Understanding Market Efficiency: How Smart Money Drives Price Movements

okay folks we are in the second teaching of a series of eight for the month of

September 2016 and you've seen this before but I just want to bring this up to you one more

time uh this is the market efficiency Paradigm and what this generally is depicting or what I was trying to

communicate by drawing it out is we as new Traders are collectively part of this larger hole over here of uninformed

money and whether we acknowledge it or whether we believe it or what uh we will invariably come in contact with the

understanding that there is a smart money group of Traders out there and when I first got involved in trading I

didn't know anything about smart money I I just knew that the markets were potentially there and I could be

profitable and in fact I was going to be profitable I knew it I couldn't believe I ever lose money until I lost

it so uh when we as Traders look at the marketplace as new investors new Traders new speculators um we may or may not

have the understanding that there is a smart money entity out there and we as the larger populace of retail minded

trading we think because of our sheer vastness okay we are the driver okay of this apparatus that's called The

Marketplace and we tend to think of ourselves as the drive axle of what makes the markets go up and down which

is the fac that's the facade of supply and demand that's the facade of trend lines driving price when it touches it

that's the facade of moving average crossovers causing price go up or down that's the facade that's perpetuated and

we are led to believe that that's exactly what takes place either in books or in seminars or in uh webinars or

gurus people and I've done this when I was younger too I I I was convinced that indicators Drew price up and down and I

I packed houses on America online when I got on on a chat room and people were in there flocking to hear the things that I

would discuss about stochastic and RSI and Williams per R and I was talking about three momentum indicators when if

you're just going to follow momentum just follow one so if anyone knows more about being in this

group over here trust me it's me I've been I've been in this group enough to know that I learned more about this

group over here that doesn't like to draw too much attention to itself but contrast that with everybody in the

retail we all have Twitter accounts we all have myx books that we're sharing we're all trying to be on Instagram

showing Lamborghinis and whatever else houses cars boats Yachts girlfriends they even yours everybody is living

large over here in the uninformed money and smart money's over here quietly just doing their thing who's

inside this small circle over here the bank who's in here everybody on social media

everybody in a retail account all the gurus and teachers out there that have things that they're selling services and

yes I have a new service but what I'm teaching you ain't available anywhere else see this group this large populace

of people they think and I was part of this group initially they think that the sheer vastness and size of them

is much more controlling in terms of where price is going to be driven higher or lower because of the buying and

selling pressure that's equated to their mere involvement in price and that's a

facade this huge populous of trading people or Traders community in the retail realm is really not that

big but we are led to believe that we are huge and it we are given this this idea

of ourselves that we're Giants we push price around and we don't we don't in fact it's this small little group of

Traders okay they're the ones that influence this entire mechanism that we call the markets this small little group

of Traders is actually the drive shaft and if this was a belt like on a car okay like an

alterator this is the actual motor spinning the whole price higher or lower it's not this big circle of people so

there has to be a paradigm shift see if you're over here thinking that it's the group of traders that is online talking

amongst themselves as a whole they are the ones that make price go up and down because of they buying and selling

interest because the supply and demand factors around them that's what pushes price around that's a facade and I'm

here to tell you that you need to put that to bed now because I'm going to level everything you've ever imagined

about the marketplace and how it really works you have no idea where we're going and you need to leave this realm and

this circle of people in their thought processes and transition and have a paradigm shift in your thought process

about how the markets are efficient because they're not efficient for the speculators

they're efficient for the smart money the bank's Drive price whether you want to accept it or not that's what's going

on and the sooner you get to that understanding and expectation of what it is that's going on in price it's not for

your well-being it's for the bank's well-being it's their business they are the liquidity

provider everyone else's liquidity are you a lamb or a lion which one because one of us is

going to eat meat and the other one's going to stand there looking stupid eating grass I don't want to be a part

of this herd I didn't want to be a part of it once I understood where I was I want to get out of there and I want to

live over here in this small little area and for years I quietly made money doing nothing but focusing on the things I

knew that this small group of entity of Traders did and I looked at these

individuals initially with disdain thinking I'm going to come after you I'm I'm going to devour you I'm going to do

the same thing and then as I looked at it more and more and heard stories about people and their lives losing their

homes marriages it tugged on me and I didn't want to just be over here being like the

banks and then I bridged over into what you saw me do in 2010 and I revealed a lot of things in

this mentorship you're going to learn a whole lot but it's not meant for you to share it on your YouTube channel it's

not meant for you to share it on your blog it's not meant for you to pass it around on Twitter

