Truth be told this sunday afternoon, i know what im about to do right now will create a lot of controversey and the questions will keep coming left and right, some i might be able to answer and others i might not

but ill do it regardless

see this as my personal note. should you choose to read it, do so at your own discretion

THE FINANCIAL MARKETS:

The forex market is run by an algorithm, one that delivers price efficiently between buyers and sellers on a large scale. Those kind of traders you dont hear about: the institutional traders. chase, jp morgan...theyre all little fishes compared to the main institutional traders.

BY financial markets, we're talking crypto, bonds, stocks, forex EVEN DERIV SYNTHETIC INDICES


there are four parameters but ill outline 2 for now

1) Reversal seeks liquidity
2) Retracements seeks imbalance

flipping

1) liquidity is paired with reversals ie buying then reverse to sellling AFTER TAKING SELL STOPS

2) imbalance is paired with retracements

that no1 and 2 unlocked the doors for me.



the financial market algorithm works on time first then price

THE X axis is TIME. the Y-axis is PRICE

Your.moving averages, stoch, or RSI isnt what you take it for. if those indicators would give you millions of dollars long term, you wouldnt have been giiven for free on your metatrader app

TO BE CONTINUED. STAY TUNED

credit: Micheal Huddleston, INNER CIRCLE TRADER, ICT

PART 2 as promised




What causes reversal in the market: LIQUIDITY

DEFINING TERMINOLOGIES:

1) SSL: Sell Side Liquidity. Such liquidity rests below old lows.  Smart money uses SSL to reverse the market from bearish to bullish

2) BSL: Buy Side Liquidity. Such liquidity rests above old highs.
Smart money uses BSL to reverse the market from bullish to bearish

3) BULLISH: buying

4) BEARISH: selling

5) SMART MONEY: the informed traders with the largest of funds. most of them are under NDA (non disclosure agreement) with terrible consequence for leaking "company" secret. so you dont find them spilling on twitter facebook or telegram. Their other names are large funds or informed traders

NO. JP morgan or chase bank are babies compared to the 'smart money traders'
The forex/financial world algorithm was coded mainly for them to help facilitate their numerous billion dollar trades ie japan does business with the united state ie toyota and tesla.
united states dont spend japanese yen and japan dont spend US dollars so theres a compromise. japan by virtue of coming to the united states to do business has to convert its japanese yen to dollars to trade in the us. NOW THIS IS ONE TRANSACTION ALONE. imagine all the millions of transaction done in the world acrosss VARIOUS countries.
HUMANS CANT PROPERLY HANDLE SUCH TRANSACTIONS. but machines can.

hence the birth of a financial world algorithm. it runs stocks, bonds, curriencies, futurees, even synthetic indices. and it operates based on TIME FIRST (killzones, sessions, macros) then price(pd arrays: orderblocks, mitigation blocks, market maker buy/sell models, inverse fair value gaps etc)

6) FAIR VALUE GAPS(fvgs) : Imbalance left in the market place when smart money dont buy buyside liquidity (BSL) or sellside liquidity (SSL).
it comes in two forms: either buyside or sellside fvg

Buyside fvg= BISI= BUYSIDE IMBALANCE, SELLSIDE INEFFICIENCY

Sellside Fvg= SIBI= SELLSIDE IMBALANCE, BUYSIDE INEFFICIENCY





1) LIQUIDITY what is it:


liquidity is PAIRED WITH REVERSALS ie buyying to selling AFTER taking out liquidity

Liquidity is an area where the uninformed traders would place their stop loss OR areas in the marketplace where stoploss are likely to reside. Areas of liquidity can easily be identified by

a) Equal Lows or Highs
b) False Trendline (trendline phantom)

Liquidity is categorised into two main:

1) BUYSIDE LIQUIDITY
2) SELLSIDE LIQUIDITY

BUYSIDE LIQUIDITY: Liquidity that resides above old highs/false trendline. Smart money uses it to reverse from buying to selling.
SELLSIDE LIQUIDITY: Liquidity that resides below old lows or false trendline



2) IMBALANCE what is it

imbalance is PAIRED WITH RETRACEMENTS TO CONTINUE in its original direction BEFORE RETRACING

Imbalance exists in the market due to smart money buying or selling. its like an elephant in a childs swimming pool.


