 Now, let's talk about capture pain relief location trading and this gets into really advanced supply and demand Trading and before I get into it What you have to really understand as well within the forex market and really any market that you're in is That the market is a zero sum game Especially forex anyway for someone to win someone else has to lose and profit is basically Transferred from the loser to the winner. There's always someone on the other side of your trade And there are you know, if you look at your broker something like 80 percent You know of depending on obviously the broker but an average of maybe 80 percent of traders don't you know make any money All right, they legally have to do to I think it's Esma rules or I think it is Esma That they have to publish, you know their statistics every three months So an average 70 to 80 percent don't you know make or they lose money, right? So where do you think that money is going to when you get stopped out your? Your trade or your your your money is is transferred from, you know Loser, which is you to the broker or whoever's on the other side of your trade. So it's not nice It's not You know, it's not really a concept. That's kind of spoken about a really Understood but there are ways to take advantage of losing traders and you know you everybody here Watching this video is my opponent. Yeah, and capture pain relief Location trading takes advantage of your losing mistakes and I'm going to show you exactly how that is that is done right so Also as well before I get into that that we Location CPR location trading we understand the supply and demand equation at areas of supply and demand So what I mean by that is we understand why there is likely to be more supply or more demand at a level price zone Then then the other so why is it likely to be more to demand then supply or why is there more likely to be? More supply orders then demand orders at a level Yeah, and we have four technical trade setups, but I want to get into capture pain relief so When we are trying to understand our opponents Yeah, when I understand I'm understanding what you do. I'm trying to take money from you or take advantage from you Yeah, one of the ways I do that is understanding what you do at levels now There are only three types of traders. There are breakout traders. You might say three types of traders says breakout traders There are retracement traders and There are level traders Yeah There's many different strategies whether you trade Fibonacci pivot points moving averages You know MacDs to castix etc doesn't matter at some, you know point you will use support and resistance Yeah, support and resistance Yeah as confluence yeah within that strategy Yeah, so you'll say prices have come down to a level of support and I've seen you know that the Stochastic is overbought or oversold and then I will see a golfing candle and then I will enter I know all of pretty much all the strategies are pretty traded You know most of them anyway the ones on YouTube before I discovered this and well my mentor taught me this anyways so There are three Main Trading disciplines right so What we need to do is understand what traders do at levels yeah and take advantage when What traders what the mass majority of traders expect to happen when that fails? So one of the Setups is what I know what I called the breakout CPR trade Right, and we're gonna look at this this this area here right right here So as you can see if we look to the left, we've got a clear level which has been touched once twice Yeah, so once twice Yep So when prices come back to here and let's ignore what happens to the right of the chart for now Yeah, up until this point when prices come here and Prices break through yeah with maybe some sort of strong candlestick First of all you're gonna get breakout traders right because breakout traders They're looking for what breakouts they expect prices to continue going to the upside They don't want to wait they want to be the first in yeah And if you're a breakout trader watching this you'll know exactly what I'm talking about Yeah, so you want to see something like a strong candlestick, you know break up a break above close above Which is what everybody teaches online that level is definitely gone now because it's closed above it it means nothing of the sort but That's what breakout traders are convinced minus part of their strategy so Once you get a nice candlestick breakout on a time frame that is you know traded like for example The hourly or four hourly or the daily Breakout traders are getting in so they've now committed Capital yeah with the expectation that prices are going to go higher at this point in time I'm just watching. Yeah, we're just watching as CPR location trading Strategy protagonists we are just watching for the average breakout trader Tracement trader and level trader when their strategy goes against them. Yeah And when prices do something like this and convince traders to enter into a position We know that their money is now in the market. They've pressed buy on their broker Right, press buy on their broker And now They are in now if prices continue go going higher great for them. They've made some money Excellent. That's not my trade. That's not our traders capture pain relief Traders what we're looking for is when this Setup this obvious setup break out traders take when it fails Yeah, so when it goes in their direction and then it collapses on them That's what we're looking for that presents an opportunity and the opportunity presents