# 17 Years In ONE Technical Analysis Course (Learn Trading From Zero To Advanced)

## Метаданные

- **Канал:** The Secret Mindset
- **YouTube:** https://www.youtube.com/watch?v=UbmSxPOQRb4
- **Источник:** https://ekstraktznaniy.ru/video/44930

## Транскрипт

### Segment 1 (00:00 - 05:00) []

Random entries, random exits, random results. This is why you fail. This video is a professional trading blueprint. It shows you the right path step-by-step, whether you've placed 1,000 trades or you're a complete beginner. Let's start with market structure. Market structure refers to the overall map of the market, the patterns of highs and lows, and the price swings connecting them over time. If you look at any price chart, you'll see the market structure laid out before your eyes—the static record of how price moved in the past. When prices keep rising or falling, that creates a trend. In an uptrend, each new high is higher than the last one. We call that a Break of Structure (BOS). At the same time, each low stays above the previous low point. That bullish momentum continues until the price finally dips below a prior major low, which is a Change of Character (CHoCH). You can tell a trend is losing steam when the price fails to make a new high after the latest rise. That's a sign buyers may be losing their grip. In a downtrend, you'll see the opposite: lower lows and highs that can't quite reach the last high. This bearish pressure from sellers keeps pushing the price down. The trend stays in place as long as those lower highs and lows keep coming. But if the price manages to top the last high, the trend could be reversing to bullish territory. Sometimes the market takes a breather and moves sideways between trends. This happens when the highs and lows are roughly equal, creating a tight range. We call this a consolidation period. The price stays stuck, bouncing between supply and demand until it finally breaks out above the usual highs or below the normal lows of that channel. That's when a new trend could be born. For a trend to flex its muscle, it needs to keep printing those new highs and lows. But only one candle testing highs doesn't mean much. If you see several candles close above past resistance in a row, that's a stronger case for buyer control. And the reverse is true for downtrends: a few candles breaking below support strengthens the argument for seller dominance. Another thing to watch is how far each new swing travels. If every price leg is bigger than the last, this tells you the dominant force is gaining momentum with every cycle. The growing imbalance between supply and demand is fueling increasingly larger price movements. So, even if the market has entered a sideways phase, seeing progressively larger waves suggests the current bigger trend may still be healthy. Speed matters, too. A swift move to new highs or lows over fewer candles is more powerful than a gradual climb or descent. It's a sign of intensifying pressure driving the price. Trading is all about finding edges, and support and resistance levels are one of the most powerful edges you can have. But these invisible lines on your charts can make or break your trades. Basically, support and resistance are price levels where the market tends to pause or reverse. Support is an area that catches falling prices. Resistance stops prices from rising further. And it's all about supply and demand. At support, buyers step in. They see the price as a bargain and start buying. At resistance, sellers take over. They think the price is too high and start selling. Here's the key: these levels aren't exact prices. They are more like zones where interesting things happen. But why should you care about support and resistance? First, they help you understand market structure. You can see where price is likely to pause or reverse. This knowledge is gold for timing your entries and exits. Second, these levels show you where other traders are placing their orders. Big players often cluster their orders around support and resistance. And when you know where the big money is, that's your edge. We'll talk about that later. Third, support and resistance levels are self-fulfilling. Traders expect price to react at these levels, so they place their orders accordingly. This collective action makes those areas even more interesting.

### Segment 2 (05:00 - 10:00) [5:00]

Now, let's dive into the minds of buyers and sellers at these key price points. At support levels, buyers tend to step in, seeing the price as a good deal. They believe the price is undervalued and expect it to rise from this point. This buying pressure often causes the price to bounce off support. At resistance levels, sellers become more active. They view the price as too high and anticipate a drop, leading to increased selling pressure. This behavior creates a self-fulfilling prophecy. As more traders watch these levels and act on them, their collective actions make the levels more likely to hold, at least temporarily. Market memory plays a crucial role in shaping these zones. Traders remember past price levels where significant buying or selling occurred. These memories influence future trading decisions. The concept of "trapped traders" also contributes to market memory. Imagine a trader who bought at a certain price only to see the market drop. He might be eager to sell at breakeven when the price returns to his entry point. This creates resistance as these trapped traders exit their positions. Support and resistance zones often form around round numbers ending in zero or double zeros. This is partly due to the psychological comfort we find in round numbers. Many traders place orders at these levels, creating natural support and resistance. The strength of support and resistance levels can change over time. A level that's been tested multiple times without breaking becomes more significant in traders' minds, but it also becomes more likely to eventually break as more traders are watching it and positioning themselves around it. When a support or resistance level does break, the ensuing price move can be dramatic. This is because many traders place their stop-loss orders just beyond these levels. When the level breaks, it triggers a cascade of orders, accelerating the price move. This behavior is often exploited by large market players who might push the price through a level to trigger these stops before reversing the move. High-quality support and resistance levels have several special traits that make them stand out on a chart. One of the most prominent features of strong levels is the presence of sharp, big reversals. These are points on the chart where the price makes a sudden and significant change in direction. For example, if price is falling rapidly and then suddenly bounces back up just as quickly, this sharp reversal could indicate a strong support level. This dramatic price movement suggests that there's a significant imbalance between buyers and sellers at these levels, leading to quick reversals. High-quality support and resistance levels often show multiple instances of price bouncing off them. This repeated behavior reinforces the importance of these levels. For instance, if you notice that a stock price has bounced up from a level several times, this could be an important support level. These multiple bounces demonstrate that traders consistently recognize these levels and act on them, creating a self-fulfilling prophecy. Swing highs and lows are another important feature to look for because they represent areas where the balance between buyers and sellers shifted significantly. High-quality levels often demonstrate the ability to act as both support and resistance. This characteristic, known as role reversal, happens when a broken support level becomes a new resistance level, or when a broken resistance level becomes a new support level. This phenomenon happens because traders remember these levels and adjust their behavior accordingly. One of the key traits of high-quality support and resistance levels is that they are visually obvious on a chart. These levels should stand out clearly even to an inexperienced trader. If you have to squint your eyes to identify a level, it might not be as significant as you think. The most powerful support and resistance levels are those that are immediately apparent when you look at a chart. This visual prominence is important because it means that many traders are likely to

### Segment 3 (10:00 - 15:00) [10:00]

notice and act on these levels, increasing their potential impact on price movements. Support and resistance levels that have been recently respected tend to be more reliable than older levels. This is because market conditions change over time, and levels that were significant in the distant past may no longer be relevant. Look for levels that have influenced price movements in the recent past, as these are more likely to continue playing a role in current and future price action. Round numbers often act as psychological support and resistance levels. For instance, many traders might set their take-profit orders at $100 if a stock is approaching that level from below, or they might set stop-loss orders just below $100 if the stock is trading above it. This clustering of orders around numbers can create noticeable support and resistance effects. The strongest support and resistance levels typically combine multiple traits. For example, a level might be a round number, have acted as both support and resistance in the past, show multiple bounces, and be easily visible on the chart. The more of these characteristics a level exhibits, the more likely it is to be a significant support or resistance point. And when drawing support and resistance lines on your charts, remember that they don't always need to be exact. Prices can sometimes break slightly past these levels before reversing (known as a false breakout), or they might reverse direction just before reaching the level (an imperfect reversal). So, you might need to draw a wider zone rather than a precise line to capture all the relevant price action. Now, before we continue, let us know in the comments what topics you'd like us to cover. Please tell us what you want to watch next. Now, let's talk about support and resistance flips. When price breaks through a support level, it shows a shift in power from buyers to sellers. The former support level then often becomes a new resistance level. This happens because traders who bought at a support level and are now facing losses may sell when the price returns to that level, creating resistance. When price breaks above a resistance level, that level can become a new support level, as traders who missed the initial move up may buy at the former resistance, now viewing it as a good entry point. These flips demonstrate the psychological aspects of trading. Traders remember price levels where significant shifts occurred, and their collective actions around these levels can create self-fulfilling prophecies. The strength of these flipped levels often depends on how decisively the original level was broken. A strong, high-volume break of a support or resistance level is more likely to result in a reliable flip than a weak break on low volume. The number of times a level has acted as support or resistance in the past also influences its strength after a flip. A level that has been tested multiple times before breaking is often more significant. When a support or resistance level is broken, wait for a retest of that level before entering a trade. If a former support level holds as new resistance (or vice versa), it can confirm the breakout. Sometimes a level will fail to hold after flipping. For example, a broken support level might not hold as resistance. These failed flips can lead to strong moves in the opposite direction as traders who were counting on the level holding are forced to exit their positions. When trading support and resistance flips, consider the overall market context. In strong trends, flipped levels are more likely to hold, while in choppy or ranging markets, they may be less reliable. Volume can provide additional confirmation. High volume on the initial break and again on the retest can increase the likelihood of a successful flip. And it's also important to note that not all support and resistance levels will flip cleanly or hold after flipping. The market is dynamic, and even strong levels can be broken under the right circumstances. One powerful aspect of support and resistance flips is that they often mark the beginning

### Segment 4 (15:00 - 20:00) [15:00]

of new trends. When a long-standing resistance level is finally broken and then holds as support, it can signal the start of a significant uptrend. When a strong support level breaks and then acts as resistance, it might indicate the beginning of a downtrend. Volume is a key tool in trading support and resistance. It's like a secret code that reveals the strength of these levels. When you mix volume with price action, you get a powerful method called Volume Price Analysis. As you already know, not all levels are the same. Some are strong and some are weak. And how do you know which is which? That's where volume comes in. Think of volume as the fuel that drives the market. When there's a lot of volume at a price level, it means there's a lot of interest there. This can create strong support or resistance. The Volume Profile tool is great for finding these key levels. It shows you where most trading happened. The areas with the most volume are often important support and resistance zones. When you look at a volume profile, focus on three main levels. First, the Point of Control (POC). This is where most trading occurred. It's often a strong support or resistance level. Then, the Profile High. This can act as resistance. And lastly, the Profile Low. This can act as support. These levels matter because they show where buyers and sellers were most active. They're like battle lines where the big players fought over price. When price nears a key level, watch the volume closely. If price breaks through with high volume, it's often a real breakout. But if it breaks through with low volume, it might be a fake-out. On the flip side, if price touches a level and bounces off with high volume, that's a strong rejection. It means the level held firm. But if it bounces with low volume, the level might not be as strong as it looks. Here's a cool trick: when price makes a big move away from a level, use the Volume Profile to see where the most trading happened during that move. That spot often becomes a new support or resistance level when price returns to it later. Let's say you see a big price drop. You can put a volume profile on that drop to find where the most trading occurred. That area might become resistance when price rises again. If it does, it could be a great place to sell. Remember, the market moves in waves. It trends for a while, then pauses in a congestion phase, then either keeps trending or reverses. Understanding how volume works with these moves is key to reading the market. When you're looking at a potential trade, don't just look at the price. Check the volume, too. Is it above average? That's a sign of strength. Is it below average? That might mean the move is weak. If you're thinking about buying at support, look for high volume as price touches that level; that shows strong buying interest. If you're thinking about selling at resistance, look for high volume there, too. That can mean strong selling pressure. As we already talked about, false breakouts and liquidity runs are common traps in trading. When price breaks through a key level, don't just jump in right away. Wait for volume to confirm the move. A true breakout should come with above-average volume. And if volume is low, it might be a fake-out. But here's a cool trick: sometimes a failed breakout can be an even better trade. If price breaks out on low volume and then quickly reverses, that can be a strong signal to trade in the opposite direction. Don't forget about timeframes. What looks like a breakout on a 5-minute chart might just be noise on a daily chart. Always check higher timeframes to get the big picture before making your decisions. Learning to read volume in conjunction with support and resistance takes practice, but it's worth the effort. You'll see trading opportunities you never noticed before. Trading support and resistance will differ considering if the markets are trending or they are ranging. And most traders don't think about this aspect

