STEAL This EASY Liquidity TRAP Trading Strategy - $500K+ (PERFECT Sniper Entries)

Category: N/A

Transcript

00:00

someone who's really taken the concept  of liquidity to new levels, has gotten   hundreds of thousands in terms of payouts and  millions in terms of funding with prop firms.   You want to understand these things because these  retail concepts are all used to build liquidity   in the market. Not every high and every low has  liquidity.

Of course, you need to understand this  

00:20

is a very common mistake and it can be fixed  with one strict rule. Literally, Marco Trades   is the trader you've never heard of.

Up until  now, he has kept his liquidity concept secret   and well-guarded. Liquidity is is everything for  me.

It gives me my direction. It gives me my bias,  

00:36

my entries, A to Z. Basically, he has mastered the  super simple but specific strategy that identifies   market traps that most traders are getting stopped  out on.

You have to understand a lot of people   ask me like then why don't I trade these retail  concepts if they somewhat work? They temporarily  

00:51

work. They they work for good reason purposely  to for the first time ever he is showcasing this   strategy for the world to see on chart fanatics  step by step but also he is using and trading   the strategy live in live market conditions.

All  right guys wow high's taken. Let's close out here  

01:09

and look at that move that puts us at across  four accounts on this special episode on chart   fanatics. Welcome everyone back to Chart Fanatics,  the go-to channel for all your best trading   strategies with the best traders in the world.  And today we are in Miami.

We're here shooting  

01:29

some incredible episodes with incredible traders  and kicking it off with day one. It is a very   good friend of mine, someone who has really taken  the concept of liquidity to new levels and really   opened up so many traders eyes.

I would say quite  a unique style of trading, one that I would class  

01:47

as simplistic. has gotten hundreds of thousands in  terms of payouts and millions in terms of funding   uh with prop firms with traders from all over.

So,  it is a strategy that people really really love   and really want to know. Everyone talks about  time, everyone talks about price, but again,  

02:05

they're missing the one key ingredient, which is  liquidity. So, we're about to go into a deep dive   with the one and only Marco Acetony.

Did I say  that right? Aony should add an accent on there.   to you, man.

It's an absolute pleasure. Thank you  for doing that.

I know you literally just jumped  

02:21

off a flight and I've thrown you in the deep end,  but where should we begin? Ah, okay.

Well, I feel   like the the part of training that everybody  struggles with the most is is direction in my   opinion. Um, I've taught and trained uh plenty of  traders in the over the last couple years and the  

02:39

the most common trait I see is again it's a lack  of understanding the the current direction or the   current bias in the market right so um for myself  liquidity is is everything for me meaning it gives   me my direction it gives me my bias my entries  right all the way down to that like from A to Z  

02:58

basically. So, if I can dive into this whiteboard  real quick to give you a little rough breakdown   of what how I view liquidity, how I determine my  bias, all these different things.

So, if we have   the market trending to the downside, simple stuff,  we have high, low, high, and we continue selling  

03:16

off to the downside, right? This high respected  previous highs.

So, this might sound very simple,   but yet everyone they over complicate things.  So, high, respected, high, simple things. there's   now liquidity above this high.

So, we have to use  this to our advantage. Meaning, if I want to start  

03:34

looking for buys, easy target right here, right?  So, obviously, there's a lot more components   that's involved. But the most important thing  you have to be able to understand is not every   high and every low has liquidity.

Of course,  you need to understand once retail is induced,   meaning sellers are entering right here, it moves  away. Now, there's liquidity above this high.

So,  

03:55

in terms of liquidity, how would you define that?  If you were to define liquidity, just for those   at home who may not understand that side, like  how would you go about defining liquidity? Yeah,   I mean, I feel like a lot of people like to go  really um deep with it.

Um and then then like   I said before, I like over complicate things. Um  in my opinion, liquidity is just resting orders in  

04:16

the market, right? And it's as simple as as simple  as that.

So let's just say stop orders. Um usually   the most um the best example for myself, what I  use the most would just again be stop losses.

So   if I understand certain traders are entering at  a high or a low then I'll understand that there's  

04:32

going to be resting liquidity there. So it's  essentially just understanding where those orders   sit in the market.

Um so as you that example you  just drew out there. Yeah, exactly.

If I can just   give you another one right here real quick. Simple  things like and on the uptrend.

So since price   takes out this high over here, this now tells me  the intention behind this move from A to B is now  

04:51

induced buyers into the market. Meaning they may  think there's momentum, right?

or they they're   going to mark this as taking a previous high as  like a BOS in the market. Um so once price returns   back to this area at the extreme, however they  want to look at as support, Fibonacci, um even   smart money concepts, they're going to want to  buy down here.

And once the market moves away,  

05:10

simple things again. Now I know there's liquidity  below this low.

So from here, if we were to break   it down, we're looking at what most will be seeing  as say a breaker structure. Exactly.

Their boss,   their market OB could be fair value gap here.  could be Fibonacci levels. It could be all of  

05:26

those together. So here in this example, they  may take the trade here and it might even work   out.

It might even work out in their favor. But  so what are you looking at then?

As you said,   this is now resting liquidity. You're looking at  this what for entry target.

So I need to see this  

05:44

this whole picture occur. Um and I feel that's  where people may struggle with the most when they   start looking to trade.

um how I trade meaning you  have to be patient you have to sit on your hands   you have to allow the liquidity to build sorry  you have to allow the market to build liquidity  

06:01

so again in this example again you have this high  again getting taken out so as you marked BOS price   returns down to this OB and moves away simple  things like let's not over complicate it there's   now liquidity resting below this low period so  if I'm now going to frame out a whole sell entry  

06:17

I would look to target this low right and if I  want to look to enter a buy position I'll simply   need to wait for price to trade below the lows. So  now we're below the lows down here.

You can look   for your buys back up. Hey guys, I hope you're  enjoying this episode so far.

And don't forget,  

06:32

we send every single strategy breakdown from  every episode for free on chartanatics.com. So   the link for that is in the description below.

So  just make sure you click that. You just put your   email in and every single week we will send you an  up-to-date PDF strategy breakdown for you to keep,  

06:50

to learn from, to reference for free. And don't  forget, we're also launching Chart Fanatics Live,   where your favorite traders from Chart Fanatics  will be live trading every single day.

I will   also be including special guests on the live Chart  fanatics edition. So, make sure you go subscribe  

07:08

to that YouTube channel right now. It's linked on  the main profile of Chart Fanatics.

So, make sure   you're ready for that. But, let's get into this  episode.

So in this scenario then this is where   I think it really gets interesting because one  obviously requires patience as you mentioned but  

07:26

this is where it gets interesting because when  most people see this then get broken here that's   then a breaker structure. Exactly.

Right. So then  therefore they're then looking for the opposite   what we drew out here.

They're looking at the OB  here. They're looking at the fair value gap here.   They're looking at reasons to sell.

Exactly.  So why are they going about that wrong? like  

07:46

what is it that is allowing this to take place?  Cuz a lot would then call that just a standard   fake out or shake out or whatever it may be or  stop-loss hunt, right? Yeah.

Which most people,   regardless of whether they label it that way or  not, they're still not capitalizing, you know,   in terms of actually being able to identify,  okay, when is that happening? How do I take a  

08:03

trade? 100% 100%.

And I'll I'll clear this up so  I can give you a a good explanation to this. So,   just like we were drawing before, I'll draw  quickly understanding.

So simple just like how we   talked about the beginning um with the highs this  is the same same thing we have a BOS to the upside  

08:19

meaning market induces buyers here by taking out  this high here we turn we return back to the low   respect the low okay and move away to the upside.  So now again I understand now there's resting   liquidity below the below these lows. Now just  because we've left liquidity here does not mean  

08:34

right away we're going to run for it. That's just  not how the market market operates.

What I tend   to look for now is if we have a high left on the  left hand side over here and this is an area that   sellers are looking to take entries from. Whether  that's going to be like an order blocks we'll  

08:52

write down like an OB or like a POI. Okay.

So,  this is an area that sellers are looking to take   entries from. Again, I I I you want to understand  these things because um these retail concepts are   all used to build liquidity in the market, right?  You have to understand a lot of people ask me like  

09:08

then why don't I trade these retail concepts if  they somewhat work? You you have to understand   that they temporarily work.

They they work for  good reason purposely to induce liquidity into   the market. Right?

If these concepts never  worked, smart money, support, resistance,   then why would people trade them? Yeah.

Right.  So again, sellers are looking to take entries  

09:28

up here. the market moves down to the downside  and maybe sometimes what tends to happen as well   is since we're now trading back at this low and we  understand structure traders um retail traders any   any sort of um trader looking to go long they're  going to look to enter in this area so in here so   sometimes what occurs is a reaction up okay again  understand that buyers are looking to take entries  

09:49

at this low the market gives a pullback and then  sometimes what I can do is I can I manage to catch   a sell entry up here and I can ride it down into  the liquidity right Um but if I all this does at   this point is it it just builds more right just  builds more liquidity exactly and per my concept  

10:06

per my system I understand that there if there  is reactions in this blue box in this area here   I understand it to be false and it's going to be  shortlived it's just to induce buyers to build   liquidity at the lows I will never trade um I will  never look to take longs above the lows only below  

10:23

so again in this example here if now I want to  look to take buys back up I will have to look   for buys below these lows. Okay.

And then now this  is simple liquidity stuff, right? Buy below lows,   sell above highs.

All right. Now, what we were  talking about before is sometimes now if I can   use your red marker, I'll mark on uh so smart  money concept or structure traders will look at  

10:43

this as like a BOS, right? So I can mark that on  there.

BOS. Perfect.

Um now the market, what tends   to happen is as we trade back up to the upside,  it'll create some sort of internal lows. Then   finally when we approach these areas again false  reactions.

Exactly. So I understand that since  

11:02

we have taken out these lows 1 2 3 retail looks at  that as a momentum shift. So they're again they're   looking to sell up here.

Perfect. So I understand  that the market tends to come up and respect these   areas again to induce sellers to build liquidity  above these highs.

If the reaction comes around,  

11:20

perfect. I'm looking to take a buy entry right  here and then all the way back up into the highs,   right?

So, it's rinse and repeat. I have to make  sure I'm always targeting liquidity and taking an   entry after liquidity is taken, right?

Cuz a lot  of people make the mistake of yes, you're looking  

11:37

for a buy below these lows, but what liquidity  are you targeting? Right?

There needs to be that   logic that uh yeah, there needs to be that logic  involved for sure. This is really actually in a   way showcasing the fractal nature of of this model  and this way of thinking because this essentially   would be your bigger picture bigger picture in  this case we could say I don't know 4 hour or 1  

11:54

hour let's say and then this so the actual trading  side of that um you know this liquidity being   swept to then target is actually then say your  15minut happening here with your reactions etc   for sure for example I agree with you but again it  could be you know daily and 4 hours 100% the thing  

12:10

is this whole scenario I've drawn on um I'm never  trying to pit Like when I draw diagrams like this,   I don't want it to for people to view it as like  a pattern, right? That's not this is just strictly   for understanding because I don't want you guys  to start just print out this diagram, go to your   chart and just try to find this exact scenario  cuz it won't won't work like that.

You need to  

12:28

understand what I'm trying to draw out here and  then obviously put that onto your own chart.   Exactly. For sure.

And like you mentioned before,  it's fractal, right? So this could happen on the   daily.

It could happen all the way down to the  one minute, right? What are your thoughts in terms   of identifying liquidity?

because we've mentioned  in terms of this low or this high, right? Or this  

12:47

high, sorry. Um, and more so it's because we've  had a potential structural structure made.

The   low then being the liquidity of that structure.  Is that how exactly how you're identifying it?   Is there other areas that you would identify as  well? Yeah.

So again, this is bringing it back  

13:03

to the beginning. Um, when I'm talking about I  don't want to ever over complicate anything.

A   lot of people would like to look at this as okay,  trend line, channel, whatever it is. But if you   literally just understand this drawing right  here, this part of the drawing right here, it's   literally just this.

That's it. So high taken, low  respected, move away.