Theres a trick i use to finding imbalances in the market place.

Here it is:

1) find an area of liquidity either buyside liquidity or sellside liquidity

2) Liquidity is paired with reversal as i pointed up there. if theres no reversal happening, THEN THERES AN IMBALANCE LEFT OPEN. it means smart money are not interested in that liquidity to reverse because that liquidity is not juicy enough to cause a reversal AND There is a better liquidity resting somewhere else, either loweer or higher

so what happens when theres liquidity and smart money doesnt buy or sell such liquidity

AN IMBALANCE IS CREATED IN THE FORM OF FAIR VALUE GAP (fvgs)!
like that bigg elephant in childs swimming pool

Price can come retrace into such fair value gaps (SIBI or BISI) as a means for smart money to continue lower or higher RESPECTIVELY.



to be continued....stay tuned


i know all of this is too much to digest. it was too for me. i'll be here for any of your questions whatsoever. even the questions you consider nasty. IF i can answer them, i will

cc: randy01

ill update with pictures chart examples conveying understanding later

observe what price did on tuesday in the picture posted

it TOOK out the highs before reversing

ie price was bullish but it needed to reverse AND as i taught, reversal is paired with LIQUIDITY POOLS so price was loookig for a liquidity pool (either price looks for liquidity pools or it creates one with respect to time)

when price found its liquidity pool, it reversed from bullish to bearish
ie from buying to selling

the same also happens for selling to buying

price seeks liquidityy pools to reverse from selling to buying or bearish to bullish

Refer back up to see what BSL and SSL means


price takes BSL and reverses from buying to selling

while price takes SSL and reverses from selling to buying

Reversal is paired with liquidity pools

CANDLESTICKS FORMATION: The Basic Understanding You missed

Bullish candlestick formation is different from Bearish candlestick formation

Bullish candlestick: Price opens, sells FIRST, makes a low, then reverses MAKING its high and closes

Bearish candlestick: Price opens, buys FIRST, makes a high, then reverses MAKING its low and closes

NOTE THE DIFFERENCE in what i just explained for bullish and bearish candlesticks. it will fly over your head the first time but if you pay attention, it just might click for you

BONUS POINT 1: Price is fractal. What happens on a weekly candlestick formation is what happens on a daily candlestick formation, a 4 hour, 1 hour even down to a 1 minute candle stick formation

Price is Fractal

BONUS POINT 2: Price doesnt just open and start buying till infinity or open and start selling till infinity. The range of buying or selling candle IS CAPPED. the highs of the candles is CAPPED either for bullish or bearish candle. and as i said earlier, price is fractal.

Go to your charts, observe each candlestick, bullish or bearish...why was the bearish candlestick longer than the other. what of the high. why was the range of the high to the body shorter. check the 4 hour candle...the 1 hour candle etc.

what if you could get the high or low of each candlestick on any timeframe by looking at a timeframe lower than. that is, what if you can get the HIGH of a 4 hour candlestick by going to the 1hr or 30minute charts. reverse this idea for the lows

Price is Fractal....ONCE AGAIN. hmmm

no advertisment here of any kind. This is the only warning i'll issue

IAmHim1:
no advertisment here of any kind. This is the only warning i'll issue

Bro continue the lecture...

Thanks for sharing your insights! Delving into the intricacies of the financial markets can indeed be overwhelming, but it's a journey worth undertaking. The depth of understanding you're demonstrating, especially with regard to liquidity, reversals, and imbalances, is truly commendable. It's evident that you're navigating the complexities with clarity and purpose. Looking forward to the continuation of your exploration. https://1wins.com.ci/ at a time!

Go to your charts people. The range of EVERY SINGLE CANDLE IS CAPPED. down to the one second candle. Price is fractal.

There is always a open, high, low and close

Price doesnt just OPEN and keep buyin till infinity or open and sell to infinity. it wouldnt give interbank traders an opportunity to enter.

Every candle makes its low or high somewhere. SOMEWHERE

What if that somewhere could be known.

