NQ High Of Day Short Review

Date: 2026-08-25

[00:01] Folks, welcome back. All right, just a quick review. This is going to be the last trading day for me this week.

We’re looking at the daily chart for NQ, NASDAQ futures September 2026 delivery.

Daily imbalance context

[00:39] I’ve been counseling you to focus on this buy-side imbalance, sell-side inefficiency. I’ve graded it because it’s a very large range that we’re dealing with intraday.

You can see that we’ve spent one, two, three, four, five days trading inside this buy-side imbalance, sell-side inefficiency.

Last night, just before the market restarted at 6:00 p.m. Eastern Time, I outlined the objective I was looking for. I felt price would probably try to trade down into that volume imbalance at the low of buy-side imbalance, sell-side inefficiency.

[01:16] This level right here. Price got close to it, but essentially said, “No, I’m not interested in going down there.”

We have the Jackson Hole Symposium this week, starting on Thursday, and there’s usually a whole lot of tomfoolery during that week. Again, I’m counseling you to write this in your journal: whenever you see the Jackson Hole Symposium on the calendar, expect a lot of weird, quirky price action. It’s going to do things you don’t expect, and it’s highly manipulated.

[01:51] Just understand that this is what’s on the menu whenever that event takes place. It’s usually several days long, and thankfully this week it’s only Thursday and Friday, but it’s still going to impact everything, just as it already has.

I’m not afraid of saying that I can short the high of the day, short the high of the week, buy the low of the day, and buy the low of the week.

But saying those things and actually being able to demonstrate them are two entirely different things.

So I want you to really think about what I’m going to cover here. This won’t be a very long video, but pay attention to the conceptual ideas I’m bringing forward.

Clearly, price didn’t go down there, touch the Volume Imbalance, and bounce higher. But it did trade in that direction.

I gave you all the details up here with this gap and this wick. Notice how the candle bodies stayed below the midpoint of that wick.

[08:34] This candlestick has no bearing on why the bodies stopped here in this swing or why the high stopped there.

Refer back to my logic: if the market is bearish, the candle bodies should not trade into the upper half of the PD Array.

[09:13] Only the wicks are allowed to do that.

Now add this candlestick’s wick and grade it. I’m only interested in the midpoint. Look where the candle bodies are stopping. Right there.

Friday first FVG reference

[12:30] Let’s get on with the business.

I’m going to drop down to the 1-minute time frame. First, we’re going back to Friday of last week, because this will help some of you understand why I was confident that the relative equal highs were not going to get blown out this morning.

So this is Friday, August 21st, 2026, and we’re going down to the 9:30 Regular Trading Hours open.

[13:30] Here you can see the first presented Fair Value Gap. This is the 9:30 candle, and the next candlestick is 9:31.

Between this candlestick’s low and this candlestick’s high, look at the prices: the open of this candle is 426 even, and the close of this one is also 426 even.

So there is no Volume Imbalance. You have to use the wick.

That’s the first presented Fair Value Gap from last Friday.

[14:22] The point is that I’m trying to teach you, as a student, how to do this correctly—how to read price action correctly, how to become a master of yourself, and how not to become a victim of the market.

You’re looking at very specific things that I teach: the first presented Fair Value Gap on Mondays and the first presented Fair Value Gap on Fridays. I’ve taught these concepts in lectures and Twitter Spaces. I didn’t make a big production out of them or say, “Hey, hey, hey, pay attention to this!” But I did teach them.

[14:55] That’s why sometimes you’ll watch my videos and swear they must have been edited. I’m saying a lot of things, and yes, I drone on because I’m putting out a tremendous amount of information. My bandwidth is broad.

But if your attention span is short because you’re tired, fatigued, in a hurry, or trying to rush through the lectures, you’re not going to do well.

So here we are. We’re looking at this gap, and we’re going to project it forward.

[15:24] Now let’s go to today. Same bit of business.

Here we have the first presented Fair Value Gap from Friday, August 21st, 2026. This is the backdrop for why I trusted that these relative equal highs were not going to get blown out.

These two highs right here—here and here.

Price trades just slightly above them. I’m only looking for it to clear that liquidity.

Then price trades into the Fair Value Gap. What are the candle bodies doing?

They’re failing to reach Consequent Encroachment, the midpoint of my first presented Fair Value Gap.

[17:00] I’m looking at last Friday’s first presented Fair Value Gap—that very specific one.

