the market, we need to be able to identify a series of highs and lows that form a pattern in the market. So, how do we know when the market is moving up? the market will form something called an uptrend which consists of higher highs being created and higher lows being created in the market.
So, when we're moving up, the market will form an uptrend. And an uptrend looks like this, where we come up, we make a high, and then we come down and we make a low. And then we come up, make a higher high, come down, make a higher low, come up, make a higher high, come down, make a higher low, higher high, higher low. Notice how this is this is the high, and then market comes up, it makes a higher high. This is the low. market comes up and makes a higher low.
This is an uptrend, right? If we look at the S&P 500 over the course of months, right? We can see that this follows a pretty pretty strict pattern of an uptrend, right? That's why everybody invests in the S&P 500, right? We can see a low right here. We can see a high right here. We can see a low right here. What is this? Low. Higher low. High. Higher high. Higher low. Higher high. Higher low. Higher high. Higher low.
We had the COVID move down, but that's we'll we'll talk about what this is on a later date. Higher high, higher high, higher low, higher high, higher low, higher high. Okay. So the S&P 500 is just forever and always, at least on the high time frames, in an uptrend. That's why a lot of people invest their money into it because over the course of a long period of time, it just keeps going up. Okay, now that's an uptrend.
That's when price is moving up. Okay, we know that price is making higher highs and higher lows in the market. Now, what happens when price is moving down? Well, it's the same thing. When price is trending down, we are making lower highs and lower lows in the market. So, if we're moving down, we make a low, then we make a high, then we make a lower low, then we make a lower high, then we make a lower low, then we make a lower high.
So, there's a low, there's a high, lower low, lower high, lower low, lower high, lower low, lower high. And that is a downtrend. That's how we can spot the market moving down. Now, if we look here, let me try and find a good example of a downtrend. And this is decent. It's good enough at least. Okay. Don't look at any of this on this side because we'll we'll get into like how we can actually decipher all the price movements and break of structure and how new trends form.
But right now, I just want us to be able to spot trends. We have a high right here, move up and a move down. We have a low right here. Move down. Then a move up. What do we go do? We come down. We make a lower low. Move down. Then a move up. We come up. We make a lower high. Move up. Then a move down. Come down. Make a lower low. Move down. Then a move up. Come up. Make a lower high. Move up. Then a move down. Come down.
Make a lower low. Move down. Then a move up. Come up. Make a lower high. Move up. Then a move down. And right now we are in the process of putting in a lower low. So this is a very distinct, very easy to tell that we are in a downtrend because we have a high, we have a low, we come down, we make a lower low, we make a lower high, we make a lower low, make a lower high, make a lower low, make a lower high, make a lower, even lower low.
And this is how we can identify trends. Now, trading is not as simple as saying, hey, we're in an uptrend. I'm just going to blindly press buy. Because trends can break. Trends can change. Okay? Just because we're in a downtrend doesn't mean, hey, I'm going to press sell right now because we're in a downtrend and price is probably going to go lower. That's not the case. But in order to predict where price wants to go with a high consistency and a high probability on a daily basis, cuz that's what we're here to do, we need to be able to identify these market trends and be able to at least see them on the chart and be able to understand them.
Okay, so we learned a lot today. Um, I kind of want to end this video here. Um, but you guys have homework. So, what I want you guys to do is first of all, obviously, set up your guys' Trading View account. Choose some chart colors that you enjoy. Make sure that it's set to New York time because that's how we're going to be operating for the rest of the series. Regardless of if you live in Africa, regardless of if you live in Mexico, you need to be on New York time.
You need to start programming your brain. Hey, if I want to be an actual day trader, then I need to be on New York time. I need to be on ESD. Okay, at least your charts do bare minimum. Okay, the second thing that I need you guys to do is once you guys set get set up on Trading View, I want you guys to just literally just play around with these time frames. So rotate from like the 4 hour to the 1 hour and see, okay, yeah, there's four 1 hour candles that encapsulate a 4hour candle and identify, practice identifying the open, close, the open, high, low, and close of every single candlestick and being good at identifying that.
The next thing that I want you guys to do, do like five reps, if even more is even better. Okay? you know, like the more the more work and the more effort that you guys put in, it's going to be better for you guys. What what else I would like you guys to do is I would want you guys to identify five highs in the market. So, five up candlesticks followed by a down candlestick and finding the highest point of those candlesticks together.