This will hurt a lot of people reading this but the truth is above your emotions

Moving averages, MACD, bollinger bands...they dont dictate the financial markets movement. They could be used as light confirmation ONLY AND ONLY if you know what youre doing

Price is either gonna


BUY
SELL
CONSOLIDATE

nothing else. NOTHING ELSE


If you can get a bias...a daily bias or weekly bias or 4hr bias of the next trading candle, align your price distribution arrays(PD arrays) to TIME, THEN you can use your moving average as a light confirmation

Trading off moving averages, elliot wave etcetera alone could prove slightly productive in the short run BUT IN THE LONG RUN OF YOUR TRADING CAREER... hmmmmm


Cmon. Think of it like this: if moving averages or MACD or bollinger bands are the reason the market moves ,EVERYONE WOULD BE A MILLIONAIRE. everyone would be traders having MT5 app on their phones. lolzzzz

but it is not so, is it.

You think the indicators that came in metatrader that you downloaded for free on playstore woould give you money just like that. No nawww.

Even to get access to these countries that you're trading their currencies, you need to BUY a visa.

The market doesnt move on buying and selling pressure....maybe on commodities like cotton etc but on pairs like EurUsd or Boom1000...sorry...buying and selling pressure doesnt work here.

The market runs on an algorithm that delivers price efficiently. Before it was few select humans calculating the range of candles before the fact ie TOMORROW daily candle open, high, low and close can be predicted TODAY

but now there's an algorithm created to deliver price efficiently without needing humans EXCEPT in the case of news release, powell speech manual intervention etc

TIME (Part 1)

ALL financial markets(crypto, bonds, synthetic deriv, forex, futures) run on TIME and PRICE

its TIME first before PRICE. and time are all categorised into

1) True day opening(Midnight Newyork to midnight Newyork)

2) Trading sessions ( Asian session, london session, Newyork session)

3) Silver Bullet

4) Time Macros



Come to think of it really


A trader in Ngeria opens his charts and see an opening price for the day
Another trader in germany opens his charts and see a DIFFERENT opening price for the day
Another trader in norway opens his charts and see another different opening price for the day
same thing happens to a trader in Paris: he/she opens his/her charts and see a different opening time for the day compared to the Nigerian trader and German

So you ask yourself: What is the markets trying to hide so bad. why is the real opening price SOO important

Isnt there a universal daily opening time for all traders. Because let me tell you this its gonna cause lots of confusion for all traders since price accumulates below the open BEFORE buying for a bullish day and price accumulate orders above the open BEFORE going selling for a bearish day. so how do we know where price is accumulating when we dont even know the REAL opening price for the day huh

Guess what

Yes, there is a universal Trading time for all traders and you want to know when it starts right

NEW YORK TIME

New york time is the universal opening time FOR ALL ASSET CLASS be it bonds, forex, Indices like nasdaq, SnP et cetera you name it

Find out what the Midnight time( 0:00) is in New York now and callibrate it to you charts

You can do that in trading view web version not necessarily the app

New york time, Midnight to Midnight is the beginning and close of All asset classes

Price accumulates below the open at midnight, Newyork time before buying and price accumulates above the open at Midnight, Newyork time before selling

another A-ha! moment right there

IAmHim1:
TIME (Part 1)

ALL financial markets(crypto, bonds, synthetic deriv, forex, futures) run on TIME and PRICE

its TIME first before PRICE. and time are all categorised into

1) True day opening(Midnight Newyork to midnight Newyork)

2) Trading sessions ( Asian session, london session, Newyork session)

3) Silver Bullet

4) Time Macros



Come to think of it really


A trader in Ngeria opens his charts and see an opening price for the day
Another trader in germany opens his charts and see a DIFFERENT opening price for the day
Another trader in norway opens his charts and see another different opening price for the day
same thing happens to a trader in Paris: he/she opens his/her charts and see a different opening time for the day compared to the Nigerian trader and German

So you ask yourself: What is the markets trying to hide so bad. why is the real opening price SOO important

Isnt there a universal daily opening time for all traders. Because let me tell you this its gonna cause lots of confusion for all traders since price accumulates below the open BEFORE buying for a bullish day and price accumulate orders above the open BEFORE going selling for a bearish day. so how do we know where price is accumulating when we dont even know the REAL opening price for the day huh

