Mastering Smart Money Mindset and Price Action for Market Success

okay folks welcome back this is the third teaching of a series of eight for the first month of the ict

mentorship okay we're going to continue continuing on our theme of understanding the

mindset that you have to have going into the marketplace looking at things in a little bit reverse order

then you're normally taught from a retail perspective and this is one

this is one of those teachings that you're going to have that if you're new you actually have the advantage here

for folks that have been trading for a while that have adopted bad habits or

an understanding or a belief that they have an understanding it's going to be a little bit expensive

for them because they're going to have to purge some of the things that they

either subscribe to or wrestle with it until they either do or elect not to use this insight at all

i mapped out a a crude depiction here and i've been using it for months actually um as a

teaching tool but we're gonna really hammer it down in this mentorship because it's imperative

that you know how we as traders are supposed to be viewing

marketplace uh data delivery um reverse psychology whatever the psychology of this

informed money is it's going to be diametrically opposed to that of the uninformed or speculative

money or quote unquote dumb and when we have these ideas when we look at price okay the first thing we

have to do is establish who is the victim here you know generally there's a victim always in

every crime and the perspective that the speculative

uninformed money has is that number one they don't acknowledge that there's a smart money

there is not an entity out there that has uh quote unquote the right things always on uh the right perspective

or that a market is rigged or controlled or manipulated or has any influence over long-term price delivery

the uninformed money okay or those that are uninformed in regards to

how smart money actually operates and exists in the in the marketplace their actual perspective really is that

indicators are the answer and uninformed money their perspective holds

belief that price moves by indicators influence okay and the influence of an indicator being

overbought or sold that is what the precursor is to a market moving higher or lower and i can tell you i subscribed

to that for years as a new trader and it took a long time for me to actually be broken away from

that type of mindset so if you're new and you haven't been exposed to indicator itis and you're not

infected with that yet you're actually pretty good uh in in terms of advantage uh those that like

to use it indicators are going to have a little bit of a struggle with this mentorship because

i'm telling you basically you need to get that out of your system get that off your charts because it is not how you're

going to be able to see smart money in fact we're going to be able to use these indicators to be

uh informed as to what the uninformed traders are actually uh thinking so when we talk about sentiment next month

you'll have a lot more understanding about what that is how it's developed and what you can do with it

now obviously we only exposed one side of the the paradigm here by

specifically dealing with the speculative uninformed monies perspective uh you're not here to really

so much learn about those individuals because obviously no we all know that there's a losing crowd in the

marketplace and your idea of uh you know being a part of that group is foolish so we're here only to

focus on what the smart money view is on the marketplace and that begins by understanding that there is a huge vast

enormous new pool of liquidity coming into the marketplace every single day

even though there's new busted accounts all the time the statistics stated tell us that 90 of traders lose their money

large funds are in the same category not every fund is profitable just because there's a lot of people that are

investing money into this fund or this fund manager does not no way guarantee that that fund will exist a year two

years five years from now so we as informed traders our perspective is to

hold the perspective of what a liquidity provider or smart money view is on the marketplace and they put a spotlight on

the aspects of uninformed money because that's what makes the world go around in the marketplace the smart money is there

to provide liquidity but they're doing it at a exchange premium in other words they're putting in in

trades that they're gonna most likely come back to to either offset or neutralize for their

interests and we'll talk more about that as we go but for now understand that the smart money knows in fact that there is

a large body of uninformed money out there contrast that with what we spoke of concerning the uninformed money's

perspective is there's a lack of an entity out there that has a smart money perspective on the price they don't have

an opinion or an idea based uh perspective that there is someone or

some entity or entities out there that have a smart money perspective or that the banks would actually

you know trade against large uh firms or funds that that goes against the grain of what a free market

is so when we have a smart money perspective in the marketplace we

actually use their perspective as everybody else is liquidity

and price is delivered to engineer efficiency for the smart money entities only

it's not anything outside that so to hold the perspective of a liquidity provider you are adopting a

smart money perspective and everybody else is liquidity

and the liquidity is going to be in the form of buy stops sell stops pending orders above and below the market highs

that are most recently formed on your charts once we understand that there's two

distinct perspectives that's what creates the market efficiency paradigm both of

both groups okay have their individual perspectives the one that is smart money they have

the unique perspective of understanding already what the uninformed money is going to believe about the marketplace

