[00:00] Hello, welcome back to the PGA Trades Review Series, and I just want to say, it's Nixon 6, baby. We are pumped up for tonight's game, but we're even more pumped up for this absolute banger
[00:12] trade that we took during the New York AM session. If you see behind me, the PGA Trades sign is missing. I just want to give you guys an update on what's going on in me and Steph's life right now. It's been pretty hectic.
[00:25] We moved down here to North Carolina in January into a townhome. I had somebody custom build everything that you see behind me for my office space. But we knew that we wanted to get into an actual home with land and space.
[00:39] Well, we found our dream home, guys, and we are moving tomorrow. It's been a whirlwind couple of weeks for us with the closing process, inspections and stuff like that. But we have still been trading with a group,
[00:51] trying to bring as much value as possible during a crazy time of my life right now. We've got a baby due in August. We're moving into a new house. I'm managing the largest trading discord in the world. It's a lot, but I'm always trying to get on here, guys, and give you guys
[01:05] free sauce. This trade review is sponsored by Tostitos, the chip company. I don't want to yap anymore. It's time to show you guys today's insane trade that we took on the nasty NASDAQ.
[01:18] Let's get on into it. All right. So here it is, chat. Here it is. You might have seen it already on social media, but I want to break down exactly why I did what I did today and the structure that was signaling that this market was ready to turn over is really the most
[01:35] obvious piece to the puzzle. I'm going to delete all of this, and I'm going to work through exactly what we saw during this session today, because there are some key factors, and maybe you might have missed
[01:50] in your own trading. And I'm going to go ahead and break down for you guys on this trade review. The first thing I'd like to bring to your attention, something that's valuable to understand, this market puts in a clean breaker block formation down here, right?
[02:02] I've teached this on the channel multiple times just for review purposes. The market makes a low, a high, a new lower low, and a new higher high, creating a breaker block formation.
[02:14] Now, we didn't take long today. PJ, why are you talking about breaker block formation? Well, to be honest with you, if you knew this was a breaker block formation, you wouldn't be looking for shorts just yet. You would know that, hmm, maybe the market wants to come back down, tag that breaker block formation, go much higher, sweep liquidity out, and then I can look for a short up in the four-hour fair value gap.
[02:40] Now, that is exactly why I talked to you guys about that breaker block right there. If you know that pattern and how that pattern normally delivers price, you would not be seeking a short yet.
[02:53] That's why it's so key. I'm not just showing you this to tell you it's a breaker block formation. I'm showing it to tell you if you see a breaker block formation you should probably let it deliver first to where it wants to go and then look for the next trading opportunity That breaker delivers all the way up to Asia in a buy draw And what do we get from that 15 breaker block formation to the upside
[03:19] A move into a massive, and I mean massive, four-hour fair value gap, right? Four-hour bearish fair value gap right here.
[03:31] and now at this point we are looking to take a trade out of this four-hour pro-value gap, right? So this is where the key to the puzzle really starts to happen. The market starts to reject off of these two highs here,
[03:43] the Asian buy side liquidity, and we start to see a decent rotation off of that zone. Guys, this is why your fair value gaps being drawn on a chart are so important. Some of you are watching this video right now,
[03:55] and you probably didn't have that four-hour fair value gap on your chart. you had no idea that you were actually inside of a high resistance liquidity zone, which means there are a ton of bears present in that area,
[04:07] and you should be waiting to see how price reacts there. Just having that on the chart is going to give you that information. So we sweep these two liquidity pools right here into a four-hour fair value gap.
[04:19] Now we're going to start dialing in our trade setup. So full disclosure, as always, I'm always going to get you guys straight. I took two trades on this opportunity here today.
[04:31] One trade got manipulated and hit my stop loss, and the second trade went all the way to full TP and even farther below that for some of the members in the group. But what I want to start talking to you about in this structure right here
[04:45] is some key elements to the checklist of PVH trading. Right now, if you look at structure on the one-minute timeframe, we are building up what I like to call trendline liquidity.
[04:57] Okay, this is trendline liquidity. Whenever I see the market start to build up this slow trendline liquidity to the upside, but not have enough volume to really get higher here, right,
[05:10] you've got to start considering the options that this market may want to start to sell off, break that trendline liquidity, and go lower from here. So, trendline liquidity is built up.
[05:23] We're in a four-hour bearish-for-value gap, okay? Now, here is where I take trade number one. Yeah, here is where I take trade number one. Let me just play this out here. Yeah, so here is where I take trade number one.
[05:36] We get this one-minute inversion for a die gap here. I do take a front-run entry somewhere around here, okay? And my stop is at the swing high, very large stop. But we are sizing accordingly because, honestly, stops all week have been wide.
[05:49] But I'm not going to try to hesitate on a trade setup just because the stop is wide because the RR on this trade is very, very, very healthy, right? We could take this trade all the way down into here for a clean 1 to 3.56 R trade, okay?
