He Built 100+ WINNING Strategies... His #1 EDGE Uses Just ONE Wick

0:00 And most traders don't have access to this data at all. And I want to look at the refill in the order book and try to understand why price move in certain way. And we can actually trade this by just looking at one simple chart pattern. This is Philillip. He's a quant who's personally developed over 100 trading algorithms and technical indicators. But despite his background in quantitative trading, Philip says the best trading edge he's ever discovered lies within a concept most retail traders have never even considered, liquidity replenishment. And he studied this phenomenon through quantitative research in his own analysis of CME futures market data. But according to Philillip, anyone can identify this edge

0:47 by looking at one single candle wick. And one more important thing is not just that the wick is very small is that this happens the first 10 to 15 second of the formation of this C2 candle. That is very important. And now the entire play now is that this imbalance we are seeing will continue for at least three to four candles. So we're just seeing a big imbalance move. In this episode, Philip's breaking down the simplest yet potentially explosive market phenomena he's ever encountered. Starting on the whiteboard, then moving to real charts, and we'll even see an indicator Philip coded specifically to identify his edge.

1:35 Nothing in this video is financial advice, and no trading strategy guarantees future results. Now, let's see what Philip is made of. Hello traders, this is Mr. C and in this episode I going to go over one concepts or two concepts of how the micro structure of the market works. I'm going to go over liquidity refill and aggression because these two concepts in combination can explain one of the most important things in the market and what moves the price and that is imbalance. If we have imbalance in the order book in the micro structure we know for sure that price will move in that direction. All right. So that is what I going to

2:22 cover today. So first of all I'm going to cover liquidity refill and then I'm going to cover aggression. All right. So first of all what is liquidity refill? Liquidity refill is the process of new limit orders adding back to the order book when existing orders has been consumed or removed. So this measure the rate of new orders adding back to the order book when existing liquidity is consumed or removed. All right. And what is aggression? Aggression is simply who is taking that liquidity

3:09 and and altogether I see it like this. Aggression tells me who is taking liquidity and liquidity refill tells me whatever the other side can keep up with it. And together with these two concepts in mind we can spot imbalance. Imbalance. All right. And this is happening on a micro structure level in the order book. And it goes really fast. And most traders don't have access to this data at all and don't have time to look and understand this because 90% of this or 99% of today's market is automated when it comes to order order executions. So, it's very hard to really I mean most

3:56 people don't need this kind of data because I going to show you how you actually can spot this imbalance by just looking at the price chart. But first, I want to shed some light on how this works by expla by explaining one simple example. So now we assume buyers are willing to buy 10,000 contracts per second and they do so by crossing the spread and take whatever the ask side is providing them and the ask side is basically the sell side liquidity and buyers it's called bid. All right so we have aggression.

4:41 Buyers are aggressive because they cross the spread and they're willing to participate at the prices sellers are offering because yeah that's basically what aggression means. They are aggressive. They take what sellers is offering them. So we have aggression and now we're going to look at what is happening with the liquidity on the ask side when we have this kind of aggression. In this example, to explain the imbalance, we assume that sellers can only add back 2,000 contracts per second. So, we basically see that the liquidity is actually refilling on the sell side, but at at a much slower rate. Buyers can

5:29 easily consume whatever sellers are providing back to the order book. And this if this continues there is only one way price can go and that is up right that is up. Buyers are much more aggressive and they are willing to consume way more than sellers can provide. So price can only move up in this in this example. And this is what I want to spot by just looking at the price chart. I want to assume aggression and I want to look at the refill in the order book and try to understand why price move in certain way and we can actually trade this by just looking at

6:14 one simple short pattern and that is what I going to show you next. All right, >> we analyzed the 50 most successful traders we've ever paid out, trade by trade, built on more than $5 million in real payouts. Then we sat down with four of the best traders in the world. And on November 24th at 8:00 p.m. C, we're leaking the strategies of the top 1% live and completely free. And there's one surprise only for people who show up live. Save your seat at iqap.io/masterclass or check the link in the description for more details. Remember, it's free.

