Part 1 \ High Precision Secrets To Intraday Price Action

Date: 2026-08-01

[00:01] Morning, folks. Happy Saturday morning. All right, so the market is closed, as you can see. We have a day and eight hours before we open up again. So I hope you're doing well. I hope you're in good health and good spirits. I hope you had a wonderful week and you learned something.

[01:50] Anyway, the 1-minute chart here—we’re going to go right into that, and I want to go through a certain number of points I made in yesterday’s review that I didn’t really efficiently or adequately explain. I got a few questions. People were posting some things about certain characteristics, saying that you didn’t know the low was going to be there, and how would you know this? I stated a very specific reference in time, okay?

Defining the pre-market range

[02:33] So I’m going to make it very plain and simple for you. Because we’re dealing with time-based ranges where it begins at a specific time and ends at a specific time, just like a session, just like a trading day, like Regular Trading Hours. It has a beginning time and it has an ending time. It’s very specific. It’s finite. It’s not ambiguous. It’s very specific. So if there is an algorithm, okay—and I’ll speak in those terms because I know some of my audience just can’t subscribe to that idea—

[03:08] if there were an algorithm, wouldn’t it operate under the framework upon which it collects its data from a defined range? And where would that data come from? A beginning point and an ending point during market hours. Since the 9:30 opening Eastern Time is the beginning of that new Regular Trading Hours session, we have to pay attention to what’s going on just before that 9:30. And I’ve been teaching for decades about the two-hour window right before the 9:30 opening, specifically the Pre-Market Session, 7:00 AM Eastern to 9:00 AM Eastern.

[04:00] You can make the entirety of your career just focusing on that little time window of two hours. You don’t need to do anything else, no other sessions. You don’t even need to trade the 9:30 opening or the AM session. You don’t need to do the PM session, London, Asia. You don’t need to do any of that if those two hours are hours of the day that you can operate under as a trader. But I’ll leave that up for you to determine, okay? I’m not trying to push it or sell it too hard.

[04:30] There are times when that two-hour window is advantageous to be a participant in, and then there are others where, based on what it’s showing you, it’s going to lead to a very wonderful, event-driven morning session. Okay, so I’ve taught ad nauseam all those specific characteristics, but I want to clear up the confusion that some of you experienced in yesterday’s review. So let’s begin with—we’ll add the level here. That’s an old low. You can see it back there. That’s those relative equal lows I talked about yesterday.

[05:19] Even though that low was there, my eye originally jumped right to this. I wasn’t planning on doing anything on Friday. I didn’t want to trade. I was going to just do a three-day weekend, and that was it. But I was inspired, let’s say it that way, and I decided I was going to go out and, you know, short the daily high. So if we go and look at this tweet right here that was posted at 8:14 AM Friday, the 31st of July, 2026, it was me recognizing at that moment, still laying in bed, thinking to myself, “Let’s take a look at the market.”

Imbalances and breakaway gaps

[06:04] And that’s what I was looking for, those relative equal lows I just noted. And if we add this buy-side imbalance, sell-side inefficiency, I’m going to add lipstick.

Buy-side imbalance, sell-side inefficiency here, trades down here, and it rallies up. And right here we have a Breakaway Gap. [07:13] Then we have an Inversion Fair Value Gap right here, and look how it’s gyrating around its midpoint. And finally it goes to the upside, comes back down. Buyers are not allowed to go in the lower half now. Rally one more time, trades into it there, and explodes to the upside. Then we have another Inversion Fair Value Gap here, builds up momentum right there on that candlestick low, and rips up above the buy-side liquidity after taking the minor sell-side liquidity here. Okay, so right away, you’ve got to take your attention back to that little area right there.

[08:01] Pre-Market Session, 7:00 AM Eastern Time to 9:00 AM Eastern Time. It’s a time-based range right before the Regular Trading Hours session opens up. 9 AM marks the very moment—the very moment—that the algorithm will refer back to this range where it will collect its data.

[10:38] 9:00 AM. That’s the end of the two-hour session from 7:00 AM to 9:00 AM. Everything inside that time here, it’s finite. Now we can start using this range and derive specific price points. Okay, so this is the multiplication table, the canvas at which we want to start looking for the horizontal price axis, where the price is going to be.

