0:00 20 30 uh individual days. And what I want you to focus in on how the shaded area encapsulates 90% of the daily range and how the influence of the kill zones and the opening price work together in concert with one another. I'm not trying to call every single trading day, okay? This is the reason why I tell you I don't trade every single day. But there are days where everything is lined up where time of price, high time frame, objectives, liquidity pools, low resistance, liquidity runs, all those things line up where it gives you holy grail setups. They're the ones where you want to get in there and you really want to be focusing on price. Not every single day. It's good to be in here every single day because you're learning. You're learning about price. You're learning about what it takes to read it. What are the characteristics
0:46 that repeat themselves over and over again? what makes or defines a reoccurring phenomenon or a generic u market principle that like I talk about this is a very generic market principle but it's not generic in the sense that everyone knows it no one knows this stuff no one talks about it no one trades with it they go and they trade ideas on indicators or some you know monkey stuff you monkey business where they say look you know uh this this is repeated the last 16 times so therefore I'm going to I'm going to do it again there's no reason for that okay the banks are not trading anything like that. So each day, take a look at what we got. Very nice day on the 23rd of November. London high above the opening price. New
1:32 York above the opening price again inside the kill zone again. Look at the low right there. After the low is formed, how much time does it trade? You know, does it trade lower than that? Here's that brick wall again, that gray area. Now think visually. This is the daily range. The open's here. The high is here. The low is here. And the close is right there. That opening price on that candle. Not over here. Here. That's perfect power three. Open rally decline low. Come off the low. Close right there at that opening on this candle right there. Let me show you what that is. The candle is opening is 10556. That's true power three with true day overlap.
2:18 That's interbank price delivery algorithm at its finest. It's not cherry picking. Watch as it go across each individual day. [cough] [clears throat] Market rallies here right from here. Now, this is going to be a day you're going to use the zero GMT, but we'll talk about that when we get into that. Creates a high. doesn't doesn't trade below the low. Comes right down to it here. So, even past here, it only went past past this low a little bit, but it didn't go below the lowest of the low, which was formed at the 5 GMT candle over here. Look what goes on here. Market reversal in New York creates the low of the day. Once we get to that brick wall, the end of the day,
3:04 does it make a lower low? No, it doesn't. Absolutely not. There's the low. I'm sorry. So here's a low and here's the close on the day. Even though it had all this movement here, the close is the opening at this candle. That's how you Etsy define power three. How how I define it. When we start going into picking the daily highs and lows on the on the algorithm and what the daily range is going to be, this is what you're going to see repeating. I use that candle's opening as my close, not the close of the candle, okay? Because it's the ending of that that that range. That's what I'm looking for. rally up creates a high of the day in London. Low of the day forms inside of the red area. Once the low is formed,
3:49 does it make a sizable move below this low or past it to the right of that? No, it doesn't. It comes back down one more time. Do you want to ride through all this if you're short? No, you don't. You don't want to do that. Over here, same thing. above the opening price creates the high trades down. You want to take your profits here inside this time of day. This is one instance where it does move a little bit more. Now, count how many times this happens. This is the first one we saw it. Okay, here we have another day above the opening price L kill zone retracement in the New York session creates the low inside the kill zone for London close. Here's the brick wall. End of the battery life for the day. What happens?
4:34 Do you want to ride through all this? No. So, the purest sense of the daily range is opening, rally, sell it. Here's the low. Come off the low. Right there's the close. Perfect power three. Open rally down close off the low. Reference it into the time. Same thing here. This is a second instance where we have an open rally, sell it. New York session return back above the opening price, sell it. time of day, take your profits here, retrace a little bit, and then trades lower. So, there's two instances where it continued going further lower past that brick wall in the daily range. Open rally, sell it, continuation here
5:21 in the New York session. We're trading back up the mean threshold of this up candle right here in the time of day where London, I'm sorry, the uh New York kill zone is taking place. that in this green area, you actually do still have overlap of London. That's the reason why New York, in my opinion, is the easiest one to trade. But, uh, the sell-off here, this is a brick wall. You want to be out of the day by that point. The low is formed here based on what I teach. And it only goes down just about a little bit and then goes sideways. So, again, are you going to be are you going to be stressed about not getting all that? Think about it. I mean, be realistic. If you're listening or watching this, even in the recording, if you're watching this saying, "Well, I would have I want to get out here down here." Well, go go go somewhere else because I'm I'm sorry if I can't get you excited about all this, okay? And getting out by here and you're holding