7:00 All right, so how can we actually spot this imbalance? By just looking at a price chart. So what I'm looking for is a relatively big candle to appear in the chart. And this is our C1. And this candle often appears after a period of compressed candles or low volatility state. So we have a state of lower volatility and then we get a big relatively bigger candle. And people might call it whatever they want to call this thing. I just look at it as a relatively big candle. And when I see this kind of pattern especially after a

7:46 period of compression I start to assume that all right we had buyers they were very aggressive they were willing to participate at a much higher rate than sellers were able to add back new liquidity. So sellers couldn't absorb the incoming aggression we saw from buyers. that one candle is not enough to understand if we have an imbalance or not. We need some more context. All right, this is just the the first assumption I make when I see this kind of candle. But what's it's what's really interesting and how we can trade it is what happens on candle number two, the C2 candle. This is super important.

8:33 All right, so the C2 candle opens. We assume we are on the one minute chart. We assume that we are on the one minute chart. All right. So when the C2 candle opens, what I'm looking for, this is super important. I'm looking for a quick selloff. So sellers stepped in, but they couldn't push price further down and it actually stayed at the upper 10 to 15% of the previous candle. And that is a good sign for bullish play. And one more important thing is not just that the wick is very small is that this this happens the first 10 to 15 second of the formation

9:22 of this C2 candle. And that is very important because we get quick aggression, seller aggression at the beginning of the uh of the C2 candle and it only last for 10 to 15 seconds and the wick is very very small. It does not go to the 50% level of this one or all the way down. It stays at the 10 to 15% of the previous um upper body. Right? And that is very important. And this tells me one more thing that is very important. Before buyers were were willing to add liquidity at this level, but after this

10:08 one minute candle now they are lining up with liquidity at a much higher price rate and were willing to do so quickly. All right. So they were already lining up the orders at this level. And if you just compare this gap, previously they were lining up at this level, right? But now when this candle closed, they were already willing to add back liquidity at at a much higher price. And they were able to absorb any incoming selling pressure instantly. And they were also able to absorb it and then be become aggressive again to flip the candle. All right. And that

10:55 is what I am looking for at the C2 candle. Let me do like this and we will just look how we actually can trade this. So here is our C1 candle. C1. All right. So, I'm looking at what happens at C2. C2 opens. We get a quick sell off. Buyer steps in and we're and then we're able to flip the candle. And when this flip happens, I'm looking for taking a long when price crosses this previous high. All right, that's our long. So we enter long when the candle crosses the previous high and I put my stop loss

11:43 below the wick. And now the entire play now is that this imbalance we are seeing will continue for at least three to four candles. So, we're just seeing a big imbalance move. Because if this is an imbalance move, it will only keep going for a few candles. So, after three or four candles or an opposite red candle in this case, I will close my position. So, we close it after a few candles, after a few bullish candles, 32 or four or an opposite red candle, we close it. But this is a very good riskreward trade. Why? Because the

12:29 wick is relatively small, we get the flip. So we have we have a very low risk. All right, long we take the long and the stop is very tight and the upside is at least one two to three four momentum candles and the and these can be very very big. So this is basically what I'm looking for when I trade this particular setup. Um it's very effective but don't assume that this move will go to the go like 20 candles just bullish. No, this imbalance move would only be happening for a few candles and then we most likely will see a pullback or whatever it is. But this can actually be a great play for quick scalps in

13:15 whatever time frame you are applying this to. And it works the opposite for short. Let me have a quick example of how the short setup work. So this is how the short setup work. We get the big red candle like this and this is after a period of compression and then we look at what happens on the C2 candle. We get the quick aggression from buyers. Buyers steps in. All right. But sellers have already lined up with their liquidity at the much lower rate and were able to absorb anything what they were able to absorb all the buying