[11:24] This is the time aspect, okay? So we have time. We’re taking a sample set of all the data out of a particular trading day. Only two hours are here, okay? And I’m not cherry-picking this. Students who have been with me for a long time have known for a long time that I’ve told you to focus between 7 o’clock and 9 o’clock. So 7 o’clock, 8 o’clock, 9 o’clock—those two hours of trading. It’s a wonderful opportunity just for you to be a trader and be done, or you use it for key information that will warrant more attention on very specific price levels when time agrees with it.

Projecting range-based price levels

[12:03] Now I’ll get into that, okay? So if we then add the Fib to that range, what I’ve done was I’ve taken the Fib, I’ve anchored it to that low, and I’ve dragged it all the way up to that high. That’s the highest high, that’s the lowest low between 7:00 AM Eastern Time and 9:00 AM Eastern Time. Not complicated at all, okay? Because I expected price to rally higher because it drifted lower all during the 7:00 AM to 9:00 AM session. And because I felt that 28,400 was going to get tagged—we’ve traveled a lot on the upside since FOMC, and it’s Friday—they’re going to do a deep retracement against that, and it makes sense for it to rally up and take out that buy-side liquidity.

[13:03] Here. And if you look at this high in the 7:00 AM to 9:00 AM range that’s shaded here, that high is slightly lower than that one. So doesn’t that make these relative equal highs? Sure it does. So if we can go down and take out this minor sell-side liquidity here and then close the 7:00 to 9:00 AM time-based range, now we have a very specific range upon which we can grade it.

[13:37] There it is. We’re going to anchor it right to the low, and we’re going to draw up to the high right there and drop it. You should have a -0.5 right there. Okay, see that? That price comes in at 28,723 even. You can see it. See it right there? 28,723. That’s a projected daily high.

Now, at this moment right here at the end of this, okay, at 9:01, any PD Array that forms and is anchored to one of these levels here—the candlestick has to touch it, lay across it, or touch it.

[16:18] Okay, it has to have some reference point where it’s tethered to these specific key levels. I don’t care what you subscribe to or believe in. When you start looking at the market like this, when I give you very specific levels, when I give you very specific ranges to operate in, you’re going to find that there’s Swiss timepiece precision there. Now, you watched me execute this short up here. You watched it. That can’t be done with retail stuff, okay? It can’t be done. Nobody else’s methodology expected a run starting here up to there, and then aim for 28,400.

[17:09] It just—it doesn’t exist anywhere else. I know because I’ve studied everything else extensively. Now, does that mean you should abandon what you’re using and making money? No.

[17:45] Okay, so again, I’m not trying to be anybody’s adversary here. I want to encourage you to do well, and some of these things might be the very catalyst that turns it up a notch, where maybe you’ve been just a break-even trader using whatever you use, and now, because of what I’m teaching, it helps you frame a better bias, a better draw on where the market’s likely to go. And it may filter out what you think you see in your chart saying it may go lower when it’s likely to go higher, or vice versa.

Tethering post-range PD arrays

[18:12] So, all right, let’s go through all this business. At 9 o’clock, at 9:01, we have this candlestick right there. Okay, we are inside of this buy-side imbalance, sell-side inefficiency. Okay, remember, everything after 9 o’clock, refer back to these quadrants, octants, and the high and the low of the 7:00 to 9:00 AM range. That’s what I’m using. Okay, so doesn’t this form a buy-side imbalance, sell-side inefficiency after 9 o’clock? Sure it does. But now we have to look at where it is in deference to these levels.

[18:56] So what I’m going to do is take this and extend it over a little bit so you can see how they overlap with those very levels. All right, I think this will accomplish the method. I’m just going to bring it past the move back lower.

All right, so we’re here. Price is anchored and tethered to the lower quadrant level of this range from low to high. So we’ve carried and brought these levels into the future.

[19:36] Okay, like an algorithm, like a computer program, it’ll use information. It’ll go back and cull information from a predetermined range of data. So the array that it’s referring back to is this particular price at 28,480.75, and its range will be defined by that candlestick that’s tethered to that very one.

And there’s a volume imbalance. There’s a volume imbalance. So that’s a suspension block. Price can then be expected to rally higher. Why? Because we’ve already used this buy-side imbalance, sell-side inefficiency, and used it to start running here at 9:01.