Technically, it’s not the first one you see on the chart because, remember, I skip the 9:30 candle.

I’m not using the 9:30 candle. I’m using the 9:31 candle.

The logic I taught is that price trades up into a key PD Array.

What makes it key?

The first presented Fair Value Gap on every Monday.

Go back over the last two weeks. For each week, look at both Monday and Friday and identify the first presented Fair Value Gap from each of those sessions.

[18:52] Is that bullish or bearish based on the way I teach order flow? It’s bearish.

Does price trade into the upper half?

No. We get nothing more than a tiny wick. That’s already indicating weakness. There’s no sign of continuation or follow-through here.

Now look at what happens over here. We’re inside Tuesday’s trading, about 17 or 18 minutes after 8:00 a.m. this morning. Price makes another attempt and creates another high.

[19:27] And what are the candle bodies doing?

They’re telling you, “Don’t worry about this PD Array. It’s going to hold price down.”

[20:58] You’ve got two more years to hang out with the old man, Lord willing, and I still have things to teach you that are going to blow your mind.

Tonight, I’m showing you how to recognize when relative equal highs are only going to be briefly poked above so you can execute the best Turtle Soups.

Overnight trend and premarket range

[23:29] So we have two points of reference here. There’s this high and this high, and together they represent buy-side liquidity. I’m going to mark that over here in the top-left and make it larger so we can see it clearly.

We have relative equal highs, so we know price is likely to trade up there. Now we’re going to take a big step forward, but I’ll go slowly.

If the market has been permitted to trend overnight, and then we move into my defined pre-market session from 7:00 to 9:00 a.m., that’s where the next part of the framework begins.

[24:39] If the London session was permitted to trend, think back to the first slide I taught in Month 1 of the 2016 Private Mentorship playlist on my YouTube channel.

I taught the four phases of the marketplace and what price is likely to do. There are only four things it can do.

If the market has trended—if we’ve already had an expansion—then the likelihood of either a reversal or consolidation in the next session is extremely high.

It’s rare—very rare—to see London trend, then 7:00 to 9:00 a.m. trend, and then have that continue straight into Regular Trading Hours.

[25:27] It just doesn’t happen, folks. You may see two sessions trend back-to-back, but rarely will you see three. That’s a probability you can place a great deal of confidence behind.

Another important point is that price traded straight higher, and just before 6:00 a.m. Eastern Time, it reached Friday, August 21st’s first presented Fair Value Gap.

That level wasn’t drawn on my chart when you watched me execute, but it was on my notepad. I tell you all the time that I keep a list of key levels I’m watching.

[26:06] I try to keep the number of PD Arrays marked on my chart relatively limited because I’m going to add things as the trade develops, and I want you focused on those specific references.

I know I’m going to come back afterward and explain the background behind the trade, because that’s the part you really want to understand.

What I don’t want is for you to stare at something already drawn on the chart and think, “I wonder why he did this?” Instead, I want you watching me navigate the individual candlesticks as they form—reading how price should be booked and recognizing the things it should not be doing.

[26:36] That’s tape reading. That’s the part I’m teaching you to do.

As for the trading itself—turning you into a profitable trader—I can’t promise you that. No teacher or educator can honestly promise that.

But I can promise you this: the logic I’m teaching is light-years ahead of what else is out there, and it will run circles around it.

As soon as we reach 7:00 a.m., price starts consolidating. You might look at this and ask, “Wasn’t this a trend?”

Compare this move with what price was allowed to do throughout the entire London session. That was trending. Here, we’re creating a range, so this is consolidation.

Between 7:00 and 9:00 a.m., price trades up once more, and the candle bodies continue respecting the Consequent Encroachment of last Friday, August 21st’s first presented Fair Value Gap.

[28:43] *“So what you’re saying, Michael, is that I should have a chart with the first presented Fair Value Gaps from Monday and Friday for each of the last two weeks?” *Yes and nothing else on it.

That’s managing your PD Arrays. That’s managing the information you keep on TradingView. You can create separate workspaces for specific references. One workspace can contain those Monday and Friday first presented Fair Value Gaps. Another can contain only New Week Opening Gaps.

You don’t need every PD Array cluttering your working chart. You simply need a list of highlighted levels so that, if price trades higher, you already know which levels you expect to have an impact on price.