Five lows in the market. So, move down then a move up. Okay, find the lowest point of those two candlesticks. Identify five uptrends. So, a series of higher highs and higher lows being formed in the market. I want you guys to spot five downtrends, so a series of lower highs and lower lows in the market. And then from there, we can go into tomorrow's video. So, with that being said, love and appreciate you guys. Today was rather beginner friendly, but as we start getting deeper into the series, we are going to start getting into very, very advanced stuff.
So again, if you guys are brand new, take your time. Don't feel rushed because we're going to very quickly start speeding things up. If you guys are advanced, again, you guys probably didn't need this video, but it's always good for a little reminder. And yeah, I'll see you guys tomorrow. liquidy explained. Num nuts, welcome to finally when we can actually start talking about fun stuff. Holy [ __ ] the first couple episodes were boring.
We're so freaking boring. You guys know how difficult that [ __ ] is to sit down and talk about candlesticks. Now we can actually get into something beneficial. Liquidity. If you guys don't understand liquidity, then you guys are never going Well, I'm not going to say that because there's a lot of people that make a lot of money from trading from a bunch of different strategies, but liquidity is by far one of the most important concepts for the way that I trade and for the way that the vast majority of a lot of other profitable traders trade.
And if you guys don't understand this concept, then just re-watch this video a 100 freaking times and get it through your brain. Today is going to be liquidity explained. Tomorrow's going to be advanced liquidity explained and then we're going going to keep going into all these other concepts. So, first thing that we need to talk about today is liquidity. What is it? How to identify it? Why it's beneficial? And how we can make money using it.
Okay, let's jump onto the charts. Dude, also this is what I want to do. I realized that I wasn't presenting myself in a in a goodlooking hot manner and I can realize that I can be a bit of an eyes sore sometimes. So, I got ready for you guys today. I dressed up even though I'm spending literally every single day or every single day in my house. I don't go outside. I don't do anything. So, you're thinking TJR's looking good.
I'm doing it for you. Okay, we got computer in front of us. Right hand gripping schlong, left hand lotion. Let's get into liquidity and let's try and make you guys bust with some liquidity. First and foremost, what is liquidity? Okay, what is liquidity? Liquidity is resting orders. Okay, that's all it is. Okay, it's just resting orders on the chart. Now, why is this important? Okay, so the first thing that you guys are going to write down all the beginners.
Okay, what? Jeez, we're glitching. What? What liquid? What liquidity? [clears throat] >> What is liquidity? What liquidity? Where where liquidity? What is liquidity? Resting orders. Okay. And all of you advanced people, you guys are probably going to be like, I already know this. Shut up. Shut up. Shut up. Shut up and trade, [ __ ] Okay, shut your mouth. You guys are going to learn something from this. Okay. What's liquidity?
It's resting orders. Okay. Now, why is this why why is liquidity important to us? Okay. Why do we want to know where resting orders are? Well, in order for the market to move, it needs what? Orders to be filled in order to push the mark in order to be able to push the market in the direction that it wants to go. Because if there's there's no orders getting filled, then the market's just going to go sideways, okay? And not move at all.
Okay? Orders are constantly getting filled while the market's open. Okay? So, why do we want to know where liquidity is? because there's resting orders and at areas of liquidity. I was about to jump forward and give you guys a sneak peek or tell you guys the secret of where liquidity is, but we're not quite there yet. We're going to be there in like 2 seconds. Okay, so now that we know what liquidity is first, okay, we're glitching.
We're glitching. What is liquidity? It's resting orders. Why is that beneficial for us? Because the market needs orders to move. So obviously us as traders we would like to know where these orders are lying because from there again what are we trying to do with trading? We're trying to accurately predict where price wants to go with a high probability on a daily basis. Okay. Once we understand that we know that if we can spot resting orders in the market then we are going to be able to accurately predict where price wants to go.
Because if we if we know where liquidity lies and if we know where orders lies, then we are going to be able to take trades based off of those orders in the direction that those orders are going to push the market. Oo, now we're talking. So liquidity is literally the c the center, the totem pole, the like I don't even know the the better explanation besides it's the goat the goat of confluences. Okay, because this is where everything of our strategy begins.
It begins with liquidity. It begins and it ends with liquidity. Okay, so that's why it's important. Where does liquidity lie? Where are the orders? Where orders? Where where the [ __ ] are they? Let's think about this before before I tell you guys. Let's think about this. What did we learn? When was that? Yesterday. Yes, yesterday. What did we learn yesterday? How to identify trends? How to identify highs and lows? So, if we as traders know that the market moves in higher highs and higher lows and lower highs and lower lows, what can we safely assume?