[20:28] Inside this buy-side imbalance, sell-side inefficiency, the price run begins one minute after the close of that time-based range at its 9:00 a.m. ending time. You think that’s random?

It rallies higher, creates another buy-side imbalance, sell-side inefficiency, which is a suspension block. Now we want to see this operate as a breakaway gap. We want to see it really rip higher and take out that short-term high. Does it? Yep, sure does.

Now we have this fair value gap. What is that anchored to? Where is it tethered?

[21:02] It’s just out there in the middle of nowhere. Well, look at this candlestick’s close: 28,508.50. The open on this candlestick is 509, so it’s two ticks higher. So there is a volume imbalance there.

Whenever there’s a volume imbalance, you have to include the volume imbalance candle where it has to be tethered to it. Very simple rule. Very, very simple. There’s nothing complicated about that. It’s very easy. The market trades down into it here, hits it, rallies higher. Now we get to this level.

IFVG midpoint reactions

[21:42] See how we’re anticipating? We’re anticipating. We’re not reacting. We’re not hoping and praying. We’re not shaking our head and our fist at the screen saying, “Why are you doing this to me, NASDAQ? Why is the chop so real?”

Halfway point. Okay, so that’s consequent encroachment of the range high and low between 7:00 a.m. and 9:00 a.m. Eastern Time. We have this inefficiency in here at midpoint. It was sell-side delivery. In other words, it was a down-close candle in the way it was formed. So that should act as an inversion fair value gap, and lo and behold, we get it.

[22:20] Then right to the left of that, we have another one. This is an inversion fair value gap. Originally, it was sell-side delivery. That means it was produced by down movement and a down close.

This becomes the low of that candlestick, which is the open on this. Watch. Look at the open on this candlestick right there: 28,530.00. Okay, this candlestick’s low: 28,529 even. So it’s only one point tapping into that on a wick, and then we rally higher.

Then we come back one more time, touch consequent encroachment of this inversion fair value gap, and it leaves the body outside of it.

[23:15] Is that bullish or bearish? It’s bullish. We rally up, come back up into this area here where its first utilization, when it was printed, was sell-side delivery. That means if we were bearish, this would cause the market to go down.

But it’s a little hiccup here, falls short right after the consequent encroachment. And then the next candle, we open, trade right back down into—now you’re going to see what that level was that I was telling you I was trying to hide.

[23:42] Because I did a series of deletions. I put all my annotations on and then delete, delete, delete, delete. That way, all I have to do is hold down Ctrl and tap Z, and it’ll populate the charts way quicker. But I’m really eating up all the time I saved by explaining it now, aren’t I?

So here’s the upper quadrant of this inversion fair value gap. Okay, so you can see that this fib, the only thing it’s showing is that right there. That’s why I have it highlighted right there.

[24:07] But when I was deleting them, preparing for the presentation, I wanted this to appear after this would have come back on by hitting Ctrl+Z, and I just simply messed it up in the sequence. But it is what it is, right?

So we trade right down to that there, the upper quadrant, which would be part of being bullish order flow as it relates to the visual representation of this sell-side imbalance, buy-side inefficiency. When price is bullish and goes above it, we want to see the bodies avoid getting into the lower half, and now it can’t even touch consequent encroachment.

[24:39] See that? It went just to the upper quadrant. Specific levels, not zones, okay? Not, “I hope it does something.” No, we’re looking for very, very specific things. And we rally right back up.

Now we’re on the other side, closing north of the high of this sell-side imbalance, buy-side inefficiency while being bullish. That becomes an inversion fair value gap. We open on this candlestick and come down, and where does it go? It goes just shy of the halfway point, or consequent encroachment, and then rallies up.

[25:11] Is that bullish or bearish? It’s bullish. Okay, so we start running higher. We took out the buy-side over there, and then we go all the way up into the projected high using the low to high. Hammers it beautifully. So we’re only off by 2.75 handles—two and three-quarters of a handle.

And then, as you watched me do the execution, you can see clearly it is not market replay, by the way. There I am slamming it. I get one in there because I’m watching it go right close to that new day opening gap from last Friday.

