The Hidden Mechanism That Price Always Repeats (This Causes A LOT Of Losses)

Hello everyone, filming a quick video today to tell you about a concept that is not often talked about, but is critical to understanding how the market likes to move. Simply understanding this one concept will show you a lot of insight as to how the market manipulates traders into going long too early and going short too early and then stopping them out. Just by understanding also this one concept, it will probably save you from taking a lot of bad trades and actually get the good trades that move like this and like this, rather than, you know, these little choppy movements. And just to introduce the concept to you, it is basically the theory that the market always moves in 3 phases. So when you pump, you always pump in 3 phases. When you dump, you always dump in 3 phases. Now, there will be very distinct 1, 2, 3 impulses, just like when you dump, there are always— or rather, there will most of the time be 3 impulses. And if you see something like that, that is an opportunity that you can capitalize on. Now, truth be told, this happens way more in the Forex world compared to crypto. And the only reason I know this is because I started trading Forex last Tuesday, and since then I have been taking my own advice of backtesting anything 100, 200, or even 300 times before ever jumping into live money. And in my backtests, I realized one thing about the Forex markets: it is super manipulated. And because of the nature of this channel talking about, well, basically smart money manipulation type of trading, I thought it would be good to just share this concept with you guys. So this area here would be a very good example To illustrate this concept, now this is on the Euro USD. This is a forex chart. Now moment this dump begins, right? This is all happening in the same day, right? This is intraday price delivery, meaning from the high of the day to the low of the day happens in three main impulses, and that is your impulse number one, that's your impulse number two, and that's your impulse number three. And then you find the bottom, and then guess what? As you're going back to the top, what do you do? You do one, two, three impulses. And again, this this type of price action is very very common in forex just because of how manipulated market is. And as you might be able to tell from the chart, this is not something that happens every time. So it happens often enough where sometimes you at least get, you know, 2 impulses, something like that. Again, here you get 3 impulses before, you know, the eventual reversal, which ends in 2 impulses. Actually, some people might be able to argue that, you know, after the swing high forms, you might get another impulse there. But to me, this is just a 2-impulse move. Either way, just with this knowledge, you are now equipped with basically a superpower where you understand that the initial move is rarely, rarely going to be, you know, the bottom. So for example, during this dump here, and let's say you were looking at this level to go long, well, it's rarely going to be the bottom because chances are there's going to be another impulse. In fact, this is one of the ways that you will be able to use to predict market tops and bottoms, which is to look at how many impulses has price already done. Has it only done the first impulse? If that's the case, then you have an opportunity on the next retrace to jump in on a momentum trade. And if you have already done, let's say, you know, 3 impulses, now you can start looking for a reversal to take out this high and this high, or even the original point where the dump started. You know, just understanding this, you will have a ton of power. Now let me show you an example of a chart that you can use to apply this right off the get-go. So if you look at Rune on the daily chart at the moment, you have 1, 2, and right now the 3rd impulse is on the way up. And we have a very clear, you know, daily target over here At about $2.28. Now, this was the previous target that has been hit. At the moment, this is the high that needs to be broken before you can confirm bullishness up to $2.28. But otherwise, uh, en route to the target, you have basically 2 TPs: 1, 2, and a further one at $3. Either way, impulse 1, impulse 2, impulse number 3, which will at least, in my opinion, hit $2.09. So from basically this point to that point, you can just look to prioritize longs. As long as there is any retraces, you know, for example, this is your bullish order block over here. You can take it and you target 2.09. And this is also going to come in handy when, for example, again, Rune, 1, 2, 3, right? 3 impulse move. And the way that you identify these impulses is it should be something that stands out to you on the chart right away as an aggressive move. For example, right here, that's an aggressive move. Right here, that is an aggressive move. And then you get a retrace. Now note that the retrace should never— like, it should be very clear how the market structure is playing out. When you are in bearish order flows, remember that highs are protected lows are always attacked. So it stands to reason that if you are doing a bearish impulse move, then the highs are going to be protected. So as long as, you know, the pre— the next impulse sort of breaks up, you know, the retracement— actually, this is a retracement in the overall down move— if the retracement breaks above, you know, what is supposed to keep intact as impulse market structure, then obviously your idea is invalidated. So you can always just place your stop above there if the impulse is something that you are looking to trade. Now alternatively, I have a Brit and Bodder strategy where, you know, you look for a change, like a very clear change in character and also displacement. This indicates that smart money is involved in the markets. And this strategy is something I've been using for the better part of the last 1.5 years. And if you want to learn, you know, exactly step by step how to use that strategy for absolutely free, I have a free course teaching you everything that you need to know about that