Okay, we know that when we're forming an uptrend, people are probably going to be pressing by. Okay. And when people are pressing by because the majority of people understand this market structure order, this is like very very beginner stuff. Most people understand the market moves in higher highs and higher lows, lower highs and lower lows. With that understanding, when we're in in an uptrend, most people they notice and identify, hey, when we push above this high, I'm probably going to press buy.
Okay? I'm not telling you guys to do that, but that's what the vast majority of people are thinking. Why are they thinking that? because they're like, "Hey, we're in an uptrend and once we push past this high, that means the uptrend is confirmed and we are going to go up and make a higher high." So, they're pretty much betting on the fact that once we push above this high, we're going to make a higher high and that's how they're going to make their money, right?
From pressing buy above this high and then trying to close somewhere up here. Or regardless, if it comes down a little bit, they're still probably in profit because it doesn't come back underneath this high. That's not what I want you guys to do. And I'll explain a little bit later why that's the case. But a lot of people are pressing buy above highs. Okay. On top of that, when these people press buy, what are they doing?
Well, there's two ways to take a trade. Okay, in these markets, okay, it's by pressing buy and by pressing sell. The goal is to buy low and sell high. Sell high and buy back lower. Okay, there's two different directions, right? You can make money in both ways through day trading. Okay, this isn't like investing where we're only trying to buy low and sell high. We have the opportunity to make money both ways in the market.
Okay? We're switch hitters. Okay? We can put it in the cooch or we can put it in the butt. Doesn't matter. Okay? All fair game around here. Does not matter. We're accepting of both ways. Okay? You can be a switch hitter any day of the week when you're a day trader. Outside of that, we we won't talk about it. Okay? So, when we're pressing buy above highs, what do we want to do? We want to protect our orders by using a stop-loss.
This is a very useful tool. It helps us so that we don't lose a significant amount of money. So if we understand in an uptrend we are making higher highs and higher lows. And if most people are pressing buy after we push above highs in the market, what are they going to do or where are they going to put their stop loss to protect their orders? They are going to put it underneath the low. Why are they going to put it underneath the low?
Because if this is a true uptrend, then ideally we will not put in a lower low and we will actually put in a higher low. So this is our invalidation point or these traders invalidation point. They're going to be pressing buy when we push above a high and then they are going to put their stop loss or their protection point underneath the low because ideally if this is a true uptrend, we push above the high, we're going to make a higher high, putting their trade in profit.
And in turn, if it's a true uptrend, it's going to put in a higher low. And that's why we have the stop loss underneath this low because if it's a true uptrend, then this stop loss shouldn't get hit. And again, it's to protect us just in case market structure wants to shift. If market structure shifts out of this uptrend, then boom, this stop loss gets hit. You lose money on that trade. Now, you're probably saying, TJR, why are you telling me about all of this stuff?
This is boring. This is lame. This is useless. Wrong. This is the most useful information that you guys will ever learn in day trading because we are just doing that method right there. Just going through that exercise. What did we do? We just identified two areas where orders are resting. Oh, yep. Get down there, buddy. Suck me off underneath the desk. Suck it, buddy. Yep. And what did we just identify? Where liquidity is?
Because liquidity is resting orders. So, what is resting above highs? Buy orders. What is resting underneath lows? Sell orders. And that's for people that are looking for long positions because again, they're pressing buy when highs get pushed above and they're pressing sell or their stop loss is underneath lows in the market. Okay? So, there's going to be resting buy orders above highs, sell orders below lows. Sorry, I'm glitching.
That was a big minus sign. You get the point. Now, if we go over to the right hand side right here, when we're talking about downtrends, it's the same situation. if we're in a downtrend. Okay, so this was putting in the in the cooch. Okay, this is when you're putting it in the butt. Again, no hard feelings. I'm all for it. Okay, especially when we're trading outside. Do your thing. Okay, when we're in a downtrend, this is the opposite direction.
So, same exact situation as the uptrend, but downtrend, it's just the opposite. So, if we're in a downtrend, again, most traders are going to say, "Hey, we're making lower lows and lower highs. So, when we push underneath this low, I'm going to press short or I'm going to press sell. Why? Because we are in a downtrend and we're probably going to make a lower low. And then on top of that, the people that are pressing sell once we push underneath this low, where are they putting their stop loss?
They're putting their stop-loss above highs. Okay? So, notice we have two sets of resting orders. Now, we have people who are going short on downtrends. They are pressing sell when we push underneath lows and they are pressing buy or exiting their positions or putting their stop loss above highs in the market. So we have two sets of resting orders. There's people that are entering into positions when we push above highs and then there's people who are exiting positions or getting stopped out when we push above highs.