itself in the form of these traders not being Disciplined yeah, they are not disciplined most traders Right, there's something called loss aversion bias and loss aversion bias basically means Loss feels worse than gains feel good and it's a psychological bias that that that not just traders have people have in general Yeah, and what the effect of that in trading is that those types of traders who suffer from loss aversion bias Do not want to accept, you know the loss. Yeah, they want to They want to avoid the loss at all costs. So what they do is they move Yeah, or remove their stop losses because as prices start to go against them They don't want to accept the loss. So they're stop loss. Yeah, that's top loss Which would have been maybe below the level they start to move it down as prices start to go against them And how many of you out there? Yeah, how many of you out there watching this have done this I've done this I used to do this, you know years ago, but And it's because I don't want to accept the loss and some of you again might be a bit skeptical Well, I I don't move my stop losses. So why would anyone else? So what situations would traders move their stop losses imagine, you know, you've been in a Losing streak for example, right again, how many of you've been in this situation you've been in losing streak Let's say for example, you've lost four in a row, right? You've had a really bad, you know week or month and you've lost four five in a row, which is normal by the way This is normal, right four five losing streak is absolutely normal when it comes to the law of large numbers But let's just say for traders that don't understand that They're tearing their hair out. All right, they need to get back their money and they're in the mode of revenge trading and They need to make money because they saw, you know, someone else making money on YouTube, etc, etc So what happens is is that this next trade becomes all important They have to win it. Yeah, and in fact what traders tend to do is they might double or triple up because they want to get back The money that they lost over the past four or five trades Yeah, and this breakout strategy that they've been using or they want to use You know, it seems to work in back testing, etc And maybe it does maybe it doesn't right but in this occasion It didn't and it doesn't work for them. It doesn't it starts to stop them out And because instead of risk risking maybe two percent on the trade now They've risked five percent on that trade when prices start to go against them. They don't want to realize that loss They don't want to accept that loss. Yeah or five percent Yeah, or whatever this is because they're over leveraged they're trying to make, you know Their money because of the fact that they've lost a couple of, you know trades, which is again, which is normal in trading and Rather than accept the loss they get what? Caught in their positions. They get caught Yeah, because prices start to go in their direction and they've committed and now when prices go against them And they start to move and remove their stop losses. This is Exactly what starts to happen. Yeah, they get caught and this is what we've known as the pain phase the more Prices go against them. This is pain. This is pain for them. Yeah pain pain pain pain so As prices go against them and they remove and remove their stop losses because of their inability to take a loss if price ever comes back up to their original Risk amount for example there is five percent four percent or whatever it is. What do you think these guys are going to do? What would you do ask yourself this question? What would you do in this situation? Yeah You're gonna thank your lucky stars. Yeah, that you're able to get out after seeing your unrealized profit You might have been down maybe 20 percent down here 30 percent 50 percent, etc Yeah, that's where you are or that's where you were Yeah, you're caught in your position and you're feeling the pain you're looking at that This wasn't supposed to happen. You know, I wasn't supposed to risk so much How am I gonna get out of this if prices keep going down you're gonna end up blowing your account? Prices make their way back up Normal response for traders who have been through pain is just for some pain relief Right next best trade other than a winning trade is a small loser or a break-even trade So if prices ever come back up here, what do you think these traders are gonna do? They're gonna exit their trade and if they bought Right, they bought here and the breakout. What do you think? They have to do to exit their trade. They have to Sell sell to exit. Yes by They have to sell to exit sell is what supply Yeah selling is Supply so we know from a technical analysis perspective Supply and demand equation that is gonna be supply here from traders breakout traders who are expecting prices to go higher and now They've gone through the pain phase and now this is the relief phase Yeah, the relief phase here will be supply now if you think that this only applies to Retail traders you are sadly mistaken this happens to all levels of traders and there's a Gentleman that you guys may have heard of or you may not have heard of and his name is Kwaku Adiboli, Brian and He was a UBS trader and he was convicted of illegally trading two billion Right trading away two billion Dollars. Yeah So there's a fascinating interview and I really suggest that you guys watch this I'll leave the link in the description box below. Yeah, and In this he describes In this short clip, right? Maybe