Instagram make Torance it's not supposed to be there it's only supposed to be between you and

I you're welcome to share this with your this information with your children and your family members

start a legacy but don't make this common knowledge it's going to happen some goobers is going to take this stuff

and be the one that you know I'm the cool guy I'm the one that got in there and made it

all accessible to everyone else she can feel the like the hero that you're not really doing

yourself a favor let this stuff stay well hidden you're paying for it appreciate it for

what it is and don't share it it's not going mainstream you're this is the group that

we have whoever can make it in between October 1st and now that's it that's it because when we leave September and

October we're buttoning up all of the free tutorial stuff and we're going right

into the nut symbol to where we got to go to to get to the latter months see when we come into the

marketplace we don't understand this we think that this group that we're part of we are the the the the market we are the

market we're the Traders we push price up and down but if you were honest with yourself if

you've traded at any time and you looked back on your trading you probably looked at the market and you saw something like

this you you knew something was going on and you just you just couldn't put it together you see these vague things that

take place in the marketplace your stop gets run it looked exactly like it was going to go up but it came all way down

not to then then went up you see these things happening to you you just can't figure it out you know there's something

to it you've had the Sensation that you yeah this is rigged my Brokers have to

get me it's not really your broker it's the interbank feed that drives price against the funds and the Brokers are

going to expand the spread as well on you and knock you out when you look at the price action as

a new Trader and you didn't have this exposure to understanding how the markets are being driven and manipulated

to the degree of every single minute detail they're absolutely controlled it's an AI it's artificially

intelligence and it's you are not trading against a person anymore it's a computer program that delivers price and

it knows human behavior because it's the same way it's been always fear and greed so when you look at price and you've

been trading for a while and you had this fuzzy picture about something going on

behind the scenes but never really understanding what it was until you met me and there suddenly there's Clarity

suddenly you understand that there's something that's been there all along now you can identify it and what's

more important is you understand how to track it and do the same thing it does and by default you

become a resident of small circle because this small circle is the drive shaft it which makes the markets go

around it's not the big populace of Traders it's the liquidity provider so you need to be thinking like

this small group is over here they're not trying to draw attention to themselves they're not trying to be

online flashing this and flashing that they're just quietly in here skinning people alive and you've been there

before and just just as well as I have you either St this business long enough to leave this group and come over here

or sit back in the middle here you get real close to being there and you get bounced back to this group get real

close to uh you know getting over here and you start developing a little bit more and you play tug of war some of you

in my group right now in this mentorship you're in this little area right here where you can see there's some signals

and signs of a real entity of smart money in play but you're not fully convinced to leave this group yet you

have too many convictions about your your tools your indicators your your pet Guru your buddy that has a website

that's so cool to you it's just not enough you got to be able to release all that stuff and just

leave it all behind and join the smart money because trust me we're not serving cookies but it's a

way better lifestyle over here than it is over there in the first video I gave you

elements to a trade set up and I give you two characteristics to it there's context and framework around the trade

and then obviously those refer back to institutional order flow so you have to be able to bridge the two understanding

expansion retracement reversal and consolidation and applying them to respectively order blocks fair value

gaps liquidity voids liquidity pools stops om run I'm sorry uh stop runs and equilibrium what does that mean for us

for instance in the scope of of price how can we use these ideas and make them applicable to price now I know some of

you are chopping at the bit to learn long-term trading because you can't do day trading but bear with us as we go

through these first couple months because I want you to give you immediate feedback and the way you get that is by