So there's two sets of resting buy orders above highs. Now, that's a lot of orders. Not only do we have people pressing buy when we push above highs in the market because they think price is going to go higher, but we also have people that are forced to press by that are putting stop losses above highs in the market that are going to get stopped out if these highs get pushed above. Why is that important? Because that is where liquidity lies.
And what is liquidity? Resting orders. So again, there's people that are looking to press buy when these highs get pushed above. And then there's people that are exiting their trades and press and being forced to press buy because that's where their stop loss is above highs. Same thing with lows. When we push underneath lows, what is happening? People are entering into sell positions. Okay? And then also there are going to be people when we push underneath lows like let's say we push underneathneath these lows there are people getting stopped out of their buy positions and being forced to enter into sells.
So there's two sets of resting orders underneath lows. There's people who are entering into short positions or sell positions when we push underneath lows. And then the the people that were previously in buy positions when we push underneath these lows, they are getting stopped out. So, what did we just learn from that entire conversation? Well, we learned a couple very useful things. We learned where resting orders are.
And you're probably saying, "Well, TJR, I'm on the spectrum and I don't know what you just said." Okay, Timmy, shut up. I'm going to tell you where do orders lie above highs and below lows in the market because there are people when we push above this high and let's just put on one trend so we can show this easier for you guys. Where orders >> where are they? They are above highs and below lows and that is where liquidity lies.
So let's say the market is trending up. Okay, this is our little uptrend. There are people that are going to be pressing buy when we push above these highs. And then there are also people here. Let me redraw this real quick. Okay, this is good. When we push above highs, there are people pressing by. There are also people with cells resting underneath lows. Okay, why is this beneficial for us to know? So there are some people that see this and think, hey, we're in an uptrend.
So when we push above this above this high, they are going to be pressing by. There are also people because again, people have different opinions on the market. People may think that the market's moving in a different way. Not everybody is going to be pressing pressing buy when we push above these highs. Some people on this move de down, they might be pressing sell. And if they're taking a short position on this move down because they think the market's going to continue lower on that move down, what do they have above this high?
They have buy orders as their stop-loss. So, there's two times the amount of buy orders. There's people that are getting stopped out from their sell positions when we push above this high. And then there's also people that are pressing buy that are entering into long positions. So there's people that are exiting their sell positions by pressing buy because again if we try and sell high and buy low that's how we make money from the market.
So these people see the market moving down they press sell where are they going to put their stop loss above the high because if that high gets pushed above then their bias is wrong and the and the uptrend is continuing. And then there's also people who say hey when this uptrend continues or if this uptrend continues and we push above this high I'm going to press buy. So, there's two sets of buy orders above highs. There's also two sets of sell orders underneath lows.
There are people that Let me get rid of this. Get rid of this. Get rid of this. Get rid of this. Get rid of this. Get rid of this. Oops. Get rid of this. Get rid of this. Get rid of this. There are two sets of sell orders underneath lows. So let's say for example right here there are people that are pressing buy on this move up. Okay the people that are pressing buy on this move up where are their stop losses? Their stop losses are underneath this low.
Now what happens when the market pushes underneath this low? The people that were in buy positions they get stopped out. So they have to sell their position for a loss. So all the people pressing buy on this move up when the market comes down and hits that area, they are getting stopped out of their trade and they are being forced to sell their positions back for a loss. There are also traders that when this low gets pushed underneath that are entering into short positions because they think price is going to go lower.
So there's two sets of resting orders underneath lows. Now again, you are probably asking, TJR, why why why why are you telling me all of this stuff? This is how the retail trader thinks. And what do we know about the vast majority of traders? 99% of traders fail. And I'm not trying to tell you guys this. I mean, we talked about this on day one. I'm not I'm not trying to tell you guys this to discourage you. I'm telling you guys this to use this to your advantage.
We need to be thinking about We need to be thinking like the market movers. We need to be thinking like smart money. So if we understand that there are two sets of sell orders underneath lows and there are two sets of buy orders above highs, we don't want to be following the method of pressing buy when highs get pushed above or pressing sell when lows get pushed underneath because that is how retail traders are trading.
That's how the vast majority of traders are trading. We want to be trading in the opposite direction. And this is how the market makers think. Going back to our topic for today's video, what is liquidity? Liquidity is resting orders. We just talked about where retail traders resting orders are. Now, let's think about smart money and let's think about the market makers. The people who actually move the market. They need a significant amount of orders to be going in the opposite direction of them for their massive amounts of orders to be filled for them to be able to push the market in the direction that they want to go.