### Segment 5 (20:00 - 25:00) [20:00]

which is a major mistake. In a strong trend, support and resistance levels can help you catch big moves. When the market is trending up or down with force, it's not wise to fight it. Instead, look for ways to join the trend at good prices. Here's how to use these levels in a strong uptrend. As price climbs, it will often pause and drop back a bit. These dips often stop at old resistance levels which now act as support. Sometimes price will move sideways for a while. This is like a pause in the trend. It can form a small range near a support or resistance level. Watch for breakouts. When price breaks above the high of the consolidation, it can signal the trend is ready to continue. In a strong downtrend, you'd use the same ideas but in reverse. Look for bounces from resistance, consolidations, and breakdowns below support. Ranging markets are trickier. Price bounces between support and resistance without a clear direction. Here's how to use these levels. First, identify the range. Look for clear areas where price has turned multiple times. Wait for tests of these levels. As price approaches support or resistance, watch closely. How it acts here can tell you a lot. You then look for rejection signals. If price touches support and bounces up with force, it might be a good time to buy. If it hits resistance and drops hard, consider selling. Be cautious of false breakouts. Price often pokes above resistance or below support only to reverse. Look for wicks or multiple wicks outside the range. Watch for consolidations near the top or bottom of the range (a consolidation within the consolidation). If price forms a tight range, it can signal a potential breakout. Of course, use volume. High volume on a bounce off support can signal a strong move. Low volume might mean the move is weak. In ranges, you're often looking to buy near support and sell near resistance, but be ready to change your view if the range breaks and a new trend starts. And consider the timeframe. Levels on a daily chart might not match what you see on a 5-minute chart. Be clear about your trading horizon. In the market, there are always two competing forces: buyers, who represent demand, and sellers, who represent supply. When there are more buyers than sellers at a certain price level, it creates a demand zone. When there are more sellers than buyers at a price level, it forms a supply zone. In these zones, you often see large unfilled orders from big institutional traders like banks and hedge funds. Supply and demand trading is powerful because it allows you to trade in line with what the institutions are doing. These big players can't hide their massive orders. And by identifying supply and demand zones, retail traders like us can spot where they are likely to be executing their trades. You see, the price is constantly moving up and down, and this movement is a direct result of the supply and demand from market participants. When there are more buyers in the market, they bring demand, and this applies upward pressure on prices, pushing them higher. When there are more sellers, they bring more supply to the market, putting downward pressure on prices and pushing them lower. This dynamic between buyers and sellers is what we call Order Flow, and it's the engine that actually drives price action and market movement. Now, there are two main types of orders that make up this order flow: passive orders and aggressive orders. Passive orders are limit orders placed by traders who are willing to wait for the price to come to their desired level. They are not in a rush to get in. Aggressive orders are placed by traders who want to execute immediately at the current market price. They are not waiting around for a specific price; they want in fast. This constant battle between passive and aggressive orders is really what causes those explosive price movements you see on your charts when there's a significant imbalance between supply and demand. So, your job is to identify where major imbalances are likely to occur. Now let's break down how to actually identify them on your charts. The first step is to

### Segment 6 (25:00 - 30:00) [25:00]

look for those explosive movements where price makes a strong push in one direction before quickly reversing. This could be a sharp rally followed by a sudden drop, or a steep decline followed by a rapid bounce back. These movements often signal that there was a significant imbalance between buyers and sellers that caused price to spike. Once you've spotted one of these big moves, the next step is to mark out the origin of that move—in other words, the area on your chart where that explosive rally or decline actually started. This is going to be your potential supply or demand zone. Now, there are a few different types of zones to look out for. First ones are Base Zones or Range Zones. These form when price is consolidating in a tight range for an extended period of time before finally breaking out. You can think of the edges of that range as areas of supply and demand where a lot of orders have built up. So when price revisits those levels after a breakout, there's a higher probability of a reaction. We can also have Pivot Zones. These form at key turning points in the market, like swing highs and lows, or where you see price making a sudden change in direction. They're often marked by one or two candlesticks with distinct characteristics. For a potential demand zone, you want to look for a strong bearish candle where the next candle closes back above its high, signaling a shift from selling pressure to buying pressure. For a supply zone, you are watching for a strong bullish candle where the next candle closes below its low, indicating a shift from buying to selling. The key is that these pivots are happening quickly; price isn't spending much time in these areas before reversing. To identify fresh zones, you also want to pay attention to the overall structure of the price action. There are two main types of structures to look for: Continuation and Reversal. A continuation structure forms when there's an existing trend in place and price is just pulling back or correcting against that trend before continuing in the same direction. These are your Rally-Base-Rally and Drop-Base-Drop patterns. If it's an uptrend, you'll see a strong rally, a tight range where price forms a small base, and then another rally continuing the uptrend. For a downtrend, you'll see a sharp drop, a base, and then another drop, resuming the downtrend. Reversal structures form when price is reversing from one trend direction to the other. These are your Drop-Base-Rally and Rally-Base-Drop patterns. So, in an uptrend that's starting to lose steam, you might see price drop into a base and then launch into a new rally, marking the start of a reversal. And in a downtrend that's starting to turn around, you'd see a rally, a base, and then a strong drop signaling the beginning of a new uptrend. Now, let's talk about the key principles that make this strategy so effective. The first thing to understand is that supply and demand zones are not just random levels on your charts. They are areas where the imbalance between buyers and sellers is most extreme. When you see explosive price movements like huge rallies or steep drops, that's often a sign that there was a serious mismatch between the amount of buying and selling pressure. What's happening in these situations is that the aggressive orders from one side are rapidly consuming all the available orders from the other side until a new equilibrium is found. The areas on your charts where these big clashes take place are what we call fresh unmitigated supply and demand zones. One of the key things that separates these high-probability zones from ordinary support and resistance levels is the amount of time price spends in the zone. You see, when there's a major imbalance between buyers and sellers, the price won't hang around that area for very long. It will quickly spike up or down. So, when you're analyzing your charts, one of the things to look for is zones where the price only spent a short amount of time before making a strong move in either direction. The less time price spends in that area, the more out of balance supply and demand are

### Segment 7 (30:00 - 35:00) [30:00]

and the higher the probability of a successful trade when the price returns to that zone. Another key principle is to focus on fresh unmitigated zones rather than ones that have already been tested multiple times. When price revisits a zone, it can absorb some of the pending orders that were sitting there, making the imbalance less extreme. So, as a general rule, the more times a zone has been hit, the weaker it becomes. This is why it's so important to understand the difference between an unmitigated zone and one that's already been tested a few times (a mitigated one). The trading opportunities are very different. Now, of course, there are times when a zone can remain valid even after being tested if there is still a significant order imbalance, but generally, you want to prioritize fresh zones when planning your trades. So, the key things to look for are: Zones that form after explosive price movements. Zones where price only spends a short amount of time before spiking up or down. Fresh zones that haven't been tested or absorbed by the market yet. Now, let's talk about how to validate whether a zone is likely to hold. The first thing you want to look for is a clear Break of Structure (BOS). This means price needs to make a decisive move away from the zone and take out any nearby swing highs or lows. If there's no clear break of structure and price just hovers around the zone, that's a sign that the zone might not be as strong as it seems. Another key concept is the idea of Flip Zones. This is when a previous supply zone turns into a demand zone, or vice versa. For example, let's say you have a strong supply zone that's been holding price down for a while, but then suddenly price rips through that level and closes above it. That's a pretty good indication that the zone has flipped from supply to demand and could now act as a support level for future pullbacks. But here's the thing: in order for a flip zone to be valid, you need to see that initial interaction between the two forces. Don't just assume a zone has flipped because price moved past it. Look for that clear battle between buyers and sellers and wait for one side to decisively overpower the other. Another important factor to consider is Inducement. This refers to the presence of liquidity in front of the zone that could potentially absorb any move against it. For example, if you're looking at a demand zone, you want to see some buy orders stacked up in front of that level. This could be in the form of a swing low or a consolidation pattern—anything that suggests there are traders waiting to buy at that price. If there's no liquidity in front of the zone and price just slams into it, chances are those big players aren't going to be too interested in getting involved. But if there are orders they can trade against, they're much more likely to step in and defend the level. Of course, even if a zone checks all these boxes, it's not guaranteed to hold forever. That's why it's also important to look at how fresh the zone is. In general, zones that have been tested multiple times are less likely to produce strong reactions than those that are being hit for the first time. Now let's talk about the difference between supply and demand zones and traditional support and resistance levels. While there are similar concepts, there are some key distinctions. First off, support and resistance are levels where price has previously reversed or consolidated multiple times in the past. Supply and demand zones, on the other hand, are all about fresh unmitigated levels. Rather than focusing on areas that have already been touched multiple times, these zones represent imbalances between buyers and sellers that have just recently formed. The key difference is that support and resistance trading relies on the assumption that past levels will continue to hold in the future, whereas supply and demand trading looks for new untested zones where the order flow is likely to be more significant. Remember this: support and resistance levels are essentially supply and demand zones that have already been confirmed. Once a fresh demand zone gets tested and holds, it then becomes an established support level. The same goes for supply zones; they become