14:02 buying pressure that come in come in and we're able to flip the candle right so and this happens at the first 10 to 15 seconds of the formation of C2 and the Vick is relatively low and it stayed at the 10 to 15% % of the lower body of the previous candle. All right. And the flip happens. The flip comes. We take the short when we cross the low of the previous candle. That's our short short entry short. And then and we put the stop loss above the the wick stop-loss. And then the price just keeps going down. So, we

14:48 hold this trade for at least three to four candles or until the next opposite green candle. All right. So, I would most likely close this trade somewhere around this one or at least of the four bearish candle. So, we have a very good riskreward ratio since the stop loss is very tight. All right. and we can ride this momentum move for a few candles and then close it and that and that's basically it. So this is a setup I really like. I trade it every day mostly. I look for this kind of patterns and I write the momentum moves there or

15:34 the imbalance moves and then I'm done. I'm done with this one and I look for another one. >> So Philip, no more theory. We're off the whiteboard. I know you guys love that. Now it's time for chart examples. >> Yeah. How exactly do we spot this on a chart? >> All right, let's go into it. So, I have marked this candle right there. And you might wonder why. First, we look at the previous candles and we can see the body relatively small, right? So, we have like 10 candles that are rel relatively small and then we get this relatively bigger candle, right? I mean the most important is that these closest candles are relatively smaller than this one. >> Okay. >> And one thing that also comes into play

16:19 is that we actually breaks this trend line also. So this this candle makes a structural break as well. At the same time it's relatively bigger. Right. Is there like a specific sequence or methodical process you follow for this trend line or is it still just >> the trend line is very simple. You don't need to do it advance. I just connect the the highs, you know, and then if we get the close above and it's relatively bigger like this, I still I will start looking for this specific pattern, right? >> Mhm. >> And we also see that this candle actually took out three one, two, three, the fourth high as well. It's kind of big structural change in the same time. >> This big candle, just to be clear,

17:05 doesn't need to take out the highs necessary. >> No, not necessarily. Okay. >> But in this this example, it's we talked about a little bit of compression. This is a little bit of compression and then we get this structural break, right? So, this candle is like my focus right now because something is happening right now. Not it, this is not just a big candle. We have some structural >> things going on in the chart as well. But I don't put so much um attention to to the trend lines and such. It's more like what happens on the next candle what matters. All right. So we get this imbalance candle which we talked about. So we just acknowledge all right now we have an imbalance candles and now we want to look what happens at the

17:51 beginning of the next candle. And in this case we get this candle and I have marked the the wick green that means that this c this wick was formed during the first movements >> of the beginning of this candle. So >> within the first 10 seconds. >> Yeah. Yeah. But this is daily chart. So this is within the first four hours. >> Okay. >> This is the daily chart. So we can use this strategy on any time frame. So if we use it on a daily chart, the 10-second doesn't really matter. Then we have to look the first hours. All right. >> Okay. >> So, so this wick was formed during the first hours of this >> of the opening of this candle. >> Okay. >> So, I marked it. Um, >> so this is you have an indicator doing this.

18:36 >> Yeah, it's very simple. We're just marking the what happened at the beginning of the next candle. It's not nothing special about it. So, in this case, we can see that when this candle opened, we got a selloff. That was the first thing happening at the formation of this candle. >> And one more important thing, we can see that this wick is relatively small and it's in the upper 5% of the previous candle right? >> Upper 5%. >> Yeah. Of the previous candle. You can see the wick is not going below the upper 5%. >> Okay. Not 20%. >> Yeah. I mean it not h does not have to be 20%. In this case, it should not go below 20%. But in this case, it's even stronger because the wick is smaller, right? Okay. >> It's just taps within the 5% on the