So people can say channel,  

13:25

people can say trend line liquidity. At the end  of the day, keep it simple and it's literally just   liquidity period, right?

Um again, you can you can  look at it as a Fibonacci retracement level, smart   money concepts. I understand that if I see the  market respect a high from A to B and move away,  

13:44

that tells me there's liquidity above that high.  Mhm. Right.

A lot of people like to say, okay, so   this high is taken out. Um, which now I can look  for sells.

But why was there liquidity above that   high? Right.

Most likely not because it didn't  respect it. Now we have we were now approached  

14:00

the low down here. If we respect it and move away,  perfect.

Simple stuff. There's liquidity below   that low.

So this is really identifying where the  resting liquidity is rather than saying that okay   let me keep trying to predict where liquidity  could be formed is actually saying okay where is  

14:16

it currently. Yeah.

So this again this is bringing  back to my point um we were talking about earlier   is the hard part um not necessarily the hard part  the people but the part a lot of people struggle   with is the patience side of it meaning you need  to wait for liquidity to get built right if there  

14:32

is no liquidity on the chart how am I supposed  to build a direction how much to build a bias   right so that's where people struggle with the  most in my opinion is just sitting on the hands   and waiting for that liquidity to build once  it's built in front of you being able to build   a direction and bias in the market it becomes 10  times easier, right? Um, sometimes you see a big  

14:51

move in the market occur, right? And like let's  say this is on like the hourly or the 4 hour.

Most   likely I'm not trading this current chart for the  next couple days. Why?

Because this big move has   just occurred and that means it maybe you can go  into the 1 minute and the 5 minute and and try and  

15:06

find an entry. But on the current picture right  here on the 1 hour and 4 hour, all I can mark on   is we've taken out this high period.

I don't see  any other liquidity. So why would I be trading?

M   so as an example of this for example uh we look at  Euro there's actually an interesting conversation   we had cuz this move happened this right here um  we're talking in February time right February of  

15:28

2025 so we're currently in April towards the end  of April so this has happened you can go back on   the chart and see this and maybe we can actually  pull it up actually later we had a move exactly   like this and I was actually looking at Euro  personally to try and get to that sort of 50% that  

15:44

balance out the range Right. But before that, all  you had was this, right?

And we were here and I   was like, "Okay, this is where I want us to get to  me personally." And I remember you saying how this   is really all you can see price taking up because  below that point, there's no liquidity. There's no  

16:01

significant even on the lower time frames, there  weren't really any highs and lows. You know, maybe   if you go to the one minute, you'll see obviously  something, but on any other really significant   time frame, it was all just one direction.

And  that's where I think that term liquidity void   comes in when we're talking fair value gaps and  POIs etc. Like there's one term liquidity void  

16:17

and I like it because of that simple fact that  that's what it's really showcasing is there's a   a void a gap a misapity where it's just been one  directional and then what ended up happening and   we'll pull this up on euro later so you can see it  is price did come down and that was great but we  

16:34

swept liquidity new highs after that. Exactly.

And  and then just like you marked out here, if we're   now taking out this low over here, sellers are  going to be looking to take entries where? Below   this high, right?

And that's going to be what I'm  going to be viewing as what's called a trap. Yeah.   And probably what happens is, and we'll check the  chart, is we probably had a reaction.

Exactly.  

16:51

And then continue up. Exactly.

And there's that  continuation that comes through. And then again,   you know, one of the positives that we definitely  highlighted here is because what happens to people   is when they're in this moment, right?

And we've  seen this over these last few, I'd say, a couple   months now, is when this happens, everyone gets  confused. Everyone gets really confused.

They're  

17:08

kind of lost. A lot of the time they're chasing  the sell because they missed the buy.

Exactly.   Even though they want to buy overall, right? They  understand it's bullish, but overall they're like,   "Okay, let me focus on selling because of course  we can't just keep going higher." Exactly.

The   market can do anything. Exactly.

But with this  scenario with liquidity as a focus point of a  

17:25

strategy and even if let's say it's not a focus  point of your strategy because there'll be people   listening who love the idea of this but maybe they  don't want to fully adapt which is absolutely fine   but by understanding this concept it really opens  your eyes to the markets I would say takes away a   lot of that stress a lot of that sort of unknown  because you just know I just need to wait a few  

17:43

days let liquidity build up identify it and then  then could be a case we sit on your hand still   like in this case where we're starting to identify  these significant highs and lows now being formed.   We know cuz if you're trading from here you know  you can target this low that's great. If however   you don't feel comfortable that's fine.

You just  know that if this low gets taken then you have the  

18:03

then you have the opportunity to buy. Exactly.

And  again that's where the hardest part is. If I can   mark this out this move from A to B from low to  high this is where a lot of traders screw up.

They   can't wait for this this move to happen again  from A to B. But once you if you learn how to   um sit on your hands, stay patient, wait for  this essentially this false move to occur,  

18:23

um you'll avoid a lot of losses, right? Because  I've also taught a lot of people where they'll   be like, "Okay, cool.

We have a liquidity at the  lows here. Let me try and sell into it." But the   problem is with that is if we're heavily bullish,  then the price can just continuously leave lows to   the downside, right?

So the highest probability  way of looking at this scenario right here is to  

18:40

wait again for this to form, this high to low,  this trap move to the downside. And then again,   you have the opportunity of riding this back up to  the highs.

Let's take a break for a minute there,   guys, because I want to tell you about our  preferred prop firm here at Chart Fanatics,   and it is Apex Trader Funding. We are no stranger  to Apex.

We've had Jadecap and Trader Kane on  

18:59

Words of Wisdom and here on Chart Fanatics.  Now, they are well known for having record   payouts on Apex of over $2 million a piece. Now,  even if you don't achieve a seven figure payout,   the reality of achieving a multi6igure payouts  with Apex is absolutely achievable.

and an  

19:15

incredible opportunity at that. And you can  see that on screen right now with all the   incredible payouts being paid out to traders  around the world, traders just like you.

Now,   Apex is the biggest futures firm in the entire  industry and have paid out over $500 million to   traders across the world. No matter the type of  trader, you can be one of them, too.

Now, one of  

19:34

our favorite things about Apex is that you can get  up to $6 million in funding using the 20 accounts   that you're allowed to have and the 300K account  at that that totals $6 million. And another thing   that we love about Apex is that there's no  daily draw down.

It's a one-step evaluation  

19:52

and the fact that is uncapped payouts and 90%  of the profits made are yours to keep. Now,   don't forget, regardless of the type of trader  that you are, you do not have to worry about   trading news as long as you are following your  day-to-day trading strategy.

The possibilities  

20:09

are limitless at Apex Trader Funding. Now, you can  get up to 90% off, 90% off, the biggest discount   in the entire industry at Apex using the code CF  and the link in the description below.

Thanks to   them and thanks to Chart Fanatics. Make sure you  get your futures funding with Apex.

Now, let's  

20:26

get back to the episode. Is there any thing we can  draw out just to highlight the fractal nature?

So,   you know, let's say we have someone who's a day  trader or scalper, right? But how how it can be   helpful still to understand the bigger picture say  like a daily or weekly time frame even though it's  

20:42

so far out what that might look like. Let's say  as an example now just to help you you sort of   visualize say you know weekly like this or dailies  like this and this is your liquidity but on the   shorter term time frame um you know you have  something else that you could then target here   for sure I I definitely Yeah.

Yeah. 100%.

I I can  draw something out for you guys. Um okay cool.

So  

21:02

again it all comes down to liquidity. So maybe  do one side on like the higher time from this   side and lower.

Perfect. Perfect.

Yeah. So I'll  draw this out just like we've been talking about.   High taken out, low iss respected and we move away  again.

We move away from low to high. That's the   important part.

So we have liquidity at this low,  right? Perfect.

Now if I was to let's do it like  

21:24

this. So price comes back down to this low.

And  now I'm going to draw the lower time frames. So   let's just say in this scenario here, we're  looking at H1, okay?

Or even M15, whatever,   whatever you want to use as like a scalper or  intraday trader. H1 H1 I'm using my left hand.  

21:43

Okay. Um so we sell off from this high.

So from  up here we move to the downside. Okay.

And we   have liquidity down here. So we come down to the  downside and let's just say we get some highs and   lows printed on and we come we approach low.

So  now look how price is approaching these lows down  

22:02

here. We're approaching the lows.

All of a sudden  you get that move up to the downside. So this is   what I was just talking about.

Um on your Yeah.  Oh sorry. Yes.

to the upside. Um, this is what   we're just talking about that euro example.

This  is where a lot of traders, if I can use this green   market, this is where they make the mistake. They  can't wait for this to occur.

Okay? But if you  

22:20

learn to wait for this to occur, this false move  to the upside, then you can now understand that   we have just taken out sellers. Mhm.

Right. So, we  trapped sellers, meaning look again, same thing.   High respected high respected high moved away to  the downside.

So, there's liquidity above that  

22:36

high. Simple stuff, right?

And then from here  we get a false run to the upside. We take out   that seller liquidity and then that move occurs.  Right?

So it's just basically like this boom and   boom. So this would be the sell opportunity  on the lower time frames using the higher   time frames to aid that.

And just to showcase  really cuz in this case we're understanding  

22:56

what's happening between buyers and sellers. On  this side obviously we're showing a higher time   frame but in in essence what could be happening  is that that could be a fair value gap there right   which sits above these highs.

And the only reason  I'm highlighting this is that with this method,   there's nothing wrong with it. What works works  or whatever resonates with you is very important.  

23:15

What I find with this side when it comes to say  SMC, ICT concepts or just generally as well like   retail concepts is a lot of complexities and a lot  still of like unknown, right? For sure.

You Yes,   I would say I would argue that ICT concept SMC do  try and tell a story. M but one thing I've always  

23:32

found with this style where you're really focused  on one thing which is liquidity it tells all of   that story but just in a much clearer fashion in  my opinion right cuz I know that you transitioned   from more that SMC style and then once you really  decided to focus on liquidity and it spent time  

23:49

as well I know you put in countless chart time to  really develop and build your eye for this um and   I think that's something that can't be avoided  right I think you have to but one thing I just   want to ask about this here is as You said like a  lot of people are too impatient for this move of  

24:04

course but equally would you say two things that  can be very strong reality for people and what   would you say but is this something that you sort  of face and if so like what did you do is like   you're looking to long anyway right Mhm. but you  see price start to move before and you start to   assume it's going to go without me let me jump in.  Mhm.

Right. Right?

So you jump in here, let's say  

24:23

price then takes out that high. It comes back down  and now you're seeing those profits come back down   as well, but you think still, you know, bullish  and then you kind of start to forget your original   plan and you start to buy in some more here  thinking, okay, let me get in better price and   then it continues down and then and then you're  stopped out, right?

So this is a very again a a  

24:43

common mistake and it can be fixed with one strict  rule literally this use the red marker for this.   Um, a strict rule for myself is if we ever are  moving to the downside like like this and I'm   looking for a whole buy scenario to play out, if  we get a move to the upside and we take out highs,  

25:02

I will not buy this asset pair, whatever  I'm trading until this low is taken out   right here. So, it doesn't matter what happens  anywhere between.

Sometimes what occurs is the   market will come down to the downside and then  just go long. It doesn't matter.

This is not a   move I was supposed to be in. Okay.

Exactly. It's  a very strict rule.

Literally, if the market does  

25:23

not run this low, I will not involve myself. Same  thing.

Um, when going to the uh downside um if we   are moving to the uh to the upside like this and  market comes down, I will not look to take a sell   until this high right here is taken out. Right?  So, boom, boom, boom.

Now, I can look to sell.  

25:43

And do you find that if this happens, let's say  this scenario where it does go without you and it   hasn't really met your model yet eventually, would  you say from from memory or experience that this   does end up getting taken out eventually anyway?  That was just going to be my to my next uh topic  

25:59

I want to talk about this is now going to be a  future target. So this type of price action we   just drew out typically occurs.

Let's draw it  again. Exactly.

Yeah, let's talk about it. So market sells off like this, reacts to an area on  the left hand side, we get a move up, right?