6:09 you wanting all this still, then there's no hope for you. Very, very tight range in here. This is all election based stuff. So, we're going to have to go through that. Same thing before elections. Dang, day before elections. Um, we're not going to worry about that as well. Previous week on that Friday. I'm not sure what that is. I got to take a look what this is. I think it's nonfarm. I don't have my uh my opening on here delineated. So, we're just show we're
6:54 only showing the boxes, but you can see the opening price on the midnight candles here. Rallise up. The low is formed in the London close portion of the day. And again, here's that brick wall. Do you want to be getting in and all this? You want to ride that back up? No, you don't. Do you want to be taking profits down here, okay? Or trailing your stop loss ultra ultra tight like you see me doing in the live sessions when I'm in a trade. you actually see me start aggressively trailing that stop loss up when we get into that time of the day where we don't want to be in experiencing any of that retracement at all. Here's another scenario. During the London, it creates the low of the day. Continuation buy in uh New York session. The brick wall of the daily range is here. It creates the high right before that. And we ride this
7:40 retracement lower. And then look what happens later in the day. It just popped its head above just by a little bit over here. Again, are you worrying about that last little piece? Because if you are, I can't help you. Focus in on the shaded area. That's where all of the easy money in the daily range is going to be forming on a consistent basis. And here rallies up from the uh the London lows. One shot straight on through creates the high of the day. Here it goes just a little bit above it after that brick wall at the end of the day. Just a little bit and then trades slightly higher again over here. Again, that's not important for you to catch. You don't care about that. Don't fall in love with that type of price action. >> [clears throat] >> uh we have a London close reversal or
8:26 market reversal profile at London close it's an entire different uh topic altogether London low retracement back into another buy continuation in New York bearish shoulder block I'm sorry bearish candle which is a bull shoulder block mean threshold rallies up time of day take profits the high should be forming except we've seen a low in London. As soon as we get in this red area, we're anticipating what to form the counter side of the daily range or the high in this case because it's started rallying in London. So, you're going to be looking for the high to be forming. Soon as this red portion pops up on your chart at the bottom, immediately you're starting thinking, okay, the high could be forming right now. So, you want to trail up your stop loss, get ultra tight on
9:12 your risk, don't let any of the profits erode or just start scaling out positions to start taking some profits. This is another uh time where we have the high form and the brick wall in the daily range ends here and then we have this last bit of a drive higher. Again, not the normal occurrence. Uh London close reversal profile here, but still ends the day inside the red area as well. and it goes to sideways London low continuation on New York creates the high of the day just inside the London I'm sorry the New York uh kill zone then retraces which is a
9:58 reason why during London trades you have to be up at 7:00 a.m. in the morning because at that beginning at at that point point of the day you could have a reversal profile. So, you got to be taking something off. You have to absolutely get it in your head to take something off at 7 o'clock in the morning. If you've entered in London, whether you've been awake the entire time or you woke up in profit, you must take something. And it has to be at least 25% of the trade. Take something off and scale some of the risk down. If you don't do that, trust me, you're going to regret not listening to me. But the brick wall in this daily range ends here. Okay, here's the close on that daily range here. We have a little bit of a movement down here. So, you want to ride all that back down? No. Nobody wants to do that.
10:46 Okay. So, we have a London high form above the opening price here. Rally above, sell it. Continuation in New York, which will be on a breaker here. That's what you're seeing inside the London session here. You'd have to go down into a fiveminute chart to see it actually. this last down candle, it trades up into it, wicks into it here, wicks up into it here and sells off in the green shade area, which is the New York kill zone, New York zone overlap, but the London trades right down into creating the low right inside of the,400 beginning of the red area or London close. Take your profits. Brick wall ends it on the daily range here. And again, it it's not it just doesn't
11:32 make sense to do anything outside of this shaded area. Opening price rallies. Um small potential continuation here, but rejects here. And then you have the market trade back into the close portion of the day. So again, one more time focusing on that 7 o'clock in the morning. You must pay yourself at 7:00. open rally, sell it, mitigation in here, sell it off, and then creates the low of the day during the red area, end of the daily range. The low is here. It doesn't even make another lower low, but does have some retracement in here. So, again, I'm just going to just I'm not going to say anything more. I'm just going to briefly go through a couple more slides of it.