### Segment 8 (35:00 - 40:00) [35:00]

resistance after they've been touched. So, while trading support and resistance can certainly be effective (especially if a level has proven itself multiple times in the past), the probability of a reaction tends to diminish with each subsequent test. This is why you should focus on fresh zones where the initial imbalance between buyers and sellers is likely to be the most significant. Now, let's talk about some specific entry and exit strategies you can use around these key levels. One of the simplest and most effective ways to enter a trade is to simply set a limit order directly on the level itself. This approach assumes that the zone will hold and that price will reverse once it hits your order. However, there are a couple of potential downsides to this aggressive strategy. If you set your order too far away from the zone, you might miss out on the trade entirely if price never quite reaches your price. Or, the second scenario: price might just break through your zone with ease. A more conservative approach is to wait for a specific candlestick pattern to form at the level before entering a trade. For example, you might look for a bullish reversal pattern like a pin bar or an engulfing candle at a demand zone. The idea behind this strategy is that these candlestick formations can give you a bit more confirmation that the zone is likely to hold and that price is getting ready to reverse. Another technique you can use to fine-tune your entries is to look for specific structures on lower timeframes. For example, let's say you've identified a strong demand zone on the 1-hour chart, but you want to get more precise with your entry. Instead of just buying blindly at the level, you could drop down to the 15-minute chart and look for a reversal pattern like a double bottom or a Change of Character (CHoCH) to form at the zone. In this way, you can often get a tighter entry with a better risk-to-reward ratio. Now, let's talk about how to evaluate the strength of a supply or demand zone. One of the first things to look at is how quickly price moves away from the zone after it's formed. Generally speaking, the faster price shoots away from a level, the stronger that level is likely to be. Quick and significant moves away from a zone indicate a strong imbalance. So if you see price just rocketing away from a zone, that's a pretty good sign that there is some serious order flow happening there and that institutions are likely defending the level aggressively. Another factor to consider is the amount of time price spends at the zone before making that initial move. The less time price hangs out at a level, the more likely it is to be a key turning point in the market. So if you see price just kind of dip into a demand zone and then immediately start rallying higher, that's often a signal that big buyers have stepped in and are absorbing all the available supply. The actual size of the move is important, too. Obviously, if price barely budges after hitting a supply or demand level, that's not exactly a big endorsement of its strength. But if you see an extended move in the opposite direction after a zone is tested, that's a sign that the level is probably pretty significant. Another thing to watch for is the volume during the formation of the zone. Generally speaking, you want to see a noticeable uptick in volume as price is testing a key level. This indicates that there's a lot of interest and activity happening at that specific price and that institutions are likely absorbing or distributing there. Another factor that can affect the strength of a zone is whether or not it causes a break of market structure. A supply or demand zone that causes a break of structure is generally stronger. It takes a significant amount of money to break market structure, making the zones more likely to hold in the future. So if you see a zone forms and then price just starts trending in the opposite direction and breaking through key levels on the chart, that's often a sign that there is some serious institutional backing behind the move and that the zone is likely to be a key focal point going forward. When it comes to candlesticks, most price action books will advise you to memorize a plethora of candlestick patterns or spend hours staring at charts. I'm going to give you a better method to read them. First and foremost, when you open up a chart

### Segment 9 (40:00 - 45:00) [40:00]

take a look at the recent candles and focus on their spread. The spread is the difference between a candle's opening and closing price, which forms the real body of the candle. This spread reveals the market sentiment for that particular time period. A wide spread indicates strong market sentiment, while a low spread indicates less trading activity. Next, you look at the upper and lower wicks of candlesticks, also known as shadows. These wicks reflect the buying and selling pressure in the market. Consider them as rejection areas where the market simply didn't accept the prices represented by the wick. The length of the wick, whether at the top or bottom of the candle, should always be a main point of focus. It instantly reveals strength, weakness, or indecision in the market. And most importantly, it shows you where buyers or sellers are stepping in. Now, considering the spread of the candlesticks and their wicks, here are the key patterns you should consider. When the body of the candle takes up at least half of the entire bar range, you are looking at a Trend Bar. Trend bars are the heart and soul of market fluctuations. They represent strong market sentiment and suggest a likely continuation in the direction of the candle. When you analyze a chart, pay attention to instances of consecutive trend bars closing in the same direction. If you spot several trend bars in a row, all pointing in the direction of the prevailing trend, it's a clear sign of strength in that direction. If you notice an absence of trend bars over the past 10 or so candles, the market is likely consolidating. A Trend-Based Long Wick Candle is characterized by a candle with a wick sticking out in the same direction as the moving trend. The smaller the body and the longer the wick, the better the quality of the candle. Large wicks indicate price moved a lot during the candle but got rejected, signaling supply or demand. The upper wick acts as resistance while the lower wick acts as support. In an uptrend, if a long wick candle forms at a key support level, it means sellers tried to push prices lower but failed to close with momentum, causing the wick to stick out. This suggests a potential continuation of the previous trend. The length of the wick is the first point of focus because it instantly shows strength, weakness, and indecision in the market. The Momentum Candle is characterized by a larger spread compared to the previous candles, showing a clear directional movement in price. In an uptrend, you'll notice each candle getting larger and larger, moving a greater distance per candle. This shows a gain in bullish momentum. In a downtrend, each candle gets larger and larger, moving a greater distance per candle, indicating a gain in bearish momentum. When you see consecutive candles increasing in size, it's a clear signal that the trend is gaining momentum in that direction. In an uptrend, it means buyers are in full control and there aren't enough sellers to cause wide swings in the opposite direction. In a downtrend, growing candles show sellers are dominating the market, and there aren't enough buyers to counter their pressure. An Inside Bar is characterized by a bar that neither takes out the high nor the low of its predecessor. An inside bar is easily recognizable due to its relatively small spread. The inside bar signifies a loss of momentum and uncertainty in the market. The smaller candle suggests consolidation after a larger move as neither buyers nor sellers are able to push the price beyond the previous bar's range. The inside bar is also hinting at a potential breakout in either direction. When an inside bar forms at a crucial spot, such as a major support or resistance, its break can trigger quite a few traders in and out of position. When you see several candles in a row failing to break through a specific price level, each forming long wicks in the same direction, you're looking at a Multiple Candle Rejection. In an uptrend, if multiple candles try to push above a resistance level but fail each time, closing with long upper wicks, it's a clear sign of rejection at that level. These wicks form a selling pressure zone.

### Segment 10 (45:00 - 50:00) [45:00]

Multiple candle rejections show the repeated failure of price to breach a key level, suggesting a strong buying or selling presence at that point. When buyers try to push prices higher but fail multiple times, it indicates that sellers are stepping in aggressively to defend that level. The long upper wicks represent the failed attempts of buyers to gain control. Similarly, when sellers try to drive prices lower but encounter repeated rejection, it suggests strong buying interest at that level. The long lower wicks signal the inability of sellers to close below that price. These wicks form a buying pressure zone. As price approaches a key level, you'll notice the candles getting smaller in size. Their spread gets lower and lower. This pattern of successive candles shrinking in size is a clear sign of Decreasing Candles. Decreasing candles indicate a loss of momentum as prices approach a critical point in the market. The smaller candles suggest that the distance traveled per candle is getting shorter, which is an early signal that the current trend is losing steam. For example, in an uptrend approaching resistance, decreasing candles show that buyers are losing control and momentum. In a downtrend nearing support, decreasing candles reveal that sellers are losing their grip on the market. To increase the quality of your trade setup, look for decreasing candles that finish with multiple long wick candles at the key level. This combination suggests a strong loss of momentum. With this method, you'll soon realize that reading price action isn't about memorizing dozens of candlesticks. It's about observing price bars as they form and understanding what the market has done and is currently doing. The context of the price move is crucial. A candle can have a completely different meaning depending on where it appears in a price trend. Is it at the beginning, middle, or end of a trend? Is it at a support or resistance or in the middle of a consolidation phase? Always analyze candlesticks in the context of the overall price move, never in isolation. Now, let's talk a bit about pullbacks. A pullback is a temporary price movement that goes against the prevailing trend. It's a period of price retracement or correction before the trend resumes its original direction. Pullbacks occur when price moves in the opposite direction of the trend for at least one bar. The psychology behind pullbacks involves a temporary shift in market sentiment. During an uptrend, a pullback occurs when bearish pressure briefly overcomes bullish pressure, driving prices lower. However, this doesn't necessarily indicate a trend reversal. If the lower prices fail to attract enough selling pressure to break the previous swing low, it suggests the pullback is merely a correction within the larger uptrend. As sentiment shifts back to bullish, more buying enters the market. Shorts will cover their positions and the uptrend will resume. Now, not all pullbacks are created equal. We can classify them into two main types based on their depth: Shallow Pullbacks and Deep Pullbacks. Shallow pullbacks are corrections that retrace only about 25% to 30% of the current leg of the trend. They indicate that the trend is still quite strong as the counter-trend moves are relatively minor. However, because the pullbacks are so shallow, it can be tricky to time your entries and define your risk when trading these. Deep pullbacks are corrections that retrace roughly 50% or more of the current trend leg. These are often viewed as more favorable trading opportunities as they allow you to get into the trend at a better price with a more attractive risk-to-reward ratio. One of the main benefits of trading pullbacks is the potential for higher probability entries. When a strong price action signal occurs at a key level following a pullback, it indicates a high likelihood of the trend continuing. Confirmation is key when trading pullbacks. Look for candlestick patterns to confirm the pullback is ending and the trend is likely to resume. In an uptrend, the more subdued the bearish pressure during the pullback, the higher the odds of a successful trend continuation. If done correctly

### Segment 11 (50:00 - 55:00) [50:00]

trading pullbacks will allow you to buy low in uptrends and sell high in downtrends. When it comes to breakouts and false breakouts, you need to understand how to distinguish between the two. A true breakout can lead to a powerful new trend, while a false breakout can trap traders on the wrong side of the market. One key thing to watch for is how price behaves after breaking out of a trading range. If it quickly reverses and comes back into the range, that's a sign of a potential false breakout. Often these false moves are engineered by large institutional traders to build liquidity before driving the market in the opposite direction. To avoid getting caught in these traps, it's wise to wait for a retest of the breakout level before entering a trade. Look for price to hold outside the breakout level on the retest. In a true breakout, price should continue in the breakout direction, making new highs or lows. However, if the breakout fails and price remains stuck in a larger trading range, that's a sign that the attempted trend change has failed. Another thing to consider is the overall market context. In a bull market, upward breakouts tend to be more reliable and profitable, while bear markets favor downward breakouts. Trading with a prevailing trend will tilt the odds in your favor. Remember, the market doesn't have to respect the levels we draw on our charts. False breakouts will occur with varying degrees of aggression. There are two main types of patterns that every price action trader should know: Reversal Patterns and Continuation Patterns. Reversal patterns signal that the current trend may be coming to an end and the price could change direction. The Head and Shoulders is the most popular reversal pattern. It often signals that an uptrend is about to reverse into a downtrend. The opposite is an Inverted Head and Shoulders, which can form at the bottom of a downtrend, hinting at a potential bullish reversal. Double Tops and Double Bottoms should be your main focal point. These form when price tests the level twice but can't break through, suggesting the trend is losing momentum. A double top often leads to a bearish reversal, while a double bottom can result in a bullish reversal. Triple Tops and Triple Bottoms are similar, with the price testing a level three times before reversing. Continuation patterns suggest that the current trend is just taking a breather before likely resuming. Flags and Pennants form quite often. These appear as brief consolidations or pullbacks against the prevailing trend. They usually lead to the trend continuing once price breaks out of the pattern in the direction of the prior trend. Triangles are usually continuation patterns with the trend expected to resume in the direction it was going before the triangle formed. Rectangles are my favorite continuation patterns. These are sideways channels where price bounces between support and resistance. I like to trade false breakouts that occur contrary to the prevailing trend. So in an uptrend, look to trade false breakouts below support. And in a downtrend, trade false breakouts above resistance. While knowing these classic patterns is important, you need to look at them through the lens of price action. Simply memorizing patterns is not enough. You must understand the market dynamics and psychology behind them. This means paying close attention to market structure and the key levels on the chart. Look for price zones where the market has changed direction multiple times before. If a chart pattern forms near one of these key levels, it can add significance to the pattern signal. The overall trend is also crucial. "Trend is your friend," as they say. In an uptrend, bullish continuation patterns are more likely to succeed. In a downtrend, bearish continuation patterns have a higher probability. You always want to trade in the direction of the path of least resistance. When a reversal pattern forms, it's signaling that the trend may be in trouble, but it's not a guarantee. Often times reversal patterns will fail and the prior trend will resume. Don't jump in on the first sign of a reversal. Wait for price to confirm it. During pullbacks or retracements against the main trend, continuation patterns can offer low-risk