[29:25] I don’t have everything marked on my charts. You can clearly see that when I’m teaching. I intentionally leave certain reference points off because I want you, as a student, focused on the actual delivery of price.

Those references aren’t important to display while I’m executing because I don’t have the luxury of time. I’m trading live on a 1-minute chart.

So price consolidates, then trades up into the first presented Fair Value Gap from August 21st, which was last Friday’s trading. Again, that’s the 9:31 1-minute candlestick, in case you’re wondering what creates this orange box up here.

[30:34] And price is showing you that it doesn’t want to go higher.

Now we have this wick here, which is a very important piece of information. Price trades through it with another wick just before 6:00 a.m.

So we’re going to bring that information into the equation. What do I teach you about wicks?

We treat them as a gap.

We grade these wicks with the Fib, measuring from the high of the candle body to the high of the wick. If we’re bearish, we want the candle bodies to remain below the midpoint, or Consequent Encroachment.

The wick is allowed to do the damage, which is exactly what happens here. It wicks through last Friday’s August 21st, 9:31 a.m. 1-minute candlestick imbalance—the first presented Fair Value Gap from last Friday.

[32:26] Price wicks through it, but look where the candle closes. Whoa. Way underneath it. It can’t even close inside the Fair Value Gap. Is that bullish or bearish? Bearish.

It’s very simple logic. Price trades up here, wipes out anyone with a stop resting above the high, and then closes back down here. Wonderful information.

One more time, price wicks up into this high. The candle body remains in the lower half and isn’t permitted to trade into the upper half. Perfect. Great.

Now we’re going to carry forward that wick’s Consequent Encroachment.

At 8:18, one more time, price gives us an indication that it’s simply saying, “No, you can’t go past this.”

Especially now, because this wick over here already did the damage. Why would price need to trade north of last Friday’s Fair Value Gap, shaded in orange, again?

Opening Range Gap framework

[37:37] It’s already done that here.

So now you have the backdrop—the reason price behaved the way it did in this area.

And we’re going to use that same information again as we move into the Opening Range.

These lines here—I’ll show you what they represent in a moment.

Actually, let me show you now.

This is the Regular Trading Hours Opening Range Gap low. If we toggle Regular Trading Hours on, you can see where the market stopped. I’m going to remove these other lines because they’re no longer important—the 7:00 and 9:00 a.m. references are still showing up and cluttering the chart.

Now look down here. See the gap behind this area? This is where the market settled at 4:14 p.m. Eastern Time. That’s the final print on the 1-minute chart.

[38:45] From that point, there are no price prints until 9:30 a.m. Eastern Time the following morning, when Regular Trading Hours resumes. The difference between the 4:14 p.m. settlement price and the 9:30 a.m. opening price creates the Opening Range Gap.

In this case, we opened with a premium gap. Why premium? Because the market opened higher than where Regular Trading Hours settled at 4:14 p.m. the previous day.

When I grade that gap with a Fib, these levels become the octants, Consequent Encroachment, quadrants, and percentile levels.

[39:33] These are the key levels where you expect one of my PD Arrays to form—an Order Block, Fair Value Gap, Propulsion Block, or any other PD Array.

If the PD Array anchors to one of these levels, and your order flow and expected draw on liquidity are correct, you’ll have no problem identifying which PD Arrays are likely to work.

Then you can laugh when people cherry-pick examples and say, “Look, this Fair Value Gap failed. Look at this failure.”

They don’t understand that sometimes we want a Fair Value Gap to fail because we intend to use it as an Inversion Fair Value Gap.

[40:40] So we have this range defined by the 9:30 a.m. Eastern Time open and the previous day’s 4:14 p.m. Eastern Time close. That’s your Regular Trading Hours Opening Range Gap.

Going back into Electronic Trading Hours, let’s bring this up a little. As soon as we open at 9:30, right here, that’s the Opening Range Gap high. Why is it the high? Because the 9:30 opening price is higher than where Regular Trading Hours closed at 4:14 p.m. the previous day.

With those two levels defined, we can measure half of the gap, which gives us Consequent Encroachment right here.

[41:31] The rule is that we have a 70% likelihood of trading to Consequent Encroachment by 10:00 a.m. Eastern Time. So during the first 30 minutes, I’m looking for price to gravitate toward that level.

It just so happens that overnight price was pressing higher and trending. Then we entered the 7:00 to 9:00 a.m. consolidation, and that consolidation continued into the 9:30 open.

