Core Principle: Time Before Price
"The algorithm is going to go based on time. I don't care what Mickey Mouse pattern, what Mickey Mouse logic, some romper room theory that just got pulled out of somebody's backside because they want to sell some attention for clicks and views and mentorships. Unless it stems on the basis of time first, it has to be the right time. If it's not the right time of day, it is absolutely not going to work. Period. End the story."
"When you're looking at price action, you want to be able to determine what in this whole scheme of price delivery, what does it do in terms of resonating with you? Where would you feel confident?"
"The very, very first thing you're doing as an undeveloped, unrefined trader... When you're looking at price, you're looking for the obvious, very, very, very smooth relative equal highs or relative equal lows."
Key Time Windows
"7 o'clock is very key time that starts what? The morning session. It matters not that we're trading forex or futures. The morning session am session starts at 7 o'clock in the morning time."
"So your key times are this: 7 o'clock in the morning to 7:30. In that 30 minute window, you're going to look for relative equal highs and relative equal lows that have happened prior to 7 o'clock."
"And you're going to be looking through the time frames of the one minute chart, the five minute chart, and the 15-minute time."
"Since the 15-minute time frame is pretty pretty static, you only need to refer to it once in the morning. And then your second chart could be the five minute chart."
"You have three opportunities in the morning to set the stage for a run that will build."
Identifying Liquidity
"So right away you can see that this high here is relative to that one and this one here also with that this one being slightly higher than that one. So there's a lot of liquidity that's sitting at 17,820.75."
"High, lower, high, high, lower, high, but real close to one another. When did it form? prior to 9:30. So we have 8 to 8:30 and then you study 9 to 9:30 because it's going to do what? It's going to look and seek the liquidity or inefficiencies."
Critical Caveat on Liquidity
"Now real important it does not mean that it has to happen during that session. It does not mean that and that is the underlying risk that you assume every single time you take a trade. You're looking for things that are going to stack the odds of probability in your favor. It does not mean it's an absolute guaranteed outcome."
Bullish Breaker Structure
"We have the relative equal lows here and the market drops you see that so this drop down here every up close candle on this time frame all of this right here. That is your breaker. The most sensitive candle or range is going to be the last up close candle."
"That's this range low. And see where the body stopped right there. We wick through it. I'm not denying that. But the damage is always done by the wick and the range high there. That is your bullish breaker."
"But the range here from that up close candle that starts all these consecutive up close candles. All of that is technically the bullish breaker. So the most sensitivity is going to be seen in that last up close candle."
Not Supply and Demand
"That is not supply and demand. That's not supply and demand zone. Sam Seiden would never ever ever refer to what I just said. Never. He would never do that. And he would never consider that anyway because we're cutting through candles because we're looking algorithms don't not for trader ticket runners perception of something that doesn't really exist."
Body Action as Narrative
"So the turn here at the bodies that tells you what tells you the narrative. So what is it going to do? It's going to go higher."
Smooth Price vs Jagged Price
"Where's liquidity at below here? Nothing in here. This is all very balanced price delivery because it's back and forth. Every other candle is overlapping the highest high and the lowest low pretty much kind of like coloring it very very very good back and forth."
"Think about that. Remember being a kid walking and you see a pond, it's real smooth. Wow, look at that. Looks like a mirror. You can see the sky's reflection off of it. So smooth. What's the first thing jumped in your head? I need a rock. For what? Because you can't accept that. Our sinful nature says we have to disrupt that. So you pick up a rock and you want to throw it out there. Why? What's it going to do? It's going to cause ripples."
"You're looking for where is the market smooth because still waters invite rocks."
Where The Work Has Been Done
"Remember I was saying earlier where the market's real smooth over here versus what it was doing down here? Where has the work been done? If there is a group of traders that are very cannibalistic and they tend to be more correct than wrong..."
"You can see when the cannibals come in and they devour the piggies, they go in there and just chew them all up. And it's where the market is made jagged price delivered always. It's always like this folks. It's never not going to be hidden from you. Okay? It's always plain sight."
The Session Model
"So you can have a model that says I can't be in front of the charts between 8 o'clock and 8:30 and maybe you can trade the 9:30 opening bell for indices because you have to get ready for work. Okay? But it just so happens that the time elements in your personal life and geographically located in the world that it allows you and affords you to look at the market between 7 o'clock and say 7:45 worst case scenario 7:30."
"If you're going to work with smaller time frames, you absolutely can use 7 o'clock to 7:30 as a model to do this very exercise."
What To Look For In Each Window
- "You're going to look for relative equal highs and relative equal lows that have happened prior to 7 o'clock"
- "It's going to look and seek the liquidity or inefficiencies"
- "You're looking for where is the market smooth"
Three Time Frame Agreement
"If you can frame an idea of why the market's likely to draw to a high or a low or inefficiency that is completely visible on three time frames, that means you have three time frames telling you, hey, pay attention to me. And if that time frame or those time frames are in agreement with a relative equal high or a inefficiency above the marketplace, that means like something like this right here, this right here or this right here. They're all stepping stones."
Inefficiency & Inversion
"So what at that time would you focus on? Well, you have this short-term high here. The inefficiency that's trade to there we want to see it trade above it and then act as what? Support which would be what inversion per to do that. What would it reach for next? This high and this inefficiency. Does it do that? Yes."
"What are the bodies doing? Stopping just at that same level here. And more specifically, and my eyes didn't put it up there. You see that little separation? That's a volume imbalance. Go back and listen to the other lectures. You have to include that volume."
"They're all stepping stones inside the context in the overall narrative that the market was going to go here."
"Since price is above it, that makes it a discount array. Consequent of that trades, you want to see it run above this."
Higher Time Frame Premise
"How do I avoid taking losing trades with a inversion fair value or a mitigation pump or the breaker? How do I know if it's a breaker or if it's a shift in market structure? Well, that's easy. uh you have to have a higher time frame premise and a directional draw where the market's going to go and if you think it's going to go higher when you see the market creating a short-term turn..."
"You have to have a higher time frame premise and a directional draw where the market's going to go."
Understanding Risk
"Now real important it does not mean that it has to happen during that session. It does not mean that and that is the underlying risk that you assume every single time you take a trade. You're looking for things that are going to stack the odds of probability in your favor. It does not mean it's an absolute guaranteed outcome."
Practical Application
"This response right here to what it's just done there. That expectation in response in how price can react to levels like that. That's a nice little scalp right there. I mean, look at it. Moved from 515 to what? 596. That's a good run. You can get 20 handles out of that on a 15sec chart. You can if you know what you're looking for."
On Indicators
"I got one for you that's gonna beat all of them. It's the open, high, low, and close, and the clock."
Study Flashcards
Click each card to reveal the answer (direct quotes from the teaching).