Um,  

26:18

again, I'm not looking to take an entry until this  low is taken. Okay.

And again, what what happens   sometimes is the market will just do this, respect  the low, and move away. This whole scenario,   this um Yeah, this whole scenario right in front  of us typically occurs maybe if there is news on  

26:34

a Wednesday, this could occur on like Tuesday.  M why? It's just built liquidity for news the   following day.

So yes, almost always I can I can  tell you guys that if we have left liquidity like   this, it's going to be either a future target you  can sell into or another buy opportunity somewhere  

26:50

down the line. Maybe it's the next day or even the  next week we end up running these lows and then   you can look for that buy back up.

So it's just  accepting like with pretty much every strategy   that there's going to be trades that don't play  out. There's going to be trades that you have to   wait for.

Y um which is always interesting,  right? Cuz I see why it's so easy to sort of  

27:09

get drawn into the market. Of course, because you  plan a trade and you sit there and plan and wait,   but then in, you know, at the end of the day, it  doesn't play out for you exactly exactly how you   want it.

That's just the reality of these  markets. It cannot be avoided.

In terms of   uh internal external liquidity, I guess that's  kind of what we just talked about from the higher  

27:28

time frame perspective to lower time frame. Is  there any sort of nuance or any sort of things   that you focus on though when comparing the two  external and internal?

Yeah. Meaning so like you   got the outside of the range versus the inside.

As  I said like we kind of went over it because a lot   of the time the outside is the higher time frame  areas and then the inside is normally lower time  

27:46

frame. Is there anything that stands out to you as  like more high probable or something you focus on   at all between those two?

Not comparing the two  but if there's anything that usually usually um   and we again we'll use a diagram as an example.  markets left liquidity at the highs for me. Um,  

28:01

if I'm looking for a buy opportunity in this  scenario right here, understand there's liquidity   at this high, I want to target it. Um, typically  what happens is it's now, this is known as your   external, right?

The top of the range. Here you  have your bottom of the range.

And on the way up,   price will usually, not all the time, but forms  some sort of internal. Okay?

Usually, I'm taking  

28:20

entries off internal liquidity gain taken. So if  we get that false reaction down here, I'm taking   an entry down here and I'm targeting external.  So that that's how I use it.

Um and then if I'm   looking for sometimes after this high gets taken  out. Again, it all depends what the higher time  

28:35

frame is saying. Typically once external is taken,  there's reversals that occur, right?

And then   you'll have the sell-off. Why?

Because there's  liquidity built here, right? So usually again   reversals occur once external is taken out.

I'm  taking entries from internal targeting external.   Yeah, that's the main focus. Yeah.

In terms of  uh execution then so how are you going about like  

28:55

what is your mindset behind sort of the execution  process? So once that's happened this model we   just looked at um you know how are you looking to  execute off the back of that?

One simple way I use   for entries is I need to understand which highs  and lows don't have liquidity yet. Basically,  

29:12

meaning if we have swept out this high, okay,  and moved to the downside, why would there   be any liquidity above this high right here?  There wouldn't be, right? All we've now done is   literally just ran this high to the upside.

Price  has not approached the high and moved away yet.  

29:30

Meaning there there shouldn't be any any liquidity  above this high. Obviously, nothing's 100%.

But   this is just a simple concept I apply to my model.  Me understanding that liquidity has been taken out   here. And that's saying basically, let's say,  you know, directly to the left, there's nothing   there either.

Exactly. Yeah.

It could be like  years ago. Yes.

Yeah. But that's not as not as  

29:48

important. Uh but really this is saying that we've  just reached this high.

To the left is down here,   right? Yes.

And and let's just say I'm looking to  take some sort of sell entry. I need to see this   this occur.

I need to see some sort of liquidity  taken out. Okay.

This high print and we move away.   meaning there should not be any liquidity above  this high which means I'm looking to take entries  

30:07

in here somewhere. Okay, sell entries up here and  I'm I'm targeting whatever sort of liquidity we   have to the downside.

Okay, but again I keep it  as simple as possible. I'm looking to take sells   at highs I'm analyzing at as uh no liquidity above  them.

Mhm. And but how do you do about executing  

30:24

them? So in terms of like what do you see um  when it comes to execution?

Do you have like   one execution model? or do you have like multiple  or how does that look in terms of so if we were   to take this area here so you've had the reaction  what are you then looking for um with within when  

30:41

within this high right here. Yeah.

Okay. So how  do you how would you go about executing your same   thing I'd want to see.

So we're we're tapping  into there in the left hand side. Mhm.

We move   away. We build liquidity.

I'm taking the sell up  here again off this area up here and target to  

31:01

the downside. So the same thing I need to see the  buildup occur.

This whole scenario play out. Same   thing that's happening on the higher time frames  is happening on the lower time frames.

So would   you just execute once the high is taken or exactly  once the high this high is taken. Exactly.

That's   why I'm taking a sell entry and I'm always going  to be covering the high I have to the left hand  

31:19

side. So in this example here if I'm just taking  a direct entry off here stop loss above that high.   Okay.

So in this case, stop loss would be above  this high. Exactly.

Your execution would come off   the a more fractal sort of confirmation of using  the same mindset, same model. Yep.

Understanding  

31:34

your bigger picture as well. So then you know  where you're targeting already and then from   there you're executing once the high's taken,  stop loss above.

Yes. And and obviously again   this is where people make mistakes.

We're not  pattern. Well, I'm not a pattern trader.

So I   need to make sure there's logic. I need to make  sure I'm targeting liquidity, right?

Not just a  

31:51

random low to the downside. I need to understand  that if there's liquidity to the downside, that's   going to be my target.

I love that. So, like we  talked about execution there in terms and stop   loss placement.

Like what about in terms of your  management of trades? Are you looking to uh leave   them to run sort of leave just you know set your  trade and then forget it or how you going break  

32:08

even? You taking partials like what does that look  like?

Cool. I'll just use the same diagram.

This   is as easy as possible to always go through. So  liquidity left at the highs again buy scenario   for myself.

I understand look internal has been  built for myself to use as an entry. Okay.

Market  

32:24

comes up to the upside respects the highs. Okay.  So now I'm looking to take my buy down here.

So as   for trade management again in this scenario stop  loss below this low stop loss would be down here   and obviously I'm going to be looking to target  the highs. Something I don't do too often um is  

32:41

take partials. I'm not the biggest fan of taking  partials.

So in this specific scenario right now   if I'm looking to take entries down here once  price sometimes we get a reaction up maybe once   move down further that's fine and then we start  moving to the upside once I start getting this   move up I'll look to trail my stop below this low  essentially what I'm predicting is this low should  

33:00

not be revisit revisited okay so it's going to  be left for the future um so again I'll trail my   stop below this low so now essentially I've cut my  risk almost in half from this original stop-loss   placement I roll it below here and I let the trade  do its thing I'm not the biggest fan of um setting   my trade to break even unless I've partialed or  like closed majority out and then sure I'll let  

33:20

it ride be and I'll hold to further targets. So  again, I'll roll my stop right here.

I'll let the   trade play out and then I'll be looking to target  this high and then finally this high on the left   hand side. Okay, but I'm not going to be looking  to close partials at like an internal point over  

33:35

here. I'm not looking to close at a specific R.  That's something I've never really understood that   to be honest with you.

M a lot of people like to  say, I'll take a partial at 1:3 or 1:5. I always   ask myself, why why are you analyzing the the  chart at all?

If you're looking to partial at a  

33:52

random um RR point, right? It's literally just a  random point in the chart.

Sometimes it'll match   up with a high or a low, sometimes it won't. My  point being is it's completely random all the   time.

So, if I'm analyzing the chart, analyzing  look looking to see where price headed next,   I'm going to be targeting these areas. Yeah,  that's the whole point of analyzing the chart  

34:10

in the first place in my opinion. Of course,  everybody's different, but that's just how I   view it.

No, I love that. Is there anything we go  pros and cons you think that we need to cover?

I   think we've Yeah, we've covered some cons. So,  we'll do pros and cons then on the strategy cuz   I'm excited to get into the charts on this one.  Um, when we say cons, as always, it's not this  

34:29

is bad. It's more so that this is something to be  mindful of, something that could be a challenge,   something that could be a hurdle.

Uh, it could be  bad as well. I don't know.

For sure. But in terms   of cons, I would say is something you have to get  used to, right?

So, it's not really a con. Again,  

34:44

it's more so like something you need to be aware  of. It's something like you have to train your   eyes.

Yeah, it's different. It's different for a  lot of people.

Um, it's not really, to be honest   with you, I don't really see a lot of people in  the industry trading how I trade. And not to toot   my own horn, but it's just it's just a different  way of viewing the market.

Um, you have to get  

35:02

used to it. Kind of like an unlearn to relearn  kind of thing.

Yeah. Yeah.

Yeah. I think chart   time I think if you're not careful and this isn't  really the strategy it's more trader so something   to be aware of is you require a lot of patience  I agree you know and you have to control yourself  

35:17

which I guess is every strategy uh but we'll add  it here anyway just cuz it's easy to sort of plan   your trade out start to move without you and so  on like you have to have control of yourself again   I would say that's for every strategy know  so it's not really specific to this one but  

35:33

I think the patience one is very important as you  mentioned Like unless that high or low gets taken,   you're not really doing anything. Exactly.  And I think in the early days, no doubt,   it's easy to kind of do something.

Um would you  say it's important to when using the strategy,   it's not necessary, but it's probably helpful  to use multiple assets. Um I always recommend  

35:50

for the traders in the learning stages, I  I I would cap myself out at about two three   pairs on my watch list to be honest with you. Um  even with this system, how I trade, you're still   going to find plenty of opportunity on a weekly  basis.

Uh exactly. Yeah, it was more so just so   that if let's say for any reason one has moved and  hasn't really it's very far away from a liquidity  

36:11

for example, at least you have other options. But  it's good to know that it works on other assets.   So that's that can be on the pros side for sure  in terms of uh fractal in terms of very clear   understanding of what's going on in the market.

Um  do you want to do that side? Yeah, let's do that.

36:31

So you have like the fractal nature of the of   the strategy and the model. You  have a very clear understanding.

So fractal nature. Yeah.  Clear understanding.

Yeah.   Very very clear simple rules is what I'd say.

36:52

Yeah. Um yeah, this is again an important part  especially for this strategy is understanding   you need to have um proper rules in  place.

So like you mentioned before   um I won't be buying unless these lows are  taken. I won't be selling until these highs   are taken period right no if ends or buts.

So we  can write clear understanding uh strict rules.

37:15

What else we got for pros? That's strict rules.  Oh simple for sure.

simplicity I would say. So   it's interesting simple though because yes it is  very simple.

Yeah it's one concept essentially and   uh it's essentially drawing lines on the chart  right to mark out those liquidity highs and lows.  

37:36

However, as we talked about it's complex in a way  because it's not even complex. I don't know what   the right terminology would be.

You're essentially  stripping back everything you've learned.   uh things like you know your breaker structures  and so on because that's gonna work against you  

37:52

when looking purely yeah and like we spoke about  earlier in the video it's like you need to almost   have a a decent understanding of these retail  concepts cuz I'm I'm almost I need to understand   them because they aid me in understanding  where the liquidity is right so yes unlearn  

38:08

to relearn but you have to understand that this  you're trading two different ways you're letting   retail trade and then literally once they get  trapped that's when you're taking advantage have   you seen anyone use these concepts while still  sort of implementing other other ones or have you   found that really to use them wisely and properly  and effectively, you really just have to kind of  

38:26

go all in with just focusing on liquidity. Um the  foundation of it um I've seen a lot of people use   or even people I've taught and trained in the  past use the foundation of it.

And of course,   everyone will maybe have their own spin on it.  Maybe there's a specific pattern or entry model   they'll they'll use um or they'll manage their  trade differently than me. I I usually teach that  

38:46

I like to hold to targets, but again, everybody's  different, right? So, some people may partial   earlier than me course, but I think I believe the  foundation is is there still.

That's the important   part. Yeah, we're good.