Look at this. Would you call that consolidation? Anybody would.

But there’s a very important observation here. I’m going to show you something that will put you light-years ahead of everybody else.

Liquidity sweep into key levels

[42:07] Here’s our business. Now we’re going to walk through the macro. I’ll try to put as much information on the chart as possible while still keeping the candle bodies and wicks clearly visible.

At 9:30, the market opened while still inside this consolidation, so it was reasonable to anticipate price trading above these highs.

[42:46] That’s exactly what it does, and it trades right up into the New Week Opening Gap.

If you’ve been around for a while, you already know what that is. It’s the difference between where the market closed on Friday and where it reopened at 6:00 p.m. Eastern Time on Sunday for the new week.

Once that gap forms, you define it and project it forward through the entire week. I also recommend keeping the last five New Week Opening Gaps available for reference.

That doesn’t mean cluttering your active trading chart with all of them. Keep a separate workspace on your platform dedicated specifically to New Week Opening Gaps.

Right out of the gate, price rallies. Here’s the first presented Fair Value Gap. What time is it? 9:31.

Oh my goodness, there must be something magical about 9:31.

No. It’s simply the earliest time the first presented Fair Value Gap can form.

We don’t have a Volume Imbalance up here, but we do have one down here. [43:54] This candlestick’s close is slightly lower than this candlestick’s opening. That’s the Volume Imbalance, so it has to be included in our measurement. We’ll come back to that in a moment.

Price rallies, then trades right back down into the New Week Opening Gap. But we still have relative equal highs up here, which represent the buy-side liquidity.

Remember, I took that level and moved it over to the left. There it is. That’s the buy-side liquidity, and that’s exactly how it appeared on my chart while I was trading live this morning.

[44:22] But we also have this gap from Friday—the first presented Fair Value Gap—which is something I’ve talked about before. I just throw these things out there for the people who are paying attention.

I hide them like Easter eggs. There are so many things I’ve taught over the years in old videos that still haven’t been brought to light. They’re like little treasures hidden throughout the material. When you go back and study the old content, you’ll find yourself saying, “Wow, he actually said that.”

We have this consolidation, and price initially drops going into the 9:30 open. So what is it likely to do next?

When price is smooth like this, it’s likely to shoot higher.

[46:23] So I’m going to watch how price behaves above this level. It could very well trade up here and then go lower because it’s already done enough business in this area.

But if it can come back down into this gap right here, where are the candle bodies stopping? Here’s the mid-gap Consequent Encroachment level. See that? Yes, we get a small wick through it. That’s a mohawk, and we allow for that. Remember, the wicks are allowed to do the damage.

[47:02] But how does the candle close? Inside the PD Array. That’s the real order flow secret of price action. That’s it, folks. The cat’s out of the bag. It’s right there.

You can’t deny it now. I’m giving you examples every single week, day after day, proving it. The candle bodies stop before touching Consequent Encroachment. Based on what I teach, is that bullish or bearish?

The upper half of my PD Arrays represents bullish sensitivity. It’s discount sensitivity—real support where nobody else would even recognize support. The fact that the bodies can’t get down to this level is the clue.

[47:34] Then price rips higher and comes back down one more time. Now it can’t even put a candle body at the high of the PD Array, much less inside it.

So is this candlestick close bullish or bearish? It’s bullish.

When the next candle opens and trades down inside this candlestick, I’m expecting it to turn into an expansion higher and take out this Order Block.

[48:10] Price opens, trades down inside this down-close candlestick—which is an Order Block—reaches its Mean Threshold,

then rips higher. It comes back down into Consequent Encroachment of this wick, and no candle bodies close below it.

Continuation higher. Now watch, folks, because this gets really cool.

We’re trading inside the first presented Fair Value Gap from last Friday. I told you when I taught this concept: mark the first presented Fair Value Gaps from Monday and Friday, and you’ll be knocked silly by how often they identify an intraday session high or low, daily high or low, or even a weekly high or low.

We had this consolidation here, along with what looks like an early Judas Swing. But you can’t count it as a Judas Swing because it occurs before 9:30. Price drops at 9:29, then the next candle opens, trades down slightly, and rips higher, clearing out the minor buy-side liquidity.

[49:32] We have buy-side liquidity resting at these relative equal highs. If price can run above them, as it’s starting to do here, avoid rejecting at the New Week Opening Gap, and continue into this area, then I’m watching this level right here.