### Segment 12 (55:00 - 60:00) [55:00]

entries. If you expect the trend to resume again, look for fake-outs against the current trend. When a pattern breakout fails and price quickly reverses, these are good opportunities to enter, capitalizing on trapped traders who thought the trend was about to change. No two patterns are exactly alike in the real world. As you analyze more and more charts, you'll develop a keener eye for the subtleties that separate successful patterns from failures. You'll start to recognize how certain patterns tend to play out in specific markets, timeframes, or conditions. Of course, no pattern is guaranteed. Approach patterns with the combination of respect and skepticism they deserve. Price action becomes 10 times more effective with the help of volume. Volume is the lifeblood of the markets. It reflects the actual buying and selling pressure behind every price move. When you're looking at a chart, the price bars show you what's happening, but the volume bars reveal why it's happening. Volume tells you about the intensity, urgency, and commitment behind the price action. Here's how you can use volume to confirm or question what you're seeing in the price. First, look for convergence between volume and price. In an uptrend, rising prices should be accompanied by rising volume. This shows genuine buying interest that can sustain the move. In a downtrend, falling prices with increasing volume signals strong selling pressure that could drive prices lower. Be wary of divergences. If prices are rising but volume is falling, it's a warning sign. The uptrend may be losing steam. Buyers are less committed. An upside breakout on low volume is suspect. Likewise, if prices are falling but volume is drying up, sellers may be losing control. The downtrend could be nearing exhaustion. Look for volume spikes near support and resistance. Major players often show their hand at key levels. If there's a volume surge as price tests a support level and holds, that's often a sign of strong demand absorbing the selling pressure; the support is likely to hold. Also track volume during breakouts. A valid breakout (up or down) should occur with an expansion in volume. This confirms the price action. But a breakout on low volume is more likely to fail, trapping traders in the wrong direction. Also, watch for Climactic Volume. After a strong run-up, a huge volume spike with a wide range price bar can signal buying exhaustion—a Buying Climax. Supply may be taking over. The uptrend is in jeopardy. The reverse is true for a Selling Climax after an extended decline. Monitor the volume patterns in consolidations. Is volume contracting as the price range narrows? This can be a sign of decreasing volatility and building pressure for the next move. Also, look for high volume reversal bars. A wide range bar on massive volume that reverses an existing trend is a red flag. For example, a bearish momentum bar with huge volume after an uptrend is a sign that sellers have taken control. Think of volume as the fuel and price as the vehicle. A rally or decline can only go as far as the fuel in the tank. As a price action trader, you always want to be on the stronger side of the market—the side with more aggressive volume behind it. Market prices move based on the flow of buy and sell orders. More buying pressure pushes prices up while more selling pressure pushes prices down. For substantial price movements to occur, the market needs to interact with areas of high order concentration, also known as liquidity. So, liquidity means all the buy and sell orders waiting to be filled. Now, here's the interesting part. If there isn't enough liquidity, the big players (the Smart Money) will create it. For big traders like banks or hedge funds, liquidity is critical. They deal with large amounts of money. In less liquid markets, their big trades can push prices around a lot. This makes it hard for them to buy or sell without losing money. Now, if you understand where liquidity sits, you can identify Magnet Areas—those price levels that attract price movement.

### Segment 13 (60:00 - 65:00) [1:00:00]

Your main task is to find Liquidity Pools. Liquidity pools are like busy trading spots in the market. They're areas where lots of buy and sell orders gather, and they form at key price levels. These could be previous highs or lows, round numbers, or other important points. We'll talk about these in a minute. Now, traders often place their orders at these levels creating a cluster of potential trades. There are different types of liquidity pools: Major Liquidity Pools: These form at the highs and lows of longer timeframes. These are big, important levels that many traders watch. You might see them on weekly, monthly, or even yearly charts. Medium Liquidity Pools: These show up on shorter timeframes like 1-hour charts. These are still significant but not as big as the major pools. Minor Liquidity Pools: These appear on very short timeframes like 1-minute or 5-minute charts. These are smaller and might only matter for very short-term traders. Liquidity pools work by attracting price. When price approaches a liquidity pool, a few things can happen. It might reverse as lots of orders get filled at that level, or it might pause there before continuing. Sometimes it might even break through quickly if there's enough momentum. And big players are constantly trying to hunt these liquidity pools. They often push price to these levels to trigger a bunch of orders, causing a sharp move. So, liquidity zones are key areas where Smart Money players often target to protect their positions and to trap other traders. These zones act like magnets for price, drawing it in and often causing significant moves. So, let's talk about each type of liquidity zone and how Smart Money uses them to their advantage. First area is around Structural Highs and Lows. These are major turning points in price action—the peaks and valleys you see on a chart that stand out from the rest. Smart Money loves these spots because they know traders often place their stop-losses just beyond them. Let's say we have a strong uptrend with a series of higher highs and higher lows. Traders often jump on this trend, placing their stops just below the most recent low. And Smart Money knows this. They often push the price down, breaking that low and triggering all those stop-losses. This flood of sell orders drives the price down further, often before Smart Money steps in to buy at a discount. The same happens in downtrends. Retail shorts place their stops above recent highs. Smart Money spike the price up, hit those stops, then drive the price back down. To spot these zones, look for clear swing highs and lows. The more obvious they are, the more likely they are to attract attention. Trend Lines are another favorite tool of traders. The diagonal lines that connect a series of lows in an uptrend or highs in a downtrend. They are simple to draw and easy to understand, which is why so many traders rely on them. Big players often target these trend lines, especially long-standing ones. They know that many traders will have stop-losses placed just beyond these lines. By breaking a significant trend line, they can trigger a cascade of orders. For instance, in a long-standing uptrend, many traders will be long with their stops just below the trend line. Smart Money might push the price down to break this line. As stops are hit, more sell orders flood in. Smart Money can then step in and buy at lower prices before resuming the uptrend. Equal Highs and Lows, also known as Double Tops and Double Bottoms, are also exploited by Smart Money. These patterns form when price reaches the same level twice, creating a potential reversal point. Traders often see these patterns and place their trades accordingly. For a double top, they might go short with a stop just above the equal highs. For a double bottom, they might go long with a stop just below the equal lows. Smart Money knows this and often pushes the price just beyond these levels to trigger stop-losses before reversing.

### Segment 14 (65:00 - 70:00) [1:05:00]

This creates a liquidity pool that they can use to their advantage. Trading Sessions, particularly the Asian, London, and New York sessions, often create their own ranges. These ranges can become significant liquidity zones, especially at their highs and lows. Big players often target the session's highs because they know many traders use them for entries and stop placements. For example, many traders use the Asian session range as a guide for the London session. They might place buy orders above the Asian high and sell orders below the Asian low. Smart Money might push the price just beyond these levels to trigger these orders, creating liquidity that they can trade against. They might spike the price above the Asian high, triggering buy orders, only to sell into this liquidity and push the price back down. The Previous Day's High and Low are other significant levels that many traders watch. They often serve as support and resistance levels for the current day's trading. Again, the big boys frequently target these levels. For instance, many traders place buy orders just above the previous day's high, expecting the upward momentum to continue. Smart Money will push the price up to trigger these orders, creating a pool of liquidity. They can then sell into this liquidity, potentially reversing the price direction. The Previous Week's High and Low also attract a lot of attention. You might not even know where those levels are. These levels often act as key support and resistance on higher timeframes, and Smart Money often exploit these levels knowing that many swing traders and position traders use them for stop placement and entry orders. For example, in a downtrend, many traders might place sell orders below the previous week's low, expecting the trend to continue. Smart Money often push the price down to trigger these orders, creating a liquidity pool they can buy into. Supply and Demand Zones are other liquidity zones. These are areas where price has shown significant rejection in the past, and these zones are prime targets for Smart Money manipulation. Smart Money know many traders place their orders around them. For example, many traders might place buy orders at a strong demand zone. Smart Money might push the price into this zone, triggering these buy orders and creating liquidity. They can then potentially sell into this liquidity, driving the price even lower. That's why you see so many demand zones that should work in theory, but in reality, they fail. The same happens with supply zones. Traders often place sell orders at these levels, expecting price to drop. Smart Money might spike the price into the supply zone, triggering these sell orders, then buy into this liquidity to potentially drive the price higher. Fair Value Gaps (FVG) are also targeted. These are areas on the chart where price has moved rapidly. These gaps often act as magnets for price, drawing it back to fill the gap. Smart Money often uses these gaps as targets. For example, if there's a bullish fair value gap below the current price, many traders might place buy orders in this area, expecting price to come back and fill the gap. Smart Money might push the price down through this level, triggering these buy orders and creating liquidity. The same happens with bearish fair value gaps above the current price. Traders often place sell orders in these areas. Smart Money might spike the price up through the gap, triggering the sell orders. That's why maybe 90% of fair value gaps fail, but that's a topic for another video. Round Numbers ending in zero or double zeros are psychologically significant levels that attract a lot of attention. These levels are prime targets for Smart Money manipulation. Smart Money knows that many traders place their orders around these round numbers. They might place buy orders just above a round number or sell orders just below it. The big boys often push the price to these levels to trigger these orders, creating liquidity that they can trade against. For instance, if there's a round number at the $50 level