12:18 You can see the portion of the daily range that makes the majority of the moves and we're not trying to, you know, that's the end of my uh representation of it. So, here we go live. As we talked about earlier, it was hitting that bearish order block with that with that last up candle. Normally, that would be a sell. Okay? But I told you because the time of day we're in London close. We've already priced in a low. we're retracing from. We don't have much time left before we hit the brick wall on the daily range. Okay, so this is not a high probability sell and you can see the price is not showing any indication that it would respect that bearish order block. It's probably going to want to trade up into here or even try to clean up these equal highs as
13:05 well. So in other words, you just don't want to be short right now. So by having these reference points and and builds context on what it is that you should be looking for, why should why should you be expecting these things and by having it in your charts, you won't be lulled into going back and forth with, okay, should I be buying, should I be selling, or should I be should I be trading right now or should I not be trading? Should I be on the sidelines? As a trader from my personal development, one of the things I struggled with most was if I could determine when I should not be trading, I would avoid all of the problems that cause me to give back all the profits I make because anybody can make money. And I'm proof of that. In the beginning, I
13:51 had I had stretch of nine months straight of profitability, winning winning winning winning winning, winning, winning winning. And it just kept going on and on and on with overleveraging with no idea what the hell I was doing. That's a beautiful ingredient list of disaster and eventually it came it came to fruition. So what I was quickly drawn to was okay, I can make money. That's I can see that I can feel that. I've experienced it, but how can I avoid taking trades when it doesn't really stack up in my favor to do that? That's one of the things that I try to do in my teachings because that was one of the biggest barriers for me as a trader because every one of us has the potential to make money. We can do that. But what's going to undo you as a
14:39 trader and remove you from this career is your losses. Okay? Are you able to take a loss and is you are you able to trade through that loss without having any psychological impact or changing your perspective on the way you trade? In other words, does it undo your expectation on how you trade? Because if you suffer a loss, are you thinking, man, I need to stop trading? Not this isn't for me. Because if that's what you're doing, number one, you're feeling that way because you don't have discipline. and you don't have discipline because you haven't exercised a a a way of going into the marketplace in a routine basis. If it's not that, it's 100% you're overleveraging. That's always going to be the case
15:24 because I was quitting 20 times a week back in 1994. Okay? I mean, there were so many times where I was in a trade and I was just like, man, let me get out of this trade without any loss and I'm never trading again. That's how much of a stomach issue I was creating. I mean, I wanted to throw up every day. And because I had lack of discipline, I had no perspective. I had no principles. None. I had no understanding why price should move when I was expecting it to. And when it wasn't moving, it was pissing me off because it was frustrating. I'm like, why isn't this thing moving? Why won't it move? Either take my stop loss out so I can end this suffering or pay me. Well, there's going to be times that you are going to be stuck in that. And I focused a lot of my study in what causes those environments because if I can
16:10 avoid them like quicksand, I'm going to try my best to do that. And if I can navigate that minefield, if you will, I don't want to stand I don't want to step on a line man landmine. I don't want to have my uh my career blown up before I have the chance to really make a good living. So if I can avoid that going forward, then chances are I'm probably going to be profitable. And that's what has happened over my 24 years. I have looked at the marketplace like a a landmine field. Okay, there's there's a prize waiting on the other side. We all have that. We envision it. We view it as, you know, retirement early or just independent wealth or just a secondary income or pay my house off or, you know, let me put my kids through school,
16:56 something, something like that. Or I got medical expenses and I just need help getting that uh covered. Each of you have that prize of the other end in mind. Whatever that is, it's it's independent and and uniquely yours. I don't ever try to sell you that goal. You all have that independent uniquely to yourselves. But you all have that same landmine field right in front of you, just like I do and had 24 years ago. You don't know, even with my tools, you don't know when you execute a trade that if you're placing your foot on solid ground or just a little bit of top soil with a trigger button is going to be depressed soon as you press your foot on that and you're going to blow yourself up. That's why you have to have an
17:43 ability to weather these losses because you may be able to uh get hurt by some shrapnel in a trade move. Okay? You may be able to weather that and say, "Okay, you know, it didn't kill me. It hurt. It hurt like hell. It took some money from me. Hurt my pride. Hurt my ego. But it doesn't change the path at which I've chosen. I'm going forward." which which is defined by the outlook on how you interpret price action. You go back to and when you have a loss or if you miss a move, the first thing you should do is go back to your trading plan. Revisit it. Go back over it. Teach yourself again what you're trading. Do not go into the thought process of saying, "I'm
18:28 about I'm about to quit. I'm about to throw in a towel. I'm about to close up shop. This isn't for me." You're probably right. I'm not going to sway you in that decision because if you want to stop trading, obviously don't let me be the person to tell you keep staying in. But if you want to do this and you committed to a long-term career of it, why are you quitting on your first time of adversity? Because you don't have the discipline, you don't have the the clarity, and you don't have the uh the defined parameters that define your trading model. When you have that and it starts by what I'm showing you here today, it's too easy to look at price action and and pick every single up candle as a bearish order block or every down candle as a bullish order block. But how many of those instances do you see a bare
19:14 shoulder block or a bullish shoulder block with the context I just described to you here relative to higher time frame directional premise the opening price the kill zones the end of the day all those things when they come to come in together you really don't have that many choices you don't as much as you want to believe that there's so many things out there to choose from how could I possibly narrow it down because you haven't done the work you haven't taught yourself to trust what I just showed you today. It doesn't give you every single up and down tick, which is what you're looking for. You're looking for that, tell me what it's going to do the next 5 minutes. I want to know what it's going to do every single minute. You don't know. I don't know. But I know there's a general
20:01 template, if you will, on how price is going to be delivered every single day. And you only need a couple pieces of that. Okay? It's kind of like a jigsaw puzzle. you know, when I do a jigsaw puzzle, and I love jigsaw puzzles. I probably got about 140 of them now. U still the ones I did relatively easy, I give to my kids and they end up losing the pieces. But I love jigsaw puzzles because I like problem solving. I like looking at things analytically and breaking them down. And the more complex the puzzle, I love it. I don't care what the picture ends up becoming at the end, I just know that the first thing I do is I look for all the pieces that make the border up, all the straight line pieces. Why? because they're defined just like price. If you look at what I've done with price action, how I've encoded or decoded, if you will, price
20:47 action, I have looked for all the border pieces. The beginning of the day starts here. The high of the day, well, it should be much not much above the opening price if it's going to be a down day. And if it's going to be a a lower close, how much farther it's going to go? Well, I didn't talk about here, but that's what I use to flow for. So that gives me the border pieces for down here. What objectives I should reach for? I know that the flatout will be accurate when I can see it overlapping with an area of liquidity, which is these equal lows over here. So I know that there's going to be a high probability for price to reach down to this area here. Well, if it does that at the same time when this red area here, which is London close, tells me, okay, this is about time when the London I'm sorry, the London close is occurring, that means the daily range
21:32 should be ending or being formulated as a low of the day. Then guess what? I've already framed the low of the day. So now I know that the border end on this side of the jigsaw puzzle that makes the daily range is here. This is a this is a constant with me. Now it may color outside the lines and do things outside that. I don't care. I personally don't care what takes place past noon. I don't care because there's so much of the picture that's clear. I can fill in all these middle pieces just with the kill zones and intraday price delivery with with either a liquidity run into a void or a bearish order block in this case as as a bearish day. If we go into a five-minute chart.