Look at how I’m deriving it. I’m using this high and this low with the -0.5 projection.

That’s not the first time you’ve seen me use that level, folks. Oh no, it’s not. It is not. I was doing these same things with Forex.

[50:13] I did this with bonds. I did it with commodities. I’ve done it with the S&P, and I’ve done it with gold.

You guys say, “Oh, it doesn’t work with gold.” Man, stop bothering me about gold, okay? Go find your own setups in gold.

Now, I want to show you two measurements. Just for a moment, I’m going to remove everything from the chart and show you what those two measurements are and why they matter.

Then I want you to think about the likelihood of something like this happening if there were no algorithm behind it.

[51:16] I’m going to use that -0.5 level. Now watch what price does. See that? Are you crazy? That’s crazy, isn’t it? That’s diabolical. This is how far the wick can reasonably reach.

[51:53] Look at the price level and compare it with the actual high. They’re extremely close.

And the important part is knowing to look for that projection while price is still trading down here in the first presented Fair Value Gap, anticipating that price should trade higher.

Then price reaches the New Week Opening Gap—it’s not loaded on the chart right now, but remember, it was up here—and continues into the first presented Fair Value Gap from last Friday.

[52:31] I know some of you are thinking, “This is so complicated,” and you want to yell at me because it requires you to keep good records of these specific PD Arrays.

I don’t care that you think it’s complicated. I don’t care that you’re complaining because it isn’t as simple as “one, two, three, push a button, get in, get out.”

I never told you it would be like that. What I did tell you is that once you understand how price books, the setups become easy to find.

[53:04] Once you’ve seen these things materialize over and over again, your confidence changes. You won’t be fearful. You won’t be greedy. You won’t over-leverage. You won’t rush, and you won’t care about missing a move.

I missed the entirety of yesterday’s move. I could’ve shorted it and done all those things, but I simply told Caleb, “Let’s watch price action. This is tape reading.”

Price had already moved too far away, and I didn’t feel comfortable placing a stop loss anywhere inside that SIBI.

High-of-day short confirmation

[53:31] So now watch. This is where we can see the wick and how far price can reasonably reach. Now we’re going to shift our focus from the wick to the candle bodies.

Here’s the low of the body in this swing. Look at the close here: 29,316. That’s the same price as the open on this candle. See that? So we’re anchoring to the body low because that’s the real volume.

How do we know that what we’re looking at is actually the high forming? Well, let me rephrase that.

[54:07]* How did I know, and how do I know these things going forward? This is the science behind it.*

Right now, the level is sitting on top of the wick. Now watch what happens when I bring it down to the body close.

Ready? Don’t blink. Oh my goodness. The clouds part. The light shines down. Look at that. The candle bodies are stopping right there. That’s interesting, isn’t it?

Now we have two qualifying factors telling me this is the high of the day.

So I’m going in there and shorting it as price starts coming back down.

[54:45] I’m confident, and I’m aiming for the high of the New Week Opening Gap. Listen carefully.

Once I get confirmation from these two qualifying factors, I know the high is in place. Not, *“This is a good high to short from.” *No. This is the high of the day.

[55:14] Short the high and trade down as far as you can toward the low of the day.

Truth be told, I was really watching the New Day Opening Gap, which we’ll see in a moment. My original plan was to get out just above it.

Then I changed my mind and said, “Let me put the target just underneath it and see if we can get a full gap closure.”

But I’ll still get out just before the full closure, in case price only wants to trade down there and stop.

[56:08] Look right here. See that?

My fill is 410.5. Look where the high is, and then look where I’m entering. Why am I entering there?

Because I know this is going to become an Inversion Fair Value Gap. I don’t need to draw it on the chart because I don’t have that much time. I need to focus on making sure price is behaving exactly the way I expect.

Then I add one more because I want to be inside these wicks. The premium aspect of this area should continue supporting lower prices as long as we don’t get a candle body above the Consequent Encroachment of that wick.

[56:49] We get the opening right there, and from there I’m expecting price to start moving lower—just like that.

You like that? Only the best production quality around here.

When I say it rallies lower, rally doesn’t necessarily refer to an upward direction. It means price spools and runs.

So price rallies lower, takes out this low, and then takes out this low here.

[57:19] More specifically, see that low right there? That’s this level.

Look at this low: 29,279.25. Price trades underneath it, and that’s where I take the first partial.

