[0:00]All right guys. So today we're going to get into talking about market structure and overall reaction levels. So market structure is going to play along into reaction levels, but I want to show you everything, um, just firsthand of how my mindset is. I'm not really going to look too far back. Um, I'm just going to show you how you can look at the market from this way and, you know, find those setups because a lot of people ask me, how do I find my setups? Everything else is super easy. The entry's easy, I already explained that. Knowing when the correction is over, I've already explained that. So you need to go back and watch those videos over and over and over and over and over and over until it clicks in your head. Later on down the line, I'll give more examples as the day progress, but I kind of like to show you what's happened. What trades have I took in so that way it makes more sense. So right now, I haven't took in any trades because what I'm going to explain in this video, right? So the first thing I want you to remember is the fundamentals. So if we have a high and we have a low, so we have a high and then we have a low, right? These levels have buyers and sellers. So in this case, up here in this level, there are going to be sellers, right?
[1:17]Sellers, because this is the highest point that price can get to. That's why it's called a high, the highest point it can get to. And remember fundamentals, you have a high and then you have the higher high, and then you have a higher high above that, right? And then you also have a lower high, which is meaning that bears are coming into the market, right? So we have buyers and then we have sellers to as well, so right here, and then we're going to put buyers, right? And what this essentially means is that when price gets to its lowest point, that's letting you know that buyers are stepping into the market to drive price back up. It wants to drive price back up because this is the level that they feel like purchasing their stocks and then taking it back up to the highest point, right? And if people are, you know, if it's getting lower and lower, that is the amount of sellers that are coming into the market, selling their shares at certain levels or selling their stock at certain levels. I trade Nasdaq, um, pretty much every, that's pretty much what I've been doing for four years because I know people ask, what am I trading? What do you trade? What do you trade? I guess some people don't have common sense like once again, I know I'm going to go off topic, but a lot of people don't have common sense to kind of think for themselves. So there's some questions that I see that you can easily Google, you can easily chat GPT something. I'm just simply showing you how I trade, you can figure out, oh, how do I calculate pips or how do I do this or how do I do that in the terms of like, oh, should I get TradingView premium? Like, bro, you're asking the wrong questions. You're asking the wrong questions. So, anyways, um, back to this. Buyers at a certain level, they're going to drive pass, price back up. And then sellers, they're going to drive price down because they're selling their shares. With this being said, how I like to use the high and low levels, most people think I'm trading breaker retest or just support and resistance. I don't, I don't think in that mindset. You might view it as that because we look at the charts differently. You might view it as support and resistance, break and retest, but there's things that I've seen where break and retest, how I've seen it and how people project it is not the same way with how I trade. Because break and retest is coming back out to that same support, so let's say price breaks and then it retests this level and then goes back down. That's break and retest. What I've seen is price liquidates everything, comes back and then later on down the line, it'll come back below that level. That's not a break and retest for me. I don't see that as break and retest from what I've learned, right? So, anyways, we have buyers and sellers. What I like to do is I like to think of it in a sense of at this level, buyers have the most control and it's like a brick wall in a sense. Price is, price has a brick wall and it's not letting it go any lower than this. So, if this is the case, anything above a low, a swing low, so anything, okay, we can write this down. Anything above a swing low = potential bullish. Anything below a swing high = potential bearish. Right?
[5:05]And I like to think in this way because then ICC plays a huge part in how I should be thinking now. If I know price at this level has potential to be more bearish, and I know above this level, price has the potential to be more bullish, think about this, right?
[5:27]So, pause, take what I'm saying in, take what I've just said. I'm going to repeat it one more time. Anything above a swing low, higher time frame, one hour, four hour, daily.
[5:46]Really you can do one hour and four hour. Those are the keys right there. Those are keys right there. Use that one hour, use that four hour, watch how it changes, right? Watch how it changes your trading, but take what I just said, anything above a swing low and anything below a swing high, they either have the potential to be bullish or bearish.
[6:09]The exact way I have it right here. So, screenshot it, whatever the case may be. Do it how you need to, however you need to learn it, right? And then this plays a part because then when we look at actual price, oops, sorry.
[6:33]When we look at actual price, everything will start to align with you and it should make sense. If it doesn't make sense right now, man, I don't know, bro, because I'm explaining it on a kindergarten level, right?
[6:47]So, if we have this swing high, price comes up, resistance, sellers kick into the market, right? Sellers kick into the market, they're trying to drive price down, but then price is like, no, I don't want to go down, I want to keep going up, so it makes higher support levels, right? And then we have this push up, right? Remember, at this high level, there were sellers holding price from going any higher than this. There's sellers that were sitting at this level, same right here, that same push down.