You're probably saying, "What does that even mean?" Let me explain. Let's think back to our high school economics class. Okay? How does a stock exchange work? If I want to buy one share of Apple stock, we I need to find somebody that is willing to sell me a share of their Apple stock at the current price. Now, back in the day, it used to be done by calling up your broker saying, "Hey, I want to buy one share of Apple." They say, "Okay, I'm going to try and source source this for you.
I need to find somebody that's willing to sell this sell it to you at this price nowadays." And then boom, they sell it to you. takes a couple days and they say, "Boom, here's your paperwork." They ship it to you in the mail and then awesome. You have your contract that says, "I own one share of Apple at this price." Cool. The the same thing applies, but in today's day and age, we have brokerages, we have exchanges that do this at mass scale online for us.
It's the same exact thing. When these big smart money market movers are trying to place their trades and move the market, they need x amount of orders. Like, let's say freaking uh 1,000 orders to be going in the opposite direction for people. They need 1,000 people. Let's say they want to take a 1,000 contract trade. Sorry, we'll simplify this. Let's say they want to take a 1,00 contract trade. In order for them to be filled on those thousand contracts, there needs to be 1,000 contracts that are willing to either buy or sell depending on what direction they want to move the market in the opposite direction as them.
So, if the market movers, market makers want to push the market down and they want to fill 1,000 contracts, they need 1,000 contracts in the opposite direction. And this is where liquidity comes in. They will manipulate price and push price above highs in the market to do what? To activate and get those two sets of resting buy orders to get activated, right? The people that that that were pressing sell on the way down, what do they have?
They have their stop losses above here. And then once price pushes above this this this high, those people get stopped out of their sell positions. And then also the people that think price is going to go higher, they enter into buy positions. So now there's a bunch of people that are willing to go long or press buy in the market. What does that give the market makers the opportunity to do to fill their massive amounts of sell orders to cause the market to go down?
Reverse psychology is how I like to think of liquidity. They are faking retail traders out to think that the market's going to go higher. They are getting people out of sell positions by pushing above the high and they're getting people into buy positions and then they're able to fill their massive amounts of sell orders because there's a massive amount of people that are willing to go buy here or being forced to buy their positions back for a loss and then they are able to fill their sell orders to push the market lower.
Same thing in the opposite direction. If we have a low, what is sitting underneath lows? A massive amount of sell orders because there's people that are pressing buy because they think this move is going to go higher. Where are their stop losses? Underneath these lows and then when the market comes down, trades underneath these lows. What happens? Those people that were in buy positions have to are forced to sell their positions back at a loss.
And then there's the people that are entering into sell positions because they're saying, "Hey, a downtrend has started." What does that give the market makers the opportunity to do? Fill their massive amount of buy orders. Why? Because there's a massive amount of people that are entering into sells here. And then that gives them the opportunity to push the market higher. We do not want to think like retail traders. We want to think like smart money traders.
We want to think like the market makers. That is why liquidity is so very important. And we're going to go onto the charts now and show you guys in real time examples of this happening. I'm not going to tell you guys how to take trades on this just yet. We're going to get into that later later on in this series. But this is the most crucial and the most important lesson that you guys are going to learn in trading. There are sell orders that are sitting underneath lows.
Does that mean we want to press sell? No. It means we actually want to be looking in the opposite direction because there's a massive amount of sell orders sitting underneath lows. What does that give the market makers the opportunity to do? Fill their massive amounts of buy orders underneath those lows because retail traders are pressing sell and that lets the market makers press buy to be able to fill their massive orders and change the direction of price.
With that being said, let's show realtime examples of this happening. We have one right here. What do we have right here? A high in the market. All the people that were pressing sell on this move down, their stop loss is above these highs. Once these highs get pushed above right here, what happens? The people that were pressing sell get stopped out of their sell positions. And then all the people that think market's going to move higher, what do they end up doing?
They end up pressing buy because they say, "Hey, a new trend is going to start." What does that give the market makers the opportunity to do? fill their massive amounts of sell orders to push price lower. This happens on every single time frame because this is how the market moves. The market needs orders to be filled. The market needs orders to be filled in order to push price in the direction that it wants to go. Let's show another example right here.
Price comes down. Okay, so we just showed you guys an example to the upside. Now we'll show you guys an example to the downside. Price comes down underneath these lows. What do we know is resting underneath lows in the market? a bunch of sell orders. What does that give the market makers the opportunity to do? It gives them the opportunity to fill their massive amounts of buy orders. So when price comes down, what happens?
All the people that were pressing by throughout this, they are getting stopped out of their positions. Their stop losses are underneath these lows. And then all the people that think price is going to go lower, they are entering into sell positions right here. What does that give the market makers the opportunity to do? Fill their massive amounts of buy orders to push price higher. Hopefully you guys are starting to get this.