strategy that with just that alone, it can get you funded for up to 100 grand, 200 grand, or even 400 grand. If you're interested to get the free course, which is no BS, no fluff, just pure value, sign up to the waitlist using the link in the description box below. Because in order to maintain the quality, I am controlling the quantity. So Rune is one such opportunity. And, you know, going back to TRB, this thing has been absolutely ripping thus far. And we can see that we have 1, 2, and currently, you know, roughly a 3rd impulse that is happening at the moment on the daily chart. If we go into the 4-hourly, this will become, you know, clearer as, you know, a 1, 2, and sort of like 3 impulse move. So has TRB reached the peak? And this leads me to my next point, like how do you add on to the strategy in order to increase the probability that you are going to be catching, you know, one of these reversal moves where you ride the whole entire 3 impulse down back to the original point of consolidation? And this has a lot to do with understanding your high time frame bias and how to read liquidity levels. For example, I understand that this right here is a super significant liquidity level. I also understand that at the moment price has just filled in this fair value gap over here on the daily chart, which has not been filled for, you know, for the better part of the last year. And of course you have this previous swing high over there, which also acts as a draw on liquidity. So currently we are playing between 3 levels. So the way that you add on to analysis of this 3 impulse or even 2 impulse move is to see whether or not price has already taken out a key level on the higher time frame. And the higher time frame is anything above the 4-hourly chart. My personal preference is the daily chart, but You know, if you're a very short-term trader, the 4-hourly chart works just fine because let's face it, if you're taking a trade on the daily chart, chances are you're gonna be holding on to that trade for at least a couple of months to, you know, maybe a few months. But in return, the rewards tend to be quite lucrative. For example, you have been— well, this trade actually played out very, very quickly. You know, for in a period of 23 days, TRB did go up by 260%. But then again, if you look at past price action, let's say that you did not get in at the top. Let's say you got in, you know, somewhere around the middle. You ride it for the rest of the, like, 1, 2, 3 impulse down. Maybe you take profit at the key liquidity level. Maybe you already have crystal ball and you marked that out. You know, it's still a 44% move over a 100-day period, or even, you know, roughly 4 months. Up 55% over 4 months. Hey, I take that. The S&P 500 gives you 7% year on year. This gives you 55% over a period of 120 days. So if you're taking trades based off of the daily chart, especially if you're reading the impulse moves from the daily chart, right? That's 1, that's 2, and that's 3, right? As long as, you know, the previous high gets broken during the impulse move, right? It should. Again, the guideline for an impulse move is simply something that is aggressive and it stands out. You immediately know whether or not it is an impulse move. And that's one. You can even argue that that's 2, but then, you know, that sort of continues up to there, and then that's 3, right? You break the high. So if I were to draw the market structure on a, you know, on a very broad scale, it would look like this, right? So you do indeed go above the previous high. It doesn't need to be like a candle body close or anything. All you're looking at is the impulses. So for example, going back to what I was talking about before, something to add up to your analysis of whether or not this is a valid 3-impulse swing is once you get your, you know, the 3rd impulse, have you taken out like key liquidity? For example, you have relatively equal lows here on the daily chart. Now, daily chart is a very significant chart. This is a chart that the market makers are also looking at. And also, you took out these relatively equal lows over there, right? You took out the liquidity that is beneath the candle bodies. Again, the institutional volume is always concentrated in the candle bodies and not the candle wicks. So once you've taken that out, then starts your, you know, little, yeah, like a mini impulse swing, right? That's a 1-2-3 swing, and then you just hop down here to clear out the liquidity. Now this is a liquidity sweep. Again, if there are any topics about liquidity and high time frame bias and how to predict where market tops and bottoms are, all of this is literally taught in the free trading course. Like, I have no business giving all of this away for free, but yet here we are. It is completely for free. Make sure you sign up to the waitlist. But anyways, once you swap the liquidity, now starts your second impulse move, right? You have one, you have two, and perhaps three. And at the moment, you have filled in a very significant, you know, point of imbalance on TRB. So the point of this entire rant is to say that you should always have other points of confluence to back up your idea that perhaps this is the third impulse, perhaps this is the top. And if you see you know, a key level getting swept. If you also see a 3rd impulse, it means that maybe the move is going to start to weaken soon. And even better yet, hop into a lower time frame, the 4-hourly chart or even a 1-hourly chart. What you want to see, if bullish market structure is characterized by higher lows and higher highs and a period where if sell-side liquidity during a bullish trend is, you know, swept— this is sell-side liquidity— if sell-side is swept during a buy program, It leads to new highs, right? So you just want to look for a period where that ceases to happen. For example, on the 1-hourly chart, we're already getting, you know, lower lows and lower highs because we understand that a bearish program, like a sell program, is characterized by lower lows and lower highs. And in this case, it can also be said that the lows tend to be attacked and the highs are protected. So now