Perfect. Let's uh let's  pull out the charts.

I'm excited for this. Yes,   sir.

Let's take a break for a minute there,  guys, cuz I want to tell you about the best  

39:02

CFD prop firm in the entire industry, Funded Next.  Funded Next is a proud sponsor of Chart Fanatics,   and they have been leading the CFD prop firm  industry for many years. is literally a top   three prop firm.

Now, why is that? Let me quickly  just run through all the incredible things that  

39:19

they do. First off, they have challenges for  every trader.

Whatever you're looking for,   they have. They have a one-step challenge.  They have two-step challenges.

And now,   industry-leading instant funding. You get  on demand payouts.

You get instant access   to funding. You get a no daily loss limit.  And for every 10% you make on the account,  

39:39

it doubles your account size. Mind-blowing.  absolutely crazy.

Now let me tell you though   the trading conditions they are the best in  the market when it comes to raw spreads and   there are no slippage when it comes to trading  platforms they have MetaTrader 4, MetaTrader 5  

39:56

and C trader as well. Something unique to Funded  Next is that on every challenge type you can get   once you've achieved 10% on your funded account  up to 15% of the profits during the challenge   phase given back to you.

In addition to that,  you can also get a reward bonus equivalent to  

40:14

the same amount as your subscription fee on your  first payout. And just in case that's not enough,   there's no time limit on most challenges.

News  trading is allowed. There's no imposed limits   on instruments or position sizes.

They have  scale up plans that can 10x your account size.  

40:30

And something that they did first, if you don't  receive your payout within 24 hours, you will   receive an additional $1,000 compensation. Now,  if that doesn't tell you that they're for traders,   I don't know what will.

Now, make sure you use the  code CF to get the best offer available at Funded  

40:49

Next right now. The link is in the description  below.

Make sure you join Funded Next today. Now,   let's get back to the episode.

So, we have the  chart out. Now, we're going to go over some   trade examples of the exact strategy that we just  went over there on the whiteboard.

I'm excited,   you know, I'm really excited for this. Um, it  was clear on the whiteboard.

Drop a comment what  

41:07

your you think so far. Is it clear?

Is there  any questions you have? Uh, drop them in the   comments.

Make sure you hit subscribe as always.  U, but let's get into this straight away. So,   what we have we have uh we have futures up  here, right?

Yeah. So, this is the futures uh   futures market.

This is the Dow Jones. So, YM uh a  beautiful sell opportunity.

This was quite recent,  

41:24

honestly. I think it was last week or the week  before.

Um, but this is going to be an example   of a pitch perfect sell scenario I like to look  at. Um, but yeah, we are on the we'll go to the 30   minute here to start off and just to identify I'll  zoom out.

You guys can get an idea of where we are  

41:40

right now. This is going to be the area we want to  be focusing on.

Okay. So, if we want to just have   a clear and precise marker right now, we can mark  on right away that we have a level of equal lows,   relative equal lows.

Um, nonetheless, very  simple stuff. It's an area of liquidity, okay,  

41:57

which tells me I want to be looking for sells into  here. Not, it doesn't mean these lows are going to   get taken right away, but it's an area to look for  if I am scoping out a sell scenario, right?

Um,   so simply marked out these lows, drag it out  to the right hand side. Perfect.

Now, if I zoom   into current price action, again, this is where  we're going to be looking at. This trade occurred  

42:16

in the heart of New York session. So, this is  about an hour and a halfish after the open.

So,   I'm always trading with New York time. So, stock  open is 9:30 a.m.

for me. Um, but yeah, perfect.   So, on the 30 minute, we're going to hop into the  fiveminute chart.

This is usually the time frame  

42:32

I'm hanging out on. Um, kind of a do it all time  a time time frame for me to be honest.

Cool. So,   zoom into current PA here and cool.

We'll start  identifying and marking out everything. So,   as we know, stock open is 9:30, which is  right here.

That was not what I wanted to do.

42:58

All right. So, stock open is right here at 9:30  a.m.

I typically I just want to mark this on   because I understand this is a um important level  of time. Okay.

Especially for the futures market.   This is when stock uh stocks open up and it has a  direct correlation with the indexes. So, I have my   marked on.

Typically, I'm looking for entries  after the open. So, as you can see before the  

43:20

open, this was in London. We had this bullish move  to the upside.

Okay. So, if I can mark this out,   you can see how we stabbed out previous lows here.  Okay.

From there, we've went bullish. All right.   Now, what can I notice and identify is we have  taken out this high.

So, why is that important  

43:36

for me? This is now going to be an area I'm going  to be looking at as a trap.

Why? Because if retail   is looking to take this thing long, they have  now seen a BOS here.

So, we can mark that on.   They want to be looked to take longs in around  this red box just like we were talking about on  

43:51

the whiteboard. Right.

So, we get this bullish  move up. You can see how we've spiked out all of   Asia liquidity.

Yeah. Nice.

That's Asia. Is that  the Asia?

Yes, exactly. So, this is Asia high and   Asia low.

Just the purple box just to make it nice  and clear and easy. So, again, we get this bullish  

44:08

move to the upside. So, something I want to point  out here.

It's what we talked about before. We   have spiked out this low, right?

and ran bullish  telling me there shouldn't be any liquidity below   this low right now. So this reaction that we're  going to go and talk about soon is possible.

Why?  

44:23

Again we have spiked liquidity. There shouldn't  be any liquidity below this loan low right now.   So again this bullish move occurs with upside B  induces buyers spiked out Asia liquidity.

Perfect.   Look how at the very top of the swing point here,  we have spiked out a high, which now tells me

44:44

there shouldn't be any liquidity above  this high. Perfect.

Now, from there,   we sell off to the downside. Now, look  how we kind of chop around.

This usually   happens right before New York open,  okay? It's kind of building liquidity   for New York to deal with in the future.  So, we chop around for a bit.

We leave

45:04

these equal highs. Okay.

Um structural  point, however you want to call it. Again,   we can simplify it as much as possible.

You can  see how price has stabbed out the low we've just   marked out. Mhm.

Return back to the high. So, this  is going to be an area sellers are looking to take   entries from, right?

Just like we spoke about  before, high respects high. And then we sell off  

45:24

to the downside. Perfect.

From there, we respected  the low. Why?

This is because buyers were induced   once we had this BOS in the market. So they're  looking to take entries down here.

This this   is all happening again. Look at the time.

This  is right after stock open. So stock opens up,  

45:39

sell off to the downside. Buyers are entering  positions here.

So again, we get that move away,   which is what I want to see. Okay, I want to see  this area respected and I want to see the move   away occur, which now tells me we have liquidity  below this low.

Now I can look to target this.   Right, perfect. Now, if I drag this high, move  it across.

Look what happens here. This bullish  

46:01

move that occurs from the lows came up to sweep  these internal highs that we built right before   New York open. And it's a big surprise.

We respect  this high. Why?

There was no liquidity above this   high. So, of course, now since we've respected  it, there's going to be liquidity up here now.  

46:16

Okay. But in this time in live price, we've spiked  out these internal highs.

This is exactly this is   where I'm looking to take my sell entry there.  Right there. And again, where I'm going to be   targeting, simple stuff, liquidity, right?

We've  engineered liquidity at the lows. That's where   I'm going to be targeting.

So, what do you do in  terms of execution there? Are you looking to just  

46:33

have a sort of a limit or stop order at that  sort of level? So, then so stop loss above the   high overall to a low.

Yeah. So, I personally  don't use limits too much.

I just I like to   market execute. It's just what I'm comfortable  with.

Um, to be honest with you, futures you can   uh obviously with no spread and stuff. So, you  can set your limits anywhere and you'll get  

46:51

filled wherever you set them. I came from a forex  background, transitioned into futures.

So forex,   you have spread limits don't get tagged sometimes.  So I always wanted to avoid that. Yeah.

So it's   just something that stuck with me. I just market  execute.

So in this example here, just how I draw   the sell tool on, I'll have my entry. I'll  take it as soon as the high is spiked out,  

47:09

just like this. Okay, got you.

Okay. And again,  you can close out full here.

You can partial but   don't forget about the higher time frame which  basically gave us our bias in the in the first   uh in the beginning of the video. This is going to  be my overall target right um how I would manage  

47:27

this accordingly would mean I would partial here.  Y okay usually 50% maybe 70% if I'm very confident   in the higher time frame and then I'd hold the  rest of the position to the further target of   course. Um, but again, just like I was speaking  about on the on the whiteboard, I'm not the type  

47:43

of person to close out partials like at this low  or at this low. No, the whole the whole reason   this whole picture in front of us right here is  these lows.

These lows are telling me um buyers   have entered positions down here. So, I want to  be targeting that liquidity.

Right. Exactly.

So,  

48:02

like you know, it's almost suffocating your trade.  I think that's the common trait of someone who's   probably not trading a plan or has gone off plan  when they are getting into the right trade but   then cutting it too early out here as I mentioned  and I think partially it could come into what we  

48:18

talked about earlier which is you mark out this  low but then you see price do this explosive move   you then see come back and you think oh I need to  go long here so they get in long they go higher   they may even close out the long here look to  go short but and they still think it's long,  

48:35

so they start cutting that short ASAP versus the  actual trade being, as you said, patience being   necessary. Funny thing is, patience is really if  you decided to come to your chart super early,   uh, or trade London and, uh, Frankfurt session,  let's say, when it's not part of your plan,  

48:50

let's say, when if you focus on your timing,  as you said, like, you know, here's your New   York open. Yep.

You know, you're really looking at  what's happening thereafter. Mhm.

Then you won't   have to worry about all this mess and you won't  have to worry probably about conflicting biases   at that point because I think a large part of the  problem that people have is the fact that they sit  

49:07

and wait at the chart. I know it's happened to me  so many times.

Y so therefore you start looking   for what's happening now versus you might have  actually just created a nice bias on the Sunday   or you know for the day before for the next day  you know where you've objectively done it. you've   got taken your time and you've actually made a a  good bias, but then you've sat there for the next,  

49:26

you know, the next morning for four or five  hours watching the 5minute chart and you've   convinced yourself. That's where a lot of people  screw up in my opinion.

Um, for myself, what's   helped me a lot is I have a specific time window,  a specific time of the day I like to trade. Um,   and this is very overlooked in my opinion, but  I have a specific time window and I trade only  

49:44

that. What you people need to understand is  what happens outside of the time window is   completely irrelevant to me.

It doesn't bother  me. Sure, I can wake up in the morning be like,   "Ah, London had a nice move." It doesn't matter  though, right?

That's not my time window. It's   not in my plan.

It's not in my rules. So, why why  do I have a why do I have to care about that?

I  

50:00

care what's happening in my session, right? In my  timing window.

This is a phenomenal trade though,   you know, even just to the low there. Beautiful.  This is very textbook, honestly.

3.6 in terms of   risk-to-reward, which is really great.  And that's a slightly higher, you know,   uh, stop loss potentially because of that wick up  to the left. But regardless, 3 to 3 uh, 1 to 3.6,  

50:17

six, sorry, just to the low, let alone to  your higher time frame target that does   come through with a 1 to 10. And it's not even  about the riskreward as you mentioned earlier.   It's more so about the model you so about the, you  know, understanding of liquidity.

And this really   showcases not only your lower time frame in terms  of execution and target and what's happening,  

50:37

but then also why that higher time frame targeting  makes sense. very important because what happens I   don't know I don't know if this was part of the  plan but like what happened next you because we   actually had one more day before we hit the  the target is there anything that's you know   pops out to you for your model maybe it doesn't  for your model that that makes sense for that  

50:55

move very simple stuff for me here is I've I've  understood I've viewed this as liquidity right   I've identified this level as liquidity these  equal lows here um and you can see how price has   respected it here okay but I understand that  if there's going to be reactions most likely  

51:11

going to be false. Okay.

And again, that's per my  system, right? Um, you can see once we respect it,   any buyers looking to take positions here, look  what happens here.

They get another BOS in the   market. Okay.