Now, let's show another example. We have a high right here. We have two sets of highs. And this is what we're going to get into for our advanced liquidity concepts, but we have a bunch of low resistance draws and liquidity stacked up relative equal highs. We'll get into this in tomorrow's video, but stacked up relative equal highs right here. What is that making the people do when we push above this high? What are people doing?
They're pressing buy. When we push above this high, what are people doing? They're pressing buy. Everybody that was pressing sell, where is their stop losses? Above this high. Everybody that was pressing sell, where is their stop losses? Above this high. So now we have four times the amount of orders. We have four times the amount of orders, buy orders that are sitting above these highs in the market. What does that give the market makers the opportunity to do?
Fill their sell orders above these highs. So the so the market makers push price up, manipulate these highs, enter their sell orders, and then what does the market do? It falls. This happens on every single time frame. I can show you guys examples of liquidity sweeps on the 5minut time frame, on the 15-minut time frame, on the 1 hour time frame, on the weekly time frame, on the quarterly time frame. There are examples of liquidity sweeps everywhere.
You remember the tariff flash crash. Super spooky. Oh my goodness, there's tariffs in the market. All that it was was buying opportunity. We have a low. We have a low. We have a low. Sell positions. Sell positions. Sell positions. What does that give the market makers the opportunity to do? Fill their massive amounts of buy positions to make the rich get richer. You guys remember what happened? February 2020, that very, very scary, scary sickness that went around.
This is on the monthly time frame, folks. This is how the rich continue getting richer through market manipulation, through scaring the population with one agenda in mind to make themselves richer. Oh no, super scary sickness. Psyche. Liquidity sweep. All the people that were buying right here entering sell positions. All the people that were buying right here forced to sell their orders because their stop losses are underneath these high time frame lows.
Oh no, the economy is going to collapse. All of you guys should All of you guys should sell everything. All of you guys should short everything. Psych. What does that give the market makers the opportunity to do? Fill their massive amount of buy orders and make the rich get richer. It happens on every single time frame. This is how the market moves. 15-minute time frame. What do we do? Push above a high. Boom. Market collapses.
Let's go to the 5minut. Push above this high. Market collapses. Now, before we end this video, I don't want you guys to just think, okay, whenever we push above a high, I'm going to press sell. And whenever we push below a low, I'm going to press buy. That is not what I want you guys to take away from this video because we just we just demonstrated in yesterday's video that the market moves in trends. The market does move in higher highs and higher lows.
So trends happen, but liquidity and liquidity getting swept and new trends being formed that that's how new trends are formed. Okay? through liquidity getting swept, okay, and by these orders getting filled. So, if you guys think back to like kind of halfway through this video, there is something that I said and a word that I want you guys to keep in mind. When we push a above a high and when we push below a low, it doesn't mean that the market makers are instantly going to reverse price just because there's buy and sell orders there.
Right? We can see here that, okay, we have a high, we push underneath a low here. Would that have been smart to press buy? No. We end up keep going lower. We push below this low. Would that have been a good spot to press buy? No. We keep going lower. We push underneath this low. Would that have been a good time to press buy? Eventually, yes. So, what I want to end this video on is a very, very key component of liquidity.
Liquidity lies above highs and below lows. All that liquidity does for the market makers is it gives the market makers the opportunity to change the trend. Okay? It doesn't mean that the trend is going to change every single time. It just gives the market makers the opportunity to change the trend above highs and below lows. Now, us understanding that above highs and below lows there is an opportunity for us to change the trend.
That is the first step of our strategy. Because if we can focus on catching the bottoms of reversals up, we are going to be able to make so much more money. And if we can focus on catching the tops of reversals down, we are going to make so much more money. Now, again, pressing buy below lows and just pressing sell once we get above highs is not a good strategy. I could show you guys a million reasons why, but you guys are going to have to trust me on this because again, like if we look if we if we were to press sell when we pushed above this high, what would have happened?
Okay, we we lose a whole bunch of money. If we press sell when we push above this high, what would happen? We lose a bunch of money. If we press sell when we push above this high, what would happen? Well, we lose a bunch of money. If we press sell when we push above this high, what happens? We actually are able to make money. But notice how there was an opportunity for price to reverse here. Did it happen? No. There was an opportunity for price to reverse here.
Did it happen? No. There was an opportunity for price to reverse here. Did it happen? Yes. So, all that I want you guys to take away from today's video is just understanding orders lie and resting orders lie above highs and below lows in the market. We are going to get into later in this series of how to take advantage of the opportunity of understanding that orders are lying above highs and below lows in the market and then how to identify other confluences to give us confirmation that orders are actually being filled on the market maker side and the trend is reversing.