you can also look, maybe this is sort of like a 3-impulse— oh, actually, now that I'm recording this video, like, what Why haven't I thought of this? Elliott Wave, right? I guess that's a concept that retail traders would probably prefer. You know, Elliott Wave. I've never studied Elliott Wave, but you know, it just came as an observation after being in the markets for a while, and especially just being in Forex for like two weeks. Like not even two weeks at this point. It is a very strong observation, and I think this is a very powerful concept that people can use. In fact, you guys can use. Apply it to your own trading and see how it serves you. This will allow you to. Not only, like, one of the ways is to actually predict, you know, tops and bottoms, but the second way is, you know, let's say that a key level has already been taken in the example, you know, in the example back here, and your first impulse starts. Well, at this point, instead of, like, instead of getting too caught up in the small picture and thinking, oh, you know, because it's pumped, it has to go down, which is rarely the case in the markets, remember that the markets are not a supermarket. Just because the price of an asset goes down does not mean that it cannot go down another 50 or 90%. We've seen this in crypto, right? Something that is down 90% is currently down another 90%. On the flip side, if something goes up by say 200%, there is nothing to hold it back from going up another 1,000%. We saw that in the bull market. The markets are irrational and you need to come to terms with that. Just because something is cheap does not mean that you should buy it. And just because something is quote unquote expensive does not mean that you should sell it. Because again, we are not the ones calling the shorts here. It is the algorithms that the market makers have that are moving the markets. And truth be told, they do not really care about the concept of expensive and cheap. All they're looking at is where is the liquidity at, and wherever the liquidity at, they are going to go for it. For example, if all of the sell side, right, all of these previous lows and everything has already been swept, there is no reason for them to like go lower, because simply put, there is no benefit in doing so. Remember that the market makers make money when you lose money, meaning it is in their best interest to stop as many people out as possible In order for them to make the most amount of money possible. And if everybody is setting their stop loss here, that means that there is a very high liquidity pool over here and they will come target that. But if there is not, well, guess where they're looking? Well, they're looking somewhere else where there is a high liquidity pool or a higher point of imbalance to fill. So just like in the same process, right? You— again, this is a— the impulse doesn't really matter. What matters is that in the first move, you swept the liquidity over here, and the second move, you swept the liquidity over here. And after you swept the sell side, remember what I said in a buy program: sell side liquidity sweeps must always lead to new highs. This is how you validate the fact that you are still in an uptrend and not a downtrend. If you're in a downtrend, oh, after you sweep the sell side, right after you sweep the sell side, you will fail to make a new high. In this case, you would you would have been correct to say that we have already shifted into a bearish trend. Basically, after sweeping the sell side liquidity here, you did not make a new high. But then again, you could also argue. That the, you know, that low hasn't been swept. And also you have a fair value gap back here that hasn't been filled, that actually got filled during this move. So sometimes it does pay to have the experience to look one step ahead and to actually keep an eye out for the big picture and what's happening outside of the current jurisdiction. But anyways, going back to my original point is the fact that once you see that first impulse going up, right, again, only use this on the higher timeframe, anything above the 4-hourly, just to be safe. Because basically, truth be told, most of you lack the ability to execute on the lower timeframe while still having an idea on what the bigger picture is doing. And if this is something that you struggle with, again, Trading Accelerator, that is where those problems are going to be fixed. So to be safe, 4-hourly chart is going to be your best friend, or anything above the 4-hourly chart basically. For example, once you get that first impulse, because you understand this concept, right? Because you understand, okay, you check the key levels, have they been swept, right? Is there still a reason? In fact, this is a very good exercise for you at this point. Now before you think about going short or going long, always think to yourself, if you were a market maker, right? Put yourself in the market maker's shoes. Is there a good reason for the market makers to return back to this area or return back to this area or is it better for them to basically target the buy side liquidity? That, like, think of it this way, right? Anybody that went short at any point here would've gotten a free ride down to the sell side liquidity. And as we know, a lot of retail traders tend to be, well, dumbasses. They don't take profits. And if they have their position still open here, that means that there is still open liquidity all the way above here that the market makers can just come back up and stop them out, right? Think of it this way, the market is always gyrating between A point of high liquidity and the other liquidity pool, right? It just depends on which one has the high liquidity, and if that place has the high liquidity, the market will go there. So at this point you wonder, right, okay, this is the first impulse. Okay, I understand that AOC mentioned the 3-impulse swing. Now let's look at key levels. Has the sell side been swept? Oh yes, you know, the sell side has sort of been swept. Now maybe these relatively equal lows can be a concern, but again, because we got this impulse, I understand that impulses tend to happen in 2 to 3 swings, I can at least ride this up for another swing, right? Even if you don't catch the top, right? It is beyond the ability of many, including myself sometimes, to be able to catch, you know, a move that is this huge, right? 