[7:27]Sellers, let me, I got to type it out for some of you guys. Sellers are sitting here trying their best to drive price down. But once again, go back to the fundamentals, like episode number one. Remember if price is on an uptrend, it's going to start creating higher, higher lows in this situation because the supports are getting higher, which means price is getting bullish, right? So now this is our next support. So this is telling me buyers are trying to drive price up at this level, right? But that's the least of your worries. You need to focus on the sellers that were here at this point, and now, look at this, price has broken out and made new highs. So this lets me know that sellers at this level are no longer in control of the markets at this point.
[8:26]They've gotten swept out by the new buyers in the market and the new buyers are coming into a new point of sellers. So now they've reached another boss, another level of sellers. So the market will then, the market will then liquidate, liquidity, liquidity just means grabbing money. Keep it simple. Don't fucking use all that extra BS to understand liquidity. Liquidity is just grabbing more money. They they see this fucking Chanel bag. They can't afford it right now. So what are you going to do? You're going to go find some fucking money. You're going to make some fucking money and then you're going to come back to the store and buy the bag. And then another bag comes out and you're like, shit, I don't have enough money for that bag. So what are you going to do? You're going to go grab some more money, go make some more money, and then come back and get the bag. It's the same thing, right? Sorry, I get a little angry because because people like, I mean, the things that you'all see on social media is not true, bro.
[11:32]And it it's so annoying because it's just not true. But anyways, FOMO and greed, which causes the market to push up in these levels.
[14:04]And then the revenge trade because they've lost off these buys. Sellers kicking into the market and kills out their trades and then they start revenge trading and they're FOMOing because they think price is going to sell long-term or however they're thinking. And then price reaches a level where it cannot break because it's holding up strong using those higher time frame levels, and if it does break, that just shows us that the trend is changing in another direction or most likely trying to grab liquidity out of the market even more to kind of stop you out or, you know, to stop the other people out.
[14:35]And then we have that second move up. Remember, since we're talking about reaction levels, I want you to remember above this level, remember who was here, right? So under this level, we don't want to trade under this level, right? So we don't want to trade under this high. The reason why we don't want to trade under this high because it does have the potential. Once it's back under here, it does have that selling potential to sell off. It does have that potential. So we don't trade that. We don't, we don't try to touch that. We wait for that market to get back above a level where we know price is going to have that momentum back to another level that it came from before. So we know price is going to have that same momentum. We see that price is going to have that same momentum, so whenever we trade, we're going to trade based off the momentum and the reactions that we have. Price is going to move with that volume and you're going to look for price to, this is just an example. You're going to put it under that higher low, but remember, back in the last video about entries, I showed you exactly how to get an entry, so you should not be asking me how to get an entry. I've already explained it. Go back and look at the other video, I explained exactly how you can get an entry, right? So, with this being said, I want you to look at this this way and remember reaction levels come from those highs and those lows. The highs and lows falls back into this. Here's your high, right? And then here's your low, right? So, if price is above a high, that lets you know that sellers are not in that market, they're not above that level, right? Sellers are not under sellers are not at that level. So, take take a screenshot of this if you need, right? Take a screenshot. I'm going to pull this over a little bit. Take a screenshot of this if you need. I'm going to move this out the way. I'm going to give you a couple seconds, right? I'm going to go ahead and put entry so you can kind of understand entry level. Your entry should always come from where price initially initiates the bullish momentum. So that means the bullish momentum starts as soon as price is above this level. So when we take our entry, it should only be where that bullish momentum kicked in in the first place, right? And then your stop loss should be at a level where it has that, so you see here where we have that higher low. Price is going to make another higher low, based off the, based off the trend. It's going to make another higher low. Once again, go back to the fundamentals, look in an uptrend fundamentals and then you can see that price was built that higher low, and I've already shown you guys, I've already shown you guys how to take an entry. So once again, go back and watch that video over and over and over and over until it makes sense, right? Um, but yeah, you would scale down to that 15-minute time frame to find that entry and you will take price back up, right? And it's not that simple. It looks simple but it's not that simple because you really have to analyze and understand the markets itself, right? Before you can just make it look like this, right? So, I'm going to show you what my mindset is right now on a current chart and then I'm I'm going to get out your hair, right? So, going ahead, once again, take a picture of this if you need. I'm going to move this out the way. I'm going to give you a couple seconds, right? Pause the video, whatever you need to do, right? So, remove this, and then we're going to bring my chart back. I get so angry thinking about just everything that you'all have learned, right? So, one hour time frame. First thing that I notice is that price has this high area and then it starts sharply going down. So now I'm pretty interested because in my head, I know this big move down has caused something to break, it's broken something. And I'm not saying that just because I can see it already. I'm seeing, I'm saying it because this is the first thing that points out to me. This is the highest point. Also this low over here, but I can see that current price is all the way up here, so I'm not too focused on it, right? So the first thing that I'm going to note is that price has this high. And then I'm going to ask myself, what caused this high? How did price push up and cause this high? So then obviously, I know now that I have this low level right here. So now when I'm thinking about this, this goes back into my entry that I had last week. This high and this low.