### Segment 15 (70:00 - 75:00) [1:10:00]

many traders might place buy orders slightly above it, expecting the price to rise above this level. The big boys might push the price up to trigger these buy orders, creating a pool of liquidity. They can then potentially sell into this liquidity, driving the price back down. Understanding all these liquidity zones and how Smart Money targets them is key. It helps you avoid common traps. As you practice, you'll start to see patterns. You might notice that price often reverses after taking out a previous high or low. Or you might see that certain levels keep causing price to pause or reverse. And please don't just draw liquidity zones all over your chart. Focus on the most important ones. Too many zones can make your analysis confusing. Also, pay attention to how price reacts when it reaches a liquidity zone. Does it reverse sharply? Does it pause and then continue? Or does it blow right through? This can give you clues about the strength of the move and what might happen next. You might notice that certain types of zones work better in certain market conditions or for certain currency pairs or stocks. This is where keeping a detailed trading journal with your findings can be incredibly valuable, allowing you to refine your strategy over time. Now, let's talk about Liquidity Inducement. Inducement is about creating situations that make other traders want to trade at certain levels. This creates available liquidity for bigger players to use when they want to enter or exit their positions. To understand this better, let's look at how the market is structured. When we look at charts, we see highs and lows. Above these highs, we assume there's buy-side liquidity, and below the lows, we assume there's sell-side liquidity. Buy-Side Liquidity is all the liquidity that buyers will use, created mainly by stop-loss orders of sellers and buy-stop orders of buyers. In a bullish market, price often uses buy-side liquidity to fuel the next upward move. To have a big bullish move, the market needs sell orders to generate more liquidity. Also, the buy orders from stop-losses of sellers generate more buy orders, which is why you often see a surge in buying when price breaks out. Sell-Side Liquidity is the opposite. It's the liquidity that sellers will use, created mainly by stop-loss orders of buyers and sell-stop orders of sellers. Imagine you see a double bottom on your chart. Price hits the same low point twice, forming a support level. Many traders might want to buy at this support level. Now, think about where these traders would put their stop-losses. They'd likely put them just below the lows. This creates a pool of sell-side liquidity below the lows. This is important because big players need this liquidity. They can't just jump into the market with huge orders. That would cause wild price swings and could work against them. Instead, they use liquidity inducement to their advantage. These big players create patterns or situations in the market that encourage other traders to place their orders in predictable spots. This builds up pools of liquidity that the big players can then use to enter or exit their positions. Now, before we continue, let us know in the comments what topics you'd like us to cover and please drop us a like to help us with the YouTube algorithm. Now, let's talk about how big players use this liquidity. They often create what's called a Liquidity Sweep. It's when big players in the market try to take advantage of areas where there's a lot of buy or sell orders waiting. These areas are like pools of money just sitting there ready to be used. For instance, if there's a strong support level with many stop-losses just below it, price might sweep down to hit those stops before reversing. This action sweeps the liquidity, letting larger players fill their orders. Knowing about liquidity sweeps can help you in two main ways. First, you can look for where sweeps have already happened as this might show where big players have been active. Second, you can use this knowledge to guess future moves by spotting where available liquidity might be. One way to

### Segment 16 (75:00 - 80:00) [1:15:00]

trade these liquidity sweeps is by identifying the inducement before a potential zone of interest. This is where price action might encourage traders to enter positions, creating more liquidity for a potential move. For example, if you're looking at a possible buy zone, you might see price dip below a previous low before the main move up. This dip could make sellers enter short positions or exit longs, creating liquidity that larger players can use to enter their long positions. Liquidity goes hand-in-hand with the market structure. Market structure refers to the overall pattern of price movement. It's about identifying trends, key levels, and the flow of the market. Liquidity is about where buying and selling activity clusters. These two concepts work together to shape market behavior. Here's how they interact: Areas of high liquidity often become key points in the market structure. A level with lots of buy orders might become a strong support level. If price keeps bouncing off this level, it becomes part of the market structure. Key structural levels tend to attract liquidity. Traders often place their orders around important structural points like trend lines or previous highs and lows. This creates a feedback loop where structure and liquidity reinforce each other. Breaks in structure can drain liquidity. When price breaks through a key structural level, it often leads to a surge in trading activity. This can temporarily drain liquidity from other areas as traders rush to adjust their positions. Liquidity flows with structure. In a strong trend, liquidity tends to cluster in the direction of the trend. For example, in an uptrend, you might see more liquidity above the current price as traders anticipate further rises. Structure helps predict liquidity. By reading the market structure, you can often predict where liquidity might be. For instance, after a series of higher lows in an uptrend, you can expect liquidity to gather below each of these lows. Liquidity confirms structure. Sometimes the way price interacts with liquidity can confirm or deny the current market structure. If price easily breaks through what should be a liquidity-rich level, it might signal a change in the overall structure. Both liquidity and market structure guide price movement. Price often moves towards liquidity but within the constraints of the larger market structure, and institutional activity links them. Big players in the market often use their understanding of both liquidity and structure to plan their trades. Both liquidity and market structure change over time. Just as market structure evolves, so does the distribution of liquidity. What was a key liquidity level last week might not be as important now. So, keeping track of both helps you stay in tune with the market. The interplay between liquidity and structure can help you spot truly important levels in the market. Areas where structural levels align with high liquidity are often the most significant. In trading, we often talk about Market Structure Shifts (MSS)—the big changes in the overall trend of the market. Inducement often plays a role in these shifts. For example, before a major trend change, you might see price action that looks like it's continuing the old trend. This can trick traders into entering positions in the direction of the old trend, creating liquidity for the Smart Money to use when reversing the market. Liquidity inducement isn't something bad. If you can spot it happening, you might find good trading signals for entries. Look for areas where there's a lot of liquidity. When the market is going up, look for buy entries just below recent lows. That's where big players often buy, scooping up all the sell orders. When the market is going down, look to sell just above recent highs. That's where big players often sell into all the buy orders. For exits, think about where other traders might have their stop-losses or take-profit orders. These create pools of liquidity. As price approaches these areas

### Segment 17 (80:00 - 85:00) [1:20:00]

be ready to exit your trade. The price might reverse once it hits these liquidity pools. Every time the market makes a new range, mark the high and low. If you're trading in this range, you might enter at one end where there's internal liquidity and exit at the other end where there's external liquidity. Also, you want to trade where there's low resistance. This means there should be little stopping for the price to move in your favor. Start on a bigger timeframe like the daily chart. Mark major liquidity levels. Move down to a smaller timeframe like the 1-hour chart. Look for price approaching your marked liquidity levels. As price gets close to a liquidity level, switch to an even smaller timeframe like the 15-minute chart. Watch for signs of a Stop Hunt—a quick spike through the level followed by a reversal. If you see this, get ready to enter a trade in the direction of the reversal. Also, don't jump on every breakout. Wait for the price to show it's really going to keep moving in that direction. And always consult multiple timeframes. Check larger timeframes to see if a move fits the bigger picture or if it might be inducement. If you see the price quickly reject a level after breaking it, be ready for a possible reversal. And don't put your stops right at obvious levels. That's where inducement often targets. There are several tools and indicators that can help you spot and analyze liquidity in the markets. Volume: This is one of the simplest and most effective tools. High volume often shows high liquidity. So, look for volume spikes which can indicate liquidity events. Market Depth Charts: These show pending buy and sell orders at different price levels. They can help you see where liquidity pools might be forming. Time and Sales (Tape Reading): This shows real-time trades. Large trades or clusters of trades at certain prices can indicate liquidity. Order Flow Indicators: These advanced tools try to show the balance of buying and selling pressure. Volume Profile: This shows where most trading has happened at different price levels, helping identify high liquidity zones. It's best to use a mix of tools and combine them with market structure and price action. Also, these tools don't directly show liquidity; they show things that often relate to liquidity. You still need to interpret what they're telling you. Liquidity and order flow analysis are closely linked. Order flow analysis is all about understanding the buying and selling pressure in the market. This pressure often shows up as liquidity. Order flow analysis looks at the actual orders coming into the market. It tries to spot where big players are buying or selling. Basically, order flow analysis can help you find where liquidity is building up, when liquidity is being used up, and potential price levels where big players might be active. In order flow analysis, you need to get familiar with several concepts. First one: Volume Clusters. Order flow analysis often looks for clusters of orders at certain prices. These clusters are actually liquidity pools. Next concept is Absorption. When a price level absorbs a lot of orders without moving much, it's often a sign of high liquidity. Here's a familiar concept: Imbalances. Order flow tools might show imbalances between buy and sell orders. These imbalances can create or drain liquidity. It's a lot to talk about, but that's a topic for another video. Retail traders like you and me can level the playing field by using liquidity analysis to compete with institutional traders. Here's how: Know the closest liquidity pools. Mark the areas where lots of buy or sell orders cluster. When price hits these spots, it often bounces or breaks through fast. You need to be ready for both scenarios. Watch for traps and liquidity sweeps. Big players set traps to trick small traders. They often push price to key levels. Don't fall for these fake-outs. Use multiple timeframes. Check both

### Segment 18 (85:00 - 90:00) [1:25:00]

higher and lower timeframes. This gives you a fuller picture of liquidity across different market views. It helps you spot potential reversals or continuations more accurately. Track order flow. Pay attention to how orders are coming in. Look for big buy or sell walls in the order book. These can signal where institutions are placing their orders. Identify liquidity gaps. These are areas on the chart with little trading activity. Price often moves quickly through these zones. Knowing where they are can help you set better entry and exit points. Study market structure. Look for key swing highs and lows. These often mark areas of high liquidity. Focus on session overlaps. When major trading sessions overlap, liquidity tends to increase. This can lead to bigger price moves. Use these times to your advantage. Don't chase breakouts. Many traders jump on breakouts only to get burnt. Instead, look for pullbacks to liquidity zones after a breakout. This is often where Smart Money enters. Use Volume Profile. This tool shows you where the most trading has happened at different price levels. High volume nodes often act as strong liquidity areas. The Wyckoff Method is built on three key laws that explain how markets work. These laws help you see what's really moving prices, not just what's on the surface. Let's start with the Law of Supply and Demand. This law is the engine that drives the market. It's pretty simple: when more people want to buy than sell, prices go up. When more want to sell than buy, prices go down. But it's not just about numbers of buyers and sellers. It's about how much money they're willing to spend. It's about the intensity of their actions. One big buyer can have more impact than many small sellers. The Law of Supply and Demand says that price, volume, and trend all work together. Price shows which way the market is going. Volume shows how strong that move is. When price and volume agree, it confirms the market direction. We'll talk about this later. The Law of Cause and Effect tells us that big moves in the market don't just happen out of nowhere. They need preparation. It's like a rocket launch. Before a rocket can take off, it needs a lot of fuel. In the market, that fuel is buying or selling pressure building up over time. The size of the cause determines effect. A small cause leads to a small move. A big cause can lead to a big move. This is why Wyckoff traders look for signs of Accumulation (buying) or Distribution (selling). These are the causes that can lead to big price moves. This law helps explain why markets sometimes seem to move for no reason. There's always a reason, but it might have been building up for a while before you noticed it. The Law of Cause and Effect also says that if there's no preparation, there will be no move. This helps you avoid false signals. If you don't see a cause building up, you shouldn't expect a big effect. It's all about preparation in the market. This often shows up as trading ranges. These are periods where price moves sideways, bouncing between support and resistance levels. To the untrained eye, these might look boring, but to a Wyckoff trader, they're exciting. They're where the cause is building up for the next big move. Lastly, we have the Law of Effort versus Result. This law helps us spot when something's off in the market. It's about comparing the effort (usually measured by volume) with the result (the price movement). Here's how it works: the market is always trying to move one way or the other. These attempts can be short or long. Either way, they represent effort, which we see as volume. If you see a lot of volume (meaning effort) but prices barely move (meaning result), that's a red flag. It might mean the current trend is running out of steam. On the flip side, if prices move a lot on low volume, that move might not last. This law helps you spot divergences. A divergence is when the effort and result don't match up. It's like a warning sign that something might be about to change. The Law of Effort versus