I want to take a large portion off there because it’s Jackson Hole Symposium week. The market is wild right now—very whiplash-like. It makes aggressive runs, snaps around, and can behave erratically.

You can see the rest of the executions here. I’m showing them with nothing else on the chart because I want you to appreciate the actual price action and how the trade was managed.

[58:04] Then price dives lower. You asked me to teach you one day how to pick the high and low, and that's how you do it.

Continuing on, there’s all the lipstick back on the chart. You can see where that little dashed line comes from.

[01:00:35] That’s why I felt confident getting in there and shorting right at that level. Where else am I? I’m in the premium side—the upper half—of the previous Friday, August 21st’s 9:31 Fair Value Gap.

So I’m trading in the premium aspect of that PD Array. It’s not random. I’m not simply looking at price and reacting to what it does. I’m predicting.

I’m executing on a prediction with statistical probabilities behind me and logic that none of these other clowns out here writing books and courses have ever even heard of.

The market trades lower and comes back down into this same Fair Value Gap. If we’re expecting price to gravitate toward at least half-gap, then that’s our next objective.

Opening Range Gap objectives

[01:01:56] Half-gap is right here—the midpoint of the Opening Range Gap. That’s the range between yesterday’s 4:14 p.m. Eastern Time close and today’s 9:30 a.m. Eastern Time open.

So we’re looking for price to reach that midpoint.

Here’s the easiest way I can explain it as a general rule of thumb: if I’m bearish and we have a premium gap higher, like we do here, I’m going to look for the low that formed in the session before the drop. In this case, that’s this level right here.

[01:02:45] That’s a very easy low-hanging-fruit objective—something reasonable to expect price to reach.

You can take your first partial there, then wait to see whether price can reach mid-gap.

If you do just those two things, stop there. Don’t demand that the entire Opening Range Gap close perfectly all the way down to the previous day’s settlement price.

Don’t demand that. Take those two objectives and get out. Don’t do anything else. If you’re an intraday trader focusing on the morning session, you’ll find that this makes trading very easy.

[01:03:22] It makes trading less complicated, less convoluted. There aren’t a whole lot of things you have to worry about. It simplifies everything.

Over time, if you want to get into these crazy things I’m doing—pursuing higher levels of precision and refining your craft—you can. But you don’t have to trade the way I do to make good money.

If you keep it simple and take 15 to 20 handles, a couple of times a week—not every day—even with one contract or a micro, that could pay for your entire month’s groceries.

[01:04:05] Imagine that. How would that impact you?

Don’t think you have to get rich. Think of it as participating in a craft that can yield a bountiful blessing if you cultivate it correctly.

Don’t rush it. Don’t try to make it bigger than your current skill set can handle, and don’t impose some arbitrary timeline on yourself for reaching a certain level of proficiency.

Go through the process soberly. Enjoy learning. Enjoy the observations and discoveries. When you repeatedly see the same things occur using the logic I’ve taught you, that’s what builds the confidence you lack right now.

[01:04:50] There’s no fast way or shortcut to get there. Nobody can bring you there any quicker.

I promise you, none of my students could outline everything I just showed you here and explain exactly why I picked the high of the day the way I did. None of them could do that because today I’m presenting everything together as a complete package.

It’s narrative. That level of understanding comes from narrative. *“Why? What does narrative mean?” *I know. I just read your mind again.

So from the open, price rallies, trades down, rallies again, and then reverses right here. That’s the draw.

Now we want to see this first presented Fair Value Gap behave in a way that tells us what it has become.

[01:05:55] An Inversion Fair Value Gap. Its first utilization was as a buy-side imbalance, sell-side inefficiency. It’s an up-close candle, so if the market and order flow are bullish, price should trade down into it and then continue higher.

And that’s exactly what it does. The candle bodies stay in the upper half, just as I teach with real order flow visually represented inside the candlestick. You don’t need to transform the candle into some goofy bar or some other gimmick. It’s simply open, high, low, close—and time.

[01:06:23] Now we’re bringing in the element of time. What’s the time component? It’s the first presented Fair Value Gap. So all these things keep repeating. Yep. Now project it forward and look at what’s happening over here.

Watch. I’m going to change the color. And the magic happens again. Look where the candle bodies are stopping—below Consequent Encroachment. But there’s no algorithm, right?

They want to call us a cult. We’re the cult of winning. We’re the cult of knowing.

