Top Down Analysis Isn't Hard, It's Misunderstood

In trading, we all know the famous

saying that the trend is your friend.

And therefore, we spend all of our time

learning how to identify the trend,

identify the points of interest, and

identify confirmations to be trading

that trend. But when you start to do a

top- down analysis, you start to realize

finding a trend is not always so simple

because you can have the daily bullish,

4hour bearish, 30-inut bullish, M5

bearish, M1 bullish. When you have

different time frames and different

trends in place, it's hard to know what

is the trend and therefore hard to know

exactly how to trade that trend. And

therefore if you look at any market

you'll realize half the time you are

trending and the other half of the time

you are counter trending. You [music]

are going against the trend a

retracement or a pullback. So what I

want to share with you today is show you

how to effectively trade the other half

of the market conditions. That is when

the market is reversing retracing or

doing a counter trend position. And just

how we know highquality setups come from

trading the trend. The trend is your

friend. I'm going to show you exactly

how to trade highquality setups against

the trend, against the flow of the

markets with the same level of

precision, same level of win rates, and

same level of risk-to-reward. So, what

I'm going to do is share an exact

framework, a step-by-step checklist that

is going to apply to any market

condition, any time frame, and any asset

class. And in doing so, I'm going to

share with you the most recent price

action trade that I've taken that was

against the trend that I would still

consider an A+ setup. So before we jump

into the charts and show you the exact

trade, what I'm going to present to you

is a diagram so you can understand the

frameworks. First of all, we have a

scenario like this which is typically a

trend. In this case, it's bullish

denoted by the sequence of higher highs

and higher lows going in one direction.

But you'll start to realize when you

learn about top down analysis inside of

this bullish trend, you will have a

bearish sequence. So therefore, you'll

have multi-time frame analysis where it

depends on what time frame you look at

and it depends on how zoomed in or

zoomed out you are. you'll start to see

we are forming lower highs and lower

lows inside of a overall bullish trend

which gets very confusing when you do

five different time frames and you start

to see inside of here there is a bullish

sequence and then a bearish sequence and

it can get very misleading. So what

we're going to do is focus on two time

frames and within those two time frames

established trend and then show you how

to master the lower time frame

confirmations for counter trend reads.

So what I like to use for the overall

top part of the read in my top down

analysis is the 4hour or 1 hour package.

The reason I call it a package is

because they'll tell you very similar

pieces of information. So therefore, I

do a glance on the 4 hour or 1 hour time

frame. My personal preference is the 1

hour and I'm trying to establish new

territory to define my trend. How do I

define new territory? I just take two

lines and I just say where was the low

in the market and associated to that I

understand where is the high in the

market and then I have found myself a

trading range. Once I found that range

of course I can see it is going up.

Therefore this is a bullish trading

range and it just waits for one of my

dotted lines to be broken. If it breaks

lower obviously it's a bearish switch.

If it breaks the upper side then we know

it's a bullish switch. So I can see

exactly over here we have failed to

break the low. We have made a higher low

and we are now continuing to break the

previous ceiling to make a new high.

That's it. Very simple. I look at one

time frame and I look for new territory

defined by a previous ceiling or

previous floor getting broken. Hence

this was the cap in price. This is the

new territory part. When I've done that

then I can delete the rest and I don't

have any focus above here and I don't

have any focus below here. This becomes

my trading range on the 1 hour or 4 hour

package. And therefore, this becomes my

external range. So, I just mark these

three things out. The direction, the

high, and the low. By the way, as I walk

through this diagram, I'm doing it

together with you now to display my

thought processes, but I also have, as

you can see on screen, an episode

companion where I've taken all of the

information, not only of the top- down

analysis, not only of all of the

diagrams, but also of the entire

walkthrough of the trade step by step,

so that you can have the checklist, the

diagrams, the definitions, and the full

explanation. So, you don't always need

to refer back to the video. but rather

you have it downloaded and ready so

whenever you take your next position you

have the checklist in front of you with

everything that you need so that you can

take the trade most effectively that

will be in the link in the description

free as always. Okay, so next what I'm

going to do is jump down to a lower time

frame and I want to start to see how are

we retracing back because once I've

established this high, I don't know if

it's going to continue going higher. So

what I need to see is a very specific

signature and that's going to confirm to

me a pullback. So I'm going to zoom in

on my area and this is where I would

usually drop down a time frame. My next

package time frame is what I like to

call as home is the 30 or 15 minute time

frame because this is the best read for

your intraday or intraession analysis.

