Transcription
So, this week has not been the best trading week, right? In regards to the Futures market and, you know, the Forex market, which are traditional markets. You know, this is, you know, normal price action. This is what you should, you know, usually expect at the end of the month, right? So, you know, and that's very time-specific. So at the end of, you know, each, you know, cycle, doesn't matter if it's the daily cycle, the weekly cycle, the monthly cycle, even the yearly cycle, right? You'll usually get price action like this, usually, right? The last quarter, if it, if it does not, you know, reverse. And the only way, you know, or one of the ways that would cause one of the things that would cause price to reverse would be sequential SMT, right? Or a Precision swing point. You understand?
So, going into this week, right? I go for the NASDAQ, right? Going into this week, I'm pretty sure that you guys remembered, right? That we talked about this specific candle right here. And I, I know that, you know, price hasn't, you know, fell, you know, that much. But, you know, it's the last week, so we don't expect price to be reacting, you know, perfectly as how it would, like, in the second and the third week of the month. So, we will compare, right? And identify our Precision swing points. If you guys can recall, right? On Sunday, right? I said that, you know, this candle right here that was formed on Friday of last week, right? The daily candle of last week, Friday, it's very important, right? This is a Precision swing point, a Precision swing point, right? And if you're a charter student and you're here, you know that you've never heard about this before. Michael doesn't talk about this. I don't even know if he knows about this, right? This is, you know, my specific research. If I go on Twitter right now and I talk about, you know, just say, "What's up? What is this? What's, what is the importance of, you know, the candle of last week's Friday?" No one will know.
In order to take anything away from this, you must understand that you must always be looking at, you know, correlated assets. So, you can't just be looking at the S&P 500 alone. And I know that for some of you, you know, this may, you know, come off as difficult. But I can assure you that, you know, over time, it will get easier, right? You will begin to take, take it as a habit, right? You need to develop these habits, and these are good habits, right? So, we did expect, you know, price to, you know, fall a bit due to the fact that this is a Precision swing point. There are times when specific times, which we will get to eventually, right? That specific Precision swing points, you know, you don't need SMT. You don't need SMT, you know, to see Precision swing points, you know, functioning as they should. So, there will be times such as this, right? Now, right? Where there is no SMT, but there's a Precision swing point. But whenever you see sequential SMT, right? Whenever you see sequential SMT, right? This down, and there is a Precision swing point, there is nothing, right? That is, you know, more powerful than that, especially if that swing point formed on a new week opening gap or a new week or a new day opening up, right? You understand?
And also, you know, just to like, put this in right now, just as you have new week opening gaps, new day opening gaps, you have new month opening gaps, right? Remember, everything is fractal. Every single thing is fractal, right? And then, you know, that, you know, this lecture right now, it's coming off as, you know, a bit boring, I would say. But these things are important, right? So, most of you guys know that my, my forte is probably is Futures. Like, I'm the best, you know, at Futures, right? That's what I am good at, right? I'm good at Futures trading, Futures, you know, knowing, you know, when price is been to reverse, right? And everything that I talk about, it works with Futures, right? It works with Forex, it works with crypto, but not as good, right? As it, you will find it working in the Forex market and the Futures market. Of course, it works with commodities too, right? But the thing is, you need to have three, right? If you're looking at Futures, you need three assets, right? If you're looking at the Forex market, you need to use three as well. And, you know, you can find three assets there. There are some, you know, asset classes, whereas like crypto, you would, you know, you can use Bitcoin and Ethereum, right? You, you can use two there. But here, right? It's better to use three. So, whenever you can find a, you know, a asset class where you can find three closely correlated assets, that asset class will be higher probability than any other, right? Same thing for bonds. If you're trading, if you're trading the 30-year T-bond, right? Which is, if you're trading the 30-year T-bond, then you need the 10-year note, right? And you can use the five-year note as well, and it will, you know, function the same way here.