22:22 Okay, here's a five-minute chart of the Euro dollar for today. [clears throat] Every time Every time price retraces, every time it retraces, it creates an opportunity to be a seller again. Every single time it retraces, it gives you an opportunity to be a seller. Every time it gives you retracement, it's a time to be a seller. If you sold the London high inside the kill zone in here. Okay. Now, I show a lot of fiveminute charts and if you watched everything I've done since baby pips days, I did a lot of teaching in my recaps on the daily uh price action with the five-minute chart. And I did that admittedly to hide a lot of things that
23:07 I use in the higher time frames and also on the 15-minut time frame because the 15-minut time frame is really is my executable time frame. That's my bell weather execution of of time. I can refine my risk with this time frame here, the five-minute chart. But when we use these ideas, everything becomes crystal clear. When you look at price like this, when we have an expectation and price action on um lower prices, we're looking for lower prices in the kill zone in London. Okay, we have the opening price here and price is trading up. It's only going above an old high back here. But what's it really aiming into? You got to go past this midnight candle and over here it's the last up candle
23:54 right here. That last up green candle, the low, which is the opening 10667. Okay 10667. And the high is 10669. So, it's only two pips above.
24:42 You can see that there's a stop run right above here. I'm not teaching you anything new here. This is the same stuff I taught you in September. What you should be focusing on right now. What is that? Previous highs. That's where stops are going to be resting. Buy stops above the opening price. Price is rallying up in London. Takes out the stops into a previous order block, bearish order block, which is the up candle here. Then price does what? Trades lower. What are you looking for to confirm that? Find the low for the London session. That's here. When that's taken out right there, the algorithm is not going to permit until we get to New York. Another opportunity to retrace back into that
25:28 because this whole momentum shift here locks those individuals here that bought at the high and didn't use a stop here. They want to expand the range down. It comes back up. It gives one more opportunity to do what? run short-term high right in here. Slightly higher high. It's all you need. Price accelerates going lower. This is occurring during what time of day? Right in here. This is the London lunch between the gap between the end of this blue bar and the green bar. Now, again, it's because of the time on this thing, it doesn't let me it doesn't paint it properly. So, you always got to have to make sure you have a um
26:18 I think it does it on five minute though. Right there. Yeah. See, it's a little You got one more one more candle which is here. Then you go into consolidation and then you start it again. There right here. You get a little bit of a retracement in here. right in here. When this is retracing this portion of this move up, what's it retracing into? It doesn't get to this bearish order block. It doesn't even get to this 5minute breaker either. Keep on going. Boom. What's this down candle here?
27:05 It's a bullish order block right before this big run up. So all these orders that are in here that are underwater on this down candle has to be mitigated right there in the New York session. So all this remaining residual buys that are in place with this down move they're re they're removing them here and then once they remove them then the price is allowed to do what? Accelerate going lower. So inside of the the New York kill zone again in here we see another little retracement trades back up into what the last up candle bearish order block. So you can be a seller again because you still have time of the day but then boom we hit this what we hit the beginning of
27:51 the London close profit taking hour. So you want to be taking profits in here or trailing your stop loss ultra tight otherwise you'd have to sit through all this which is not fun. Okay. So, the moral today was to number one introduce how to use the indicators I gave you on the November template or on I'm sorry, the November post on the forum, what to use them with, okay? How to set them up on your chart. So, that way you know what my year round kill zone settings is. This is it. Nothing changes outside this. I don't deviate from it. This is the way it is. So, my setups have to form inside of these respective conditions or times. If they don't, then I have to wait. And it's
28:36 fine. You're going to see some moves that occur that happen just outside of these. And then you're going to see a lot of them really happen right inside of them. And that's exactly what you're supposed to be doing. You're going to have a great deal of opportunities daytoday. Just because you don't see a really refined def uh defined setup in the euro doesn't mean there isn't one in the cable or that there isn't one in the Canadian dollar or the Australian dollar or the New Zealand dollar or the dollar Swiss or dollar yen. Once you understand one currency pair well and you understand the elements of time and the time of day, once you identify all these characteristics and principles I'm outlining here and you apply them to the
29:22 majors, you don't have to spend a great deal of time going through the majors across what 20 minutes. It probably take you 20 minutes really to you cycle through all the majors. Okay? and then you'll be able to find a setup every single day. Every single trading day there's something just because it's not occurring cleanly and and uh very uh detailed in one particular currency doesn't mean it won't be showing that in another. Let's take a look at uh let's look at CAD. [cough] [clears throat] All right. So
30:17 define the day. Okay. Okay. So, we know the brick wall or the end of the battery life is over here, hard right edge of that shaded area. Okay. And the low that's formed so far is here. And it's happening in the time of day where we would anticipate profit taking. Prices already want to surge higher. We had a nice little move above an old high in here in the New York kill zone right in here. Okay,
31:03 price has traded up into this candle here. Last down candle right before this price movement up. So price is mitigated this morning in New York. Right there. The high is 135 big figure. The high is 135 big figure. Trades right to it. Undoes all the longs that were here. That's underwater here. When price gets back up to it, it mitigates it there. It's also a turtle soup. Price declines. It's all occurring above the opening price at midnight. Price expands to the downside all through