[26:03] Which is also the same volume imbalance on the daily chart I told you we would trade up to last Sunday, before the week even started trading. It would go up there and it would sell off. Well, here it is, same thing happening. Price is going right up into that area. One more spike into consequent encroachment of Friday’s new day opening gap from last week, not yesterday’s.

Okay, so what did I tell you about the rules as it relates to new day opening gaps and opening range gaps?

[26:36] You’ve got to have Monday and Friday. And you can see that the logic is not changing. There’s just a lot of information here. You have to view that rich, deep detail so you understand how all of these reference points fit together.

[29:18] So selling short here, and what were we aiming for? Here’s your tweet. If I click on that, it’ll take you right to the tweet where I posted it. So it’s not hindsight.

[31:38] All right, we’re going to go back into the chart again. So we have the short in here, and I took a partial there. It ripped all the way down into this short-term low, which was important.

[32:22] Why? Because it’s part of the 7:00 to 9:00 a.m. Eastern Time time-based range. Getting close to it here, and then right underneath that low—watch right there—at 28,400, which was the target I told you it was going to go to.

[33:01] That’s what I’m aiming for during the opening range and morning session. So if we’re drifting lower, what are you going to do? At minimum, you should have expected these relative equal highs to get traded to before it goes down there, right?

Because we’re before the 9:30 opening. 9:30 is here. So at minimum, it’s going to have a run to get to these highs. And maybe try to bump that high.

[34:15] Same thing all the time. Precision, precision—anticipated, not reacted, not surprised. You see that?

[36:31] So the market trades below that low and gets into my target, 28,400.

[37:26] An hour and 45 minutes later, it goes where it was called to go, and none of this here had an impact on stopping it from getting to where I anticipated it, at a level that you knew about.

So now the transition—once we get to here, now we’re part of the sell-side of the curve. So this is a market maker buy model.

[38:06] You can see all the little parts here that are joined and tethered to the 7:00 to 9:00 a.m. Eastern Time time-based range, which is the pre-session. Every fluctuation here has a rhyme and reason.

[42:26] Eventually it broke lower, and I didn’t have much time. But I want to show you over here how we used that 28,400 level after clearing it. There are relative equal lows, and then there are relative equal lows, and there you go.

Okay, so when we get into that bit of business here, I want you to think about the daily chart.

[43:06] When we’re looking at this, let me get all this stuff out of here. I’m going to take the fib off just for a moment because I’m going to show you the opening range gap.

Now, when you see this and strip it down to what I teach with very specific key PD arrays, and you see it trade up into it—and I told you I was looking for that price there at 8:14 a.m.—right here at this time, we’re there.

[43:49] If you don’t have this on your chart, you’re not going to know how high it can go above that buy-side. How high can it go? You see how keeping reference points that are specific to days of the week, times of the day, and new day opening gaps from last week allowed me to pinpoint the high of the day and short it right there.

But if you don’t have that information, how is it useful to you? It’s not, because you’re not looking. No one has told you to look at those things.

[45:01] If I say something is going to be important, I want you to go into the information and test whether it is actually there. Don’t simply take my word for it.

[46:12] But why did it go down here? Well, I was looking at the likelihood of it trying to get there, but I wasn’t going to be a part of the afternoon session. I thought we would trade here, bang around inside here for a little while, and then wipe out this area down here.

[46:47] Eventually, in the afternoon, we did get a little bit of a drop down, but it went to where the daily low would have gone. Now let’s go out to a daily chart and I’ll explain why I said what I just did.

Let’s go to daily, and I’ll remove all of the lipstick here and frame this out for you so you can see it.

[47:14] All right, so if we take away all of the drawings, we have nothing here—zero information. Zoom in.

We had traded all the way back up into that little inefficiency, so I’m going to put a little bit of lipstick on.

Projecting daily-low objectives

[47:56] So there’s that level I told you we would open and trade up into and sell off from—not for a day trade, but a swing trade for several days. So here’s Monday, Tuesday, Wednesday FOMC, and post-FOMC we opened and then went straight on up. Then we followed through by opening here, trading up into the volume imbalance, and then trading lower.

Okay, where can we reasonably anticipate—if it did this and started selling off—where would price likely go down to? Where could you project a reasonable daily low?