250%, that is huge. You don't have to put the pressure on yourself to catch a move like that. What if you simply understood, maybe, you know, maybe not 3 impulses, let's say 2? You understand that the first move always is going to lead to another move up, right? Think back to how many times you have been trading by yourself Price hits, you know, a key level of quote unquote support, and then you go long there, and it does nothing, and it eventually stops you out, and maybe it goes down again before, you know, going back up, just like the way that you imagined. Well, this stems from the fact that a lot of us tend to fall prey to our FOMO, right? We look at price going very fast into like a key level of support, and then usually once price takes out, you know, a very key level, the succeeding move tends to be quite aggressive, right? I want you to take a look at this daily chart here. After you take out the sell-side liquidity over here, The initial move tends to be quite huge. This leads to a lot of FOMO, so we jump in, we fall prey to our emotions, and that puts us in a lot of trouble because that's only the first impulse. We know there's going to be a second one, and just with that knowledge alone, if we can set— if we can position ourselves for a sweet, just a sweet short before the next move happens, oh boy, you're going to be able to catch those big trades that basically make you as much money in a week or in a month As you know, with just a single trade. So with this knowledge in mind, that is the second thing that you can do, right? Once you see that first impulse, once you see the key level has been taken, okay, now you can start thinking about, okay, where do I want to position myself into a long in order to catch the next impulse? Because the impulse is where the money is. The money is not made in the small little choppy consolidations here. The money is made here and here, right? This is how you get the 10x, 20x, 30x, 40x trades. You can literally make $50K in a day and then just not work for the rest of the month. That is a very real possibility about being a trader. So let's bring it all back. One thing before I do cap off this video is that the markets are always fractal, and that means that whatever is happening on the daily chart is always happening on the 15-minute chart. Price delivery on the daily chart does not differ from the 15-minute, it does not differ from the 1-minute, it does not differ from the 15-second chart. If there is liquidity sweeps on the daily chart, there is going to be liquidity sweeps on the you know, basically every other time frame, right? The market is always reaching for the next point of liquidity at all time frames. So let's say you feel confident in your skills, you want to apply this on the 1-minute chart, you want to apply this on a shorter time frame, you absolutely can. Basically, when you look for moves on, you know, the short time frames, for example, let's say, you know, you get this initial dump. Well, are you going to just, you know, buy right then and there? Maybe not, you know, maybe not. Maybe it could just be a liquidity sweep that forms a new high, but the moment you see that The new high fails to form. Well, now you can position yourself for a short, knowing that you know there might be another impulse move coming. Right? Market, you know, two moves, three moves. In fact, even the day cycles tend to be in threes. Right? If you guys have heard of the AMD concept, right? Accumulation, manipulation, and then distribution. Right? Accumulation, manipulation, distribution. The market moves in two. Right? There's two. There's there's sorry one. There's two, and then You know, distribution. You know, you have three. You could even say there is another reversal phase. So that's one, that's two, that's three. So manipulation tends to happen like that. Then distribution and then reversal. Either way, you know, even market phases moves in three phases, and these three phases tend to take about one day each. So three-day cycles. You also have the three-session cycles. Asia is your opening range. London tends to be the manipulation range. New York open or New York morning tends to be the distribution, and New York afternoon tends to be the reversal. Or rather, London close usually tends to be the reversal. But either way, the market always moves in 3. Even if it's not 3, you can be sure that there is at least 2. So even when you are executing on your lower time frame and you are unsure whether or not you should be buying here, well, instead of falling prey to your FOMO, let's say, you know, you— that, that's the first impulse, right? I'll just look for a second impulse. Market always moves in 2 to 3. Okay, market rarely just does one impulse and it goes all the way back down unless it is a news day, which in this case, this is Tuesday, that was CPI or some form of news, right? Tuesday, Wednesday, favorite days for news. Usually non-farm payrolls come, you know, usually on Friday morning New York time. So unless there is a news event, it is rarely the case where one impulse will be, you know, the end of the story. And lastly, you guys just want to get to a point where you're doing $10K, $20K per month trading Maybe you're not interested in a free course. You just want to pay to win, skip all of the obstacles and go right to the result. I do have a mastermind program where it's basically small group coaching and you're going to get all the help that you need to get to a point where you're doing about $10K to $20K per month within the next 12 weeks-ish. If that sounds like something that's interesting to you, again, it's not for everybody. It will cost you a minimum of a couple thousand dollars. But if that's something that sounds like what you need at the moment, feel free to book a call using the link in the description box below. Otherwise, I will see you guys in the next video. Bye-bye.