So, going back into this, we will identify our Precision swing point. So, this candle right here, that's a Precision swing point, right? You can see that this candle was up-closed. And the important thing that you must, you know, take into consideration is the time that this candle forms, which was Friday, right? The 23rd of Friday, which was last Friday over here. This was the other one, right? Like, trust me, like, if you're looking, if you're trading, right? There are times when you'll be trading, and then you see price take out a specific low, take out a specific low, and then you'll see a Precision swing point form, right? And then a fair value gap forms after that. You know, that would be a time where you could enter your trades, right? And then over here, we can see that this is a Precision swing point as well. So, there was no SMT here, right? So, this is why, right? We had price, you know, drop a bit, right? And we have this low left. This low left. And I'm not sure if price will go below this low tomorrow, right? Not sure. And currently, what else can you see right here? Cuz, like, this is very, you know, choppy price action, right? You can see, like, I'll show you again. So, right here on this candle, you can see that this is a Precision swing point as well, at the moment, right? And below these specific swing points and above them, there's a lot of liquidity. So, if price was to run below one of these lows, right? And I will, you guys can see, you know, we're not, like, right now, not teaching with hindsight data. We're using, you know, forward price action. We're not, not looking back at old stuff. We're actually trying to implement it right now.
So, here you guys can see, right? Do you guys remember, right? The trick that I taught you guys with the fibs? Here, we'll use it, right? Here again. So, we have this low right here. Here, on this high right here, we have price below the 0.5 level, right? And this was the low of yesterday. But here, right? Now, right? And you have to anchor the fibs, right? At the specific times. Look at this right here. You can see that we have price below, right? This. So, this is already SMT. But here, right? We have price trading currently above the 50% out. So, this right now is a way to spot low probability price action, right? Over time, you will not need to use your fibs, right? Over time, you will not need to put any marks on your chart, all right? I'm sorry about the pause. Let's drink some water.
So, whenever you have three, right? Right now, we're seeing three of these asset classes that are close related, out of sync. So, the S&P 500, the NASDAQ, and the E-mini, right? And the E-mini NASDAQ futures, out of sync. They're all out of sync right now. So, currently, we need to see them get back, right? Into sync. We need to see them, we need to see at least two, you know, moving in the same way. Right now, we have this one above, right? The 50% of this range from high to low. And remember that anytime we're doing this, we have to be using the same points, the same swing points to anchor our fibs. We have SMT here between these. But due to the fact that, right? Price is out of sync, this is not high probability SMT. And also, this is not sequential SMT, which makes it even lower probability. You'll come back, you know, to this over some time if you don't understand, and then you'll probably get it. Then, if you don't understand, just rewatch this. But it's pretty simple, right? We have three, right? Looking at them visually, looking at them, you can see that three of them, they look different, right? This is above 50% of this range. This is below the 50% of this range, but it didn't take this low. But this one, the Dow, took this low out, which is, you know, basic, you know, shenanigans that happen at the end of each month. So, we, what we would like to see right now is, you know, stabilization of price, you know, which would be, you know, price consolidating, then forming actual sequential SMT. Currently, we have liquidity above these highs, right here. There's a lot of liquidity above these highs, right? So, even if price takes this low out, right? And don't, and leave this one, that would be, and cause sequential SMT, then, you know, we could look for something to do that here. Remember this, right? So, here, this right here, which caused price to drop, what caused price to drop right here? See, question. If you guys, like, notice, the only time I really talk about, you know, SMT is when it's sequential, right? So, this high right here, when, you know, did it happen during? Let me get this here. This happened. This high formed at Q3, 7 o'clock in the morning. And this high formed in the afternoon session, right? So, this was SMT between Q3 and Q4, which is what triggered this falling price. So, right here, you can see that we, we did not have a higher timeframe level for price to key off of. We didn't, right? Nothing that's clear. And we really want to see, you know, clear distinguished gaps. But due to the fact that this was sequential, that was, you know, enough, you know, to take price down to these levels, to take this low out, which is why it happened today. We'll be keeping our eyes on these highs, right? These highs. Very choppy, undistinguished price action at the moment. But I just can't imagine not seeing these highs being taken out. There was a lot of things, you know, that I talked about in the first half of this video, so you'll probably, you know, need to rewatch it. Not all of you really understood everything that I said. And as you guys can see right here, we had what again? This is, this was sequential. So, this model, right? Is one of, you know, my favorites. One of, you know, the best that I actually have. So, we had SMT here, right? So, this, this