31:49 here. Let's go into a fiveminute chart and see what we can see. Last up candle retraces inside the body of the candle trades lower pulls back makes the low of the day inside all this here. So my question to you would be this. This bearish order block here when it's traded to right there and starts trading right to this and this candle is trading down in what time of day? 14. That begins the profit taking hour. Is your trade high probability? Mm- nope. You should have already seen a lot more range and it's in a time when a low
32:37 is going to be expected to be formed inside this red area. All this time period down here. You want to take a price like that between right there. As soon as it hits that time, that's uh oh, it's time for you to put the brakes on. So that's not a good time to be taking a trade. The trade would have been better taking it earlier, which is what we're seeing here. So we had consolidation, then a late day Judas, and then the price goes lower, making the low of the day here, and we're so close to the brick wall or end of the battery life on the daily range inside this London close. Chances are we're probably
33:23 forming the low of the day here. So you don't want to do anything. Now, here's an interesting cool little thing you want to practice. Also, when you have days like this and you're anticipating the low is already formed on a down day, note equilibrium. There's equilibrium. And you want to also don't do that.
34:16 >> [clears throat] >> before we get the end of this or at the end of this gray area inside this area right there. That's where the close is going to be as we define it for this model. And this is one of the things I did to build my own anticipatory skills. Oops, didn't want to do that. It helps me build an expectation or where price should formulate the daily candle or way it populates our our
35:05 charts. When we get to this edge of this gray shaded area, the close or the last candle in this in this shaded area, the opening should be inside this red area. That's what I'm anticipating. Now, you're probably saying, "Okay, well, what's stupid?" You know, why would you even want to do that? Well, because if you understand that you can do these types of things, that's the type of thing that led me to understanding where where we put this red line down in here, blending close, and I I'll be noting a lot, and you've seen it in the past where I will give you a shady little area where price is going to drop down. And I gave an analogy, and I use it to my kids. It's kind of like when a a parachute uh jumper where a person jumps out of the airplane and they have these little areas on the ground where they have to target to land. Well, that's what I do with price. But I do that
35:50 sometimes in London and I'll see that price will go right down into that little area right at the time of the day when it's supposed to happen. Now, my biggest epiphany was if I'm able to do that just 50% of the time, there was an edge there that I needed to look into and investigate. And I started saying, okay, well, if I could see that happening, how do I know what characteristics were in place that leads me to see that happening before it occurs? What what overlapping conditions and characteristics were in price action that led me to be accurate at those instances where I could see it happening before it happened. When I did that, it led to all these things that's being refined and shown you here in much more in greater detail in January.
36:36 You have to respect these things to uh to gain anything from it. And you're not going to respect it until you go and you study. It's not enough for me to show you in examples and charts or just show you here because I know guarantee you most of you that are in my group that are very cynical and probably been biting your tongue up till now, you're probably saying, "Well, this is, you know, this isn't teaching anything." And that's exactly why you're struggling because you're not doing what's necessary to prove to you why it's significant to go into your charts and see these things repeating over and over and over again. You will know before I say what I'm going to do with my trades. And then when you see that, your understanding, your confidence level is going to go through the roof because then you'll say, "Oh, now I get it. Now
37:22 I see what's going on. I know why he's doing that. I know why he's expecting this price level. I know why he's calling this direction because I can see it in my own charts. That's how you graduate throughout this mentorship. And eventually what'll happen is you'll see the setups that you like trading and they won't happen every single day. That's the beauty in it. You'll know when the characteristics are in place for you to see your setups coming. Some of you are going to require that the trades only happen when the market trades above the opening price and you you're a seller. Some of you will never ever ever go short when there's a move that starts and never goes above the opening price. And that's fine. But others will see that as their trading model and say, you know what, I see why
38:08 that's happening because the Euro pound is weak. And therefore, the cable should have never rallied above the opening price. It's going to be a lower level retracement back to a bearish order block or I will look for a lower level turtle soup run on buy stops and then that that that will be my sell. So, I'm not trying to force you to take a setup and make it your model, but I'm giving you my three that I trade with. And I'm promising one of you, not one of you, all of you will find one of them and you'll gravitate to it and it'll make perfect sense to you to trade that one. And then once you understand that one really well and it's profitable for you, then and only then go over and start messing around with the other ones that you haven't been drawn to. And even if you don't elect to trade those
38:54 consistently and you stick with that one, it will still complement your understanding of price action. And that's how I developed all the things that I'd use to trade and how I'm able to call the markets like I do by modular approaches and thinking things in a very easy way of looking at it. I look at price action as a jigsaw puzzle. I have to get the border pieces because once I have the border pieces, I already know if it's going to be a down day, what makes that down day? I got the picture of what it looks like. It creates a high in the London session. It creates a retracement back to a secondary sell or a second leg in price lower in the New York session. And it makes the low of the day between the times of this red area down in here. So, if I know those ending uh boundary pieces and like I have it over here, this is the time of the day where I don't want to be in it
39:40 anymore. I no longer want to be worrying with it. The puzzle's no longer interesting to me anymore. So I'm I've already framed the whole business of this entire daily range is necessary for you to have all the pieces. is in front of you at one time cuz that's what you want as a new trader. That's exactly what I want as a new trader. You want to see what boundaries are most likely going to hold price at bay on the high end and on the low end.