### Segment 19 (90:00 - 95:00) [1:30:00]

Result is like a lie detector for the market and is especially useful for spotting trend changes. Often before a trend changes, you'll see a mismatch between effort and result. It's like the market is trying hard to keep going in the same direction, but it's running out of steam. The Wyckoff Method breaks down market action into four main phases: Accumulation, Markup, Distribution, and Markdown. Accumulation is the first phase. It happens at market bottoms. This is when big players start buying. They do this quietly so prices don't go up too fast. During this phase, prices often move sideways. It might look boring, but a lot is happening under the surface. In accumulation, most people are scared to buy. They think prices might keep falling. But Smart Money sees value. They buy when others are afraid. This phase can last a while. It takes time for big players to buy all they want without pushing prices up too much. Look for these signs in accumulation: Prices stop falling and move sideways. Volume is low but picks up on price dips. Price drops don't last long. Strong buying when prices fall a bit. The Uptrend or Markup phase comes next. This is when prices start to climb. The big players who bought during the first phase are now letting prices rise. They might even buy more, pushing prices higher. In the uptrend, more people start to notice the market. They see prices going up and want to join in. This extra buying helps push prices even higher. Look for these signs in an uptrend: Prices make higher highs and higher lows. Volume often increases as prices rise. Pullbacks are short and shallow. Each new high is met with strong buying. The third phase is Distribution. This happens at market tops. Big players who bought low are now selling. They sell slowly, just like they bought slowly. They don't want to crash the market by selling too fast. In distribution, most people are excited. They think prices will keep going up forever. But Smart Money knows better. They are quietly selling to these eager buyers. Distribution can also take some time. Look for these signs in distribution: Prices stop rising and move sideways. Volume might increase, but price rises don't last. More volatility with sharp ups and downs. Each new high is quickly sold into. The last phase is the Downtrend or Markdown. This is when prices start to fall. The big players have finished selling. Now there aren't enough buyers to keep prices up. In the downtrend, fear takes over. People who bought high start to panic and sell. This pushes prices down even faster. Like the uptrend, the downtrend often moves in waves. Again, look for these signs: In a downtrend, prices make lower lows and lower highs. Volume often increases as prices fall. Bounces are short and weak. Each new low is met with more selling. Most of the money in a trend is made in phase two (the uptrend) and phase four (the downtrend). The transition phases (Accumulation and Distribution) are often trickier to trade. They are more about preparing for the next trend. One key skill in using the Wyckoff Method is identifying Changes in Market Character. This is when the market shifts from one phase to another. For example, the shift from accumulation to uptrend or from distribution to downtrend. These changes often happen gradually. The market doesn't suddenly switch from one phase to another. Instead, it transitions slowly. Now, let's break down Wyckoff Events. They're like clues that help us figure out what's really going on in the market. First, we have the Preliminary Support (PS). This is when big players start to buy, trying to stop prices from falling more. It's like putting a floor under the market. You might see prices stop dropping as fast or even bounce a little. Next comes the Selling Climax (SC). This is a big moment. It's when scared sellers dump their positions. Prices often fall hard and fast, but the big players are buying during this panic. They're getting ready for prices to go up later.

### Segment 20 (95:00 - 100:00) [1:35:00]

After the selling climax, we see an Automatic Rally (AR). Prices bounce up a bit. This happens because the selling pressure eases off. It's like the market taking a breath after all that selling. Then we have the Secondary Test (ST). Prices fall again, but not as low as before. This is important. It shows that the big drop might be over. Big players are still buying, keeping prices from falling too far. Now we come to the Spring. This is a tricky move. Prices dip below the low point of the secondary test. It looks like the market might fall more, but it's often a fake-out. Prices quickly jump back up. This is a key sign that big players are done buying and are ready for prices to go up. After the spring, we see a Sign of Strength (SOS). This is a strong move up, often with lots of trading. It's like the market saying, "We're ready to go up now. " And then we have the Last Point of Support (LPS). This is one more dip before the real uptrend starts. It's like the market taking one last breath before climbing. These events don't always happen in this exact order. Markets are tricky and always changing, but knowing these events helps you see the big picture. If you see signs of accumulation, like the Preliminary Support or Spring, it might be a good time to think about buying. If you see signs of distribution, like a Buying Climax or Sign of Weakness, it might be time to be careful or even think about selling. The end of an accumulation phase, like after a successful Spring, can be a great time to buy. The end of a distribution phase can be a good time to sell. But remember, you don't need to catch the exact bottom or top. What matters is catching the main move. And don't get too hung up on naming each event. What's more important is understanding what these events mean. They are showing you the transfer of risk in the market. Like I said before, in accumulation, Smart Money is taking on risk, betting prices will go up. In distribution, they are passing that risk to others. Volume is a key part of the Wyckoff Method. It helps confirm what price is telling us. The main idea is simple: volume should match price moves. If prices go up, volume should too. If prices fall, volume should rise. When volume and price don't match, it can mean trouble. Wyckoff saw the market as a fight between buyers and sellers. Volume shows who's winning. High volume on up moves means buyers are strong. High volume on down moves means sellers are in control. We talked before about Wyckoff's Law of Effort versus Result. This law says the effect of a price move should match the effort behind it. The effort is shown by volume. The result is the price change. Here's how it works: big volume (the effort) should lead to big price moves (the result). Small volume should lead to small price moves. If there's a mismatch, it can signal a change coming. High volume with little price change often means accumulation or distribution. Low volume with big price moves usually isn't sustainable. Rising prices with falling volume can mean the uptrend is weakening. Volume helps confirm price action. It's like a lie detector for price moves. Price alone can sometimes lie, but price and volume together usually tell the truth. In accumulation, watch for high volume on down days that don't push prices much lower. This can mean big players are buying, soaking up the supply. It's a sign the downtrend might be ending. In distribution, look for high volume on up days that don't push prices much higher. This often means big players are selling into strength. It's a sign the uptrend might be ending. During trends, volume should generally increase in the direction of the trend. In an uptrend, volume should be higher on up days. In a downtrend, down days. But it's not just about whether volume is high or low. The spread (the body of the price bar) matters, too. Wyckoff and later traders like Tom Williams saw the relationship between volume and spread. Here's what to look for: Wide spread and high volume: usually bullish. volume (down): usually

### Segment 21 (100:00 - 105:00) [1:40:00]

bearish. Narrow spread and low volume: often means consolidation. One common pattern is a Climax. This is a day with very high volume and a wide price range. It often marks the end of a move. In a downtrend, it might be a selling climax marking the end of the drop. In an uptrend, it could be a buying climax signaling the end of the rise. After a climax, watch for a Test. This is when prices return to near the climax level but on lower volume. If the test holds, it can confirm the end of the old trend and the start of a new one. Volume can also help spot manipulation. If you see a big price move on low volume, be suspicious. It might be a false move designed to trick traders. We'll talk about this later. Real, sustainable moves usually come with solid volume. In the Wyckoff Method, volume isn't just about quantity; it's about quality, too. A day with steady buying is different from a day where all the volume comes in one big spike. Learn to read the quality of volume, not just the quantity. One key skill is spotting divergences between price and volume. If prices are making new highs but volume is dropping, it can mean the uptrend is weakening. If prices are making new lows but volume is drying up, the downtrend might be running out of steam. Volume patterns can also hint at what's coming. For example, expanding volume as prices move sideways often precedes a breakout. The direction of the breakout is uncertain, but the increase in volume suggests something big is cooking. In accumulation, you might see a series of high-volume down days that fail to push prices lower. This is often followed by an upward surge on even higher volume. This pattern can signal the end of this phase and the start of markup. In distribution, you might see a series of high-volume up days that fail to push prices higher. This is often followed by a downward plunge on even higher volume. This pattern can signal the end of distribution and the start of markdown. Volume can also help with timing. In a strong trend, wait for a pullback on lower volume before entering. This often provides a good entry point with lower risk. And one final point about this: volume often leads price. You might see volume patterns change before price patterns do. This can give you an early warning of potential trend changes. The Spring and the Upthrust are key patterns in the Wyckoff Method. A Spring is a quick drop below support that bounces back fast. An Upthrust is a quick push above resistance that fails fast. Both are fake-outs that run stops outside support and resistance. Smart Money concepts renamed them as liquidity sweeps or liquidity runs. Why do they happen? Because big players often push price past key levels to trigger stop-losses. This lets them buy or sell at better prices. It is like shaking a tree to make the fruit fall. Let's look at Springs first. In a trading range, price might dip below support. If it jumps back up fast, that's a Spring. It means there's strong buying down there. It often leads to a move up. Here's how to spot a Spring: Price is in a range. It breaks below support. It doesn't stay there long. Then it jumps back above support fast. Upthrusts are the opposite. Price pops above resistance but falls back quickly. It shows there is strong selling up there. It often leads to a move down. Here's how to spot an Upthrust: Price is in a range. It breaks above resistance. Then it drops back below resistance fast. Both patterns show a fight between buyers and sellers. In a Spring, sellers try to push price down, but buyers win. In an Upthrust, buyers try to push price up, but sellers win. For a Spring, the plan is to buy when price jumps back above support. For an Upthrust, you sell when price drops back below resistance. But it's not always that easy. You need to look at the bigger picture

### Segment 22 (105:00 - 110:00) [1:45:00]

too. For Springs, check if the overall trend is up. A Spring in an uptrend is stronger than one in a downtrend. Look for signs of accumulation before the Spring. This makes the pattern more likely to work. For Upthrusts, check if the overall trend is down. An Upthrust in a downtrend is stronger than one in an uptrend. Look for signs of distribution before the Upthrust. Volume is key in these patterns. In a Spring, you want to see high volume on the drop and even higher volume on the bounce. This shows strong buying. In an Upthrust, you want high volume on the push-up and even higher on the drop. This shows strong selling. Some traders do well without focusing on volume; the price action itself can be enough. The context matters a lot. A Spring or Upthrust at the end of a long trend is more powerful than one in the middle of a range. It might signal a big trend change. One trick is to look for smaller ranges near the edge of bigger ranges. These often lead to good breakouts. You might see Springs or Upthrusts in these smaller ranges before a big move. Sometimes you won't see a Spring or Upthrust at all. This is called a Structural Failure. It happens when price fails to reach one side of a range and then breaks out the other way. This can be a strong signal, too. Fibonacci's effectiveness depends on how you apply them. And the key is to use them on the correct price swings. When you're looking at a price chart, you'll see many price swings. You might connect two points on the chart that seem significant to you, but another trader might choose different points. This doesn't mean one of you is wrong; it just highlights the subjective nature of this tool. To apply Fib retracements correctly, you need to start by determining the dominant trend. Once you've identified the trend, your next step is to find the most obvious swing high and swing low. These are the points you'll use to draw your Fibonacci lines. In a bullish trend, you'll draw the Fib retracement from the swing low to the swing high. This makes sense because in an uptrend, you're looking for potential support levels where the price might pause or reverse during a pullback. In a bearish trend, you'll draw from the swing high to the swing low. You're looking for potential resistance levels where the price might stall or reverse during a bounce. When drawing these lines, it's important to use the wicks of the candlesticks for your swings, not just the bodies. The clarity of your chosen swing points is probably the most important aspect. The clearer the swing low and high, and the more defined the trend between these points, the more reliable your Fib levels are likely to be. One common mistake is trying to force Fib levels to fit where they don't naturally apply. Remember, not every price move will align perfectly with Fib levels, and that's okay. The most helpful Fib retracements are those that are obvious on the chart without much effort to spot them. If you find yourself squinting at the chart or trying to convince yourself that a level fits, it might be best to look for a clearer setup. When applying Fibonacci retracements, think about the market structure. In an uptrend, for example, you might look for buying opportunities near these Fib levels as the price pulls back. The idea is that the trend will eventually continue and these retracement levels offer potential entry points at a better price. Number one rule is that Fibonacci levels work best in trending markets. Without a clear trend, these levels lose their significance and impact on price movement. When you spot a trend, look for the logical price swings to place your Fib retracement tool. This step is critical and often where most traders struggle. The trick is to find the most relevant high and low points that represent the current market conditions. So in this uptrend, I would draw the Fib retracement from this swing low to this swing high. For this downtrend, I would draw it from this swing high to the swing low. Once you've placed your Fib levels, you'll notice several key retracement levels. The most commonly used are 23. 6%, 38. 2%, 50%, and 61. 8% levels. These lines can act