and that gives them their edge on top of that they're actually in control of price just like anything else if you own

a storefront or if you're owning a business and your commodity is sold who sets the price for that commodity you

you're the store owner well currency is owned by the bank and they set the price on the value of that bank note or that

digit on your screen that says you have xyz number of dollars in or francs or pounds or whatever it is that you're uh

you measuring your currency in that's east that value is set by the central bank that has printed that money

and why this is such a uh speed bump for people's understanding is beyond me because if you look at the

state of the world we're in right now obviously corruption and deceit is the name of the game so

it's not a shock to hear if you first time being exposed to this that the central banks are in absolute control of

what their price of their currency is and they can set it at any time at any price they want don't believe me look at

what they did with the swiss franc and the euro when it was d-pegged instantaneous wipeout okay

so once we understand both perspectives okay intimately okay we no longer have a at odds

perspective on the marketplace we don't vilify the market maker we don't vilify smart money we don't beat up or

make fun of the uninformed money in fact what we do is we find a balance in between that and we don't think in terms

of victim or aggressor we just think in terms of efficiency because the markets are always going to trade in an

efficient manner but it's slanted and more prone to lace the pockets of the smart money

because they have the advantage of pricing wherever they want price to go to and they already know what the

perspective is of the uninformed money and they also know how to manipulate that perspective at any given time based

on chart patterns based on indicators based on just reactions to market news now as we go through this mentorship

we're going to be focusing primarily on your understanding of these four primary drivers in price delivery it's

retracement expansion reversal and consolidation now we're not going to talk specifically about that but i want

you to understand that all the things we're teaching here they're all frameworks for you to understand those

four general principles we can't teach specific

contexts or topics without having a broad based understanding of foundation and that's

what this entire month of september is doing it brings everybody to a reference point to start at the same location some

of you that are advanced that watch a lot of my free tutorials over the years you need to put that aside for a moment

and start with this perspective in mind and i promise you it's going to deliver everything that you skipped over we're

going to fill in all those gaps but understanding that the interbank price delivery algorithm okay to

understand that it's going to have to come by exposure and exposure creates experience that experience is going to

give you the understanding going into the charts seeing what they ex what they should be doing with price what you

should be seeing in price by seeing each individual component explained in detail and context

each individual part or component of the hole will be able to dovetail nicely and you'll understand how everything fits

together but suppress that desire to feel like you have to have techniques and and

patterns and intricate secrets about how the chart does this or chart does that

you have to have the framework in mind and the foundation of why these things exist otherwise all those little things

ain't going to make any sense to you when i'm calling on you to refer to them so with all that

what specifically should you be focusing on right now as a new student in this mentorship

the first thing you need to know is there are very little things you should be

bringing into your expectations and what your understanding should be

in other words basically what i'm saying is you need to have no previous knowledge brought in with

this kind of like put everything aside and assume it's very difficult for those who

have already gone through different disciplines of trading because they have to try to forget what

they already know and even if they've made money with it which is the worst thing that could have

ever happened is if anything outside of institutional order flow led to your profitability it really was just

coincidence and coincidence can happen for a long time i did it for nine months and was all pure luck and then it no

longer worked again so understanding right now what it is specifically you're supposed to be doing

that's important as a new mentor student the first thing you need to be doing is creating a daily price action log with

price charts now i know some of you don't want to do this some of you have resisted me uh

telling you for years to do this but i'm telling you you all are here and you've paid for this mentorship you paid for

the understanding and expecting experience that i've gained over the last 23 plus years

i can tell you how i got it was doing the very things i'm going to tell you to do in this

specific video it starts here if you skip this video if you skip what i'm teaching you in this video if you ignore

what i'm telling you what to do in regards to what specific things you should start with right now it does not

mean okay just because you've been trading longer than anybody else and because you have i understand what

optimal trade entry is because you understand what an order block bullish embarrasses before because you

understand what a liquidity void is that is not an advantage okay you need to go back to square one and understand that

this is strength in your development if you don't do these types of things you're actually going to hurt your

development you're going to hurt and stunt your growth throughout this mentorship

so go back to square one you're the new student do everything that's been

described here and advise because this is where the money starts coming in if you have these things in place and you

start right at this very core principle it will develop we're going to be focusing on this throughout the entire