[19:15]So now we have this high and we also have this low, right? So now we have the the low and the high, and obviously, we have this one that was a high too, so this was that indication for price to be bullish, right? So once again, this is that indication for price to be bullish, but the reason why we didn't get into that trade is because why? We didn't have our second push back above that level, right? Even here, right? Price shot to push up here. Why, why, why didn't it push up there? Why didn't it push up there or why didn't it push above? Because remember, sellers are in control, I mean, below this level. At all highs, you can draw this at any high that you have. Sellers are at that high, and then it's trying to push price down. And remember, buyers are at this low. So now we have buyers sitting at this low. Let me make sure I'm recording, bro, because sometimes like, I'll be talking. Yeah, video's still on. Okay, good. Buyers are sitting at this low. So they're trying to push price up. So now, oh my goodness, trading is like, if you just actually fucking think for a second, like if you actually calm down and think about it, it's actually simple as possible.
[20:27]The way that I'm explaining it is as simple as possible, right? So, buyers are sitting here pushing price up, you can see price have that momentum to get driven up. But the moment price breaks this, remember, there are no buyers at this point because price is obviously breaking through it and causing a new, a new move, a new momentum, a new reaction back down to these levels, right? So now we know anytime price is under this level, it has the potential to drive down to this level. And if we drag this over here, look at the, oh my god, bro. Bro, there's no way that you don't understand this after this, after the 60 days. If you don't, bro, I'm sorry to say this, I'm actually sorry to say this, but if you don't understand this after all 60 days, you are a fucking dumbass.
[21:26]I'm sorry to say this, right? So, all we did was mark up the high. Understand where that high has came from. So here, understand where that high has came from, and then we looked over here and we've seen price break that structure. So this lets us know under this level, price has the potential to sell back down to this level. This is our indication. Here's our correction.
[21:56]And the continuation that stops right at these levels, even though price was here, stopped here, but it's still good because there's buyers at this level. They must have came in a little bit stronger, came a little bit stronger. They take out. Now, this is, this is, this is the part where you need to start thinking more about reaction itself. So, look at this same level that we're going to drag all the way through this high, right? This high, remember, sellers are sitting at this level, trying to push price down. So every time price comes into this level, that means buyers have to be stronger than the sellers in order to come back above this level, right? So if price here has sellers, once again, if price is here and has sellers at this level, it cannot be considered a bullish trend until price breaks out of a level where there are sellers holding price up. Right? If if sellers are pushing, oh, I don't know why I said up, holding price down. So sellers are sitting here pushing price down. Even this, this break here. Everything was this right here was all because the previous news that has came up and all the fake news and all that. That's just the markets. You're not going to get it right 100% of the time, but if you think about it and a market structure perspective, look at this, right?
[23:28]Look at this. We had a new low, price pushed up. Price, price pushed up, made a lower high, pushed down and then broke it. So now, we can think in a mindset of like, okay, now there is on the four hour time frame, a higher, higher high, I guess you could say. Yeah, a higher high. Price could potentially be making a higher low to to progress later on or you can just sit on your hands, wait for price to do his thing and then later on show you, okay, this is the direction I'm going. But that's what the four hour looks like. When we jump on the one hour, we can see that price is getting lower. The lower highs are getting lower, and we can see that price is progressing down under those levels that we've already established at price being where the sellers are going to be in full control of the markets under. So notice how under this level, price has full potential to sell, price under this level has full potential to sell. Price comes into this level, full potential to sell. And then here, we're back under this level, so it has full potential to sell. Same way with this level, there's buyers that were sitting here. They push the markets back up. And then the moment price broke through it, it made a new low. The moment price broke through, it made a low. The moment price breaks through this level, where do you think it's going to go? Where do you, if price breaks this level, where do you think this low is going to go? And with that being said, I'm just going to keep it as that. I really hope you guys understand it, and you know, just be able to take trades based off what my knowledge that I'm teaching.
[25:11]It's very, very simple. You just really have to watch the videos over and over and over and I'm telling you, bro. I've actually been doing this for four years. I haven't, bro, like, bro, I've been doing this for four years. I haven't clocked in four years and I don't sell a course. So make that make sense to you.