So what I want to understand is just the

last few days of price action and I

personally prefer the 15-minut time

frame. From this time frame I'm trying

to pick up one specific thing and that

is that we are not continuing the trend

as we have already seen it. Rather we

are starting to see the pullback. How do

you define this? Well for example if I

get one retracement lower for example I

get this. I get one little pullback

portion. I don't know if this is a

pullback or we're just going to continue

bullish because as you can imagine

leading up to this internally we had all

of this price action like such. So if we

are getting the internal price action

that we saw on the 4hour we are now

seeing it on M15 we'll see this internal

read. So a little pullback like this I

don't know if this is a pullback to go

lower or this is a pullback just to

continue higher as we have already been

doing. So, and it's not about a break of

structure because even a break of

structure, let's say price goes lower

like this, it can certainly continue

higher. Why? Because we'll just read

this as a very clear objective, which is

to grab liquidity, induce lower, use

that fuel to go higher. So, even just

breaking structure is not enough to

decide a pullback has begun. The way to

confidently know a pullback has begun is

by ignoring the internal structure on

the left. And you're looking for exactly

this, a retracement. But it's not about

that retracement. is the first part that

it fails to break the previous high,

this external high that we've

established. When you see it fails to

break the high, so it respects it and

comes lower and then most importantly

continues on to make a lower low. When I

see this exact signature, this is what I

focus on. I see failure to make a higher

high. So I mark that because this is now

lower. The previous high was up here. We

have now made a lower high. So now I've

seen a failure to make a higher high.

This establishes my external high. Now I

can now confidently say this is my

external high. Once I see the next step

which is this previous low where we had

a bit of a retracements first fails to

make a high and most importantly makes a

lower low. When I see these two things

this is when I know a complex pullback a

retracement has begun. So what seems

like counter trend now because the

market is bullish clearly as we've seen

I can now start to say confidently

because of these two legs that we are

now in the retracement section. So

therefore the protren scenario is

bullish as we confidently described. Now

we can start to say the pullback has

begun and the new trend, the counter

trend position is actually going to be

bearish and we're going to be bearish

until certain objectives which I'm going

to get into which means now the protrend

the better thing to be doing is actually

looking for sells. Even though we're in

a bullish market on the higher time

frame, it's preferred until we arrive to

the objectives. I'm going to show you

those objectives to know when exactly to

look for buys once again. So it's not

about the higher time frame is bullish,

therefore only look for buys. It's look

for buys when it's relevant and look for

sells when it's relevant. You need to

know what part of the market cycle

you're in to know what is the pro trend

and the advantageous thing to be doing.

So as you can sort of see this is very

checklist orientated. We use our 4hour

and 1 hour package. My personal

preference is the 1 hour to establish

higher time frame trend. How do we do

that? We just look for new territory as

we described. Once you've got that then

you mark out your external low, external

high. That's the next step. After that

step you go to the next time frame

package which is 30 to 15. My personal

preference being 15. Once you've

established that then you need to look

for this exact process. two legs of

bearish where you see the first pullback

makes a low then it fails to make a

higher high and goes on to make a lower

low. When I've established this then I

focus on this part only which is the

lower low portion. Then this is where my

focus is going to be where we've seen

the second leg of bearish after the

failure to make a higher high and we

break the previous low to make a lower

low. Now I've described a internal range

where this is the next step that you

need to follow where you have the

previous high in the market the external

high and then you had this current low

this retracement that was made and then

I need to wait for one of them to be

broken. If price broke higher like this

then we know very simply that we are

still bullish. We had a bullish run we

had a bit of a retracement and we broke

higher and then we know we are still in

a bullish market. So I know this

external high needs to be respected and

if that external high is respected and

we break lower instead. I'm going to do

it in a different color so you can

identify it. Then I need to wait for one

of these to be broken. When it is, we

can see it breaks lower like such. Then

I just mark my internal high being this

one and my internal low being down here

based on this red arrow. The second leg

bearish. So very simply, you wait for a

retracement. You wait for a failure to

make a high and then you wait for it to

make a relative lower low compared to

this one. Not a lower low down here.

This is an external low. I don't care

about that one. That's a full trend

shift on a higher time frame. I'm

looking for internal structure to be

broken, hence these dotted pink lines.

Then I can mark out very clearly this is

my internal range high. This one becomes

my internal low. And that's all I need

to focus on. Now I can now ignore all of

this price action over here. And I just

need to focus on what's happening inside

my internal range. But notice how all of

the work we've done so far is to achieve

two clear objectives. My external range,

which is from this low to this high

related to this time frame. So I'm going

to do this in green so you remember. And

then the next time frame we worked was

the M15 M30. And the objective of

everything we discussed now was to find

this internal range which is over here.

So I'm going to do this in pink so we

can remember it. From those two time

frames, we've achieved the external and

internal range. And that's job done. You

don't need to do a top- down analysis.

You just need to find these two specific

things. Now we know the protrend

scenario is to be looking for cells

because this cell is going to be taking

us to certain objectives before the

higher time frame trend continues. Let

me map this out for you so you can see.

So, as I'm walking through this setup,

you can see a counter trend scenario in

play. I'm showing you the frameworks,

the building blocks, the checklist, and

the reasoning to get into counter trend

scenarios. This is one type of trade.

And inside of my personal trading plan,

I have dozens of trade models. Protrend,

counter trend, different liquidity

types, different inducement types,

different trap types, different lower

time frame confirmation types. This is

why we have created WWA trading. It's

not a pre-recorded course. In fact, is

an entire ecosystem where we focus on

transformation, not just information.