### Segment 23 (110:00 - 115:00) [1:50:00]

as potential support areas in an uptrend or resistance zones in a downtrend. Many traders focus primarily on the 61. 8% retracement level as it's often considered the Golden Ratio, but I wouldn't discount the power of other levels. In strong trends, price might only retrace to the 38. 2% level before continuing in the trend direction. In weaker trends, price might extend to the 78. 6% level. Now, it's worth noting that these Fibonacci levels don't act as exact support or resistance points. Instead, they help you find areas where price might react. So think of them as zones rather than precise lines. Remember, Fibonacci levels often become self-fulfilling prophecies in the market. Many traders watch these same levels. This collective action can create real support and resistance zones. And please note that Fib levels struggle in sideways or ranging conditions. If the market is consolidating, it's often better to wait for a clear breakout before applying a Fibonacci analysis. Here's another common mistake: when you apply Fibonacci retracements to very small price moves or shorter timeframes, you might run into some issues that can make your trading less effective. Think about it this way: on shorter timeframes, price movements are often more erratic and less significant. These small, rapid price changes don't always reflect the true market trend or important levels. When you try to use Fibonacci retracements on these short-term moves, the levels you get are often too close together. This closeness makes it hard to tell which levels are truly important and which are just noise. Another problem with using Fibonacci on short timeframes is that you're more likely to see false breakouts and price spikes. These quick, sharp moves can trick you into thinking a level has been broken when it hasn't really. This can lead to poor signals like entering a trade too early or exiting one too soon. Think about it. Stops and take-profit points are key for managing your trades. But when you use Fib retracements on short timeframes, it becomes tricky to place these effectively. The retracement levels are so close together that they create narrow confluences. This means there's not much room between levels, making it hard to set stops that protect you from normal market noise while still giving your trade room to breathe. So, what's the solution? Focus on larger timeframes. When you apply Fib levels, you get a clearer view of the long-term trend. This helps you apply Fibonacci retracements in the right direction, aligning with the overall market movement. When you use Fib retracements on larger timeframes, you're looking at more significant price moves. These bigger swings are more likely to represent important market levels. The levels drawn on these larger moves are spaced further apart, making it easier to see which levels might be important. And you don't have to stick to just one timeframe. You can use a Multi-Timeframe Approach. You might start with a larger timeframe to find the overall trend and major Fibonacci levels, then zoom in to a smaller timeframe. Another benefit of placing Fibs on larger timeframes is that it can help you avoid overtrading. When you focus on smaller moves, it's tempting to take many trades, thinking each small retracement is significant. But by zooming out and looking at the bigger picture, you can be more selective with your trades, focusing on the moves that are more likely to be significant. When we talk about retracements, we are looking at how much a price pulls back after a strong move. These pullbacks can be shallow or deep. Shallow Retracements happen in strong trends. When a market is moving with conviction, it doesn't pull back much before continuing its journey. In these cases, you'll often see the price only retreat to the 23. 6% or 38. 2% areas. The trend is so strong that it doesn't need much time to refuel before zooming off again. When you spot these shallow pullbacks, it's a sign that the trend is healthy and likely to continue.

### Segment 24 (115:00 - 120:00) [1:55:00]

Deep Retracements are more common when a trend isn't fully established yet. The price might make several ups and downs, testing previous highs or lows without breaking them. Deep retracements often reach the 61. 8%, 78. 6%, or even 88. 6% Fib levels. And these deeper pullbacks can be tricky. They might make you think the trend is over, but it's not always the case. It's more like the market is taking a longer break, perhaps reassessing its direction before deciding to continue. The key difference between shallow and deep retracements is in what they tell us about the strength of the trend. Shallow retracements signal a strong, confident trend. The market barely hesitates before pushing on. Deep retracements suggest more uncertainty. The trend might still continue, but it's taking its time to gather strength. If you see a shallow retracement in a strong trend, it might be a good opportunity to join in the direction of that trend. With deep retracements, you might need to be more cautious. While they can still lead to continuation of the trend, there's also a higher chance the trend might be losing steam. And if the price retraces 100% of the last move, it might be a sign that the trend has failed. Now, when price reaches a Fib level, look for specific candlestick patterns. These patterns can confirm if the level is likely to hold or break. It's like getting a second opinion before making a trade. There are a lot of candlesticks, but the most useful patterns at Fib levels are Engulfing Patterns and Candles with Long Wicks. Candles with a long lower wick show up at the end of a down move. This long wick shows that sellers tried to push price lower, but buyers stepped in and pushed it back up. When you see it at a Fibonacci support level, it might mean the down move is over. If you spot a candle with a long upper wick at a Fibonacci resistance level, pay close attention. They often signal the end of up moves. Buyers try to push price higher, but sellers took control. Engulfing patterns are also decent signals. In a bullish engulfing pattern, a large green candle completely covers the previous red candle. This shows buyers taking control from sellers. A bearish engulfing pattern is the opposite, with a large red candle covering the previous green one. These patterns at Fibonacci levels can be strong reversal signals. From my experience, using candlesticks with Fibonacci levels works best on longer timeframes. This is because bigger moves tend to respect Fib levels more, and candlestick patterns on longer timeframes often carry more weight. Let's say price is in an uptrend and pulls back to the 50% Fib level. This level acts as a potential support. If you see a candle with a long candlestick forming right at this level, it's a decent sign that the pullback might be over. The Fib level shows where buyers might step in, and the candle shows that they actually did. Here, price is in a downtrend and bounces up to the 38. 2% Fib level. This level will act as a potential resistance in a downtrend. If an engulfing candle forms here, it implies the bounce might be over. So the Fib level shows where sellers might return, and the engulfing candle shows they're actually taking control. These engulfing patterns at Fib levels show a sudden, strong shift in who's controlling the market. And an engulfing pattern that completely swallows several previous candles at a key Fibonacci level is hard to ignore. Volume can add another layer of confirmation to candlestick patterns at Fibonacci levels. A reversal candle with high volume at a Fibonacci support level is more convincing than one with low volume. The high volume shows strong buying interest right where buyers were expected to step in. Now, one common mistake is to focus only on exact Fibonacci levels. As I said, in reality, these levels are more like zones than exact lines. A candlestick pattern doesn't have to form exactly at a Fib level to be valid. If it's close, it's worth paying attention to. And another

### Segment 25 (120:00 - 125:00) [2:00:00]

key point is to look at the bigger picture. A candlestick pattern at a Fib level is more meaningful if it aligns with the larger trend. For example, a bullish pattern at a Fibonacci support level in an overall uptrend is typically stronger than one that goes against the trend. The Golden Zone Method is a smart way to trade using Fibonacci levels. This method focuses on the 50% and 61. 8% area, which we call the Golden Ratio. First, you find a clear trend in the market. You then apply Fibonacci tools to this trend. You've practically marked the key levels where the price might turn around. The strategy gets interesting when the price starts to move against the trend. When price starts going up, you watch closely as it moves past the 50% Fib level. The key is to see if the price can break and close above the 61. 8% level. In the perfect scenario, the price reaches the zone but doesn't close above it. And this could be a signal that the downtrend is ready to continue. In the real market, the price will touch and even go a bit above this area, but this doesn't invalidate the setup. So, it's okay if the price goes above the 61. 8 line. Once it returns below it, that's a good sign for our strategy. This moment is when we get ready to make a move. We are looking for signs that the price is about to turn back down. Maybe it's a bearish candle forming or other factors lining up. The idea is to catch the market just as it's deciding to follow the original trend again. In this chart, once we see the price bounce off the Golden Zone, we start looking for a move back up. The next target might be the 38. 2% Fibonacci level. If the price breaks above the 38. 2% level, it could mean the previous uptrend is picking up steam again. After the 38. 2% level, the next stop might be the 23. 6% level. This is another place where the price might pause or bounce a little. But if the uptrend is strong, even this level might not hold. In that case, we could see the price go all the way back to where the downward move started. We call this a 100% retracement. So, these Fib levels aren't just targets for where the price might go. They're also useful for managing your trade. You can use these levels to decide when to take some profits. For instance, you might decide to sell a part of your position when the price hits the 38. 2% level and more at a 23. 6% level. If the price never got higher than the Golden Zone, you might put your stop-loss just above that line. This way, if the market suddenly changes direction after you entered, you're protected. Fibonacci and Moving Averages Combo is also a viable method. When used together, they create a synergy that can confirm your signals. Fibonacci alone can point to possible support or resistance levels, but they lack the weight of confirmation. This is where moving averages step in, adding an extra layer of validation to your analysis. Moving averages serve two key purposes in this partnership. First, they help you spot trends. A simple look at the slope of a moving average can tell you if the market is trending up, down, or sideways. And second, moving averages act as dynamic support and resistance. As price moves, these lines shift, creating flexible barriers that price often respects. And when a Fibonacci level lines up with a moving average, you've found a spot of Confluence. In this example, price has been climbing steadily. You draw your Fibonacci retracement from the recent low to the high. The 50% retracement level catches your eye. Now you notice the 200-period Exponential Moving Average (EMA) is sitting right at that same level. This is confluence in action. The Fibonacci tool and the moving average are both pointing to the same price area as significant. This confluence increases the odds of price reacting at this level. You might see price pause, bounce, or even reverse at this point. It's not a guarantee, but it's a strong hint from the market. This combination is