That's what we're going to get into later on in the series. So what I want from you guys, your homework for today is to identify again I there I don't want you guys to be trying to understand the reasoning of why did price reverse above this high and not above this high. We're going to get into that later in this series. What I want what I want you guys to understand is understanding okay we know that price has the opportunity to reverse above highs and below lows.
Your homework is to just give find five examples of price pushing above a high and then reversing off of it, pushing underneath a low and then reversing off of it. Very, very simple stuff. And then in tomorrow's video, we are going to get into advanced liquidity concepts. So, expanding more on this. So, that being said, love and appreciate you guys. Do your freaking homework. I'll see you guys tomorrow. Now that we've covered kind of just the base fundamentals, it's time to get into the actual concepts that build up my strategy and how we actually start making money from these charts.
So, these are concepts that took me years to master. It's very easy to understand, but it takes a long time to actually fully process how they work together. So, I highly recommend you guys get a nice little notebook out. You guys start taking notes because this is when [ __ ] gets serious when you guys can maybe lose track a little bit. you're thinking, "Oh, the basics, that's just absolute beginner stuff. I don't really need to focus." If you guys weren't focusing then, then hopefully you guys start focusing now because these concepts are how the market moves and it's [music] literally the key to my probability within the markets.
And if you guys have been enjoying this video so far, I really appreciate that. If you guys have any questions, I do offer one-on-one mentorship where you guys can ask me direct questions and get on coaching calls with profitable coaches and myself. If you that sounds interesting to you, there's going to be a link down in the description. But if you guys are just enjoying the free information, we can keep it moving. Somebody clip this.
Somebody clip this into an edit. Somebody clip this into an into a hard ass edit of like me being like tough and then Boom. Conig at 23. Ferrari at 22. Widebody Mansory Colon in 22 years old. Bravis GLE 21 years old. Oh, [screaming] welcome to exploited liquidity advanced concepts. Cue up the edits. Cue them up, boys. We learned about liquidity. Let's learn more about advanced liquidity concepts again today. Okay. So, there's one, two, three, four, five, six, seven um forms of advanced draws on liquidity.
Okay? Or just overall better draws on liquidity that we can look to target. So, as we know, little refresher, what did we learn yesterday? Where does liquidity lie? Above highs, below lows? I'm going to suck on your toes. Now, in today's episode, we're going to talk about just higher probability draws on liquidity that are more more beneficial to us than not. That was nice to be able to help us, okay, identify the stronger draws of liquidity than just like, oh, this is a high, this is a low, price could potentially move off of this.
Okay, so the first one is going to be session highs and session lows. Okay, so how do we identify these this or first of all, what are session highs and session lows? So if you guys are unfamiliar with this, we're going to get into this a little bit more when we talk about time in the market, but specifically today we're going to be talking about sessions. Okay, there's three sessions throughout the 24hour trading day.
There is Asia session, there is London session, and there's New York session. And then within New York session, there's AM session and PM session. Today, we're just going to focus on the three sessions and why those sessions are important. So, something that I want you guys to think about for every single session, okay, we have Asian session, okay? All the Ching Chongs, they're getting in there and they're like, okay, when Asia session opens, they got their freaking they're it's Japanese candlesticks, right?
They're [ __ ] turned up ramen noodle, all that. Sorry if that was disrespectful. You guys get the point. But when Asia session opens, all the Asians, boom, it's their market. They're ready to run with it. Okay? So, all of the Asians are moving the market at that point in time. And then boom, Asian session closes. Then all the London, I'm a London British chat, mate. And I'm going to beat you off. I'm gonna [ __ ] I'm gonna beat off you like a wanker, mate.
I'm gonna beat you. And I'm from Brixton, okay? All the Brixton bullies. They get into the market and they're like, "Man, [ __ ] the Ching Chang Chongs, okay? We want to take all of their orders. [ __ ] them. And we want to move the market where we want to go." So Ching Changs, they get into the market. They move the market where they want to go. Brixton bullies. They get into the market. Their money comes into the market.
Moves the market where they want to go. Then boom, bald eagle screech. USA, New York session opens. All the big fat guys on Wall Street eating McDonald's. Boom. They're pressing buttons. Their money comes into the market. Why is this important? Why is it important for us to know about Genangghask Con, Central C, and the fat ass Americans? Why is this important? because it's every single time there's new money from different markets coming into the market and moving it.
