Video Transcript:
So what would be an inversion here? Right, I would say a good inversion to get—well, to get tagged along for a trade here. It’s a pretty big one here. I would say that, similarly, just like this, right? So think about this as an inversion—it is an inversion, right?—a kind of inversion reclaim. So, you know, you want the price to trade through this, make a bullish move, give you at least a bullish order block. Right? It trades through this, takes this, makes it an inversion again—or rather, reclaims this, whatever “this” is—and gives us an order block. I would be okay risking it because it’s still macro. I’d be okay risking some amount here. Right, so where is this—short or long? I would go long here. I’ll target these equal highs as my first take-profit, where a majority of the positions would be taken off. And something like this, which is what, a 1:2.4 risk–reward trade. Not bad. But this is something that I’m okay risking—if it closes above this. So, risking about 30-odd points here. About this. ES is doing the same thing. I’m just waiting for this close.
Yeah, it closed. So I think this trade is valid, and this is something that I’m okay risking, as I said. So, you know, you’ve heard what we were discussing during the live session today, and now I’m just doing a recap of what really transpired in the market. So you’d see that this was the liquidity—or the target—that we had: equal highs. Right? It’s nothing but engineered liquidity. There was also an equal high here, which was also the opening range high. So there was layered liquidity here and here. Right? And then what were we looking for in the setup? The price came in very aggressively, took the Asia low, reversed from there. And what we said was: this would be a good entry because it was a reclaimed inversion, if you will. You see a lot of price came in, and this was an important PDA that I had drawn. Once the price came back and tested it, this was the entry—targeting this high and eventually the equal high right here.
And, you know, the market obviously was very choppy today. It actually went a little lower into this bullish order block that I had marked here, and then, as you see, it couldn’t even get to the midpoint of this order block and immediately reversed after that, eventually taking these targets. So, again, being a very choppy day, it required a lot of patience this morning to identify the high-probability trade. And as we trade with our model, there are a few things that we look at. One is: you want the opposing liquidity to be taken out, which in this case was the Asia low. You want engineered liquidity on the other side as a target, which was also there. And then you need some bullish signatures in this particular area—and this candle signified that. So all of that was in the making, and eventually it formed a winning trade in this extremely choppy market this morning.
So that’s about it, guys, and I’ll see you in the next one.
Hey everyone, it’s Dale here. I hope you enjoyed the video. If you’d like to trade alongside me and our team of prop firm funded traders every day, then click the link below the video and hop aboard. We’re looking forward to trading with you.
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