So, where will they look to take  entries from, any pullback traders maybe down   here at these levels down here or they have the  extreme look, there's imbalances down here. So,  

51:31

both these red boxes I'm viewing as a trap.  This move, this move from A to B, low to high,   Yeah. has just been has been occurred to induce  buyers.

Right now we have even more liquidity   below this low and overall below these lows as  well. Amazing.

Yeah. Nice and simple.

Honestly,  

51:51

this is this is a textbook trade for sure. No,  phenomenal.

Honestly, you know, I always whenever   I've this is the reason why I wanted you to to  come on to Chart Fanatics for this very reason   simply because you know I I watched you develop  this strategy over a long period of time just  

52:08

putting in the chart hours. you know, most of all  and ever since then really have such a deep level   understanding of charts that you could pull up at  any chart and just start to mark out here's where   our liquidity is.

It's not even about trading.  That's the thing. It's not about trading every   chart.

It's just about being able to actually  identify as you said at the very very beginning  

52:26

direction. Yeah.

You know, once you have that  direction down, even if you don't manage to get   into a trade, it's only in eventuality that you  will eventually get into a trade. Let's say you,   you know, don't know how to execute for 6 months.  If you have the direction down, you're going to  

52:42

make money eventually. Yeah, that's something.  And maybe people view my my strategy as kind of   like too precise, which is which is normal in the  beginning parts because yes, it is very precise,   but something I teach to my own um students as  well is you don't need the very top to catch that  

52:59

sell. You don't need the very bottom to catch  that buy.

Right. Um, like you were just talking   about the direction and the bias is the most  important part.

That's what pays the profits,   right? At the end of the day, if you pull up your  phone, your MetaTrader, whatever you use to trade,   and you see the red and blue numbers, it doesn't  show you your entry, right?

Metatrader doesn't  

53:15

care about how pretty your entry is. If you caught  the very top or the very bottom, profit is profit,   loss is loss.

There was a little phase a few  years ago, wasn't there? It was like everyone   was trying to get sniper entry.

For sure. And  there's always another concept coming out,   right?

Yeah. Yeah.

I'm waiting for the next one.  Oh, yeah. This will be it.

It's going to be around   the corner. Yeah.

This will be it. position.

Don't  leave. Why don't we uh I know you have two more  

53:34

examples already to to go over, but why don't we  just quickly if possible just look at that EU?   It wasn't really not from a trading perspective  necessarily, but more so just like I remember our   conversation and I remember you say I remember  when you said it to me, remember my reply was   like that makes sense. I don't want it to be true  because it goes against what I said, you know.

I  

53:53

believe it worked out. It was right there.

I know  exactly what you're talking about. So just like   you were talking a higher time frame quickly just  like daily weekly just to showcase what we were   talking about with the large move here.

So it's  this large move here to the left that happened in   March. Um so it was right here from exactly yeah  low to high.

So at that point you most people a  

54:11

lot of people missed I know a couple people who  were positioned well before that. Um this was a   plan that was my original plan was for the long I  just uh was like going between challenge accounts   at the time etc.

Um but regardless it played out  phenomenal. Now, what's annoying though for me  

54:27

and I'm sure loads of people out there where they  were planning the long uh and yet we were ranging   for months like you good four or five months there  down here. Um and overall this whole long thesis   for me anyway was from a weekly monthly range u  of years right so we're at the low of that range  

54:44

um and therefore looking to go back to the high  of the range or the medium whatever and that came   quite quick now over the course of what six seven  weeks now exactly yeah exactly but you know you   miss the low you get frustrated you think okay so  that's why therefore I was looking at shorts at   the highs there um to just to get to the 50% to  then buy right to get a really good buy position  

55:04

and you know there's reasons to make, you know,  make sense of it. You know, Fibonacci, let's say,   let's say 50% of the range, let's say these  order blocks/ fair value gaps at the lows there,   the previous resistance being yeah, imbalance down  here, 50% over here.

So many reasons to hope that  

55:19

price goes there. That's the big word.

Hope that  price goes there because again, all those things,   they're great tools. They're great strategies.  They work.

However, the one thing I've always   loved about the liquidity aspect is that it tells  you it's a lot clearer, right? We can't sit there  

55:34

and say there's 100% orders there from a CFD  perspective on futures. Yeah, we could actually go   and look at the tape and and level two data, etc.  And you probably find that they they are there,   right?

That's why we're seeing the reactions.  What I'm getting at though is it allows you   to tell a story. There's more of a why behind it,  but like you said, nothing's 100%.

And that's not  

55:52

what I'm trying to teach or preach here, right?  Nothing's 100%. But this kind of gives me more of   a confident why to these uh these moves that occur  which just it's more of like a peace of mind and   an almost like an enjoyment as well.

Even when I'm  not in a really like a trade the YM example I just  

56:07

showed you guys um many people I know caught it.  I wasn't on the chart that day. Um but even seeing   it play out like it's it's beautiful to see in  my opinion.

So well let's take a look at the   go lower with this one and let's just see that  example you you marked out. um you know to me

56:25

go on the 4 hour here so I know exactly what  you're talking about right here so just like we   were talking about on the um on the whiteboard  we had this liquidity buildup occur and this   happened over the course of Thursday to so this  was about two weeks of price action okay so this  

56:41

is the 4 hour so this is when things get difficult  sometimes we've had this big bullish move that we   were just talking about on the higher time frames  occur um and then for like a week and a half 10   trading trading days, we um ranged, right? And  we ranged quite heavily.

And this is where people   screw up. This is where people make mistakes.

It's  in this type of price action in here. Okay.

Um if  

57:01

you learn how to stay out of price action like  this, it'll avoid you a lot of losses, a lot   of capital preservation. Um, but I remember you  messaged me and I believe we were up here or maybe   even in here somewhere and you just asked me what  I think about Euro and I said, "I don't know where   it could be going in this current moment in here,  but if I was looking to take buys, it would only  

57:19

be below here." Mhm. Right.

And that makes my life  so easy because even if we didn't take out this   low, it's not a move my system would have allowed  me to be in. Okay.

For the most part, these lows   do go. Um, but again, nothing's ever 100%.

The  simplicity be simplicity about this example is  

57:37

if these lows went if they got ran cool there's  now a buy opportunity in front of us. Why was that   though?

Why was that low in particular? Why not  the low down there?

Why not further down? Yeah,   cuz that was the big reasoning right in terms of  like when you said it I was like that makes sense.   This is very it's very simple here and uh we  spoke about before high taken out price gives that  

57:56

pullback into this extreme level. Okay.

And then  from here we go bullish to the upside. Okay.

So   essentially this low has respected this low. Yes.  Okay.

So there's now liquidity below these lows   and then again price takes out this high comes  back down to this low. Okay.

And respects it again  

58:15

and moves away. That's fine.

I still understand  there's going to be liquidity below this low and   that's what I need to get taken out. Okay.

You  can see how there's imbalances below. But overall   like if you keep scrolling down the next internal  low is going to be all the way down here.

Yeah.   And there's a huge gap in between. Exactly.

So  really it's I guess it's a combination of things,  

58:31

right? It's one understanding that there's so much  momentum, bullish momentum that's taken place,   that momentum is still there cuz we haven't seen  anything drastic to pull us back down.

So that   means that momentum is still there. That means  really on a higher time frame if you want to talk   about structure, it's still bullish, right?

Uh  so following that same narrative now you identify  

58:47

the liquidity point uh at least that's you know  immediate that really there isn't really much   below that which I think is an important point.  There wasn't much liquidity below that point to   be taken out. The only way really you're going to  get there is if you then start engineering for a   long portion of time and you're probably going to  need something that drives that sort of momentum  

59:06

in. Right?

Instead, you have that liquidity  point and again it doesn't mean you trade it,   right? You then look for your confirmation.

So  in this case actually if we take a look just from   this time frame without going lower without  really dissecting it too much and me from my   understanding just from our session here today  I would say that you have this high that then  

59:24

led to obviously a new low price came up gave a  false reaction which then on the back of the fact   that we have the bullish momentum already we've  taken out liquidity on the lows I'm then looking   for longs as well I would then look to long in  this sort of area here exactly yeah and then the  

59:40

important part just like you stated before is this  high respected this high on the left hand side,   right? And then if you look right above this  price action right here, I'm circling right now   is literally just this low high low to the  downside.

That's structural liquidity. And  

59:56

I understand that any reactions below that, so  any reactions below this high should be false,   right? And look how price even respects it,  right?

So maybe another buy opportunity down   here or down here. Then look here as well.

I'm  sure there's probably some sort of news catalyst   going on along these sort of wings. This was that  Trump after I I remember that there was a news in  

00:15

FOMC. I believe it was late afternoon in New  York.

Um late your time, but yeah, there was   some wild spikiness. Spikiness.

It's interesting  though where it's where it's positioned where   it's happened because as you can see here, you  see this wick actually went lower, which means   there was a break structure on a lower time frame.  Exactly. But see what happened first.

We came up,  

00:33

swept out some more liquidity to the left. Yep.  brought in buyers, took those buyers out and then   we went and then the move occurred.

But we only  took the buyers out on a more internal perspective   cuz the overall perspective low to high is still  intact and then we actually go and make a new high  

00:49

and no doubt even just on this price action we  can see similar before we made a new high right   um which is so interesting right it's so  interesting I love it cool little detour into EU   there I appreciate that um but I think that should  open a lot of people's eyes because I know a lot  

01:04

of people even probably still now are confused  with EU's movements etc but especially then at   that point y and Especially because I experienced  it myself of oh yeah I'm looking short. I had   reasons for sure but they weren't reasons based  on like a you know a log actual logical logical  

01:21

in the sense that okay these patterns and these  tools we use they make sense resistance was broken   retest support that's logical cool uh we have  Fibonacci pullback cool you know discount of   the range cool um you know all of those things  make sense but it's not based on like where  

01:39

are the orders exactly right I think once you  really start to pivot you're thinking that way   It's helpful because at least even me being  wrong, I already knew but more so because of our   conversation but also I I try and think in that  way as well is I knew that okay this is probably  

01:55

why this is taking place right we have a lack of  liquidity liquidity actually been swept now so it   makes sense for us to be able to have a reaction  to the upside which we then got. So yeah perfect   let's take a break for a minute there guys cuz  I want to tell you about our incredible sponsor   TradeZella.

Tradzella is the number one trading  tool in the entire trading industry. Tradzella  

02:16

allows you to become a more profitable trader,  allows you to make immense progress as a trader,   no matter if you're a beginner or an advanced  level trader, because it makes journaling easy.   It makes journaling something that is fun and  enjoyable and something that is interactive. So,  

02:31

no matter if you're a crypto trader, no matter  if you're a futures trader, no matter if you're   a forex trader, no matter if you're a stock  trader, all you have to do is select your broker,   your platform of choice, and connect it to  Tradzella, and it will automatically sync   your trades and pull all of that data onto the  dashboard, making journaling and finding your edge  

02:52

and adapting your edge so easy. In collaboration  with Tradzella and Chart Fanatic specifically,   we are actually getting the playbooks from the  episodes that we're filming with these incredible   verified traders and adding them as playbooks  onto Tradezella.

So, you can actually go on  

03:08

there and see the rule sets already predefined.  So, make sure you check that out as well. Now,   you can actually get 10% off your monthly  subscription using CF10 on Tradzella right now.   But more importantly, I would say CF20 for 20%  off your yearly subscription with Tradezella.

The  

03:28

links for Tradezella are in the description below.  So, make sure you go check them out. Use CF20,   get 20% off your yearly subscription, become  a better trader today.

Now, let's get back to   the episode. What do we have next?

We have a NQ.  Is it cool? So, yeah, we're going to hop into an   NQ chart.

This is an example on midappril time.  So, again, this one's more recent as well. Uh,  

03:48

just got to look. Okay, cool.

So, this is  we'll start again on the more higher time frame   perspective 30 minute 15 minute. Do you by any  chance use a crossorrelating correlating markets?   I purely focus on I don't.

So, whatever chart  is in front of me is the chart I'm trading. So,  

04:04

I I believe I've never really looked into it, but  there's a smart money or SMTS. Yeah.