is for all, you know, everyone, right? This is how we use it. And there is, you know, I'll talk about something else, you know, that's, you know, pretty new, right? Now. But remember, this is how we use it. So, remember, look at this. This candle right here, this specific candle right here, right? If you look at the Euro, it's an up-closed candle at 3:00 AM. If you look at the Great British Pound, it's a down-closed candle. Right? After there is sequential SMT, right? So, we had price take out Monday's high on Tuesday in the Euro dollar, right? But, and some of you guys remember that, you know, we, I even called this before, so you can remember, right? And price pretty much did what we expected. Then, on this candle right here for the Great British Pound, price did take this high out. But what really, you know, stood out to me was this swing high right here. I did not expect price to go above this high. And due to the fact that this failed to take this high out, I expected, you know, this to fall more, right? So, here, and we'll go into some more details. It's just, um, so, and it's still so early. Don't want to give too much stuff out. So, right here, right? This wick. Focus on this wick for a minute. This is a specific wick, right? So, this wick right here. Remember, wicks are gaps. But when do wicks really function, you know, as gaps? We've heard Michael say, "Wicks are gaps," and everyone says, "Wicks are gaps." But when do you use wicks as how, you know, you use gaps? Here, this is one of the ways, right? So, right here, you can see this wick. But this is, this is not, this is not a normal wick, right? This is the wick, right? Of the Precision swing point. Do, do you see this right now? Do you see why my entry was here when I posted my entry? Do you understand? And you need to understand that this is low probability price action. So, let's go over this again, right? And here is another position swing point here as well. So, let's go over this one more time. We talked about this, you know, when price was literally here. I said, "Focus here on this spe-" Okay, my audio just cut out. Is it fine now? No idea what happened. Oh my gosh. Hold on. Is my, is the video gone too? Can you guys see my screen? That's insane. What the hell? Oh, can you see the screen? I don't think you can. But the audio is good. What just happened? I literally have like, fastest, fastest Wi-Fi. That's what happened. Oh my gosh, that's insane. Are you telling me that that was not recorded? No, you're joking. Let me check, bro. That's insane, bro. Like, honestly, man, that's insane. Hey, one second. Wow. Maybe it's still, um, recording. Hopefully, it is. So, what I might have to do is actually edit out this part right now. See this? Hope, okay, hopefully this is still recording. So, maybe I just have to. It's, it's still recording, okay, good. I just have to reshare my screen. That's insane. Oh, there we are. That's insane, man. So, yeah, we'll continue where we left like that. But my thing just crashed just now. Insane. So, we're worried. And, you know, after this, then, yeah, we'll probably have a little talk about something else.
So, the wick of the Precision swing point, right? If it's a, you know, a bullish Precision swing point, which is what this is. But for a bullish Precision swing point to form, right? It does not have to be specifically up-closed or down-closed, right? It just has to be a swing low for it to be a bullish Precision swing point. And the same goes for the bearish Precision swing point. So, the wicks will be very, you know, reactive to price. So, for example, right here, when price shifted market structure, look at this, right? When price shifted market structure, here, there, and price did not leave a gap right here, right? No, there was not a, just as though there's a fair value gap here, you can see my mouse, right? There's a fair value gap here. There was not one here. So, price needed to find an inefficiency, right? And that's where this came in, right? So, for example, when price traded into this gap and shifted down, came back into this gap right here, this gap was already tapped into, right? Or, you know, balanced. So, when a swing point formed here and then it created a gap, price went into it, went into it, and filled the gap, then continued to the downside here, right? And remember, this usually happens in, you know, choppy conditions, right? So, when we have a Precision swing point here and no gap for price to fill, it will fill this, which is the wick. So, you can see price went up into the wick and fell. So, this right here would be one of those entries, you know, that will probably give you, realistically speaking, a, you know, a good return for your risk, right? Price trades into this wick, that's a Precision swing point after there's sequential SMT. You short here, put your stop here above, right? So, your stop would be here. Remember, we talked about this before. This is in hindsight, right? So, I remember, right? Entering here, and which I did post my executions as well, right? Anyways, when I entered here, here, my stop went here. To someone that's, you know, you know, outside of us, this would make, this wouldn't make any sense. Why are you entering here? It doesn't make any sense because they don't understand sequence or, and they don't know what a Precision swing point is, right? And the hourly chart, right? So, the hourly chart is specific for the, for the weekly cycle, right? Is specific for the weekly cycle. So, if you were, you know, to do something like this, which, you know, is what usually happens in a, what I would say, a low probability, you know, condition or choppy market, you would be using the five-minute timeframe, if you're looking at the 90-minute cycle, right? Okay.