using intraday study because you get a lot of feedback in intraday action that is applicable to longer term charts but

you can't I can't teach long-term day trading I'm sorry long-term Trading on daily chart inside of 12 months

adequately it can't be done because you're only looking at a scope of one year but with intraday it's like

compressing years of data in just 30 you what it not even 365 days really 200 something days that we're going to be

together so let's look at the daily range suddenly expansion retracement reversal and consolidation mean

something every day starts with consolidation Asian range after midnight there's a manipulation that takes place

that's expansion it's coming in form of a Judah swing what is it doing it's making the higher low in London that's

the London swing for a reversal that's a run on stops then there is another expansion move okay down into the the

New York session then there's going to be what another consolidation that's the New York consolidation going into the 8

to 8:30 news zar go lift where there's going to be another injection of liquidity or a

reversal then there'll be another expansion and then we go into London close which is another reversal

condition and then what happens the market goes in consolidation for the rest of the day so we have a way of

looking at these things and applying these Concepts to time of the day and repeating

characteristics let's get back to the interbank price delivery algorithm the daily range structure can

be really broken down and simplified with it starts with a price equilibrium

that's Asian range then there's a manipulation and that's always going to come by way of some news event some news

driver either at the time of the manipulation or just before it that's the Judah swing then we'll see a range

expansion in other words after the higher low is formed the range will start expanding it'll go down into 5:00

in the morning New York time or go up into that time window depending upon the daily direction we're going to use the

perspective it's a buy day that means that Asia the Asian range had a small consolidation and then right after

midnight New York time there's a drop down in price that's the manipulation making the false move for the low

there's a range expansion then it goes into to the reversal that's classic London open

scenario where it shoots down runs the stops and then what happens it expands again there's another range expansion

into what 5:00 in the morning New York time between 5:00 in the morning to 8:00 in the morning in that time window the

market will go back into consolidation then it'll have a retracement between 8:00 and 8:30 in the morning New York

time then it'll have either a reversal in New York session or another expansion move the range will expand and make the

rest of the day going up into 10:00 or 11:00 in the morning New York time where it will have a reversal again that's

London close then the market will go into consolidation ending true day at 19001 Forex LTDs uh platform if you

follow along with the videos we've been doing so far this month you'll know exactly what I'm talking

about so we can see the inter Bank price delivery algorithm on a daily basis by studying these events and then seeing it

over a period of time you'll know what is most likely to happen now let's look look at it a little bit

further if we're looking at Price delivery and this is the model that comes by way of my understanding of how

the ENT Bank feeds price to everyone if we're focusing on delivery of price we have to understand that it all starts

with a consolidation nothing can happen until cons idation consolidation is when the

Market's quiet why why is that important because that's when the orders are building up in the marketplace the

market makers will allow orders to build up above and below the range the next stage is always expansion

it's not consolidation to retracement it can't retrace it hasn't moved anywhere it has it can't go consolidation

reversal because it has to come out of the consolidation so when you see a consolidation or holding pattern you got

to think the next leg is going to be in price it's going to be an explosive move or an imp impulse leg impulse price

swing movement you need to see Movement by determining what that movement is in what direction is relative to the

conditions you're trading in once we're in the expansion stage okay then you have a choice it can retrace come back

to the order blocket just left behind and then recapitalize that and then make another leg up or down relative to the

direction it's moved or once it's moved into expansion it can reverse once it reverses okay there'll

be another expansion then it goes back to a consolidation the main thing is I want

you to understand is is it never goes consolidation retracement it never does consolidation reversal it's always

consolidation expansion and then from expansion it goes either retracement or reversal it does not do consolidation

expansion consolidation that does not happen it does a consolidation expansion either retrace for another

uh move into a order block and then recapitalize it and do the same direction it moved when it made an

expansion or it goes from expansion to reversal when you understand this algorithm the way it moves and way

it operates it's very generic it's very systematic it has only a few options to go to and they're time sensitive they're