19:24 previous candle. It's a little bit stronger case. >> It just tells me that buyers are now willing to add back limit orders at a much higher price than before, right? It's a big gap >> between here. So, buyers are now stepping in quite quickly, absorbing that selling pressure and doing so instantly at the beginning of this candle. and then the candle flips. All right. So, what I'm looking for when the next candle opens is the instant sell-off, right? And this is what we're seeing right here. This green wick just means that the selloff were at the beginning of the formation of this next candle. So, when I enter this trade is when the price crosses above the high of the previous candle, right? So, that's

20:10 my entry. So I would have entered at the cross of of the high. I put the stop loss slightly below. And then as I said, we just ride this imbalance for one, two, three maximum candles. That's the entire play we do. So like this, we just ride this move for a few candles and that's our entire >> entire strategy behind it. Simple, very simple. We do not we do not look for like extended long moves in this particular setup. This is a quick setup. One, two, three, four candles maximum and then we're out. >> Okay. >> So, it's very simple in that sense. You don't need to be able to identify when to exit. What what conditions we just

20:55 look at one the condition is like wait one, two, three candles. Halas. >> Is there anything that happens that would make you close early or that should make a beginner close early? >> Yeah. If if if this candle uh if if if this candle becomes red negative and closes back negative then we close >> because the then then the imbalance is not in place anymore. >> Okay. >> So if we get the opposite candle in the opposite direction after the our entry we close it because the imbalance is not in place anymore. >> Okay. >> That's the play. So prices have to sequentially close higher over these three candles. Exactly. If

21:41 that is not met over >> Yeah. Exactly. >> Got it. >> So we can get quite great riskreward on these kind of trades. >> Mhm. >> Um and that's the entire simplicity around this particular strategy. Um but I can show you one more thing how we can use this. uh if you if you miss this entry at the at the cross, we can actually look for kind of a retest. So let's look let's look how this actually looks like in a lower time frame. Um so let's go to the 1 hour. So this is the entire play we're doing. So here's the open of the candle number two. Yeah, this one. And we can see we

22:27 have 1, two, three, four, four hours of instant sell off, right? >> Yeah. >> And then we get the flip. >> Yeah. >> And when we And when the price close or crosses above this high, we take the entry. >> Mhm. Well, oh, I'm confused though. This doesn't perfectly meet the condition. >> No, no, no. All right. Let this is I I took the um >> the hourly structure from the daily candle. >> Yeah. Yeah. Exactly. Exactly. If we identify this in the daily chart and you missed it, you can always go down to the lower time frame and watch for a retest and absorption of the same level one more time. That's what I'm telling you. >> So, so that breakout right there, if you don't mind marking it, that's that breakout on the daily.

23:12 >> Yeah, this is the breakup of the daily. This is the actual >> initial >> um entry I'm taking. All right. But if you miss this one, you can actually go down to lower time frame and as long price >> is above this low, >> you can look for retest of the opening levels of that candle. And that is exactly what we're seeing here. >> A retest of the breakout level. >> Yeah. No, the opening of the candle. >> Okay. Okay. Yeah. >> So the candle open, right? The candle opens at this point and we get the nice um retest of that opening level and when the price closes above that level again then the entire >> back down the opening level dip below it close below it or just a low test it.

23:59 >> I can test and I mean the most important part is that this this initial wick does not get violated. >> Okay. >> So we get the retest and the wick this low is higher than this one. All right. Okay. >> So that what's matters and when the price closes above the opening level again around this point >> that's can be our >> second entry if you miss the first one. >> So that's even technically a better entry if it shows itself if it actually happens. >> Yeah. Exactly. >> Which model works better for you? >> I I do the initial one. >> The initial one. >> Yeah. I I don't want to wait waste my time and >> I I take the trade and I'm >> done, you know. Mhm. >> I don't want to to spend too many hours looking at the chart. If I miss the