### Segment 26 (125:00 - 130:00) [2:05:00]

powerful because Fib retracements can sometimes seem arbitrary, and moving averages on their own can lag behind price action, but together they create a more robust analytical framework. Probably my favorite strategy is to look for confluences between the Fib levels and Supply or Demand Areas. It doesn't happen often, but when it does, it can be a sign of something special. In this example, notice that the price is approaching a key demand area that lines up with a Fib level. That's a confluence perfect for a trade. If the price bounces off that area, it could be the start of a beautiful uptrend that you can ride. On the flip side, if you see the price approaching a major supply area and that coincides with a Fib level, it could be a sign that the buyers are about to run out of steam. If the price gets rejected at that level, it might be time to start hunting for short opportunities. Let's talk about demand areas first. These are places where lots of people want to buy. When the price gets near a demand area and it's also close to a Fibonacci level, it's extra special. This tells us that the price might start going up soon. Think about it like this: you're looking at an uptrend. Then the price is going down, but then you notice it's getting close to a demand area. The price is also near a key Fibonacci level. You may want to monitor closely this area. Supply areas are spots where lots of people want to sell. When the price climbs up to a supply area and it matches a Fibonacci level, it's another special moment. This might mean the price is about to turn around and start falling. Picture this: the market is in a general downtrend. Then the price has been climbing for a while. Then you see it's approaching a supply area. The price is also near an important Fibonacci level. This is when you start thinking the upward move might be running out of steam. These confluences are like secret messages in the market. They don't happen all the time, but when they do, you pay attention. Here, price bounced off a demand area that lines up with the Fibonacci level. This is a good time to enter a buy position and ride the price up as it starts a new upward move. And here price hit a supply area that matches a Fibonacci level and then started to fall. This was a good time to sell as price started a new downward move. We'll start with the Engulfing Momentum Candlestick. This signal occurs when a large candle fully engulfs the body of the previous two candles. Basically, a big candle that completely covers the smaller ones right before it. This isn't just a regular occurrence. It's a sign—a clear indicator of a strong move in the market. This is what we call an engulfing pattern. The psychology behind this pattern is all about market sentiment and the sudden shift in the balance between buyers and sellers. Before an engulfing pattern occurs, there usually is a clear trend. This trend indicates a prevailing direction where the majority of market participants are either buying or selling. At some point, the market starts showing signs of exhaustion. For a bullish engulfing momentum bar, this might be at a support area or at a demand zone where buyers believe the price is attractive enough to start buying in large quantities. For a bearish engulfing one, this could be at a resistance or at a supply zone where sellers feel the price has peaked and it's a good time to sell. The engulfing momentum candle represents a strong shift in sentiment. If it's bullish, buyers have overwhelmed the sellers, pushing the price up and covering the range of the previous two candles. This suggests that the demand has suddenly outstripped the supply. In a bearish pattern, sellers have come in strong, indicating an excess of supply over demand. The immediate effect of an engulfing momentum bar is to signal a potential reversal. It shows a decisive change in market dynamics. For bullish signals, it could mean the end of a downtrend phase with prices likely to rise. For bearish ones, it could suggest the end of an uptrend wave with prices expected to fall. The Long-Wick Engulfing Candlestick is my favorite price action strategy.

### Segment 27 (130:00 - 135:00) [2:10:00]

This candlestick not only indicates a strong rejection of prices but also signals a potential momentum shift in the market direction. This candle typically shows a large body with a long wick that extends far beyond the body's edges. The engulfing part means that the body of this candle is larger than the body of the previous candle, completely overshadowing or engulfing it. This visual on your chart is your first clue about a significant shift in market sentiment. The long wick represents a point where supply surpasses demand, pushing the price back down (or vice versa, depending on the direction of the wick). Let's say the long wick is at the top of the candle. This suggests that as the price went up, it hit a level where sellers were waiting to take profits or considered the price too high, outweighing buyers. This results in the price being pushed back down sharply, leaving behind a long upper wick. The rejection indicated by the long wick is significant because it shows that a certain price level could not be sustained. Buyers tried to push the price up, but the overwhelming number of sellers at that level rejected this move. If the candle also engulfed the previous candle, it shows increasing selling momentum despite any buying pressure that might have been present initially. Sellers took control and managed to push the closing price below the open one of the previous candle, indicating strong supply. If the wick is at the bottom, it means sellers drove the price down. But buyers stepped in, finding the lower price attractive, thus pushing the price back up, showing rejection of lower prices. If the body of the candlestick also engulfs the previous candle, it suggests increasing buying momentum. Buyers were not only able to overcome the selling pressure indicated by the long upper wick, but were also strong enough to close the candle higher than the previous candle's body, indicating strong demand. This is a powerful price action signal. It provides a clear signal that the market sentiment might be changing direction. Look for these patterns at major resistance or support levels because they can signal the end of a trend or the reversal of a price direction. A bullish long-wick engulfing candle at a key support level might suggest a potential upward reversal, tempting buyers to enter the market expecting future gains. When you see multiple rejection wicks and candles are changing their color, you are witnessing a strong signal. In this example, observe these two consecutive candles at a similar price level where the first is bullish with a long upper wick followed by a bearish one with a similar long upper wick. This formation can tell you a lot about what's happening in the market. Starting with supply and demand, the first candle (the bullish one with a long upper wick) indicates that buyers initially pushed prices higher. The long upper wick shows that as the price reached higher levels, an ample supply emerged, overpowering the buyers and pushing the price down from its peak before the candle closed. At these higher price levels, sellers are more than willing to step in and take control. Now when the next candle opens, it starts where the first one left off but turns bearish with a long upper wick as well. This second candle confirms the presence of strong selling interest at these levels. The fact that this candle is bearish and mirrors the wick of the previous bullish candle intensifies the signal. The sellers are not just reacting spontaneously. They are firmly establishing their ground, showing that they are prepared to sell at these prices, thus increasing the supply. The repeated rejection at this price level signifies that the supply has surpassed the demand, possibly leading to a trend reversal or at least a significant pullback. From a psychological perspective, this signal plays a vital role. Consider the first bullish candle. Traders who bought during or just before the high might have expected the momentum to continue. The subsequent price dip could lead to a change in sentiment from optimism to concern or even fear. This emotional shift is crucial as it might prompt those buyers to

### Segment 28 (135:00 - 140:00) [2:15:00]

sell quickly to cut losses when they see prices failing to go higher, which adds to the selling pressure. If this pattern appears at a known resistance level, the message it sends is even stronger. Traders often place their stops around these levels, and the activation of these stops can accelerate the price movement downward as the bearish sentiment takes hold. The Over and Under Pattern is one of the most effective price action strategies. This pattern essentially signals a critical shift in the market dynamics, hinting at a potential weakening or reversal of a trend. So in any trading market, prices are driven by supply and demand. These forces are represented by the actions of buyers and sellers who push prices higher or lower. A trend, whether up or down, continues as long as there is an imbalance favoring either buyers or sellers. For example, in an uptrend, buyers prevail, consistently willing to buy at higher prices, thus creating a sequence of higher highs and higher lows. The Over and Under pattern comes into play when there is a noticeable shift in this trend structure. When the price suddenly drops below a previous major low and then makes a lower high, it suggests a break in this structure. This is the first clue that the prevailing buying pressure is weakening. The scenario is similar but reversed in a downtrend. When prices push above the previous low but then form a higher high, it indicates that the selling pressure is diminishing. Let's consider the psychological aspects driving this pattern. In an uptrend, as the price drops to form what initially appears as a normal pullback, buyers are typically prepared to jump in, anticipating another push to higher highs. However, as the price fails to reach a new high and instead falls below the previous low, it disrupts the expectations formed by the market participants. This unexpected change often leads to uncertainty and a shift in sentiment, causing some of the buyers to step back and reassess their positions while potential sellers might see an opportunity to enter the market. The pivotal moment in the Over and Under pattern is when the price breaches a significant level. This action is a powerful signal because it challenges the established market structure. It's not just a simple breach; it's a signal that the previous consensus is no longer valid. This can lead to rapid shifts in supply and demand. Buyers who were previously supporting the price by buying at dips might pull back, and sellers may start to dominate, pushing the price down further in what was an uptrend. From a supply and demand perspective, this pattern reflects a shift in the balance. The initial move past the previous high increases the demand suddenly. But this failure to continue in the same direction indicates exhaustion and the possible reversal of roles between buyers and sellers. Another important strategy is the Weak Break of Structure. This signal is subtle but powerful. Now, a weak break of structure occurs when the price marginally surpasses a previous high in an uptrend (or a low in a downtrend) but fails to sustain this momentum and quickly retraces. This scenario often indicates that the market does not have sufficient conviction to support the new highs or lows, leading to what we call a weak break of structure. In any market, price movements are fundamentally driven by the imbalance between supply and demand. A weak break of structure typically occurs at points where this balance is delicate and easily disrupted. Consider a scenario where a price level has historically acted as resistance. As prices approach this level, sellers begin to dominate the market, believing that the level will hold and prices will drop again. Buyers, on the other hand, push the price up, testing the resistance. If the buying pressure is strong enough, it might initially break the resistance level. However, if this break is weak—meaning it only goes slightly above the resistance level and quickly retraces—it suggests that the buying pressure was not truly powerful enough to shift the market sentiment decisively. The sellers still have substantial influence, and the demand was not sufficient to maintain the higher prices. If the price cannot sustain itself

### Segment 29 (140:00 - 143:00) [2:20:00]

above the previous resistance, it indicates that demand is weakening. The price often falls back to lower levels as sellers regain control and buyers withdraw, waiting for more favorable conditions. One instance of a weak break of structure may not be meaningful, but consecutive weak breaks of structure can form a pattern that highlights a significant loss of momentum. For instance, if the market attempts to break a low multiple times, but each time only succeeds marginally before retracing, it suggests a consistent lack of supply at lower price levels. This scenario often precedes a stronger move in the opposite direction. Consecutive weak breaks will allow you to anticipate potential market turns. The next strategy involves finding instances of Momentum Gain and Momentum Loss. Momentum refers to the speed or strength of price movements. And this can be observed through the lens of consecutive candles increasing or decreasing in size from a supply and demand perspective. When you see consecutive candles getting larger and larger, this usually signals a Momentum Gain. Imagine a scenario where each candle represents a day of trading. If each day the price moves higher than the previous day and the size of the candle gets bigger, it indicates strong buying pressure; more buyers are entering the market, willing to buy at even higher prices. This buying pressure pushes the price up, creating larger bullish candles. This can often be seen in an uptrend where each candle is getting larger and moving a greater distance per candle, showing a gain in bullish momentum. The increasing size of the candles indicates that buyers are becoming more aggressive. Momentum Loss can be found when the candles start to decrease in size. This suggests that the movement in price is losing strength. If you observe that after a series of large bullish candles, the candles begin to shrink in size, it could be a warning sign. Shrinking candles suggest that although the trend is still upward, the buyers are not as aggressive as before. The distance traveled per candle gets shorter, signaling that the buyers are losing control and the bullish momentum is weakening. This shift could be due to various reasons, such as traders taking profits after a price surge or simply the market running out of steam. When buyers begin to pull back, the supply may start to match or exceed the demand, leading to smaller price movements. Momentum loss is not only about shrinking candles, but also about where these candles appear. If this pattern occurs after a prolonged uptrend at a key resistance level, it could be a strong indicator that the trend might reverse or at least stall. This is because at resistance levels, the price has historically struggled to move higher, and with weakening momentum, the likelihood of breaking through these levels decreases. The plan here is to ride the wave of increasing buyer enthusiasm during momentum gain phases. On the other hand, noticing a momentum loss with decreasing candle sizes could signal a time to be cautious. Now, if you liked what you saw, we have plenty more interesting guides for you.