Guess what

Yes, there is a universal Trading time for all traders and you want to know when it starts right

NEW YORK TIME

New york time is the universal opening time FOR ALL ASSET CLASS be it bonds, forex, Indices like nasdaq, SnP et cetera you name it

Find out what the Midnight time( 0:00) is in New York now and callibrate it to you charts

You can do that in trading view web version not necessarily the app

New york time, Midnight to Midnight is the beginning and close of All asset classes

Price accumulates below the open at midnight, Newyork time before buying and price accumulates above the open at Midnight, Newyork time before selling

another A-ha! moment right there

I feel like kissing you for this post. I have been observing charts and patterns for the past two months and I came to a similar conclusion just this Monday (two days ago). You see, I place a trade and price did not move until the New York session. I looked at past performance on trading view and realised that it always moves well during the time the New Yorkers are awake and active.

i'm glad you're following

HeatSeeker:


I feel like kissing you for this post. I have been observing charts and patterns for the past two months and I came to a similar conclusion just this Monday (two days ago). You see, I place a trade and price did not move until the New York session. I looked at past performance on trading view and realised that it always moves well during the time the New Yorkers are awake and active.

The New york midnight time, which is the Real open time of all asset class be it bonds, crypto, stocks, futures, deriv synthetic is subject to daylight savings

The picture i posted up, you could see it was UTC--5 as the newyork time

now Guesss what

as of the time of this writing, its UTC-4
So its important to always calibrate and confirm your trading time is set to new york for better analysis so you dont get left behind in market moves
.


in this picture posted, this is the normal time for deriv synthetic pairs. This is the time deriv WANTS you and all traders to see. But its the wrong time. Its the false open time

To get the real open time deriv and all other brokers doesnt want you to know, callibrate your open to midnight newyork time

now setting our open to new york, you can observe the change in opening price yourself in the picture posted

and the real opening price of fhe daily candlestick then gets revealed

but price is fractal
the movement and logic of the daily can be applied to the 1hr hour and 4hr candlestick also

IAmHim1:
The New york midnight time, which is the Real open time of all asset class be it bonds, crypto, stocks, futures, deriv synthetic is subject to daylight savings

The picture i posted up, you could see it was UTC--5 as the newyork time

now Guesss what

as of the time of this writing, its UTC-4
So its important to always calibrate and confirm your trading time is set to new york for better analysis so you dont get left behind in market moves
.


in this picture posted, this is the normal time for deriv synthetic pairs. This is the time deriv WANTS you and all traders to see. But its the wrong time. Its the false open time

To get the real open time deriv and all other brokers doesnt want you to know, callibrate your open to midnight newyork time

You can't adjust time settings on Metatrader .

Yes you can

on metatrader, FIRST cancel out period seperators and then use the red vertical line and place it on the candle that begins the open AFTER confirming with trading view New york midnight open

use two vertical red lines. the first redline at 0:00 Newyork time, which is deriv 4:00 am
and another one at New york midnight which is deriv 4:00 AGAIN

so 4:00am to 4:00am deriv time is Newyork midnight to midnight

set it yourself and see

HeatSeeker:


You can't adjust time settings on Metatrader .

IAmHim1:

Yes you can

on metatrader, FIRST cancel out period seperators and then use the red vertical line and place it on the candle that begins the open AFTER confirming with trading view New york midnight open

use two vertical red lines. the first redline at 0:00 Newyork time, which is deriv 4:00 am
and another one at New york midnight which is deriv 4:00 AGAIN

so 4:00am to 4:00am deriv time is Newyork midnight to midnight

set it yourself and see

This is a work around. And you must do this everyday. The actual time settings on the platform cannot be adjusted. But I am truly curious as to why it cannot be done.

If by "work around" you mean stressful, then this process is not a work around

im going to go on a rant now and i'll need you to listen carefully

Youre in this business to make money so youre going to do WHAT you KNOW actually WORKS and not what you feel that works

if a thought process doesnt give you results, it means such a thought process is faulty and SHOULD BE DISCARDED AND REPLACED

whats the point of keeping the clothe you wore when you were 4 years old. do you want to wear such a clothe again now that you are grown up. NO. so discard that old clothe. it doesnt serve any purpose to you anymore

If what you feel works in the markets, you would be rich by now. So you see. its not what you believe that should work. or what you feel that should work. IT IS WHAT WORKS THAT WORKS. simple. period

and i love your curiousity. its important to know the world that has blinded us for years. The forex market is just one of thos worlds.