40:27 We know time is always going to be an element that refrains from seeing price do a whole lot more movement past this time of day. It's just generally it London's closed shop. That means North American trading is the only thing that's taking place. And unless there's something later on in the day around FOMC's, you know, basically around 2:00 in the afternoon New York time, there's generally not a whole lot of reason to expect a lot more movement past the noon time each daily range. So when you have that, it gives you context. It gives you boundaries. It gives you clarity. Okay? And again, the easiest thing to do is trade inside the range. That's the easy part. The hard part for me as a mentor and as an educator is to teach you the importance of knowing where the boundaries are. The boundaries are where
41:15 the set the setups [snorts] are and where the profits reside. What I mean by that is here's the opening price. If we're looking for lower pricing, it has to be ideally a movement above the opening price. We see that here. We didn't see it in London. It's been relatively flat. the market moved higher at a market protractionary state where it extends higher during the New York session. When that occurs, it's a movement above the opening price. So, there's going to be what? Built-in premium. So, when that premium is in there, retail is going to be buying it and then they quickly adjust price lower. It does not give them an opportunity to get out or change their mind about, well, this is probably not a good idea to be long. They quickly run it against them aggressively. Then we go into what? After a trending move or expansion, we go into consolidation. Then expansion
42:02 again consolidation retracement back to liquidity, then expansion again to what to liquidity. But in now in a time of day where we anticipate the low of the day forming. So we're not going to be looking for uh you know a needle in a hay stack. It's it's relatively the same thing over and over again once we know what the boundaries are. If you don't have those boundaries, you're not going to understand the context that happens inside the middle of the range or what makes up the daily range as it is. by going into your charts and doing these things on a day-by-day basis, even in hindsight, because that's how I learned.
42:48 until you can see what the reasonable expectation should be because of seeing it in the past and seeing and studying it and having case studies over and over and over again. You build the appreciation for time and how that it affects price and time of day which is paramount in your understanding of day trading or even position or short-term or long-term trading swing trading. You have to understand this because if you don't, you're open yourself up to a lot more risk that's not necessary. And it's much better for you as a trader to understand how you can refine the risk to its lowest form. That's the benefit of uh allowing for your R multiples to be much larger. Because if you can keep risk small, okay, and you can defeat that
43:35 that little monster in the back of your head that's saying there's no way I'm going to make a lot of money unless I risk a lot. If you're listening to that, if you're talking to yourself, uh, you know, subconsciously saying, "All right, well, once I learn a little bit more in this mentorship, I'm just going to just go go crazy. I'm going to risk 10% of my account because I need it to happen." You're going to regret that. Okay? Trust me, it's very easy to build your equity up with a very little bit of risk. But you have to submit to these ideas and wait for them to come to you. And that's what makes trading so hard because it's not the signals and the setups that you think is the hardest thing. You think that's the the that's the business. The business is the buying and the selling. And that's not that's not it. The framework at which makes you understand why the market's doing what it's doing. That's the business. Okay?
44:22 That's that's what it is that you're looking for. But you don't think that because you don't have any frame of reference. You're just going by the only way you're going to make money is if you buy it and it goes up or if you sell it and it goes lower and you exit at a profitable point. That's that's your only perspective because that's the only thing you understand now as a new trader or up to this point in your trading if you've been trading for a while. That is a brick wall that you must break through and it takes a long time. And unfortunately, some of you aren't willing to submit to that. Some of you, you know, well, some of you that aren't can't even listen to me anymore that started this mentorship, not I can't talk to you now, but you know, I'm speaking the benefit of those that can hear me. Uh you just didn't you didn't hold on long enough. And I understand. I understand what that feels like, but you got to do these types of things if
45:09 you're going to be a trader. That's what makes this industry hard because it's the most loneliest, single-minded thing that you're looking for a team effort on. You want backup. You want your your posi to come up behind you and and and and give your back for you. And that doesn't exist here. There's no assurity outside of your own reasoning. You have to do this on your own. And the way I have overcome it in my own part and I'm very well to the degree of arrogance I'm very confident in my approach of understanding price action because I'm committed I've committed that this is exactly what goes on. I've been sold on the idea. I've seen it so many times. It's been happening in my charts day to day. It it I've been on the other side.