What that means is we're going to be

doing one-on-one coaching, daily live

streams for London and New York. And we

have a full entire AI powered ecosystem,

which means custom platform, custom

journaling, custom AI coach, which means

Wakar in your pockets where it's

empowered by every single one of my

trades, every single VIP call I've done,

every question that I answered about

trading, empowered into one LLM. So, you

can speak to me 24/7, show me your

trades, and I can give you personalized

feedback. And apart from the Q&As and

the one-on-one coaching and the daily

live streams and a vibrant community

ahead is going to be a full six month

incubation. And the reason we give six

months is because this is the amount of

time we've seen where traders join us.

People just like you watching a video

just like this have gone on to reach

results as you can see on the screen

where it's millions of dollars in

funding and tens of thousands of dollars

in consistent payouts. This is what the

power of accountability and a community

around you is as opposed to a

pre-recorded course. Now, the problem is

we cannot accept thousands of people

because we do one-on-one coaching and

there's limited hours in the day, which

is why we do application only. So, if

you find the link in the description, I

encourage you to fill out the

application form in detail to see if we

are a right fit for each other and if

you will be invited to join our

ecosystem that is WWA trading. And even

if you don't get accepted, even if you

decide not to join us, my promise to you

is we're going to give you some

resources and goodies just for applying

so that we leave you better than we

found you. Okay, back into the video. So

we know we are in a bullish market on

the higher time frame on the 1 hour 4

hour. So I'm expecting eventually price

to break it and make a new higher high.

Continue the trend as it has been

bullish. Higher high, higher low, higher

high retrace down, make a new higher

high. So I'm expecting eventually the

external high to be broken. That's the

long-term objective. But the long-term

objective can take days, weeks, or even

months to happen. So I don't want to be

waiting around days, weeks, or months

for a prime opportunity. But I know for

the midterm it's going to be actually

going down following this current trend

that we have which is bearish which I'm

expecting a equivalent replication. So

therefore I can connect my midterm with

my long-term and trade the protrend on

both time horizons. So I know that the

midterm is going to be bearish. So I'm

going to be looking for sell

opportunities until I arrive somewhere

down here to the buy objectives and then

once I have the confirmation I'm going

to switch bias and look for buy

opportunities and then all those sell

opportunities become traps. So it works

both ways. All the buy opportunities

that we'll see over here will be traps

and all the sell opportunities we see

after this will also be traps. So we

need to be leaning into these and using

them as checkpoints which I'm going to

show you. And this is how I connect my

road maps. So let's build it out to be a

little bit more realistic. And we're

going to be seeing price action

internally on the bullish way up. Let's

say this is our 5minut time frame inside

of this 1 hour 4hour impulse which is

this light green line. So we can start

to see yes there is internal structure

and I'm going to mark out the swing

points the highs and the lows and I want

to focus on one very clear part which is

this this one right here. So notice

what's happened right here. I marked it

out in blue which was my internal

structure when it is inside of the range

and then when it broke out of the range

I did it in green. What does that mean?

Well we can remember our external high

previously was here. So this was our

previous external high and it got

broken. So where did it get broken from?

I want to focus on the area that led to

the break, which is price came here,

swept this low, and then pushed higher.

That moment where price pushed higher,

breaking the previous ceiling, breaking

the previous external high, and making a

new higher high, and then it continued

on until it established the ultimate

high. But I want to focus on this buy

portion over here. So, this buy portion

over here will be my decision. This is a

high quality point of interest where I'm

going to be looking for buys. So, that

is one objective. and then also the

origination point where the move began

all the way down here. This is where

everything started where my external low

is. This is also going to be a nice

objective. So I know these two

objectives, my decisional point of

interest and I also have my extreme

point of interest. So now I've

identified two prime areas that are

points of interest where I want to be

focusing on buy opportunities. But

notice a few other things where we have

all of these higher lows here. So we had

this area over here. Why am I focusing

on this area? Because technically it's a

higher high. higher low pushes to make a

new higher high internally. So, it

didn't break the external high. It broke

previous internal high, made a new

internal high, made a new internal high.

Okay, external high, internal high,

internal high. So, I want to be focusing

on all of these areas that made new

internal highs. And I'm going to be

doing these in purple boxes like so over

here. So, what does all of this mean?

Why do I have some blue boxes where I've

written decision or extreme? And why do

I have some purple boxes? Because they

all seem the same, right? Each one of

them led to a new internal higher high.

This one led to a higher high. This one

led to a higher high. This one led to a

higher high. So I'm looking at all the

portions where price went up and the

origination of it. I've made a box. I've

made a box. I've made a box. I've made a

box. And I've made a box. So we need to

differentiate and qualify the difference

between lowquality trap zones and

highquality points of interest. Even

though they may seem similar to the

untrained eye, the difference being the

relevance of what they are. This one is

relevant because it's where everything

began. It's the origination point.

Therefore, that is always going to be my

extreme. This is always good. The next

one is going to be my decisional point

of interest. This is the only area.