[06:04] Now, here's what happens. Market has other ideas stops me out right there and I get stopped out of that trade Now I have to regroup right I have traded for many years and I on the first trade a losing trade on a session I have made very bad decisions Over the years
[06:25] I've gotten so much better at decision making. Younger PJ might have got stopped out of this trade and immediately tried to take a long, okay? And I would have got wrecked doing so. But educated, seasoned trader PJ
[06:40] now is going to take that stop loss right there and learn something from it. Because here's what happened next, and this is what real trading looks like, guys. I don't care how many people you follow on social media,
[06:54] they are not all taking one and done trades every single day. There are multiple times where you might need to take two stabs at an idea to get the full delivery. So I get stopped out here. I'm going to go ahead and delete this.
[07:07] I'm going to go ahead and delete that yellow fair value gap. I get stopped out here, okay? But as I get stopped out, I switch over to the S&P 500 to see what the S&P 500 is doing.
[07:20] And I notice that the S&P 500, right in this moment, has created a bearish SMT, okay? A bearish SMT. Now, the first trade, I had probably four out of the five elements of my checklist going off here.
[07:37] I was delivering out of a four-hour fair value gap. I had an inversion. I had VTH structure. I had trendline liquidity. And I had a draw on liquidity, correct? Now, the second trade comes.
[07:50] And I find all of the same stuff I had in the first trade. Okay, I'm going to delete the first trade now. But now I have an added bearish SMT at the top. I now truly have an A plus button trade idea.
[08:05] And what do we do with it, chat? We react. We get a bearish SMT out of that zone again. Okay. We can see ES is failing here, showcasing that we may want to go lower.
[08:17] We lean on that information off of the S&P 500. We get an inversion right here. Okay. We get an inversion right here. we take entry right here nice little front run a lot of meat on the bone for this trade and I can
[08:33] target a clean one to two point two three RR trade down at the low or swing it all the way down to here now full disclosure in this trade idea I take this trade fully at 135 points well first of all
[08:47] let me show you the trade here's what happens inversion right clean entry starting to break out of the trend line liquidity here, right? We're starting to break our trend line liquidity here. We snap it and we are off to the races from here. Now, I am pulling out at 135 because that secures
[09:04] me a very green day after losing the first trade, okay? The second trade, I do scale into because I like this a lot now. Once the bearish SMT prints, I am scaling in to pretty much full size of the
[09:18] trade that I normally would take The first trade was sized down The second trade is full size scaling in once we break the trendline liquidity That a whole art in itself That another video completely by itself scaling in Now we take that trade It goes 135 points and I
[09:34] pulling out for a $2,000 day, but it doesn't end there. As we are watching this trade play out, this is looking really good for downside. Members are getting the live comms inside of our premium community, and this turns into one of the biggest trades that Discord has ever seen.
[09:49] a massive, and I mean massive, 500 point short to the downside, guys. This trade had everything that you would want to see from my checklist. And I'm going to go over it really quick to end the video.
[10:06] This is a checklist really quick so you guys understand, PJ, why did you take this trade? Okay, let's break it down. Higher timeframe first, guys. Four-hour bearish sediment, okay? We pull up into two major liquidity pools and internal PDR, internal bearish PDR right here,
[10:22] four hour gap. Okay. That's a bunch of the checklists already off, right? Liquidity swept, PDR sweep, right? Now we are shifting down to the lower timeframe. Okay. We get an SMT print right here, right?
[10:36] Checklist print, check. We get a nice V-shape recovery, check. We get an inversion, check. We're in the trade. We have trendline liquidity to draw into. I have external lows to get trades off at.
[10:50] I've got all of this trendline liquidity to take profit at. It's a healthy-looking trade, and it makes total sense to take the second stab at it, and it delivers all of the goods. Guys, this is what trading looks like.
[11:03] We might get stopped out on one trade. We manage our risk, and we get right back in on trend, and we take the full delivery right there for an A plus plus internal to external
[11:15] bearish trade setup, guys. I've shown this model on the channel a million times, and it just played out again for you guys to see in real time. Let me just show you that, visualize that really quick.
[11:27] External, right, we create the internal PDR, the internal bearish PDR, We pull back into said internal PDR and we deliver towards the external draw on liquidity, which is all the way down here at this swing low.
[11:41] And eventually, for people that were actually paying attention, the data wick low from the 830 CPI print this morning. Go back to your charts and look at that one. We took the data wick high, which is right here, but we sneakily left that 830 low.
[11:57] And as you can see, we sweep that low. We get a nice little reaction off that data with low. And then the rest of the session, I believe, this ends up chopping sideways. So that was the move of the day. There wasn't really much after that for the rest of the session.
[12:10] It was pretty much chop suey. What a fantastic trade, guys. And I hope you guys are getting better at identifying these A-plus setups. Leave me a comment if you spotted this one, if you caught this one, if you made money on this one. I'd love to see you guys winning.
[12:22] And I'll see you guys in the next PGA Trades Review series. Go Knicks. Thank you.