Divergence.   A lot of people look at stuff like that. I have  never personally used it.

Um, no harm against it,   but uh it's just nothing I've really come across  that I that I enjoy too much. Literally, I I like  

04:21

to keep it as simple as possible. Whatever is on  the chart in front of me is the chart I'm going to   be trading.

Right. It's all I need.

Exactly. So,  hopping on um NQ here, going to the 15 minutes.   So, we had a nice sell off to the downside.

Right.  Looking to the left hand side, I can mark out this  

04:36

is the start of an imbalance. Um if you go to  the lower time frames, which we're going to do,   all this is is going to be an internal low point.  Okay?

And then you have that massive inefficiency   right below. Uh, cool.

So, going to the  five-minute chart here. Perfect.

So, just like I  

04:51

was talking about here, you can see how these are  just literally all internal highs or sorry, these   are all internal lows left. Okay.

Um, and all the  way down here, literally same thing over and over,   it is just structural liquidity left. Mhm.

Okay.  On a maybe on a lower time frame, that's fine. But  

05:10

to keep it as simple as possible, this is all  structural liquidity. And then again, you have   this whole inefficiency down below.

Okay. Um, now  going to more current price action, we'll mark out   the stock open price or stock open time just to  keep everything as simple as possible.

Perfect. So

05:33

this all happened in London. So in London, we  printed this low.

Okay. And if you look right   above, we've left these internal highs.

So the  market ends up running for it um right before   New York open here. Okay.

Um and in in current  PA, we've swapped that high. Okay.

Like we were  

05:48

talking about before, why is this important? I'm  now viewing this high as a level that does not   have liquidity.

Okay. So that's going to be of  importance later on.

Perfect. You can see from   here we sold off.

Okay. Look to the left hand  side.

Lots of internal liquidity left here. All  

06:05

right. And the market respects it for a little  bit.

kind of chops around. Again, this is just   how we were talking about on YM before.

Before New  York, you typically get this kind of price action,   especially on indexes. Um, and then we get  the sell off to the downside.

Perfect. So,   just to summarize everything that's going on  right now, high taken, which tells me I do not  

06:26

want to be buying unless this close taken.  This is if I'm buying this thing. Overall,   I understand that since the high is taken, buyers  are induced.

So any re exactly any reactions at   the low tell me that buyers are not entering the  market and if there is a reaction it's going to be  

06:43

false. Okay.

And it's literally just engineering  liquidity for me to target. All right.

Perfect.   Now I'm going to have to go into the one minute  here. I'm not typically on the one minute too   much.

Um but nonetheless it is all the same to be  honest with you. Just more opportunity on M1 but   also more opportunity to uh get slapped up.

Right.  So move this over to the left hand side. So again,  

07:04

look at all this internal price action here.  Simple stuff. High taken, low respected.

We   move away. So there's liquidity here.

Same thing  over here. Finally, there's a little imbalance.   But overall, there's all internal liquidity points  that I eventually want to see get taken.

So New   York open occurs and this spike came off the  back of news. Just like stock open, I'll never  

07:24

enter before news. Of course, I want to wait for  the news to get released and I'm entering after.   Usually typically 2 minutes, 3 minutes, 4 minutes,  somewhere in that range.

Um, but you can see here   8:30 a.m. New York um had some sort of red folded  news event which caused this spike up.

Okay,  

07:40

where did it spike to? Well, in early New York,  just before New York open, actually, we've taken   out this low.

So, why is that important to me?  This is important because it's induced sellers in   the market, meaning they're going to be looking to  take sells below this high. Okay?

And of course,  

07:58

you have these imbalance up here, maybe anywhere  up there as well. But overall, I don't want to be   looking or and this comes back to having this  strict rule in place.

I will not sell unless   unless this high is taken out. Okay.

Okay. And if  you look to the left hand side, this high, right,  

08:14

swept this this level of liquidity, leaving this  whole area, this is now an area I'm essentially   looking to take an entry off of, right? Um  I don't like to refine it too much.

Sure,   you could look for an imbalance in these areas  here. It's unnecessary in my opinion.

I will   always more bothered about this area getting taken  out. Exactly.

As soon as this high is taken out,  

08:32

my stop covers this high on the left hand side  with the futures side. Are you confident due to   the lack of you know spread etc and uh you know  centralization when it comes to the order books?   Are you confident in just having literally  your stop directly above that high versus  

08:49

when you were trading forex before? Did you have  to give some buffer?

Yeah, the thing about Forex   is you're going to have to um keep it well above  or or well below depending if you're buying or   selling, of course, because of spread because  there's different feeds. There's a little bit   of manipulation, right?

Um but however, on these  charts, everyone's trading from one feed, right?  

09:07

One chart. So, yes, I do keep mine literally like  a tick or two above the high because it's it's   just how my system is, right?

I don't want to see  price above this high. So, that's the beauty of   the future is you're able to do that confidently  without 100%.

So, again, stop covers this high   always. I don't want to get greedy and get too  low.

Always above the high. Um, and again, entry  

09:25

as soon as this high is taken out. So, that level  of liquidity is taken out.

And simple things,   I'm targeting opposing liquidity. So, just like in  the NQ example, I'm sorry, in the YM example, you   can partial down at these lows where the buyers  are going to be getting trapped from.

And then,   of course, you have further targets on the higher  time frames you can target as well. Right?

So,  

09:44

as you guys can probably notice now, there's  usually more of like a lower time frame target I'm   using to partial possibly. And then you'll have  your more higher time frame target you can finish   the whole trade at.

Yeah. No, I love that.

Nice  and simple again. Yeah, this is a great example   as well.

This one is, as you say, it's a great  example, but it does show like the com complexity,  

10:02

but it shows how it's not like copy and paste.  Like it's not every chart is super clean. Like the   original US30 example that seemed really, really  clean, really easy to sort of mark out spot.

I   say easy um but quotations. But with this one,  still the understanding is there.

But you can see,  

10:18

especially early on before you started to mark  it all out, there was a bit more complexity,   you know, an understanding. And I think that's  where that chart time comes in that we talked   about.

There is a level of really training your  eyes to understand the concept to identify the  

10:34

identify. Yeah.

And again, it's it's simple.  It's a really weird thing, right? It's a simple   concept.

is one concept versus what most  people are doing where they're trying to   layer four or five different patterns and three  different concepts and two different indicators   and a fundamental news and a time versus this is  more time and liquidity and time isn't really as  

10:51

the liquidity is most important like you could  trade London session if you wanted you could trade   anytime but you just find for your routine and for  your edge um to focus on this time and especially   where you're based as well like you know Canada  right cuz I know you did a stint where you were   trading London There was a time, yeah, back then  in the forex days. Yeah, I was trying to stay up  

11:10

for the London uh London session and stuff, but  that was a killer, right? That's 2 2 3 a.m.

in   uh in Toronto. So, I love that.

That's an amazing  example as well. And you know what I love is that   again it's very it's fractal, right?

And uh  this is more sort of your scalping/ day trading  

11:27

depending how long you hold the trade for, but it  works. And you know, there is an element of that   window time.

I actually love the window time thing  because I get the aspect of like for some people   can be a negative because they may work that time  right that optimum time. So I understand that side   but as a concept of using a specific time window I  love it because it starts to eliminate as long as  

11:48

you stick to it that eliminate m where mistakes  can be made and eliminate sort of low probable   scenario overt trading any of that kind of thing.  Yeah. And a lot of the time those optimum times   you won't see a lot of chop, a lot of ranging.  While if you trade outside of those times,   which a lot of people do unfortunately, that's  where they end up just sitting in a trade that's  

12:06

going sideways for like three four hours head  in. Right.

Yeah. And then by the time the actual   momentum comes in, you've either doubled up your  leverage for no reason simply because you've been   chopping around or you get out of the trade and  then it actually plays out and then it plays out.   Yeah.

Classic. Classic.

That is a classic one.  What we got left? We got another Yeah, I got I  

12:24

got another NQ example here for you guys. Um, this  again, all all recent trades to be honest.

These   are all except for the first one. This uh this is  these are trades are all the ones I've taken.

So,   um, again, this is going to be on NQ April 1st.  If you guys want to go back into your own charts  

12:40

and look at it, that's cool. Um, but yeah, we'll  start off here on Wow.

Okay, so we can identify   right away lows are taken, right? Not just any  sort of lows, but these are lows that we've been  

12:55

respecting once, twice, three, four times, right?  And then we had this big bullish move up. Finally,   the sell-off comes and we've trapped anybody  looking to buy above these lows have been now   taken out of the market, right?

So that right  there gives me that confluence is now I I can   start looking for that bullish move back to the  upside. Of course, not right away.

I need to pair  

13:12

this with liquidity always, but that right away is  is a massive confluence for me. So, hopping in on   the 5minute chart as per usual with me.

Um, we'll  hop on the or so we'll mark on the stock open.   Perfect. So, this is another probably a a great  example for you guys because the delivery overall  

13:32

is very clean. But low or sorry, high has been  taken here.

Okay, going back to my strict rules,   my system, my plan is I will not be looking  for a buy until this low is taken out. Okay,   so from low, we'd end up trading higher, create  all this internal liquidity, trend line, however   you want to call it, it's just liquidity in my  eyes.

Finally, we take out this high, inducing  

13:52

buyers into the market. What do I mean by that?  They're going to be looking at this um as a boss,   okay?

Market structure shift, whatever they want  to call it, that's fine. Um maybe looking for an   area to buy from there.

uh maybe somewhere in  here or there's imbalances down here and then  

14:09

finally at the low maybe an extreme area here.  Nonetheless, these are all areas I'm going to be   viewing as a trap. Okay, if there is a reaction,  false, shortlived.

Okay, perfect. So, approaching   stock open.

In this example here, I did want to  see stock open occur before taking a trade. Um and  

14:27

sorry, before we continue here, we need to look to  the left hand side. So what do I have here?

Again,   simple stuff. Liquidity.

This price action I am  circling right here is again simple structure   just like this. So use that to your advantage.  We understand liquidity is above these highs.  

14:44

So I can mark that out. Boom.

And you can see  we've respected these highs here once and again   over here to the downside again. So this is just  building liquidity here at this blue line, right?   Yeah.

Perfect. So approaching stock open, we get  the lows respected.

So I'm going to drag over this  

15:06

line. We have respected the lows to the left hand  side.

This is at New York open. We've gone long.   Very, very choppy price action before stock open.  Finally, stock open occurs.

Spike up. Clearing   internal liquidity.

Now, why is this important?  If I open this up to the one minute chart,

15:29

this is important because yes, we have taken  liquid from the left hand side, but this also   induces buyers. So again, same concept.

Mhm.  They're going to be looking to buy this thing.   So you can even see look how the market gives  them the reaction here. So anybody that bought   down here, they they get the reaction up and then  they get trapped.

And all that is is just building  

15:45

more and more liquidity below these lows and of  course below to the left hand side the one I want   to be buying below. Right.

Perfect. So I drag  that over.

You can see stock open again spike   up inducing buyers and then traps them. Okay.  Now that we're trading below all the liquidity,  

16:03

this is now when I want to be looking for entries.  But how can I take an entry off this? Again, I   want to see some sort of level of liquidity taken.  And that that overall is going to be an area I'm   looking to take an entry off of.

And if you look  right down here, look what happened. And I believe   this was the day before in New York.

We spiked out  these lows. Okay.

And never returned back, right?  

16:22

What do I mean by that? Spiked it out and just  went bullish.

Yeah. And this is the day before.

So   this whole area here is definitely an area I can  look to see a buy from. Okay.

And again, the whole   concept around this, the logic around this is  there's no liquidity below this low right now. So,  

16:38

I'm able to take an entry off of it. Now, sure,  we've respected this blue box.

It moved away. So,   yeah, now there's liquidity there.

Perfect. That's  fine.

But until it moves away, that is then a safe   place. Exactly.

Because the liquidity really is  the the level that you've waited for. Exactly.

And  

16:54

again, just same thing. I'm taking an entry just  like this.