There's only one of them in a trend that

broke the previous external high. The

previous ceiling was broken by this

impulse over here. And therefore, that's

the decision point between price could

have gone bearish from here because we

were retracing bearish. It could have

kept going bearish and it decided, no,

we're not going to go bearish. We're

going to go bullish. So when we see that

flip that decision point that's our

decisional point of interest everything

else is going to be a trap. Now the

reason we can also qualify trap is how I

use premium and discount. You pull a

Fibonacci from the low to the high from

the low to the high and wherever the 50%

is anywhere above my 50% mark in this

red box is going to be my premium zone.

I'm too high up and therefore I want to

be selling high and buying low. So

therefore this qualifies to me for

another reason why these areas are traps

because these are demand areas. These

are zones that made highs, but they are

in my red box. This is lowquality zone,

so acts as a filter. Now, I'm going to

show you how everything interacts. I've

shown you why I marked them out as I

have. I showed you the filter, which was

the premium and discounts, but I'm going

to show you how it all fits together as

a narrative to build out traps and

understand the real objectives and

trends. Okay, this is where things start

to get a little bit more advanced, but

it's all going to make a lot of sense

when I show you how we build it

together. This is the difference between

getting lost on a multi-time frame

analysis and misunderstanding what the

trend could be versus understanding what

is trap, what is clear, what is trend,

what is trade. When you understand that

framework, it becomes so simple to trade

highquality opportunities because you'll

always be trading the trend. It's just

depending what the objectives are of the

trend. But you can even be in a bearish

trend, but that temporarily becomes the

trend. And therefore, even though it

looks counter trend, it's actually the

protrend scenario. And that's the

paradox. That's where people get

confused and don't take those trades or

take a lot of losses that were

avoidable. So, we know these two over

here, they are above the 50% mark. They

are in my premium. So, these are low

quality and they weren't my decisional

cuz it didn't break structure and it

wasn't my origination point. All of

these areas are only traps if the trend

has broken down. If we are still

bullish, they could still potentially

work. But when I see my signature, which

was this area makes a retracement, fails

to make a higher high, and then goes on

to make a lower low internally. Once I

see that signature, then I know

everything is a trap and therefore the

protrend now is bearish. So therefore,

these buy zones are traps because the

trend now has shown me it is bearish.

Even though overall I am bullish, for

now the short-term, the midterm is going

to be bearish until I arrive to one of

these objectives or the liquidity

objectives which I'm going to show you

in a second. So it becomes very clear

from what we mentioned earlier. I need

to find my signal to show me failure to

make a higher high makes an internal

lower low. Now I've seen two legs of

bearish. First leg, second leg, and I've

established the internal high and the

internal low. So I've got my internal

range. I've got the bearish signature. I

know now the market is in a bearish

trend temporarily until my objectives,

for example, here and here. Therefore,

all of these false points of interest

that were areas of demand. It's a higher

low that did make a higher high. These

are traps for me. Not only because it's

in premium above the 50% but also

because I've seen the sellers objectives

revealed and therefore I know price is

going to bounce from here most likely

but it's going to bounce temporarily.

These are known as smart money traps

where I'll see temporary bounces. Price

is going to show me bullish price

action. And what is that going to tell

most people? Most people are going to

see higher time frame is bullish because

of the 4hour 1 hour trend. Then they're

going to see a higher low to make a

higher high. They're going to see

bullish once again. So they're seeing

bullish higher time frame, bullish

internal and bullish point of interest

and then it rise to that zone and gives

bullish reaction. So what are people

seeing? They're seeing high time frame

trend, high time frame zone, higher time

frame reaction. If I seeing everything

is bullish and they're seeing this trend

line. They're seeing internal price

action, market structure. They're going

to be loading up on buys. But the

reality is this is all a trap. This is

all liquidity. And this is how we use it

to our advantage. When price comes into

this demand area, false demand area,

it's going to show me a bullish reaction

like this. I'm going to be start using

this as liquidity. So, I'm going to mark

it out with a purple dotted line and I'm

going to be waiting for price to come

into my premium. Once again, the same

thing from the high to the low. I wait

for my 50%, I draw a red box to tell me

where is my premium. And therefore, I

want price to come into this red box,

which is my premium of my internal

range. Internal high to internal low is

bearish. I need to come into premium

because I'm looking for sells. and I

need to meet an objective whether it's a

point of interest or liquidity in my

premium that's the two things once I've

got that which I'll show you later on

then this all becomes liquidity and the

flow becomes bearish to make a low in

the market what does that mean this zone

where the buyers got in all got trapped

stop loss here stop loss here stop loss

here those buyers got taken out then

people in this demand area also got

taken out so all of that became a trap

because the sellers are in control they

became the counterparts for that

position and that's exactly how you're

going to be looking for sell

opportunities in this new trend which is

counter trend until when you keep doing

this. You'll keep looking for premium

and you're waiting for point of

interest. You're waiting for liquidity

and you keep trading this trend lower

highs and lower lows until you meet the

new objective which is once again the

same formula. You do your 50% fib and

this time we're going to be looking for

buys. Why? Because the trend is bullish.