45:55 So I know how that operates from that end. I know what it's like to be a retail trader. So, I know what that feels like to be on this end. And I bridged both worlds. And it allows me to have absolutely no fear. I don't have any fear in it. You don't have that yet because you haven't been doing it long enough. And I mean not studying it, not finding profitable trades cuz that's not it. There was about a year that I didn't do any live trading. I went back to paper trading. Once I realized that I really didn't know what I was doing back in the 90s, I forced myself completely out of the marketplace. I did not have an account. I did not have any market uh risk at all and I was entirely in paper only. That means I say I hypothetically bought the open or I sold the opening
46:41 price and I had to use the opening price. So if I could not formulate a trading model that was profitable by using whatever the opening price was, then I could not go back to trading live funds. I was not allowed to do it. And it took me a year to get myself back in sync where I got rid of the fearful things I was fearing. I was, you know, wondering if I'm ever going to be able to make money again. And what if I didn't make money again? Oh no, I got to go back to doing vending machines and soda machines and I got to work for somebody. I don't want I don't want to do that. I didn't want to do that. But I knew that the potential to make money in this industry and now I'm talking about futures back then. How do you know about uh Forex? The idea of submitting to that was more
47:27 important than being fearful about the uncertainties. I knew the certainty of me never making money would be true if I never put work into it. That's a guarantee. It's not going to happen. I'm not going to make money about this unless I know what I'm doing. So, I had to look at things and say, "Okay, if I was if I was the person that knew how to do this, how would I teach it to me as someone that doesn't know what I'm doing?" And the easiest way would be, "Okay, this is how you want to avoid losing money." And that's how I did it. I said, "If I knew how to do it, I would teach the person how to avoid losing money because that was the problem I was having. Making money happened, you know, just by chance." And that was easy. And that's what usually what you see on the internet. You know, when people make
48:13 money, they attribute it to great deal of skill. And a lot of times it really has nothing to do with skill. They just happen to get lucky. And I can talk from experience like many times you've heard me say. But when I adopted that mindset and okay, how can I go into the marketplace and identify the characteristics that led to me losing money? When I do this, the the outcome is going to be removing as much as the possibility of that happening in the future as I can with my limited understanding. And by doing that, it led me to every facet of my trading is that's the first thing I focus on. How am I going to proverballally f this up? How am I going to screw it up? How am I going to mess this up? How could I
48:58 possibly read this wrong and do it wrong? And if I can focus there, I'll know when I'm looking at things wrong because I'm usually forcing an idea. Usually that's what happened. And then it built this model where I would break things down modularly. And then when I went forward and once I understood IPA, when I had exposure to that, then all of a sudden I said, "Okay, now I know that there's a real rhythm behind this. There's no randomness. So now, how can I go into the charts and see the fingerprint of it? So that way I don't have to be here inside of a building reporting to somebody. I can be at home and see it in my charts. And that's what began like I don't know maybe a little less than two years of me just literally going insane
49:44 about going into looking at price, studying it, forcing my belief was accurate. Like I didn't it wasn't contrived. It wasn't um uh form fitting. It was absolute. It's it's it's a constant thing. It happens every single time the market makes a significant price move. There's a characteristic that takes place and we identify. We talked about it a lot in this teaching here and it's not like it's new, but I'm teaching you the importance of submitting to this time element and framing your charts in a way where it gives you number one clarity. You're not expecting some craziness. Okay? Okay, in other words, you're not looking for the market to go 100 pips when it's already rallied up above the opening price. You're not looking for 100 pips above
50:30 here. Okay, this is a reasonable expectation for price to drive that much higher. Let's look at the what the range was. Here's the opening price. There you go. 31 pips. I teach what the Judah swings about 30 pips. Think about it. That's I mean it's in the free tutorials that that's not new. There's 30 pips up, 30 pips expansion, second leg down. Expect this much of a daily range low. You're inside the daily London close
51:17 kill zone and we've just breached above a previous low. So, there's a good time to expect the low to form. But look, more importantly, look at the body of this candle right here. Not the wicks, okay? When it was reaching down, making that low, the body was really close to what you were already expecting in terms of just using power three. When you start looking at these things and really studying expansion and looking at price swings, when you start seeing all these things, okay, let me give let me add one more to it. This is another thing I did when I was coming up. All right. So, we have these lows down here. We'll come back to that in a minute. But this is the price swing falcrum point. In other words, where it starts going up. I'm going to add that
52:03 to here. So, we have a price leg right there. Okay. So, that's a reasonable expectation for a measured move. We also have I'm resisting the temptation to go in and changing my fibs live. It just takes too much time. Okay, so we have that price swing here up and you measure that from these lows here projected down. And again, it's real close in same proximity as what we just showed before. So we see this as a projected low. We have this price action down. We have this price action down. And we're going right into this area where we're identifying where the close may occur inside the shaded area. So basically what I'm doing is I'm doing a skill set test right in front of you live. Well, maybe not live for those that have to watch the recording later
52:49 on, but you'll see if I'm right or wrong. But the point is when you start doing these things it builds a well for me I was scared because when I was losing hundreds of thousands of dollars every week okay of real money coming out of my account when Lyn Waldock was debiting my account with is in many times more than most people make in a yearly salary with their spouse combined. I literally grew fearful. And because of that, it was such a daunting task for me to just live. I couldn't I I couldn't leave the the walls of my aunt's house. I had to force myself to just figure this out. I had to do it. I couldn't wouldn't accept it. It had to be this
53:35 way. And I couldn't I had to figure it out. I was just no exception. When I committed to this, it gave me a way of desensitizing myself from the fear. I was not afraid to take a trade ever. But once I got in the trade, the fear would come on like crazy. and I didn't really have a whole lot of risk on in when I was coming back into it once I had already take myself out of the marketplace and had been paper trading for a while. Um, I was so bent mentally because even on my paper trades, I would get anxiety attacks when I would see that the market was moving against me even on paper. And I'm all I'm doing is writing down that I bought or sold at the opening price.