So, after this wick, you know, gets filled, and if you see a swing point form within this wick, the next fair value gap, right? So, the next fair value gap that forms, that would be your low-risk entry, right? You can, you know, do this if you wish, but like, just after you've backtested enough, and you've, you know, demonstrated enough, because you don't want to just be jumping in this with real money, right? And once you see it happening enough, then you can go for this, you know, whenever we're in low probability conditions. But if you see this happen, right? You're, you are almost sure because you're never going to be 100% sure, right? You're almost sure, right? What will make you almost sure? The sequential SMT, right? Which also you can see here, right? Sequential SMT, right here between the US dollar and GU. Symmetrical price action between DXY and Theo. So, even within, you know, this slop, you know, there is something to do, right? So, price traded into this gap after there was a swing high formed within this wick, and this wick is important. Why? This is the wick of the Precision swing point. And afterwards, price fell, right? Taking out our target that was here. This low right here was our target. Then we rallied back up, right? Personally, you know, me, after this week, after taking this, you know, and taking profits here, I was pretty much, you know, done, you know, for the week already. I like taking at least two trades per week because I have so much things to do. I have to be planning these lessons, right? And, you know, in order of, you know, what will be better understandable to you guys, since you're not, you know, as versed in this as I am. Well, because I'm the one that actually, you know, not to be cocky or anything, but like, found these things. No one talks about Precision swing points. No one, you know, ever talked about a Precision level, right? And right here, also, right? So, we're going to, you know, talk about Precision levels as well, right?
So, the true open for the week would have been this candle right here, right? So, this candle right here, opening price here, this would be the true open of the week. So, as you guys can see, everything, right? All of the entries occurred above the true open of the week. Then again, we can go even deeper, right? This was the true day open. So, now you can see, you know, why I, why I was actually interested in Euro USD, even though it was so sloppy, right? So, this right here, this was the true day open. This was the true week open. I like doing this, right? I like, like, giving you guys the chart beforehand and then talking about it afterwards. So, like, I will specifically look for something that I am planning to talk about on Wednesday, then I'll give you the chart beforehand, and then afterwards, I'll explain the movement of, you know, price. So, true open, true week open, these are stacked. Remember what we talked about? Stacked true opens? Remember that? Yes. So, the high of this candle right here, right? The high of this Precision swing point, between that high and the true day open, or even the true week open, right? But due to the fact that this is, you know, stacked true opens, true day open over the true week open, this right here, right? Would be our Precision level. So, from this candle to here, let me change the color. This would be our Precision level, right? Do you see? So, meanwhile, this was the true day open. You saw price trading here. Once it broke down and returned to this gap, which is above the 50% of the Precision level, right? You could go short here. But even, you know, when price broke down here and went back to the Precision level again here, right? You could short here as well, and put your stop above here or here, because both of these, you know, are good places to place your stop losses. And again, this is not hindsight. If, like, someone outside was seeing this, they'd be like, "Oh, it's hindsight." Um, you couldn't, you know, you couldn't have any idea of what price would be doing in this condition. And just, just imagine, like, you know, what you can do when the market gets clean, because guess what? This isn't even clean price action, but we're implementing everything, you know, that we've talked about so far, which is still elementary, still elementary, right?