12 months every month we're going to build on what rules and what things that you're supposed to be looking for in the

charts but for right now primarily the only thing i want you to be doing is starting with a daily chart

okay your daily chart needs to show 12 months no less than nine months view you have to have that much perspective on

your chart don't have so much of a perspective you have multiple years on your chart

12 months to nine months ideally okay you have a four hour chart and your four hour chart needs to have three

months of price action viewed the 60 minute chart or one hour chart has to have at least three weeks view

and the 15 minute chart needs to have at least three to four days view that means for every chart here i'm recommending a

specific amount of data that needs to be displayed for that respective time frame what you need to resist doing right now

is you need to resist the urge to forecast price movements that's not for your stage of development right now

do not try to rush ahead and try to figure out what the market's going to do next because that's going to be a

problem for you and it's only going to lead to frustration we will get you there and it's going to happen in due

time but for now resist that urge but there are some things you need to be specifically dealing with these charts

you need to note where price shown a quick movement from a specific level in other words if it's

run quickly higher or lower from a particular level that's noteworthy you need to note that on your chart you need

to also note recent highs and lows that haven't been retested that means if a high's formed on your chart if the price

has not come back up to that level in recent time okay you need to make a special note of that because it's going

to probably be influential going in the future vice versa just contrarily speaking you're going to be able to look

for the lows that have formed that have not been recently traded to and that low will be influential later on in future

price delivery as well note areas on the charts where price has left clean highs and clean lows

basically that looks like two equal highs that formed in close proximity to one another um

when we whenever we see a high go up and form and then it trades away from that for a little while and comes right

back to it and doesn't make a new high or maybe it falls just a little bit shorter just a little bit above it

i note that as a clean high and usually buy stops will form above that and the market will usually come back up there

and run through that it doesn't mean it won't continue through it but it's usually a big

bullseye for a price to want to go up into that area and the reverse is said for double bottoms or equal lows when a

low is formed and another low is equally formed in close proximity to the initial one

that's a big area for sell stops to pull or build up underneath those lows and the market tends to have a willingness

to go down there and test that liquidity that means the market will go down into that area whether it continues to go

lower or if it goes down and then reverses there's conditions that we look for to frame all that and you will know

when to expect the specific conditions but for now i want you to start practicing looking for that in your

charts and having them noted on your chart note what days the highs and the lows

form and this is for the weekly range and you

want to know what time of day that occurs what kill zone is it the high and low of the

week forming in london or is it forming in new york because all those things are going to lend well to

prognostication and what should happen going forward and you want to note the daily high and

the daily low every single trading day and you want to note when the daily high and the daily low forms for every

individual uh trading day now what does that look like well it

starts off with a bare bones chart this is a daily chart and i'm using the swiss franc here it could be any chart any

pair but you want to start with one currency pair and then it's mentorship you want to specifically deal with one

i would recommend you doing something apart from the british pound and the euro only because you're going to see me

specifically dealing with that in this individual mentorship but you want to be doing something with a

currency pair that is not being utilized in this mentorship that way you're getting a unique perspective that you

yourself have arrived at using this as a guideline but the first thing you want to do is

obviously note the most recent highs in the recent lows where markets have shown a willingness to repel from that's

the first thing you want to note because this is how you identify order blocks this is how you identify liquidity voids

this is all the beginning frameworks of that but you need to be able to note those recent highs and recent lows

that's what's been done for you here next you're going to drop down into a four hour chart and those same levels of

this noted on the daily chart are shown here and there's more highs and more lows

that come into visibility by doing a lower time frame perspective we went from again

the chart was a daily chart before now we're looking at the same levels just

drop down into a four-hour chart those levels will be transposed immediately to what the four-hour chart shows then you

go through doing the same thing you're looking for areas where it's too clean equal highs and equal lows and close

proximity to one another and you look for where the market has moved quickly away from a particular level when it

creates these real big candles or bars okay on your chart you want to note that because they're going to be influential

in your expectations of where price should go and where they should not go you're going to go down to an hourly

chart okay an hourly chart you're going to be looking at individual

days okay over a course of one or two weeks and you can get the weekly range

defined with the hourly chart and you can look at the intraday highs and lows with an hour already charge a really

good bellwether chart if you're a short-term trader or a day trader that's like the daily chart for uh you know the

barometer whether you should be a buyer or seller and we'll teach all those things all those instant details will be