on case for the next maybe 20 seconds he actually describes when he gets caught in his position Yeah, and with the banks what they can do is they can add into a position So you see when prices are going down whereas the average trader may just not add in what happened with the review BS is that they were adding in to their trades as prices were going against them But what that did was that's called Martin girl Martin galing in but what happened was is that they martin galed in and Prices never returned. Did they so they compounded their losses that works the banks can do it because they have deep enough pockets But from there's an event when an event when it doesn't come back. Yeah, then they compound Their losses what they're hoping to happen and what they're expecting to happen is there what they'll do is they'll add in Yeah, as prices are going down Yeah, and then when prices start to come back up they're making money From these positions as prices come back up into the level and their original For example trade that they got caught on Yeah, they bought in these in these positions and they flip their positions and you'll hear them talk about it. Yeah, then this Position here they can get out for you know, maybe some sort of break-even or a small loss Yeah But that would still mean that when they're exiting their trade. There is what supply there Yeah, they're still supply but how they make money is by martin galing in if it comes back They have deep enough pockets to do that the average retail trader is not going to do that But let's watch this 15-second clip where Quake who talks about exactly how you know when he was when they were caught I Must be wrong and I flip my positions go along with the house for you on the day that we do that July the 1st the market starts to crash and we just panic lose control and As the market crashes up to 40% in some of the markets we were trading We just bought more and more and more as it's going down as it's going down buying this stuff Yeah, because because the idea is that well just hold or buy more because when it bounces then you make the money back How do you hold those positions? Well using the umbrella, you know So there you go. He explains it right there. Yeah, I Think was the first of July. He says, you know, he takes positions the market goes against them Yeah, the market goes against him as he's taken his positions and Then they add in but in his case price just did not come back Yeah, did not come back. But if it had have come back They would have basically been through the capture pain relief trading process So also just to understand the supply and demand equation at a level and I'll wrap this up in a sec is you also have traders Right, not only do you have the CPR traders here? So these guys are exiting so there's supply there then You have traders who maybe have bought down here Yeah And if you buy down here, where are you going to take profit? You'll take profit somewhere around support So resistance resistance Resistance somewhere around here So that if you're taking profit you're buying here You're gonna have to do what to exit sell to take profit Supply then you also have new traders brand new traders who enter the market every day every week And they're looking at a level there a level there and that should become what resistance so That becomes resistance. They're gonna be entering new trades supply Yeah sell trades is supply so within this whole area There should be potentially more supply than demand Who's buying at highs? Yeah, the only reason why you'd be buying at the high would be if you believe fundamentally that this is an absolute bargain at this price Yeah, so fundamentals trump the technicals, but from a technical perspective And we're looking at the supply and demand equation at zones. This is where You should have more supply Yeah orders then demand because again who is Buying at a level of resistance. That's not what's taught technically in a buyer resistance. No one buys a resistance They sell it resistance these guys we know Psychologically and I'm taking advantage because I know that every day every week Right there are traders that are caught in positions and I'm gonna add to the supply and demand equation at this level With that being said Capture pain relief location trading is incorporated into the supply and demand method of trading so the fourth and final step in my process is stop-hunt trading and We have to understand how large financial institutions trade and I want to profit along with the banks because it's their game at the end of the day something like 10 major financial institutions have a market share of Around something like 50 60 percent of the forex market. Yeah, they're the ones. They are the ones that create Price action, they're not buying based off of you know demand or supply in a sense that They're looking at technical analysis. They are the ones that are creating the technical analysis They're the ones that are creating the demand zones They're the ones that are creating the price action the pin bars the engulfing because what are they trading off of if they're creating? That price action then they can't be looking at technicals to make decisions They're looking at something else which again goes back to fundamentals and risk sentiment That's what they're looking at and then they decide what price is a bargain and then what we do as stop-hunt traders And supply and demand traders is understand, you know manipulations Value and then we look to Capitalize and see the telltale signs from