Deriv group all traders in their platform into servers based on tge country hosting that server so its the midnight time on that country server that you are group under that is your open time. If 1000 traders on deriv are on that server having AND USING the open time of that country server, then that is 1000 traders being misled to thinking that that is the open time. dame if its a million traders

Its a sad reality. but its the reality on ground

Heres why the open time is really important.

WITHOUT THE REAL OPEN TIME, you cant know the real asia session, london and new york session and that is where traders struggle. Its TIME First and PRICE second

TIME in this aspect is your asia sesion, london etc, your macros, your silver bullet

while PRICE is your orderblocks, breaker, mitigation

While the algorithm itself that delivers price is either

1) RETRACING
2) REVERSING
3) CONSOLIDATING
or 4) EXPANDING

out of these 4 conditions, the Algorithm, IPDA(Interbank Price Delivery Algorithm), DOESNT AND NEVER do two conditions at the same time.

ITS ONE AT A TIME. so if you know the market is going In an expansion phase, then it is going to expand to the TIME limit given. you open your trade, limit your risk and make your money off the expanaion move

if you anticipate a reversal phase ie from buying to selling after taking buy stops and breaking market structure forming a fair value gap, then price is going to reverse to the time limit given and you make your money off that reversal

HeatSeeker:


This is a work around. And you must do this everyday. The actual time settings on the platform cannot be adjusted. But I am truly curious as to why it cannot be done.

AND I CHALLENGE YOU ALL TODAY READING THIS POST


1) go to your trading app. observe the country that is hosting the server that your broker groups you under.

2) Now write down that country on a paper and observe what the open time is ie 0:00 midnight

3) Google what that time is now. then go to your charts. You will surprisingly enough, find out that the open time of your charts corresponds to the open time of the country that your server is


TA-DA!

say for instance the country hosting your server is South Africa, go to south africa time and you will see that the open corresponds

Now if two different traders, say Ali and Simbi, are grouped under servers of diferent countries, South Africa and Germany respectively, how then would they know the true open price

It would be different. Ali would see South Africa open time while Simbi sould see Germany Open time and their Asia session or london session would be wrong

BECAUSE THEY DID NOT CALIBRATE IT OFF THE REAL OPEN TIME which is New York Open time

If your broker ever gives you a New york server, bravo! good for you. then your timings would be correct, market-wise

But if you are given the server of another country apart from New York, then you calibrate your time to New york and you regulate by using trading view.

Go to trading view. set the time there to new york. then the midnight candle, observe it and go to your meta trader app ( if thats what youre using), then place a that vertical redline on that midnight candle on your metatrader.
then you set it midnight to midnight. Thats how you do it


New York observe daylight savings which could be UTC-5 or UTC-4 so you would be checking trading view daily to see your time has shifted so you dont make mistake

you could use your laptop to trade and set your time to NEW YORK so you dont have to be adjusting from time to tjme compared to those using their phones to trade

The real midnight to midnight time that your broker is hiding from you

the Big Picture

Picture 1:

Midnight to Midnight New York time

Picture 2: The dotted line is the opening time deriv broker wants me to see. Its the fake opening time

The red vertical line placed is the real time i calibrated using trading view. So you can get your asia, london and new york session properly now

Now you see it

For buy days, ie bullish candles or buy candle, price opens, trade BELOW the REAL open price FORMING THE BULLISH CANDLE WICK, then buys up

for bearish candles ie sell candle, price opens, trades above the REAL open price, and sells

Beautiful!

picture 3: Midnight to midnight New york time.


picture 4: going to the higher timeframe, too many red vertical lime would not make you see the draw on liquidity clearly so you should try to minimise the lines to just the present day you're analysing

New York Midnight time is 5am Nigeria time?

yetown:
New York Midnight time is 5am Nigeria time?

If you factor in day light saving time, then it's 4am

https://www.nairaland.com/8040667/forex-market-algorithm-ipda-part

a follow up to this thread