So, the true open, right? Stacked above the true week open. Look, this is where you will have, you know, a setup that's just too good, you know, to fail, right? So, we have the true week open, then above that, the true day open. So, whenever you see, you know, a lower timeframe cycle's true open from above or below the higher timeframe cycle's true open, right? You start paying attention. Like, even worse when they form this close in proximity, right? When they form this close in proximity, right? And you have a, you know, a high very close to the true day open, and then you have SMT, that this is when, right? You'll have Tuesday, most times, do not. This happens on Tuesdays more times than not, when during Q2, the London session. So, whenever you see this type of price action, right? You'll usually have London making the highest of the day, right? You understand that? Good. So, let's go over this again. Everything that, you know, most things that you see here, you know, you learned here. This is a Precision level, and this is not a higher timeframe level, right? This is just the high of the Precision swing point. So, the high of the Precision swing point, between the true day open and the high of that, right? That gives us a level, which would be invisible to everyone else. Here is where we would like to, you know, enter for, enter our trades. And, you know, during the course of the year, you know, we'll see cleaner setups in this. But I think that it's good right now, you know, to be looking at, you know, these eyesore of a set of, you know, nasty price action, you know, because whenever we see the real, the real clean price action, right? It will be beautiful. But, you know, due to the fact that we're at all-time highs right now in regard to the Futures market, and we aren't using any, you know, higher timeframe levels here, there, there are no higher timeframe levels here to use, right? None. There's no higher timeframe levels here. We're just on the one-hour timeframe. We're not looking at the daily. We're just using this. They're just using time, the aspects of time here. The true opens, sequential SMT, the Precision swing points, time, that's the aspect of time, right? There, right? Then we have a Precision level, which is time and price, you know, overlapping to show us a specific level. So, a Precision swing point, right? I'll say this, you know, one more time. A Precision swing point occurs when you have two or more closely related asset classes, right? And a specific time, right? That specific candle must be closing in the opposite direction if it is positively correlated to the other asset, and it should be closing in the same direction if it is negatively correlated to an asset, right? So, right here, we can see that this is positively right correlated swing point closures, right? So, here we have price closing down. Here we have price closing down, right? The correlating correlation happened between DXY and GU, and between EU and GU, right? So, GU is what caused, you know, or what tipped us off of, you know, this possible reversal that happened here. And remember, remember this. We have no, we have nothing else here that we're using, like everyone else, right? They're currently saying, "Stay out of price." "Um, you don't want to be trading this price action." "This price action is hard." "You can't know what price is going to do with this price action." That's exactly what they're saying, cuz they don't know things like this, right? So, if you were, you know, first of all, beforehand, you noticed, CU, remember my entry was here in this week, right? You can enter here in this week, right here. Stop here. Price falls. You could even, like, exit here and be okay, done. Or price goes back into this gap right here, while touching the Precision of trading about the two-day open, then you short. Boom.
So, I hope that you took, you know, something valuable from today. We introduced new things, and we showed you different ways to use different things, right? And we showed you different ways how to use the things that we've talked about before. I believe that over the course of, you know, the next month, you know, we'll be working on getting this close to, you know, all, almost perfection, I would say. So, like, what I would call that is for you to, you know, be using this and have specific rules, right? So, every time we talk, I'm always, sometimes most times, repeating, you know, things that I've said before to instill that mentality into you, right? I need you to know that there is only, you know, one way to approach this certain concept. This is, this is how you should use it, right? Whenever you have gaps overlapping with a, with a Precision level, it's high probability, right? Due to the fact that we had this Precision level, right? Covering half of the top half of this bearish fair value gap, you know, the expected price to fill it. So, price filled it, fell. Right? After price filled this gap, what happened? There is another gap that formed, and it wasn't filled. Why? Because price already filled this one. So, the next gap would be a breakaway gap. No, you know. So, yeah, I'll talk to you guys Sunday. I think I want to talk to you guys Saturday as well. Think I do want to talk to you guys Saturday as well. And I want to update you guys tomorrow, right? Because I think that tomorrow will be a good day. I'm hoping that it will be a good day, right? So, if we see our setup form, right? The things that we're looking for, sequential Precision swing point, right? Price revolving, you know, around our opens as we would like it to, then, you know, we take action. So, until then, have a wonderful night.