Romeo turtle soup course 2 of 8

Summary

Highlights

• Understanding candlestick anatomy: the basics of OHLC values 🕯️
• Candlesticks can be divided into accumulation, manipulation, and distribution phases 🔄
• Importance of predicting market behavior using these candle phases 📈
• Focus on three higher time frame candles for effective trading ⏰
• Tips on avoiding common mistakes like holding positions too long during accumulation 📉
• Predicting daily and weekly market ranges for strategic trading 🎯

Key Takeaways

• Candlesticks are formed by the open, high, low, and close values of trading periods. 🕯️
• The key to trading is to predict the movement of a candle and its phases: accumulation, manipulation, and distribution. 🔮
• It's crucial to identify the trading phases and understand over 70% of market time is in the accumulation phase. ⏳
• Successful trading involves knowing when to enter and exit the market based on predictions of these phases. 🎯
• Recognizing market phases helps in avoiding common pitfalls like holding trades during accumulation. 🚫

Overview

Chapters

• 00:00 - 01:00: Introduction to Candlestick Anatomy The chapter titled 'Introduction to Candlestick Anatomy' provides a basic understanding of how candlesticks are formed in chart analysis. It emphasizes the open, high, low, and close components which are fundamental to candlestick structure. The information is described as foundational and not new to those familiar with the subject.
• 01:00 - 02:00: Theory of Candle Parts The chapter titled 'Theory of Candle Parts' discusses the basic understanding of candle formations and their practical use in predictions. It delves into the concept that each candle can be divided into three distinct parts, and the significance of these parts in understanding and predicting candle patterns. The emphasis is on the application of this theory in predicting the behavior or outcome of different candle formations.
• 02:00 - 03:00: Application of Candle Theories The chapter discusses the application of candle theories in trading. It mentions two theories: one focuses on market phases - accumulation, manipulation, and distribution - while another divides each candle into four parts. The key takeaway is the importance of applying these theories effectively in trading, regardless of which theory one subscribes to.
• 03:00 - 04:00: Trading Strategies Based on OHLC This chapter explores trading strategies focusing on OHLC (Open, High, Low, Close) bars. It outlines a pattern involving three parts: accumulation, manipulation, and distribution, each represented by a candle. Accumulation, generally the longest part, is followed by manipulation and finally by distribution. The chapter suggests that occasionally this process may take longer than three candles, necessitating flexibility in interpreting these movements.
• 04:00 - 05:00: Understanding Accumulation and Expansion The chapter titled 'Understanding Accumulation and Expansion' focuses on the phases of accumulation, manipulation, and distribution within trading. It introduces the concept of analyzing higher time frame candles as a strategy for trading. It hints at a more detailed exploration of these concepts in the following sections.
• 05:00 - 06:00: Trading Expansion Candle Strategies This chapter focuses on trading expansion candle strategies, specifically dissecting the OHLC (Open, High, Low, Close) components. Though the transcript mentions only part of this detail, the full chapter likely covers how these values are used in the strategies.
• 06:00 - 07:00: Intermediate to Advanced Trading Concepts The chapter discusses the dynamics of trading variables specifically focusing on the elements of candlesticks in trading. Each candlestick comprises three trades which include an open, a close, and fluctuating high and low values. It highlights the concept that while the opening and closing values are fixed, the high and low vary continuously, offering insights into more advanced trading strategies and analysis.
• 07:00 - 08:00: Predicting Daily and Weekly Range The chapter 'Predicting Daily and Weekly Range' discusses the concept of opening range trading. It introduces the idea of high trades and OT trades (Order Trades), with trade number three being the opposing end of the candle. The chapter emphasizes the importance of visualizing trading strategies, starting with understanding the opening range, which involves identifying the high and low prices of a particular time frame. This approach is key to predicting daily and weekly market ranges.
• 08:00 - 09:00: Key Levels and Liquidity Pools In this chapter, the focus is on trading higher time frame candles with a specific premise. This involves understanding the fixed opening time of these candles, whether they are daily or weekly, to effectively identify key levels and liquidity pools in trading.
• 09:00 - 10:00: Summarizing Trade Strategies The chapter titled 'Summarizing Trade Strategies' focuses on understanding and summarizing different trade strategies based on key timeframes and market sessions. It discusses the importance of the fixed closing time of a candle and a fixed midpoint time in trading, emphasizing how these factors can influence trading decisions. The chapter also highlights the concept of the 'high of the day' until the London and New York sessions, and the 'low of the day' until the NY session, suggesting strategies based on these market behaviors.
• 10:00 - 11:00: Applying the Power of Three Across Timeframes In this chapter, the focus is on the importance of understanding market sessions when trading, specifically the New York session. It explains how traders might anticipate a trending candle during the NY session, which can actually be the high point of the day that reverses after initially declining during the London session. The chapter highlights the potential for a candle to turn into a choppy, ranging candle instead of exhibiting the expected market expansion.