I need to wait for price to come into my

discount below the 50% of this overall

move on the 4 hour 1 hour package. When

I get into my green box, I need to wait

for a point of interest or liquidity for

all of these sell areas where people are

going to be seeing, oh, this is a supply

zone. They're going to be seeing all of

these supply zones say, okay, this is

where previous lower high made a lower

low, lower high made a lower low. All of

these areas people will be seeing as

sell zones for the same reason we saw

these areas as buy zones. It's a higher

low that made a higher high in a bullish

trend. For the same reason, people are

going to see bearish trend and they're

going to see lower high, lower low,

lower high, lower low. So therefore, all

these supply zones people are going to

be selling from because it looks like

the trend. These are actually going to

be traps now. So now we use these traps

as we've identified as checkpoints

because we know once price has arrived

to my discount, it's arrived to my

objective inside the green box. It's

arrived to this point of interest. Now

the trend is just like this trend over

here. It was a bullish trend in the

market to make a higher high. Okay, we

have now come to this objective which

was my decisional point of interest and

I'm going to start price to break not

only the internal ranges and all of

these trap areas is going to break the

external high and make a new higher high

on the higher time frame. This therefore

shows me all of these areas where we see

internal structure like we saw internal

structure come to this demand area give

a false bounce and then fail. Same thing

over here price is going to come to this

supply zone give a false bounce and

continue higher. it'll come to the next

supply zone where people think that's

the trend is going to give a false

bounce to get the sellers in and then

take them out. This is how you

constantly find yourself trading points

of interest, trading market structure,

trading the trend, thinking you got it

all figured out, seeing the reaction and

always getting it wrong. This repeated

feeling, this repeated frustration is

only there for one reason. It's not

because of market structure. It's not

because of points of interest. It's

because of context and misunderstanding

the objectives and trend. So when you

clear all of this up, you'll start to

understand how to trade counter trend

effectively because it's going to be

better than trading the trend

exclusively. So we have a lot of

drawings on the screen. Maybe it was a

little bit hard to follow. So I'm going

to show you on price action to help

clear it up. But remember, if you

download the episode companion the full

PDF that I prepared for you is going to

be taking it step by step with different

screenshots on the diagram with full

explanations, but also it's going to be

giving you the chart examples a lot more

easier to digest. If this was a little

bit fast for you, click the link in the

description, download the PDF, and you

should be able to understand it a lot

clearer. Okay, so I'm taking all of this

now. I'm going to break it down to a few

simple things. So, first step was the

4hour 1 hour package. I need to

understand new territory, new trend. We

did that. We found a bullish markets

because we saw higher highs forming from

that. The next step was to find external

high and external low. We did that. Then

we go to the next time frame and and

understand our internal trend M30, M15.

I focused on 15 and I needed my

signature which was failure to make a

higher high, make an internal low low.

Once I've done that, the next step was

internal high, internal low. Next step

done. Once I've done that, I need to

mark out all of the points of interest.

Each one of these higher lows that made

a higher high, higher lows that made a

higher high. And I need to focus on

which ones are my trap zones, which ones

are my quality zones. I did that by

first marking the Fibonacci 50% below my

50% good zones being my extreme and

decisional. So, I found my good ones.

Everything else was a trap. I did it in

purple and after I had my two leg

signature I did the same if the trend

continues bearish. So then we start to

speak about okay if we are in this

bearish signature now what is the

objective when do we keep selling? How

do we know when the sells are done? Well

we know when the cells are done when we

meet the objective. The objective is

going to be either my decisional or my

extreme or a liquidity event in discount

which means it could come and induce

this level. It could come into the point

of interest and induce it. Sweep it and

then go the other way. It could do this

on this area. Gives a trap, gives a

reaction, sweeps it and goes the other

way. Or it could come to the extreme.

Gives a trap, gives a reaction, and then

sweeps, goes the other way. I need to

wait for liquidity. If it doesn't happen

on these zones, so either we liquidate

the decisional or the false points of

interest or the extreme. If I don't

liquidate presence zones, it needs to

engineer liquidity. What is engineered

liquidity? Let me show you cuz this is

where it gets very interesting and

you'll find very high quality

opportunities. Engineered liquidity is

when you see something like this. Price

comes and makes lower highs and lower

lows. And what it does is it uses this

new low as liquidity. So it come in and

maybe it goes higher like this. So

people are going to be seeing bullish.

They're going to be seeing price action

switched. It made a lower high, lower

low, higher high. This is now engineered

a low. Price comes into that low and

then sweeps it and then goes. So it

doesn't need to come to my decisional.

It doesn't need to liquidate my

decisional. Doesn't need to come to my

trap zone. Doesn't need to liquidate. It

doesn't need to come to my extreme or

liquidate it. It needs to engineer a

zone and then liquidate that. These are

my objectives. You have points of

interest as objectives, the two that I

marked. Or you have liquidity as my

objectives. There can be two types.

Previous liquidity zones, for example,

this, this or this, or engineered

liquidity zones, for example, low of

previous day or M15 structural lows.