Stop loss right below it always. And   just targeting liquidity on the other side of the  market just like that.

Just that line to the left.   So the these uh internal highs that we marked on  beforehand, right? This again is simple stuff.

All  

17:10

this price action is on the left hand side is  the structure liquidity, right? So any sellers   that were getting in at these highs, there's  liquidity right there, right?

So just like that.   And I believe in this example here, um I did take  small partial above the high cuz that was my first  

17:27

target, right? I'm not again I'm not taking it at  a specific RR.

These are targets I have in mind.   So target point here and the difference between  isn't isn't huge. Yes, exactly.

But you know   if price was to reverse for that day or for any  reason continue lower um or at that point really  

17:42

at that point would that liquidity then become  valid on the lows for the blue box for example   cuz it's led to a move away and broken a of course  again from a pattern perspective sure but you have   to remember um we always want to be pairing the  higher time frame right that direction that bias.   You want this high? Yes.

If I wanted to frame  out a whole other buy scenario, for sure since  

18:01

we have now taken out this high, if price came  down to the lows, I would never be buying this,   right? I'd want to see price below these lows  now, right?

Yes. Yeah.

Okay. So, you wouldn't buy,   let's say, if it did that, came back down, you  still waiting for this to to get taken.

Exactly.   You wouldn't look to buy here then. No.

Exactly.  Because the same no matter what. Exactly.

Because  

18:20

that high is taken out. I need to see this low  get traded below.

Now would you say this is a   really good question I guess for people who are  very interested in this style no doubt would you   say though that is a problem that traders who  learn this system have early on is that they   will do everything else right but when it comes  to that scenario there they will then look to buy  

18:39

yeah so and take a loss let's say if it does lose  um and then blame the system ah it's not working   and getting frustrated versus actually you've  broken a rule a key rule of the system there a lot   of people um that have come to me from like a a  smart money background. This is basically trading  

18:55

against what they've been taught in the past,  right? Again, they like to see that BOS in the   market and then trade higher.

So, they'll enter  positions here. So, based off their old teachings,   they would be looking at an enter position, enter  positions here.

Um, but based off my system and   my teachings, I'm not taking entries in this  area, right? It needs to be below this low.

So,  

19:13

yes, these guys make mistakes in the beginning,  but they come to a quick realization that they   understand where they were getting trapped this  whole time, right? again cuz there's that more of   that why with this system.

Um again, nothing's  100%. Cuz the beauty for you is if you've   partialed there, let's say.

Yes. Right.

You'll  break even then at that point. 100%.

Yeah. So  

19:31

even if it does come down lower and take out that  low and then you're able to execute because it   gives you a reason to. Yes.

Um that's fine because  you've already taken profit. Exactly.

You've then   been taken out break even for the rest and then  you're essentially just taking one level of risk.   If anything, you have a buffer now technically  for the next trade. Yeah.

100%. uh versus you  

19:49

break even, cool, but then you execute a new trade  which doesn't really fit your system because yes,   you have a target still to target. Mhm.

But you  don't now have liquidity that's been swept. So   therefore, regardless of whether it's a internal  or fair value gap or a lower time frame break  

20:07

structure, it doesn't matter because it's not  your system. That's always important regardless   of your system, whether it's this or another one.  I think that that's where a lot of people do make   mistakes consistently because what they'll do  is they'll maybe execute the first trade fine  

20:22

to the system perfect but then when it comes to  them scaling in those trades that they're scaling   in actually don't fit the rules at all. Exactly.  But they because the original one does and hasn't   maybe completed yet they believe that those still  fit.

Does that make sense? Those scalers they're   trying they're almost trying to force it to their  original trade idea.

Right. and they assume that  

20:40

that those are fine because and if anything they  probably convince themselves that this trade will   work out because I've already been in a winning  trade in partial this is like a bonus right this   the market giving me a chance to get more which  never really happens no I mean often you have to  

20:55

understand when you back up and you put all these  things into perspective you have a plan and rules   put out in the first place for a good reason and  uh if you can't follow it what's the point of   putting them together in the first place right  I love that hey guys this is normally where we   finish off the episode. But today, for the first  time ever, I asked Marco to trade live using the  

21:15

exact same concepts he just broke down on the  whiteboard and showed trade examples from. So,   without further ado, let's get into the live  session that Marco did in New York session   on NASDAQ and you'll see the result for yourself.  Let's take a break for a minute there, guys, cuz I  

21:30

want to tell you about our incredible partnership  with propfrader.com. Majority of you out there are   prop firm traders.

You're using prop firms to  leverage your trading skills to be able to get   more capital and to be able to absolutely change  your life. So what's important to be able to find   the right challenge for you with the best firms  and most of all the best prices.

That is exactly  

21:51

what propertrader.com does. propertrader.coms  allows you to compare prop firms, be able to find   the best challenge suited to your trading style  and get you the exclusive best discounts in the   entire industry so that you're paying the cheapest  price possible for your prop firm challenge.

So on  

22:08

propertrader.com you'll be able to use filters to  be able to do that and find the exact challenge   for you. Be able to find your favorite prop firms.  Just look on screen right now.

You can see futures   firms. You can see CFD firms with offers up to  50% off, which is incredible.

And you can also  

22:26

see Alpha Capital there with a one-step challenge  with 25% off using PFT1. And there's so many more   exclusive discounts only on propertrader.com.  It is the go-to site for all proper traders out  

22:42

there. And one thing I'm really excited about that  I personally helped to organize was the giveaway   of giveaways.

The seven figure giveaway just  through purchasing your challenges for the best   price through proper.com. Every single week you  will automatically be entered into an incredible  

22:58

giveaway. A collaborative effort across all of  these firms on screen between 100 to 200k accounts   over seven figures.

It means that one person  every single week who's made a purchase through   propertrader.com will be getting seven figures in  challenges that can completely revolutionize your  

23:16

trading journey. Again, all you do is for any of  the firms on propertrader.com, use the code PFT   at checkout and you will automatically be entered  every single week.

The link for propertrader.com   is in the description below. Now, let's get back  to the episode.

just entered positions on NQ here.  

23:36

Lowe's stabbed out post NYC. So after stock open,  we've had this move up to uh induced buyers, trap   them, and then we've hunted all of this liquidity.  Okay?

And if you look at the the timing here,   this is this is pitch perfect. Look how the 4 hour  closed.

So right at 10:00 a.m., the 4hour closed,  

23:57

spiked it right into my area I want to take a  buy from below these lows. and I've added volume   there.

Okay, these highs are of interest to me.  Okay, so I'm going to mark out this one. You have   an imbalance above also like the highs we left in  London.

Okay, we have relative equals also 4hour  

24:22

high. And then finally, there's also a high to the  left over here.

So, couple targets on the way up,   but I am bullish on NQ right now. So, let's  see what kind of PA we get going through this.

24:42

Just because we've ran 4 low does not mean  this lower time frame low isn't off the cards   yet. This can definitely still get spiked  out before the the move starts going up.   You can see we're respecting this area at  the moment.

All right. So sellers ideally   in this scenario they want to see price push  to the downside from here.

Okay. Um and and  

25:02

again just reach further targets on the left  hand side. Um sometimes what occurs is we'll   induce lower once more and then the move  will start occurring.

That's why I got my   stop below PD PDL right now. 5m minute candle.  The air closes in 25 seconds which is this low.

25:28

First target from our average entry area right now  is about 320 ticks away. Only got five micros on   currently.

So if hopefully doesn't mean it's  going to happen, but if we get some sort of  

25:44

um entry on the way up, obviously I'm looking  to scale some more risk into this trade.   If not, it just flies. It's one of  those ones.

It is what it is. So,   we'll have to manage accordingly here.

All right.  My eyes are looking at these lows right now. Could  

25:59

spike them before any bullish move occurs.  Just going to stay aware of that for now.

26:15

Lows are spiked here. Five minute low.

So if I  have to the five, you can see now that 5minute   low spiked out. We have 7 minutes until the  15-minute candle closes.

Could still chill   at the low for a little bit. So look now that you  can see sellers enter here, right?

So what is that  

26:32

telling me? Liquidity next five minute closes  up in about 45 seconds here.

If we can get a   nice fiveminute close above, I will add a little  more volume. Um, not my favorite type of entry,   but uh, the risk-to-reward is there  and the timing is there for me.

So,  

26:51

I'm okay with adding this risk on. Basically, if  I do add, I'm basically predicting that this low   down here printed at 10:05 is the extreme.

Okay,  the low of New York. And you need like a heavy  

27:06

timing confluence in order to take these kind of  entries. But nothing convincing like I won't take   anything now.

Not a strong close for me. And next  five minutes just closed up.

So you can see here.

27:22

All right, lows have been spiked up once  more. It's completely fine.

Like I said,   we can hang around down here for a bit. Wouldn't  be surprised before that extreme prints.

But   look how many times we've tapped into this area  right now. So these highs are of interest right  

27:39

now for me. Okay.

Stabbed in once, twice, and  moved away. Liquidity above these highs here.

All right. So, timing now.

10:14. Now, we have  a 15 close in approximately 45 seconds here.

28:05

I feel like we're getting close to maybe  printing extreme soon, but I'm not in the   business to catch bottoms. Um, I'll just  let price tell me when the a bottom is in.

28:21

All right, good reaction off the lows now.  15 minute here. We just opened.

So 5m minute   close happens in about 2 and a half minutes. We  are looking strong though.

So good sign so far.   Ideally I do want to see some sort of lower  time frame confirmation on the way up so I  

28:36

can add more volume. uh cuz I'm confident  in the direction of this move.

However,   it does not mean the lower time frame  is always going to deliver us an entry.

28:53

Nothing of interest yet, honestly. Just struggling  at the high inducing sellers.

That's it really. Um   but yeah, we got some slow PA currently.

We'll  see how it unfolds in the next 30 45 minutes.

29:13

All right, starting to breach some highs here.  Timing wise, we've got 10:25. So 30 minute will   close up in about 5 minutesish here.

4 and a half  minutes. Same with the 15 that aligns.

Um nothing   really to point out right now to be honest  with you guys. We got uh all these internal  

29:31

points obviously I'm looking at. Um, I do want  to see us push through, run these internals,   obviously come for these highs as well.

All  these blue lines are essentially targets on   the way up. All right.

So, um, as for lower  time frames, I do want to add, however,  

29:47

I don't see an area that I can add in yet.  Kind of just struggling around right now. Um,   just ran this internal here.

We can mark that  out. Got this lower time frame low down here.   Could could add maybe below.

We'll see what uh  we'll see what it looks like. It'll be about  

30:08

because I'll be covering my stop below  here. So, it be about 90 ticks of risk.

All right, picking up some momentum right now. I  do see something on the lower time frames now.

So,   now that we've taken out this high, if we can get  some sort of rally now, a little a little sell-off  

30:29

to the downside, I will add below this low here  at 10:19. Okay, but we need to trade below this   low.

Um, and that will be an area I can add some  more volume and 30 minute just closed. Beautiful   rejection.

Uh, I'm confident enough in the setup  to roll my stop below this low we've created here.  

30:52

So, I'll take some risk off the table, which is  great. Um, and yeah, let's continue to monitor   price action accordingly.

We have spiked  out previous 30 minute. Um, we're getting   a little reaction right now.

Lower time frames.  Again, if we can get some sort of push down,  

31:08

spike below this low, could add volume, especially  now that I've covered risk on the initial entry. All right, guys.

Coming down here,   approaching this low. I'm going to  add volume below this low for sure.

31:28

We'll add another three contracts below  this low if we can trade below it. All right, stabbing the low here.

Adding a  little more volume and adjust this sell stop.

31:48

Cool. Now that we've traded below this low, I  do want to see price stay above 23142 or else   this scale in um is invalid, which is completely  fine.

Uh risk is quite minimal now. I'm not going   to lie, since we did roll our initial stop, uh  let's see what kind of price action we get.

Now,  

32:05

if you want to frame this out going forward, since  we have taken out this low and this low where   we've now taken our entry from, this tells me now  sellers are interested. Okay.

um which means they   want to see price back at these highs. Okay.