Romeo turtle soup course 2 of 8 Transcription

• 00:00 - 00:30 the Open high low and close and the open low high and close now this is the baa this is the basic anatomy of the candlesticks right this is how candlesticks are formed this is not new information
• 00:30 - 01:00 everyone knows this what matters is how do you use this how do you use this to predict a certain candle or the other right that is what we are going to say now there are two main theories which is each candle is divided into three parts
• 01:00 - 01:30 right accumulation manipulation distribution and the other one says each candle is divided into four parts all right whichever one you want to believe in it doesn't matter what matters is how do you apply it how do you use it uh I personally like to believe that the they
• 01:30 - 02:00 consist of three parts so I like to see accumulation in one candle manipulation in the second candle and distribution in the third candle to the first candle all right if it takes a bit longer than three candles so accumulation in one then manipulation in two or accumulation to manipulation distribution so be it as We Know accumulation is the longest
• 02:00 - 02:30 phase or you can also say accumulation manipulation distribution and two all right so realistically what you're looking for is three higher time frame candles to trade and I will delve into that a bit deeper but for now let's focus on the
• 02:30 - 03:00 aspect of the open the high the low and the close now let's dissect the olhc or o l c we have two fixed values and we have two
• 03:00 - 03:30 moving variable continuously changing values right so the open is fixed and the close is fixed what varies is the high and the low right I've mentioned before that each candle has uh three trades inside of it so you got the uh the open
• 03:30 - 04:00 the high trade number one trade number two OT trade number three is the opposing end of the candle visualizing that is as follows you got the open opening range remember High
• 04:00 - 04:30 breakdown OT and low so ideally you're trying to trade a higher time frame candle with this premise in mind right whether it's a daily candle whether it's a weekly candle there's a fixed opening time
• 04:30 - 05:00 right and there's a fixed closing time of the candle and there's a fixed midpoint time which is why you might have heard me tell you A lot of times which is uh the high of the day until London until New York the the low of the day is in until uh the NY session right the high is in until the
• 05:00 - 05:30 NY session why because you might end up expecting a trending candle but it is in fact the high of the day during the time which is London it declines and then it reverses instead of continuing and ends up being a choppy ranging candle so you're expecting expansion
• 05:30 - 06:00 right but you got more accumulation and this is a fun fact the markets spend more than 70% of the time accumulating which is why a common mistake which you may have uh uh committed by yourself is trying to enter a position and then holding on for too long and it comes back to your entry
• 06:00 - 06:30 why did that happen that happened because you were expecting expansion during a manipul an accumulation phase right so that is an important thing to keep in mind More than 70% 70% of the time the
• 06:30 - 07:00 candles or price is in an accumulation some assets more than others but overall it's more than 70% accumulation which means you're going to spend most of the time waiting for the setup anyway but of course
• 07:00 - 07:30 course we're trying to focus mainly on trying to get to uh to predict or to participate in an expansion Candle on the higher time frame that's the goal right to simplify everything right to put to make it really nice and short and sweet and simple all you're trying to do is
• 07:30 - 08:00 enter up here so the opening price which is a fix evict a fixed value as soon as the fixed opening time provides you with the opening right so as soon as the Monday candle opens you have the reference already right so the puzzle is already 50%
• 08:00 - 08:30 solved the open the high the low and the close right you got the open and you got the close all you have to do now is anticipate the high and the low doesn't have to be the absolute High doesn't have to be the ab absolute low
• 08:30 - 09:00 if you can catch a high until half of the candle or just this portion right I know one of my uh students quote unquote uh this is their model which is catching this trade number three there's one there's two and there's three this is all they trade so they let the whole thing play out and they finally catch the final
• 09:00 - 09:30 bounce off the range of the candle right now a pause if this is too advanced in your eyes then you probably should put this aside go and study a bit and then come back to this later on right it'll make sense uh for the rest of you I'm sure are following follow along as you
• 09:30 - 10:00 should because I had uh put as a prerequisite to be intermediate to Advanced right for your own benefit if you snuck in whatever but if you really want to make use of it then a quick reminder that you should be of the two categories which I specified or allowed to enter all right now
• 10:00 - 10:30 this whole thing this open high low and close the main the two main candles we're trying to predict or play with are the daily and weekly range right which also a good old ICT says that his whole purpose is to try and
• 10:30 - 11:00 predict the outcome of the weekly range that is what one shot one Killers remove remove remove remove now to put it really really extremely raw and just uh the Bare Bones idea is open
• 11:00 - 11:30 right accumulation little bit manipulation and distribution and every single one of those is done on purpose by the way
• 11:30 - 12:00 every single arror you see is done on purpose right open above the opening price of the candle you're trying to predict daily weekly 4 Hour whatever if you are bearish you're waiting for a pop above the opening price and here's the fun part into a previous high of the previous
• 12:00 - 12:30 candle which ideally coincides with a higher time frame key level right Twisted candle a liquidity pool inside of a higher time frame P above the opening price of the candle you are trying to
• 12:30 - 13:00 trade from there you enter and you write it down to the opening price the SR flip of the opening price and onto the rest of the duration of the candle right and of course it bounces off the lower end of the range
• 13:00 - 13:30 also off of a key level and a liquidity pool right either a an existing liquidity pool or a newly formed liquidity pool right that's the basic idea
• 13:30 - 14:00 all right so if this is all you take from the whole lecture is open rally above opening price key level decline key level that's it trade number one trade number two trade number three all right if this is all you take from this then I consider you a
• 14:00 - 14:30 success now let's go and see how this plays out on each candle starting from the monthly down to the weekly down to the Daily down to the 4H hour for intad
• 14:30 - 15:00 day down to the maybe the one hour but for sure the monthly weekly daily and 4 hour you can go below of course you can trade the 15-minute power of three but that's if you can't even trade the weekly then what are you doing with with the with the 15minute right so let's get right into it let's get's let's start with the monthly power
• 15:00 - 15:30 of three right