Okay, so we talked about the market makers yesterday. We have Asian persuasion market makers, we have central sea market makers and we have obesity market makers. Okay, each one of those market makers, they have their own session where their money is putting getting put into the market and they are going to manipulate the market in the way that they want to. Now again, why is this important? What did we learn yesterday?
This is let's say this is Asian session. Okay, we'll make this is Asian session. Boom. Asian session does this bow. Boom. This is Asian session. We'll make the line yellow just so you guys understand it a little bit better for no reason. Okay. Um, so this is Asian session. Bing Bang and Ching Chang, they push the market up to these highs. Okay. Sing Long and Ching Chong push the market down to these lows. Okay. Then boom, Central C comes into the market.
We'll make him blue. Central C comes into the market. What What are the London traders going to try and do to the Asian session traders? Because right now Asian the Asian session traders, they're controlling the market. They're moving the market where where they want to go. So when the bricks and bullies get into the market, what do they have to do to all the Asia Asia session traders in order to move the market in the in the way that they want to move?
They need to stop out the Asian session traders. They need to manipulate whatever trend or whatever highs and lows. They need to take out draws and liquidity from what was formed during Asian session to be able to move the market where they want to go. So coming into London session, if central C wants the market to move higher, what is central going C big big c going to do to the market? He's going to push price underneath the Asia session lows.
Why? Because that's probably where there's going to be people that are willing to go short. There's people that are getting stopped out of their their buy positions right there. Boom. Central C is going to stop out the Asia session traders underneath Asia session low and then they are going to go up and target Asia session highs because the London traders they don't want they they want to manipulate everything that happened during Asia session.
Okay, they want to be able to fill their orders down here underneath the Asian session lows so they can stop them out of their of their buy orders, right? And then also get people into sell orders. And then what do they do following that? Once they're able to fill all their buy orders underneath here, they're going to push price up to be able to take out boom, fulfill all of their buy orders, also stop out all the people that were going sell that were selling on this move down.
Again, remember there's going to be two times the amount of buy orders above highs. And when Central C pushes the market above these highs, what are they able to do with the orders that they filled down here? They're able to liquidate those orders because again they're buying down here and then they're selling up here. What are they selling into? They're selling into the Asian Persuasion Chinatown traders stop losses up here.
Boom. Game is game. You just got cooked by Central C. Now we got obesity coming into the market now. Obesity time. Bang. New York session opens. Okay, we'll make obesity. We'll make obesity red. Boom. Now we have London session lows down here, London session highs right here. When obesity comes into the market, they're thinking, "Man, I rock with King Vaughn. I rock with Pop Smoke, Travis Scott. [ __ ] Central C." Okay, obesity comes into the market and they're like, "Man, I want to stop this dude out.
I don't like their orders. I want to fill my orders and I want to make price move where I want to go." Okay, so what are they going to do? They're going to push price above London session highs and then they're going to fill their sell orders to push price down boom to London session lows because they're going to fill a bunch of sell orders up here while all the London traders get stopped out and enter into buy positions and then boom, New York gets to buy back their sell positions for a lower price and then make money on their short positions.
You're probably saying, "TJR, that was that was a whole bunch of mumbo jumbo." You're right. It was. But what did I just showed you? I just showed you where significant draws and liquidity lie within within the market. Woo! Central Sea, Chinatown, and obesity. How does that play into trading? It's everything. Okay. Not only is your homework going to be to go get ramen noodle from Panda Express while listening to Central C, you also need to get a big Big Big Mac.
Okay, that's part of the homework. Remember it. Okay. Asia session highs, Asia session lows, London session highs, London session highs, London session lows, New York highs, New York lows. All of these are significant draws in liquidity that when new sessions start and end, the new money that's coming into the market is going to want to target these session highs and the session lows because there's a significant amount of resting orders above and below them.
So, let's show it on the chart. You're probably saying, "I don't get it." Shut up, Timmy. We'll show it to you. Okay. I have this nice little indicator. Um, it does the [ __ ] for me. I'll put a I'll put a link to it in the description, but Asia session high, Asia session low, London session high, London session low, New York high, New York low, and then the session start line indicator is with
The words are the caption track's own and nothing is reworded or re-transcribed. Paragraph breaks are placed between sentences so the text reads as prose.
Use this transcript
Three free tools that work on the material around a video like this one. No signup, no login.
Hook Analyzer
Paste the first 30 seconds of your own draft for a hook score and rewrites.
Policy Pre-Flight
Check your draft against YouTube's advertiser-friendly guidelines before you record it.
Channel Skill Generator
Read this channel's public videos and transcripts, and download a writing brief for it.