Engineered liquidity or present

liquidity as an objective or market

structure points of interest as an

objective. These are the only places

price can go to before I switch my bias

and say I'm no longer going to be

selling. I'm looking for buys. That step

is known as the efficiency of the

pullback. That means my complex

pullback, you know, the cell that I was

looking for where I'm seeing lower highs

and lower lows. I'm going to keep

selling the trend which is bearish of

lower highs and lower lows. That is my

trend. That is my friend for now until I

see the efficiency of the pullback which

is decisional or extreme or liquidity

event. Once those things have happened,

only one of them, once that has

happened, I'm going to be all in on

looking for buys because that's my

higher time frame trend on the higher

time frame that we spoke about because

of this high. I wait for my retracement

to my POI or liquidity event and then

look for buys as the trend. And

therefore, that's how you consider

protrend being bullish versus protrend

being bearish. Even though traditionally

it would be mixed, now you have clarity.

Okay, let's take all of this now and

present it on a real life case study, a

real life price action signature, not

something from months ago. The most

recent trade that I took that was

exactly like this. This is GBPUSD. The

most recent read. So, what I can see is

the trend analysis first. The trend

analysis is where is the new territory.

So, the new territory is we had a lower

high that made a lower low arrive to a

higher time frame demand area. Once it

arrived there, the new territory is we

broke structure. We went higher. So now

I've understood we have now completed an

objective which is we had a previous cap

in the market. We broke that cap and

made a new high. Made a higher low made

a higher high. That was my ultimate high

which started to break. Therefore I have

very easily identified my internal

range. The new territory remember step

number one was 4hour time frame new

territory. We found that. Then after

that you mark out your external high

your external low. The bottom part of it

is the external low where it began. The

highest point was the external high.

Very simple. That time frame is done

now. And then usually I'll go to the M15

M30 but on this time frame you can see

it very clearly on the 4 hour. So we can

just stay right here. What I next see is

price goes bearish. So we see a break of

structure first leg. Remember I was

looking for two things to happen. Price

to respect the high over here and we can

see even the details we had trend line

liquidity we induced and then we pushed

lower had a bit of a retracement for the

decisional and then made a low. So we

have now found one complete bearish leg

right here from high to low. Once I have

seen that first bearish leg, remember

this could just continue higher. It

could still continue bullish. But when I

see the signature that it needed, which

is price starts to climb higher, fails

to make a higher high and is on its way

to make a lower low like so. Then I

start to see, okay, we've got clear

objectives now. We're getting one, two,

I'm seeing bearish structure all the

way. So, let's mark it all out. We have

a previous higher low that made a higher

high. This is now failing to make a

higher high, making an internal lower

low. Failing to make a high, making an

internal lower low. So this is the first

signature right here. Fails to make a

high and goes on to make a low. Fails to

make a high, goes on to make a low. Then

we see it once again. It climbs higher,

fails to make a higher high, goes on to

make a new internal lower low. Remember

this is a previous structure point. We

broke it and made a low. Then once

again, it fails to make a higher high

over here. Goes on to make an internal

lower low. Why we got a break of

structure? So you can see it's very

connected and we can see all of these

breaks of structure. Break of structure

in trend number one. Break of structure

in trend number two. Break of structure

in trend number three. So I'm seeing

bearish bearish bearish until when?

Until I reach my objectives. How do I

find my objective? Well, here is very

clear. We only have one which is my

extreme point of interest. I've already

marked it out. That means I can be

looking for sells as the protrend

scenario where we have lower highs and

lower lows. and you keep selling and

selling and selling until you keep

seeing this formation until you arrive

to the objective which is over here.

Once you arrive to this objective, then

you're going to be expecting price to go

bullish. Use all of these as traps and

break the external high to make a new

bullish high based on the 4hour time

frame. So therefore, we have impulse

retracement continuation simple market

structure but you break down the

protrend scenario and then we know for

now our protrend is the sell until we

arrive to our objective. So that's now

the top down analysis done. So, with

that all being said, I can now drop down

to the M15 and focus on the one thing

only, which is my bearish impulse

because I know that's the only thing I

need to focus on where I've gone from

lower high to lower low. So, let's mark

it out. The previous one, this is a

higher low that made a higher high. So,

I've got a zone that led to a break of

structure. The first zone that is a

bearish break of structure, price comes

to the extreme, comes to a supply area,

gives a reaction, and goes on to make

bearish new lower low. So, therefore, I

know my internal range is very simple.

So, this is my previous internal high.

It is respected. It made a lower high.

And that lower high over here went on to

make a lower low. So therefore, my new

internal high becomes over here. And my

internal low is right down here because

this is the lowest part. So I've now got

a trading range and therefore this is my

internal high and internal low range.

And that's all I need to focus on. So

now I can ignore everything on the left

and I have a very clear read. The

protrend is bearish because I know my

objective is to come down to this blue

box, my demand area. So therefore I can

keep selling until I come to my blue

box. to the protrend. Now, even though

the higher time frame was bullish, it's

actually I'm looking for sells. It's

actually bearish because of this

formation I can see. Therefore, my focus

needs to come on either I come to a

point of interest or a liquidity event.