day sensitive okay they're intermarket related so so when one market mes moving real fast if you understand the

relationships like I'm going to teach you over a couple months you'll know where the trade's setting up because

one's being held and the other one's letting letting it run which is the importance of knowing what the Euro

pounds doing it for trading fiber or cable all these things are going to blend together and you'll know exactly

how I'm doing these things internally and I'm doing it on the Fly I'm not measuring things and writing this down

writing that down making notes over here I just know by looking at Price what I should be seeing and you see it I'm

thinking out loud in the videos when I'm doing the live sessions with you all aiming at your better

understanding of price delivery and when you understand these things when you get to the the level of month 8 and month

nine in the mentorship you're going to be so strong at knowing what the next thing's going to happen in your in your

price that you're studying you'll know all these four things okay there's only certain processes that have to take

place in a certain order like I said it can it never goes consolidation reversal it never does consolidation and

retracement it goes consolidation to an expansion move there's an Impulse leg up or down it's either going to retrace

back down into where it just ra rallied up from or it's going to Rally back up into where it just dropped down from the

consolidation starts at all they're going to run an expansion and then once it expands he's either going to come

back and retrace and give another leg up or down or it's going to reverse and then from the

reversal start applying time the general structure is consolidation in Asia expansion reverse in London make a

higher low of the day then expand small consolidation in New York retrace between 8:00 and 8:30 in the

morning New York time another expansion move reverse back to consolid you understand price delivery then you

will not learn it just by what I just explained to you just there but you'll use this as a model that repeats itself

over and over and over again when you have higher time frame directional premise understood and then

you look at this price delivery algo it's so easy to know what the price is going to do every single day since the

last week of August we've been together and every single day I've given you something that went right to the PIP or

had an explosive Direction move where you could have taken 50 to 60 Pips out and I don't trade that much every day

but I'm showing you by desensitizing you to fear and greed there's no need there's no need for those things what

we're teaching is consistency the ability to see these things happening all the time and also exercising

willpower on not wanting to make money so you're suppressing the desire to make money you're developing your patience

and you're learning a great deal you have no understanding of how much you're learning just in these first two videos

but I'm telling you you'll be able to look back on this months from now and say man that was a huge step I didn't

appreciate until now there's a certain process the way the price is delivered and it can't be

changed it won't be changed and don't be afraid because you're learning it 700 people is not going to turn the whole

world around okay and they stop doing it's not so again in closing take the information I'm giving you stuff it

under your mess stick it in a uh you know a love letter to your grandkids on you know how to do it but don't Market

it don't don't do that okay not because I'm going to lose sales it's just it's too good to share and you're going to

see why I've kept it for so long and not wanted to do it and hopefully you guys will take this

information and do something really great with with it and that means not starting a website selling it okay

uh there's nothing more I can say about this video except for there is a process that you're going to learn that is very

generic and it will not break it will not stop working and when you look at the marketplace in your charts I want

you to think it doesn't matter what time frame you're looking at I'm just using the

daily range to give you how easy it is to see when a repeating um format so simple every day

you get an opportunity to study and see how it works that same thing happens with a weekly range the weekly range is

the same thing Sunday's open consolidation then there's an expansion move in Monday then what there's a

reversal on Tuesday or or Monday and then what there's another expansion move then it goes back in consolidation

midweek and then it's either going to do what it's going to reverse or it's going to

retrace it's never doing consolidation retrace M it's never doing consolidation reversal it's consolidation expansion

then from expansion you're making a choice is either going to retrace back or it's going to

reverse trust me it seems like you still have a lot of choices to make but it's not and when you understand what you're

looking at in terms of price you'll know if it's really leading to a reversal or if it's really going to re retrace and

give you another opportunity to get in that another leg up or down that you saw in the first impulsive move and believe

me you'll need to go back to this video even though it's the second one you'll come back to this video as we give more

details along the lines of price delivery over the next couple months month four and five you'll still refer

back to this one and you'll see there it is it's been there all along so that guys I'm going to wish you good luck and

good Trading