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.