taught in this mentorship for now you'll be taking all those levels you found on the daily chart the four hour and

transposing those to an hourly chart now you want to keep this chart okay in this format

separate from all the other charts that i'm going to talk about now okay anything else we talk about in terms of

what we're specifically looking for they don't get utilized on the same chart you create another chart so you're

going to have two individual independent us swissy charts okay but you're going to carry

the information on two separate charts that way you don't have charts that are too busy have too many things on there

and you get confused and all kinds of things that we're worrying about then you'll kind of create another swiss

franc chart okay and for that you're going to use a 15-minute chart and when it's loaded obviously it's going to be

naked bare nothing on there and the 15-minute chart looks like a lot of noise it doesn't give you any

perspective without any frames of reference and you want to take the course of action we talked about

using the daily the four hour in one hour chart do that same thing with the

individual 15 minute chart but you only need to be applying it to the last 15 i'm sorry last

three days three to four days and using those reference points in the last three to four days on a 15-minute chart

okay you're gonna be looking at also the daily highs and the daily lows and you can see this is how i do my charts on a

15-minute basis you're actually going to see me actually do this very practice every single day going forward starting

with this week that we're going to enter into the mentorship i note the previous days highs in the

previous days lows and then draw them out to where zero gmt is which is eight o'clock in that evening time in my time

frame and in this delivery of data with this platform this is how i know my daily highs and

daily lows it's important to note also the days of the week now i'm not going to give you all the specifics here

because you're actually going to be watching me do it on a day-to-day basis so you'll be able to get a rough idea

in this tutorial but more specifically you can actually see me actually creating documents

for my individual record keeping so you're going to see actually how i do my charts how i log

them and yes even after 23 years of trading i still do this it's important to do it it's

understanding it's clarity it gives you perspective and it's what professionals do sorry it's just there's no way around

it the folks that are really concerned about the market they have logs they keep journals these are the

types of things they do if you notice real quick why noting the previous day's highs in previous days

lows if you look at wednesday's data okay you see the little

delineation where it says wednesday if you look at the previous day obviously it would be tuesday in the course of a

normal week the high that was formed on tuesday on wednesday price came right up there

and ran through that around the 97 90 level uh notice it did not continue through

that it just went up through the previous days or tuesday's high then it sold off

when it sold off it went all the way down where did it go down to just any old level it went down

to tuesday's low just breaching it by a pip or two and then came back off into consolidation

then look at what happened on thursday thursday we had price retraced back into the range that was created from

wednesday's high down into wednesday's low thursday starts today with trading and

consolidation it rallies up closes in a range okay that was formed from wednesday's

high and wednesday's low then it sells off and where does it sell off to moving just below

then it pulls off that low and goes into consolidation then we have friday

the market just goes straight on up rolls right on through thursday's high

and creating a new high prior to friday the weekly high was formed on wednesday it ran out the stops and all the

liquidity that would be resting above wednesday's high all done on friday so we're going to be

using these reference points and giving you a lot more insight about specifics and what you're doing

with it but for now i want you to know that this is what you're going to be doing

going forward every single trading day you're going to document price action you're going to build on your

understanding every month i give you more reference points to add to your charts and why

it's important what specific what the information will do for you what uh with advantages it gives to you by

having it and by having your charts very uniformly organized like this

when you're trading your chart is going to have its independent uh analysis you're not going

to have all these things on your chart but these charts are always going to be referred to while you're watching price

because by having three charts okay because you're gonna have one that's executable

in other words what you're watching on the setup right now because you never want to marry the ideas that you have in

your analysis you need to reflect on them but you don't want to be so cast iron can't do it any other way it has to

be that way otherwise if you're watching real-time price action if you see something that doesn't make sense for

what the underlying conditions that you're expecting occurs in the marketplace

you won't have the flexibility to switch gears or go to the sidelines you'll just hold on to the market with strong

conviction and that that's imposing your will that the market's going to do what they're going to do and it's not going

to happen because you want it to happen it's going to happen because it's going to happen and we try to get in sync with

what the market's going to do whether it's going to be moving sideways whether it's going to go higher whether it's

going to lower we don't know any of those uh directions with a great deal of certainty we just know probabilities

and but we know how to go into the marketplace looking for these types of things over and over and over again they

repeat and you'll be able to find those repeating uh occurrences in price action after

going through this mentorship