[01:07:27] We’re the cult of precision. We’re the cult of absolutely moonwalking on everybody else’s stuff. Period. That’s the way it is around here.

Now, if you don’t want to be on the dynamic team, that’s your business. You can do whatever you want to do. But you can’t deny that this logic is here.

It keeps repeating every week, every day, and it won’t stop.

That should excite you as a new student. As an older student, you should be smiling and thinking, “Yeah, man. It never gets old.”

[01:07:58] It never gets old because it’s perfect. It’s the source code behind how markets book price.

Anyone who says otherwise is denying the evidence being shown every single week and every single day. If I couldn’t execute using it, that would mean I don’t know it. That would mean the logic has no validity.

I’m teaching my kids to look for these things. If there were no value in what I’m teaching, why would I waste my kids’ time? Why would I sit there teaching them when you’re not even listening?

[01:08:31] Why am I doing it? Because I want them to learn this craft. I want them to understand the technical science that I hold, and I’m giving it away.

And some of you guys are so stupid, you’re arguing with me instead of simply going in and trying to learn it.

We get the movement we’re looking for from the Inversion Fair Value Gap, and price drops lower.

Now we want to see a close below this wick. That’s why I drew it.

We get that close here, confirming that price is likely to continue lower.

[01:09:00] Partial, partial. Now look at the octants.

These are part of the Opening Range Gap.

PreMarket Range levels were being used to project the high.

We’re not reacting to price. We’re predicting.

Once that purpose has been fulfilled, those levels are no longer salient, so we don’t need to concern ourselves with them anymore.

We can also remove this mid-wick level.

We wanted to see price close below it, and it did, so that information has served its purpose. Now look at all these remaining levels here. These correspond to these levels right here.

[01:09:51] So we have the upper percentile, first octant, upper quadrant, another octant, and then Consequent Encroachment of the Opening Range Gap.

We also have an old inefficiency that I liked and kept on my chart.

Then, at 10:30, price drops aggressively. That’s important because 10:30 marks the end of the first hour’s dealing range.

From there, price trades down into the New Day Opening Gap.

[01:11:52] Then we move into the ugliest part of the day.

Price trades all the way back up to the 9:30 opening price, which is the Regular Trading Hours Opening Range Gap high. It wicks through that level a couple of times, comes right back down to the 0.375 octant, then trades higher again.

Look how much time price spends gravitating around that 9:30 opening price.

So we have this tallest wick. It’s the highest and longest one, so obviously we’re not using this smaller wick here.

We split the longest wick in half, and we can already see that price respected its midpoint right here. See that? Isn’t that interesting? When you see that kind of behavior, it’s often an indication that price is going to retrace lower or potentially reverse.

[01:13:29] If you like trading wicks, that’s a very simple little pattern.

Now look over here. When price trades back up into this area, the candle bodies can’t even touch the midpoint of that wick.

See that? That indicates bearishness.

So now look to the left for inefficiencies, relative equal lows, or even a single low that could act as the draw. In this case, we have this low here and an inefficiency below it.

And look what price does. It takes out those lows and trades directly into that inefficiency.

[01:14:04] Then this becomes an Inversion Fair Value Gap.

Look at how price behaves there and then retraces down into that inefficiency.

I like that inefficiency. That’s why I kept it on my chart.

I’ll leave it as a homework assignment for you to figure out exactly what that one is.

Then price trades up here and moves slightly above the level, reaching into this Fair Value Gap and Breaker. That’s the Breaker and Fair Value Gap together, which is a really nice combination to see in price action.

[01:14:41] Price trades lower, and look how much time it spends inside that mystery gap. Then things get really stupid in here.

Once we get into the afternoon, right on schedule, we get the run during the 2:00 p.m. hour. Price scratches around a little, comes back down, then uses this buy-side imbalance, sell-side inefficiency and rallies.

Now we’re basically pulling back down toward this sell-side liquidity right here. There it is. So this is really wonky price action for Asia.

[01:15:30] I wouldn’t be participating in anything right now. To be honest with you, because of the Jackson Hole Symposium, I don’t want to give you any predictions about where price is going from here.

I simply don’t have enough confidence to do that because I know there’s a whole lot of tomfoolery—which means manipulation—in the market right now.

Unless I were sitting here watching price action develop in real time or tweeting about it live, I don’t want to make any projections from where we are now.

[01:17:00] Until I talk to you again, Lord willing, be safe.