24:45 trade, I'm fine. I move on to the next day, you know. I don't try to chase chase the trade. >> So on this retest, the price just cannot go below the open of that >> low >> of of this uh breakout candle, right? >> Yeah. >> C2. >> Yeah, exactly. Yeah. >> Got it. And um >> Oh, below the low. >> Yeah, the low of the the C2. The initial low. This is the initial selling pressure of the of the beginning of the C2, right? And that's the low and that's the breakout right there. >> So, this retest should not go below this low right? >> Got it. >> Because then I get stopped out on my own trade, >> but but it at least needs to go below the open. >> Yeah. I mean, it just has has to retest it. It does has not necess necessarily

25:32 go below. And like I don't I don't keep this like strict framework you know >> sometimes we get the quick bounce and that's also fine sometimes in this case we get the rejection wick and then close above you know >> we need just need to be a little bit open-minded and this is just one way to get a second chance of the same model. >> Got it. >> Um and you often get a little bit better riskreward since you can have the stop loss a bit tighter on on this one as well. >> Mhm. Uh, >> now does the re-entry principle still apply here? Like let's say >> you Well, no, because then price would go below the low for you to get stopped and then there's no >> re-entry here potentially. >> Yeah, no re-entry because um we already got the retest. If we get one more time,

26:17 most likely it's >> Yeah, >> we don't have the imbalance in place. >> Okay. >> Uh so so this is how we can go from one hour trading setup and try to apply it one more time. if you missed that entry on a lower time frame. All right. >> And now for this secondary entry option, is there anything that could happen that would make you say, "All right, even though the conditions are there and the re-entries here, there's no way I'd take this trade." >> It should be if it's happened during very low volatility. >> Okay. Okay. >> That would be the case. I mean, technical analysis works the best when we have market participants and when we have high volatility. Okay. >> And if if we see very low volatility candles on a retest, I would ignore it.

27:06 >> Okay. >> Got it. >> That's one one condition. So this is a long trade. I did not take this one. But the next one I'm going to show is a real trade I took based on this strategy. >> Okay. >> So this is just a concept like this is how you can look at it on the chart. >> Mhm. >> But now I'm going to show you an exact exact trade I took live in my community. So let's go to that one. We I took it on the 15minute chart NASDAQ. >> No, does and this applies on the short side, right, as well. You just inverse everything on the short side. >> And inverse everything. So this is a trade I took live based on this entire concept. I will just mark one important line, one important level.

27:51 Um I will mark this level right here because this is previous day low. Previous day low prev day low. And we all know that market tends to retest these kind of levels. It's like facts. It's studied forever research quant everyone knows that these kind of levels will always be retested. Right? So it's an So that's why I marked it before I took this trade >> previous day low on a closing basis. >> Yeah. >> Okay. >> So what I'm looking for right now, why did I take this trade? I going to show you now. So this is the New York open. This candle, this 50inut candle is the New York open. >> Mhm. >> We get a selloff and then this is a

28:39 clearly an imbalance candle, right? We have relatively small >> candles before. So what I'm doing right now, I'm looking for what happens at the beginning of this candle, right? >> Mhm. >> And in this particular case, we did not get any buying pressure at the beginning of this formation, right? So that's why I did not did not take any trade on this week because this week happened later on during this 15 minutes formation. Right? That's why it's not marked red. >> Got it? So one condition is not met here. The wick did not happen at the beginning of this candle. All right. >> So the imbalance are still in place. We have now we have two imbalance candles.

29:26 Now I look for what happens on the next candle. Do we get the quick buyers stepping in and then absorbed by sellers? And this is exactly what we're seeing right here. >> Yeah, >> that is the exact play. So, and we can also see this wick is relatively small, maybe 35% of this candle. It's does not go above the 50. So, this 20 is not like perfect. We just need to be a little bit open-minded like flexible. >> Mhm. >> This this might be 30% of this candle, right? >> Yeah. >> But still, it happens very very quickly. I know this week was like the first two minutes. >> Yeah. >> And it flipped very quickly. So this that alone where we did not go far up