Remember that was the only step. I look

for sells in premium when I have a point

of interest or liquidity event. And

that's very simple now. So, what I need

to focus on is finding my premium from

my high to my low. I now wait for above

the 50%. So, anywhere inside of this red

box can be sells. How do I find

liquidity or I find a supply zone? This

is how I do it. So, right now I've done

it very clean, very simple, which is

just a 4hour supply zone. This last up

candle before bearish price action

became my 4hour extreme. Now, usually

I'd refine this down to M15. I do a lot

of elaborate reads for points of

interest confirmation. Remember, I have

a whole guide on it on this channel

where I spent a full hour breaking down

how to qualify a point of interest. For

now, I'm going to do a very simple just

for the sake of this case study, a

4-hour supply zone. From there, I'm

going to go back to my home, which is

M15. I'm just waiting for price to

either do a liquidity event or come to

my area, and this is where I turn my

personal indicator on where I want to be

seeing the daily cycles. So, now I've

got a full framework, and I have things

very clear. So, what is this trap zone

over here? Let's look left. Remember, we

are in a bearish counter trend. We are

making lower highs and lower lows. This

is my previous lower low. Remember, we

had this high to low, breaker structure,

the supply zones, bearish impulse. This

is a lower low. By definition, a lower

low is not a demand area. This is where

you expect it to be broken. It's an

internal range low. This is liquidity.

This is a target. This is where I expect

price to go. So, price hasn't broken

this yet. It's crept close, but it

hasn't broken. So, if it hasn't broken,

and we're getting a bullish reaction.

This is exactly what a trap is. Price

comes to a false zone. This is a lower

low, not a demand area. People see price

went up, so they're going to be thinking

bullish, but it's not a demand area.

Prices lower low, retracement, lower

low. a simple market structure trading

101. So therefore, if this area is not a

demand area, it's a lower low. This

cannot be a bullish trend line, it can

only be a trap. So what I'm waiting for

is this liquidity to make a trap, buyers

to be loading up over here thinking it's

a bullish scenario and I wait for my

point of interest or my liquidity event

and I look for sells. Why do I look for

sells? Because I've seen bearish. I've

seen bearish and I'm going to see once

again bearish from somewhere until I

come to my objective which is my demand

area down here. It's just a pullback. So

I'm looking for a sell opportunity in my

internal range using traps using points

of interest and using liquidity events.

And lastly using daily cycles. Therefore

I know my read and my target is to

respect this internal high and break

this internal low. So I know my overall

read is price needs to go lower sometime

somewhere. I don't know where from just

yet. And I know this is a trap because

it's just a lower low. Therefore, all of

this bullish higher highs and higher

lows is just a pullback to come into my

premium. And therefore, this all becomes

liquidity. And when I start to read it

on the day of it, now I'm focusing on

the details. I'm focusing on this right

here. So, this right here is not really

a nice point of interest. It doesn't

meet the criteria. So, I mark it out as

a trap. This is somewhere people are

going to be seeing supply zone and

they're going to be seeing a reaction

like such and they're going to be

loading up on sells. So, when I see this

reaction, I'm thinking even better.

People have seen supply zone and then

they're going to be seeing another

supply zone. Why? Because they have what

smart money traders love. They love

equal highs liquidity and then they wait

for that sweep right here. They've now

got an order block. They wait for this

fair value gap and this becomes now a

supply zone for a trader that trades

smart money. I know it's a smart money

trap. This is a real inducement, but

it's a facilitator. It's not a zone that

is going to be respected. It's a

facilitator because it objective was to

bring price lower, but it's not to be

held. So, this is now another smart

money trap. And what happens now? Look

at this. Smart money traders are going

to be loving this once again because

they're seeing more equal highs, more

liquidity, and they're seeing a sweep

now into this said zone. So, if they're

seeing smart money order block with fair

value gap, equal high swept coming into

that same zone, and now it's a New York

kill zone, this is where traders are

going to be getting in. What I need to

focus on is the other side. It's the

objectives. my objective has not been

met and I'm going to be seeing all of

these London lows and all of this trend

line from all of this liquidity. Notice

all of these touches trend line touch.

So we have touch number one, touch

number two, we keep going, touch number

three, touch number four, touch number

five, touch number six, and then it

eventually gets broken. So I know that

this area is a sweep. It's an

inducement. And it's to facilitate what?

is to facilitate price not only coming

to take these highs in my read is to

take all of these highs and come to my

objective which was my supply zone. So

if I now read this out I'm going to be

waiting for that liquidation and we see

it very clearly. Now we saw all of the

zones taken out in one clear move. So

now I've taken all of my objectives and

I can start to say now we have come to

my supply zone on the higher time frame.

We've met my real objective and we've

taken out trap over here and we've taken

out trap over here. Notice how even the

trap it builds a liquidity pool. It

sweeps it. It gives bearish hope. It

gives reactions and takes them out very

clearly. Trap manipulation. Smart money

trap time and time again. And you'll

start to think, okay, this is the real

zone then. No, this is also a smart

money trap because we have to understand

the flow of the market was this. It was

the engineered liquidity to then induce

and this became my real inducement. Now,

so if we zoom out, remember what I told

you. I need to either come to a point of

interest or take engineered liquidity.