And  then a push down. So if we get reactions in here,  

32:28

do not be surprised. Okay.

We are pushing to  the extreme now. We'll see how this plays out.

32:43

All we're getting a decent reaction right now.  We're on the M1. So, I don't want to be too uh   influenced by a single minute candle.

But again,  once we trade back up into this into this high,   since we've taken out the previous and sold off,  I don't um I won't be surprised if we struggle  

33:01

in here for a bit. Okay.

And I like anticipating  these things and expecting it because when it does   occur or if it does occur, I was already mentally  um I was already mentally ready for it, right?

33:19

do want to see us hold here. This is like  the last resort kind of area for myself.   Um I believe even if we come down, spike  the low, we will revisit this one as well,   which will take us out of the trade.

So  yeah, I do want to see us start holding,   pushing up. Um once we start trading into this  red box area, I will be more convinced of the  

33:39

trade. I just want to see that rejection,  which we're starting to get right now.

kind of like my last area. Now we'll hold  up.

We'll see. Highs taken maybe lows and  

34:00

see that push up. Not looking too pretty,  though.

I did want to see us come out of   this area a little quicker than we've uh what  we've been doing right now. It is still valid,   though.

Of course, just coming down to  my confidence in the setup overall now.

34:20

All right, decent rejection coming in now. Um,  unfortunately, since we have just built up this   liquidity here, these lows, um, this is not out  of the cards now.

So, there could be a pullback   into a continuation still. Um, so I'm not going  to rule that out.

Stop is going to stay where it  

34:38

is. I'm not convinced otherwise.

I'm not going to  roll it because of out of fear or anything like   that. When the chart tells me to, I will.

Just  got to stay aware of uh all outcomes right now.

34:56

Okay, approaching this trap area. I'm not  saying there's there has to be a reaction,   but there definitely can be a reaction from  this area.

However, if there is short-lived,   I do want price to the upside. Okay, we we  will be taking partials above this high.

Um,  

35:13

as we stab above this structural point here,   could start rolling my stop little by little.  Okay, but I won't be paying myself yet because   we're only looking at uh 140 tick move. I'm  not interested in a small move like that.

35:34

All right, looks like we are getting this  pullback now out of this trap area, the red   box. My eyes are on this low here.

If it wants  to come down to the extreme, it definitely can.

35:52

Okay, just what we anticipated right now.  We're getting rejections out of this area,   right? um now trading above this 1 minute high.

Yeah, just just have to wait unfortunately.  Uh price can get really sluggish in these  

36:08

kind of areas sometimes. So just  got to wait.

It is what it is. All right.

So look at this. All right.

And this is  what we were talking about before. We anticipated  

36:25

this to happen. We expected it.

Right? So, yes,  it can get boring.

Yes, it can get frustrating   if you allow it to. Um, but understanding where  price can slow down at and react at is important.   Okay?

Especially when you're in a trade. Uh,  as we as we start trading above this high,  

36:42

if we trade above the high, of course, um, I  will start covering my risk like I mentioned   before. Uh, and then after that, I do want to  start seeing some volume kick in, start uh,   running these highs on the lefth hand side and  eventually getting to some of our target areas.  

36:58

This is aligned with the higher time frame,  so there could be a decent move. However,   I don't need the whole big  move.

That's not my job here.

37:15

All right, we got an hourly close, hourly, 30, 15.  Everything's closing in five minutes here. Look at   that 30-minute wick.

We're leaving big rejection  off the low. Okay.

Again, we kind of predict that   10 a.m. was going to be that low of New York.

15  minutes coming. Next candle looking quite bullish  

37:35

right now. Again, still trading at that high that  we've been uh we've been talking about.

5 minute,   same thing. We've had some consecutive  fiveminute closes to the upside.

Again,   still respecting the high, but we'll see what  it looks like going forward here. Looks pretty   good.

And highs are now being taken. So, I  will cover some risk for sure.

Going to roll  

37:59

my stop a little bit more. Now, the risk  is minimized.

Like, it's it's small now,   right? We have uh 50 ticks of a stop available.  We're going to stay on the 5m minute here now.   Now that we're kind of out of this lower time  frame area, uh I do want to see volume start  

38:14

kicking in for sure. Uh again partials will  be above this high which is roughly 320 ticks.

38:32

All right we've got our hourly close. Let's  take a look at this.

So hourly big rejection.   Take a look at the timing again. Like we  talked about the beginning of this video   here.

Spiked out previous 4hour low. Okay, in  10 a.m.

SPE spiked at 9:00 a.m. and we've got   that rejection to the upside.

All right, 30 minute  ended up closing bullish after that big wick. So,  

38:51

we wick down on the 30 and spiked all the way  back up and closed back above um starting to   get a nice push. Finally, finally, um I will  be closing a nice part a nice partial above   this for sure above this high here we printed  at 9:35.

So this is right after stock open.

39:16

Also definitely going to start uh I mean we are  roughly 200 ticks in profit currently. There is no   reason why I would want to see price back down to  my entry.

That'd be foolish of me to be this much   in profit and let price come back to take me out  in the red. So stop is now rolled to be.

Timing  

39:35

wise is getting a little bit late. I usually don't  stay on the chart at this time.

Um, so we'll see   what price looks like when we approach this high.  What timing is looking like when we approach this   high, I might close out full. I might close  out a partial.

We'll have to wait and see here.

39:54

All right, we're getting a steep  pullback right now. Not ideal, but we'll see.

We'll see. This could just be um a  move inducing sellers right now.

Nonetheless,   risk has been covered. No partial points has  been hit yet.

All right. So there's no ifands,  

40:15

buts. I had targets in mind.

If it  doesn't reach it, then there's no   uh then there's no profits and it is what it is.

40:31

All right. 5 minute spiked out here.

Okay. Uh  again, I'm viewing this bearish move as a pullback   right now.

Hopefully it is. It could sell.

Um  again, just per my my setup right now. Overall,   the higher time frames, I am viewing this as a  pullback.

Okay. Um and we did spike 5 minute.  

40:51

We running some sort of internals to the left.  However, this leg here is not pretty. Okay.

So,   I do see downside potential. That's why  risk is risk is off the table now.

It's   in the market's hands. If it wants to run to  our target, great.

If not, hey man, it's a be

41:16

my lower time frame. Highs taken,   lows taken.

I do want to see the  move start now. That continuation up.

Let's see. Let's go NQ.  Give us a little push here.

41:38

All right, five minute just closed up. Here's  another fiveminute low just taken.

Uh timing   is getting tough now. It's 11:15.

I do want to  see this move start occurring relatively soon.

41:57

Okay, looks like this pullback we've had this  bearish move to the downside looks like could   be finished. All right, we've held this low  here.

Now we're showing momentum back up to   the highs. Um reason being why I view this  as a pullback was look to the left hand side,  

42:13

right? We've we've done nothing, right?

Like  look at this bit of price action we got here.   Um it's just a buildup of liquidity. Um this  high tapped into what?

Absolutely nothing,   right? and just fuel the little sell-off in my  opinion to induce sellers.

So, this area we're  

42:31

tapping into right now, view it as a uh a trap as  well. Okay.

Um, however, I don't believe we will   stall in here for too long, but it is an area that  uh sellers would look to take this asset lower.

42:51

All right, guys. as we start  pushing about this high.

Um,   again due to timing and these is just  things you have to react to sometimes. I   will start partially in this area and then full  target will be the high that doesn't change.

43:14

All right guys, another 30-minut close here.  It is 11:30 now. Um, but again, nonetheless,   still a great close.

30-minute closing bullish  above previous high um indicating right if we're   analyzing just raw price action right now it's  just telling us we've got uh continuations on the  

43:31

cards currently until something tells us otherwise  right and if we hop into the lower time frames you   can see this area that we've pointed out before  that we're still trading in um I didn't believe   we were going to stay in it for too long  um it's been about seven six seven minutes  

43:48

now. Uh so I mean these are just one of those  trades where we've been struggling since entry,   right?

We've been in this trade for an hour and a  half now. Um not the cleanest bit of price action   obviously coming out of that, but not every  uh not every setup's going to be rocketing to  

44:07

your TP or melting to your TP. Sometimes you  just got to stick it out, manage accordingly.   um I'm not going to let these candles influence me  to close early or um manage the trade incorrectly.   Right?

Sometimes all it takes is taking the  entry, setting your stop and a target. What  

44:25

happens in between it's it's irrelevant. All  right?

Now, I don't want to say irrelevant.   Um but don't let these candle closures influence  you and make you get emotional and stuff, right?

44:41

Definitely possible for price to run these  lows now. These lows I've just marked out.   All right.

So maybe a spike below and then see  that continuation up. That's what I'm leaning   towards right now.

Um looking at this from a  retail perspective, right? Anybody looking to  

44:58

sell in this red box in this area, what are  they going to view this as? Right?

Like a   break of structure, a change of momentum. So  they might start looking for bearish moves,   right?

Automatically when that happens, this  is this induces sellers into the market,   which now tells me there's even going  to be more liquidity above this high,  

45:17

right? So I'm not against price taking out this  low and then seeing that continuation.

Um so   just just staying aware of that, of course, can  move from where it is now. Of course, the market   can do whatever it wants, but if it does spike  this low, it makes sense to uh continue bullish.

45:40

All right, we're approaching this high now. Man,  it's been a bit.

Uh, but patience, patience,   patience. It's what about it's what it's about  sometimes in these markets, man.

It's not always   going to be so so clean. But as we stab this high,  hopefully we do soon.

We're leaving a little bit  

45:56

of a wick right now, but as we stab this high, I  will start scaling off some volume um and paying   myself. And of course, our target remains the  same up here at 23 237.5.

Um, time is getting   definitely tight now because we're approaching  uh New York lunch hour, typically the the hour  

46:16

tends to be dead in volume. And um, I mean, if we  if we've been quite dead now, I can only imagine   what we're going to get through the uh through  the lunch hour.

So, in an ideal situation,   we we move now and I'm out of this position  before lunch, but we'll see what happens here.

46:41

All right, high take in here.  Going to be paying myself,   taking some off um and letting this  thing run to these highs. Ideally now I want to see this uh this momentum  coming.

I mean we've been asking for it  

47:02

but we've been slowly moving to targets but  just so so slowly right I mean slowed down   in this area which we expected slowed  down in this area which again which   we expected. Um it'd be nice to just see  that that continuation now that push up to   these highs.

Um I do want to be out of this  before this lunch hour occurs ideally. Um,  

47:22

I'll look to take off a little bit more volume  soon and then be 100% out at the high here. All right, taking off another two  cons here.

I got four cons left.

47:47

All right, guys. Another two off here.  We are so close now to target.

We got,   man, 20 ticks left. It's been how long now?

Uh,   we can't complain. It's been an hour and  50 minutes.

But we are like 80% out of  

48:04

the position now. Just need that fast that last  little uh push.

We can close this remainder out. All right, guys.

Wow. high's taken.

Let's close  out here. And look at that move.

Wow. We've  

48:25

been we've been waiting for this now for quite a  while. What a move up now.

Wow. That puts us at about 1,600 in four accounts.

So 32 about six  $6,400 across four accounts. Great day of trading.  

48:49

Wow. Well, Marco, I really appreciate you breaking  that down for us today.

There was no gatekeeping.   I know that's a lot of uh what people think when  it comes to especially unique strategies like   this. So, I really appreciate you breaking this  down over multiple concepts as well.

I'm truly  

49:04

fascinated as always and you know, I've been  trying to deep dive into this sort of style of   trading for a long time. But everyone at home,  drop a comment with your biggest takeaway from   this episode.

Drop a comment with any questions  you have on this style. uh because I'll make sure   Marco replies to them and checks them out.

Maybe  we do a part two. But hit subscribe, hit like.

Uh  

49:22

links for Marco will be in the description below,  so check those out. Also, make sure you give him a   follow.

We're trying to get him more on X as well,  get him involved with the trading community. So,   go check that out and hit subscribe.

Other  episodes are on screen. And until next time, take