30:14 was like hey now let's take the entry >> done it. >> So the entry is very simple when we close crosses below this uh low take the entry >> put the stop loss above the high >> and then as I said the most obvious target is the previous day low because that's how >> so you actually had a target here. Yeah, the target is the previous day low. In this case, I it's so obvious uh that because market always retest these levels and will always respect them. We'll always bounce in somehow before the market potentially make another move down, right? So, we take the imbalance play and we hold it until this level. So you would say there are like levelsbased

31:01 contextual exits then meaning like okay yeah normally we'd hold for three candles but we're about to test what could be a very obvious reversal level right >> yeah and this is not the level I'm making up like this is studied in research for many years >> these levels will tend to get retested respected and Most likely we see bounces from these levels in some sort before potentially we break them. Right? >> What why >> the why is because it's so obvious level for anyone to >> to look at. I mean it's the micro structure behind it is a little bit differently but in general we general

31:48 it's like these obvious levels >> tend to be respected okay >> like round numbers and these kind of levels >> salient yeah exactly >> mhm >> um so this this was a trade I took based on this concept to just let this imbalance move just keep continue for a few candles until we retested this level and this was on to almost four in riskreward. >> Okay, >> nicely played out. And >> so then quick question with the stop loss then you just say like you know right above the high for a short or below the low for a long is there anything mechanical there or is it just roughly above the the high or >> it's just roughly behind it roughly. It no no other microructure

32:35 thing coming into play. Why >> why not at the high? Why roughly above it? >> Because I mean you you for me I it's a personal thing. You can put it exactly if you want, but I'm all always putting it a little bit >> okay >> far away. >> Um >> but it's it's not something I'm explaining from a microructure perspective why. It's more a subjective thing because maybe if we look at the order book and everything coming together the most logical point might have been like this you know. >> Yeah. Got it. >> But uh since we don't have the data we just have to approximate like what what would keep this >> huge risk award over the long run. >> Mhm. >> So that's why I just put it like like

33:22 this. >> And this is time frame agnostic. You're saying you can apply this on any time frame. Now, you said with the 15-minute, I noticed you mentioned the wicks are looking for the first two minutes of the candle. >> Yeah. >> You said with the daily, it's looking at the 4 hour, the first four hours of the candle to mark the waist. >> On the one minute, it's the first 10 seconds. >> What about like the five minute or the 30 minute? >> Yeah. I mean, five minutes, we look at what happened at the first one minute of that candle like roughly. >> Mhm. >> It's it's not set in stone. Not set in stone. It has to be like beginning of the candle quite quickly and not so aggressive. It be absorbed quickly. >> That's the main thing. Um, so this was a beautiful play trade I took actually.

34:08 >> Mhm. >> Um, and that is basically the entire set. >> Do you think I can find one? >> Yeah, sure. You will find one. >> Uh, let's And then I think we should also look at like a maybe one that didn't completely work. Yeah, we can. >> Okay. So, we I'm looking for a long here, but we need a a green wick. So, this one would have been good, but no green wick. >> Yeah. Yeah. Exactly. >> So, that's why this indicator is not um that's why we should not like are you selling this one because this is a very simple. >> Yeah, got it. >> It's not it's not complete. It's just for the purpose of showing because I I'm not using this indicator when I spot this pattern. And I'm checking myself,

34:53 you know. >> So, this one technically could have been it. >> Oh, well, this is very big. >> No, this one is not. >> Yeah. So, and that raises a good question then. >> Yeah. >> So, what if we have a big bodied candle? >> Yeah. >> That meets like what if we have a big bodied candle that meets the condition of being bigger than the previous, but it closes like way far away from the high or something or way far away from the low. So, Philip, this is like a perfect example where the setup might be a little shaky. >> Yeah. >> For someone trying to trade this, our C1 is big. >> Yeah. >> But it's not like this perfectly symmetrical body that closes right near the high, opened right near the low. You