So, we've had two things over here.

We've had high of previous day liquidity

pool and smart money signature, smart

money reaction. So we've got smart money

trap and high of previous day liquidity

pool. This is now my engineered

liquidity objective met. So I can say my

first objective was met because of all

of the liquidity plays of this

engineered liquidity of smart money trap

and high of previous state. We have now

achieved that objective. My other

objective was the 4hour supply zone. We

achieved that objective. So I know when

I achieve my two objectives I only

needed one either liquidity which is

previous liquidity or engineered

liquidity or supply zone. In this case I

have both which is why this is a very

nice setup. Then I know all of this

becomes trapped. This trend line becomes

a trap. This smart money zone becomes a

trap and I just need confirmations to

get in because I met my engineered

liquidity and I met my supply zone and I

know I'm with the trend which is lower

high to lower low retracement to my

objectives and make a new lower low all

the way down to my objective over here

from the higher time frame. So it

becomes very very simple now and all I

need to do is once I've had my

objectives is find a way to get in. So I

don't want to just jump into this. I

want confirmation. I have my key time

window. I have inducements uh very

clearly of the smart money trap and I

have point of interest. So I have

everything that I need. The last piece

of the puzzle is execution. So what do I

need to wait for? I need to wait for the

signature which is price does the first

thing. It's a pullback. When I see the

pullback I need to see failure to make a

higher high and make a lower low. This

is exactly what I was waiting for.

Remember how we spoke about it earlier?

We had the objective of price makes a

high, then it makes a pullback, fails to

make a higher high, goes on to make a

lower low. Two legs. So I see that once

again, it fails to make a higher high

and goes on to make a lower low. And

that's exactly what I wanted. Price came

over here, made a high, failed to make a

higher high, and made a internal lower

low. Just like so. So we have the high,

this is respected, fails to make a

higher high. And this previous low, this

part over here has now made a lower low.

We've broken it. So we have the green

tick. Once I have this signature, then I

just need to find a reason to get in.

This is where I can drop down to the one

minute time frame now and look for

confirmation because I've got one leg

bearish, two legs bearish. So, anywhere

inside of here, anywhere above this 50%

even would be ideal. And I just want to

see any form of confirmation and that

could be enough. That could be enough. I

just want to see price came in like so.

I could just need to see a M3 engulfing

after we hit my 50%. There can be many

ways to get in on the one minute time

frame. You can start to read the

structure. For example, we have high

higher high fails to make a lower low,

makes a higher high. Then respects fails

to make a higher high makes an internal

lower low. When we see that switch, we

have one leg, two leg, you could execute

right there. The lower time

confirmation, there's going to be many,

but that could be one example. Protects

the high. So you have a four pip stop

loss. That could be very simple. The

cleanest one or the easiest one, so you

don't need to get complicated, is just

wait for a 3minut engulfing. You wait

for the 3minut engulfing, which is going

to be a larger stop loss, and you cover

the high. I'm giving you worst case

scenarios cuz you didn't know how to do

the lower time frame. It doesn't matter.

We just waited for the cleanest things

which was price did a signature that we

needed which is failed to make a high

high make a lower low. We have now the

bearish leg. Come to the premium which

is just above the 50% and give a 3minut

engulfing. So meaning the last 3minut

candle is taken over by the next 3minut

candle and then you have your targets

one at 1 to three risk reward. So 1 to

three risk reward you take your first

partial break even can be on a shift. So

I'm going to show you like so once

you've seen a shift now let me show you

how to break even. This is a key part

because you want to protect yourself. So

the moment you've seen price shift in

your direction which means broken

structure. So broken structure means we

had impulse retracement. This is the low

now and then it continues. We've had a

shift in our direction. So that shift in

our direction is the break even spot. So

the moment price crosses that dotted

line this is where I'm going to be

breaking even my position meaning

risk-free. And then my partial is going

to be down here. So let's see if it

continues there. And there we get it. So

now I've locked in my 1 to3

risk-to-reward and I can zoom out and

say where am I in the bigger picture in

my bigger picture. I've already taken

out this smart money trap which was

highly expected and I've reached my 1

to3 target and it's probably even

continued a bit further. We're already

at 1 to4. And lastly just to zoom out

you can see very clear my objective was

I made a lower low and I want to go on

and make a new lower low. So I'm with

the trend which is my bearish trend. I

took a counter trend position but I just

understood how to make it my trend and

therefore already we are floating a very

nice high riskreward and these usually I

say hold 1 to three and 1 to 10 but if

you're still new to it just take a

profit I want 1 to three already

floating 1 to 7 you just lock in a 1 to

three that means three are positive

riskreward and because it's pro trend

you can allow it to play a little bit

further but remember in the link in the

description you'll have full explanation

all of the screenshots all of the

diagrams so you can execute on this

exact same setup which repeats time and

time again understanding how to trade

counter to trend. So you're not waiting

around weeks for protrend scenarios.