[48:33] Now, this is the part where you pause the video. From up here, where could we project the daily low? You see me short the daily high, so there’s no doubt about that. But on the flip side of it, if I was going to spend the rest of the afternoon and it was not going to do a single straight run down to it, this is what I would have used.

[49:15] Okay, we’re here. We’re in this general proximity of 28,400. That was the level I told you it was going to trade to. That was the sell-side I was interested in. Obviously, it was a very specific level with those relative equal lows, but that was the level I called.

[49:56] So as soon as we went below it intraday on Friday, we can then look at what we could potentially trade to as a daily low. The first point of reference is: what was yesterday’s range?

Okay, so now watch that low all the way up to the high, and we’ll shoot this over a little bit. Now we have a reasonable objective to try to get back to 28,111.50. Not bad.

Now, because that level is there, I’m going to create another fib, and we’re going to measure this wick.

[50:47] Why am I picking that wick? Because we’re above it and trading down into that wick. It’s going to be a range like a gap, so you want to measure that. From the low up to the high, same bit of business.

[51:23] So now we have two points of reference. I have two little sweet spots in the previous day’s range and to the left of that. Why? Because we’ve got to go back three days. Here’s this day. So this is day one, day two, day three.

Three-day liquidity reference

[52:04] On day three, we have a wick we have to contend with because it’s below where we are, and price could trade down into that.

Looking back three days, your entire universe of liquidity and inefficiencies can be summed up in the last three days. Once you breach the last three days’ range, then you’ve got to look back further. But as a day trader or intraday scalper, you only need three days’ worth of data.

[52:38] I used to train people in the Forex market and I would give them a small sample set of intraday price action. You don’t need a lot of information. Look what I’ve shown you just with two hours of data between 7:00 a.m. and 9:00 a.m. Eastern Time. It’s the quality of the source of information.

If you go in there and try to do something like the range between 12:45 and 1:15 p.m., that’s not going to be as useful.

[53:08] There’s nothing significantly salient there as to why markets should do one thing or another. But here we have two points of reference. If you want to see the precision that I’m sharing and showcasing, you’ve got to do things a little differently.

[53:38] We’re going to expound on this now. There are two points of reference in here that you need to be aware of. You have that and that. If you measure that. It’s only math, folks. That’s all these markets do. They work on math, but it has to be important—it’s anchored to time.

I want it at that midpoint right there. That’s a consequent encroachment level of two projections for a daily low. Okay, this is a high-probability draw, so the bulk of the consolidations or bodies will probably respect something like this, or it could be just the very extreme.

Then another bit of business is we have the low of that wick three days ago to here.

[55:15] All right, so now we have 28,070.25. That’s the kind of thing I keep on my little notepad. 28,070.25, yes. And that’s accurate to the high.

So now we have this level here, 28,124.25. We’re going to project that over to the right a little bit and make it bolder so it stands out.

[56:13] So now the chart is completely clean except for these annotations. Everything in this area here, they’re all projections on what you can anticipate.

What we’re looking at is a small little area here. I’m going to put a rectangle just to highlight this little space. Inside of the intraday price action for Friday, we’re going to explore what price did with all this information here.

[57:06] We can take the full range from that candlestick away, and there’s our data. Okay, so now watch this. You ready? One minute.

[57:51] Where does the market go? There’s our range of key specific levels for projections. We mapped it out. We had the highest point and the lowest point, and we have very specific levels. It trades down into it.

Look at this level right here that I’ve shaded out.

[58:19] Isn’t that interesting? In that vicinity, we’re getting this type of thing. Now look what it’s done. We trade down into those levels and wick down through, then we rally up. Smooth highs come right back down into that level again.

What is that? It’s the wicks on the daily chart that we’re treating as a gap, and we’re choosing to use the very specific gradient, octant, quadrant, or consequent encroachment. What’s the lowest low it could reach for?

[59:00] What’s the highest high it could reach for in that vicinity? So when you’re looking at daily highs and lows, you’re going to get a rough idea. It’s going to be inside of a clustering of PD arrays, not just a single PD array. You have to blend some things.

And 34 years this November, I’ve been looking at the market with these types of interests. I want to see: how does it form the high? How does it form the low?