35:40 know, it kind of closed a bit off of the high here. >> Yeah. We have a big wick to the upside, right? >> Yeah. But then you also have your condition where that green wick on this candle formed. >> Yeah. >> Now this candle already as you can see broke the high of C1. So is this a trade? >> Of course initial when the crossing appears it's a trade, right? >> Mhm. >> Because that that's um the entire play we has to must take the trade on the crossing. >> Mhm. >> But what makes this a little bit sketchy is that this wick is a little bit too high. which offset the entire riskreward play. So that might be one reason why we should not take this trade because the risk reward would be

36:28 the riskreward might be a little bit too offset, right? We need to have >> at least the these ones goes for at minimum one one to two but most likely one to three. Mhm. >> So the price has to do a pretty big move in order for us to reach our our riskreward ratio, right? >> Mhm. >> So if this week is a little bit too too big, >> I would consider not taking it because the riskreward structure is is not in place. >> It's messed up. So you want to have this tight stop. >> Yeah. >> Tight stop. That's the entire tie idea of this uh strategy. Okay. We can lose many time but when we win we will be win big and make it all back

37:13 >> and and just to be clear this tight stop this is again more discretionary based than it is >> yeah it is >> to a mechanical set of rules. Okay. >> And then um if we could find a losing trade that'd be excellent too. So Philip in this example like the setup >> wasn't perfect right? I mean, you had this white candle that broke between what could have made a nice setup here. Yeah. On C3. This is no trade. >> No trade since uh we didn't break the C1 right? >> It has to be C1 C2. >> Yeah. >> It can't be C1. C2 is a little shaky, but go for it on C3 because it's still good. >> Yeah, it has has to break this one. And this one has to be bullish in this case.

37:59 >> Okay. >> We don't take any trade. If if this one was a small wick but still bearish candle, no trade. We need the break of that high. >> Um that's the entire >> Got it. >> Like like this this setup right here. We have the wick, we break the high and then we have one candle momentum move. But >> then on that second candle though, you close bearish and it's done. >> Yeah, it's done on this this one because this is this one is bearish. The imbalance plays over. Is there any sort of macro trend that should be persisting or taking place that complements this strategy best? What if it's a choppy market? Yeah, I mean as we as we spoke as we spoke before we were looking for

38:47 compression candles that that will always be the best trades because look look in this area we have compression and then we get this imbalance candle and the wick and then price goes right. >> Mhm. >> But the imbalance didn't last long so we close closed at this one. But these kind of setups when we have compression and then the imbalance candle will always lead to >> Mhm. >> more accurate results. >> Okay. >> So if we have a choppy choppy market like we have one big candle there and one there and then one another big candle right there, it's a little bit choppy. Equal size of the candles you see. So I ignore all this kind of price pattern when it's we have equal size of candles in relatively

39:35 compact time frame period. So in this case, so this is like no I I don't even look at this wick right there because we had like this one this candle then yeah so so it has to be a little bit more of a clear structure break after compression of candles or >> trend line break simple market structure this kind of setup holds much better. And one final question. Yeah. Why is our trigger right at the break of that high or the break of that low? Like why is that specifically the the trigger? >> Because it it tells me that now buyers are now willing to participate at even higher prices. Okay? >> Because this is the price where the highest price on that candle. If we

40:20 break that that high, now buyers are willing to do price discovery above that high. So it's a natural entry to to take. >> Got it. And you just want to ride that momentum. Yeah, potentially. >> Yeah. >> Okay. Was there anything else you wanted to show? >> I think this is a very easy >> Yeah. >> two candle pattern to look for and start trading a little bit more how the micro structure and the mechanism of how the market actually works. >> Excellent. Well, Philip, thank you so much. Thank you. >> I appreciate it. Zerman trading. Yeah. >> Did you ever think you'd beat Kaio trading? >> Huh? >> Did you ever think you'd beat Kaiov trading? >> No. IQ Capital, you can start your first challenge for as little as $9. Terms and conditions apply. And for every purchase

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