54:22 And when I saw the movement against me, even on paper, it just caused a sense of anxiety like I got to go back to work. I got to go back to work for somebody. I don't want to do that. And what would my friends and family think of me? See, at the time, I had no debt. My cars were paid for. I had cash in the bank, but it wasn't a lot, but I had enough where I could just hopefully coast through until I can get myself making money again. And then everybody would know no different. So, I had this unrealistic expectation that I had to be inhuman. There's no way that I had the uh, you know, the the ability to be able to show myself as losing money. I wasn't permitting anybody to know that. So what happened was I had to desensitize myself from
55:10 that because it it it caused such a great barrier for me mentally to overcome. It was impeding my ability to read price action or even study it, you know, properly. Every time I looked at price, I was thinking, okay, the outcome is going to result in me being embarrassed. The result is going to be me going to have to get a job. the result is going to be and I was putting all these ideas at the end of this situation or this trade that had no basis on what the market's going to do. The market's going to go up or down based on what the market's going to do, not because it's going to push me into taking a job again or it's going to push me into profitability. It's going to do what it's going to do. I have to be the one that submits to that, not the market submitting to my expectation. But I had a toxic way of thinking about things and
55:56 it just made it worse every single time. So I learned by experience that if I can submit to a process going in over and over and over again and I can get a calculated reasonable expectation as a result, then I can slowly build my confidence level back up where then I'm no longer shooting in the dark. At least I know a direction I'm moving into is going to lead me to a positive outcome. It may not be, you know, independent wealth again. It may be just where I can just replace my job income. It could be just where I have a little bit of money and I could work a part-time job and then eventually move into uh, you know, full-time trading. I had to break things down modually like that. And I'm not immune to, you know, these things. I went, like I said, I went through all this stuff. I was the epitome. I was the definition of average
56:43 Joe and it's in my middle name, Michael Joe. You know, that's me. I lived it. I know what it's like to go through these things. So the way I beat it and came through on the other side was by breaking things down in puzzle form. I had pieces that I knew that I see in price, but how they fit together. I was trying to fill in the middle part. I was always trying to figure out where the buys and the sells were. And that's what you're messing up on, too. And I'm telling you, you don't want to believe me. You believe everything up to when I say that. You'll if I tell you anything about the market, you'll believe everything. Hook, line, and sinker. But you don't believe me when I tell you you don't need the buys and the sell signals. You don't need that because your mind says that's the way you make
57:28 money. And I'm telling you, that's what I was screwing up on, too. Back in the 90s when I realized I didn't know how to trade back then, once I submitted to the idea that it's everything else, it's the border pieces. That's what makes it easy. That's what makes trading easy. Because if you understand the the underlying pinnings of the market, the context of what you're trading in, the buys and the sells become easy. That part's the easy part. But imagine the complexity of me trying to teach you the buys and the sells when you can't see the context of the marketplace as a whole. That's why if you look at if we do a if we do a poll every single day and I may even do this in January, um I'm going to do a poll and ask
58:14 everybody, you know, are we a buyer, are we a seller on a particular currency and you watch and see it's an it's it's anonymous. No one can see what you're doing. Those polls on Twitter, they don't nobody can see it. And in fact, I can do a poll inside of our live sessions right now. I could do a poll and I can present that poll information at the end of the session. And I'm telling you, you would be amazed how the diversity between it's split right down the middle. Half of you will see it as a buy, half of you will see it as a sell because the ones that will be approaching it with a buy and sell only and not framing it with the context of the border pieces, if you will, the bigger picture, the higher time frame delivery of price. Those individuals are going to see it clear and they're the ones that's going
59:00 to do well in this mentorship. the ones that are dropping off, the ones that are quitting, the ones that are secondguessing or even saying they, you know, they're they're wanting to stop trading alltogether is because you're focusing too much on the middle. You're looking for the buys and the sells. And that's not where this is. The answers are not there. The answers are on the out extreme boundaries like [music] >> [music] [music] >> Yeah. Yeah.