the banks and it's not again No, you know terrible conspiracy why stop-hunt trading happens It happens because of iceberg orders slippage and the liquidity relationship which I explain that these things have to happen and if you guys know about for example the accumulation and distribution phase of the of how banks have to Have to trade then You'll understand that The banks can't trade how we trade. Yeah, they cannot trade how the average retail trader trades And it's because let's say for example, they want to be a buyer of The again, I'll just use the same currency pair dollar Swiss. Yeah, it'll be about the Swiss and they have for example a billion 1 billion Pounds or dollars worth that they want to buy At a certain exchange rate, right because remember this is price is important in a sense that we need to understand Value Potential value. Yeah, so this is price on this axis now This 1 billion dollars and we don't know how much for example that they are buying but they're buying in mass quantities If they're looking at value They can't just press buy and then fill This order all in all at one price point. Yeah, because there may not be enough Sell orders because if they look into buy there needs to be what sell orders. They need to be in Like at least 1 billion And it needs to be able to fill 1 billion's worth at whatever price point and price points They want to get involved in so what they do is they Split their order up. Yeah, and what is known as iceberg orders is iceberg orders And if you look on investopedia Type in iceberg orders and it explains exactly what iceberg orders on what is is basically just a case of they have to split It's 1 billion Pounds up into smaller pieces. So for example, they might have to put, you know 10 million here right at that price point. They might have to buy, you know, 20 million here Yeah, this price is maybe coming down At this price point they might buy 30 million here. Yeah, and however long it takes for them To buy Yeah, these are all millions of orders to then fill their one billion dollar order, you know one billion pound order Yeah Is how long it takes now? We don't know, right? But what we do know if we understand fundamentals and if we understand fundamentals and we're trading on the same side as the financial institutions then They are going to be Manipulating the market potentially in a direction that we want to be trading in so for example, we want to be buying dollars so What better place to buy What better place to buy than below market value? So if Prices are creating this range The average retail trader who trades levels and wants to buy at certain areas for example here and Here, what do you think these guys are doing? This is this is an obvious level for all, you know traders to be trading right and if they're buying Where are the sell orders because remember The financial institutions are searching for sell orders in order to Facilitate their buying they need the liquidity Yeah to avoid slippage basically meaning that if they if slippage is where they was to fill their 100 So one billion and if there's not enough liquidity then they may fill some of their one billion pound order Might get filled here some of them I get filled here some of it might get filled here And they're gonna end up moving the market and buying at disadvantageous prices They don't want to do that. They want to buy at the cheapest price possible. So If retail traders are buying at obvious levels of support support Yeah, most you know most retail traders believe that support the more times the level is is touched the stronger It becomes yeah, which is nonsense If they're buying where are their sell orders, right all the sell orders are accumulated below the market Yeah, so For banks, they are searching for sell orders They need to they need to buy in the face of selling so when prices are coming down This is exactly what they're doing. They're taking the opposite side of Traders positions because traders for the price. Yeah, so they're selling selling getting short You have people on the other side of the banks and financial institutions now if there's an accumulation of By orders from traders who trade obvious price action and technical analysis Sell orders, which is what they need and it's at a much cheaper price than what they were buying up here Yeah, that's what they're that's what they're searching for because they need to fill Their boots so what they will do is they will manipulate the market in order to trigger these Stop losses sell orders and once they are triggered they are allowed to then buy an Absolute bargain price. This is the price that they can buy and fill the rest of their Their iceberg order. Yeah, which has been broken down So stop losses are here from retail traders accumulated. They trigger it Stopping these traders out Also that allows them to do what more buying Yeah, when prices come down because at the same time as they trigger the stop losses And the zero some game is in effect. What do you think is happening around here? and in this area Breakout traders are getting in break out traders doing what they're selling selling around here and That's it and as they're selling that allows the financial institutions You understand that they want to be buyers of dollars to do what buy and take the opposite position of The retail trader because they follow price and the banks follow Value yeah, and there are many many many different stop hunts That occur beyond levels and below and above levels of obvious support and resistance Yeah, but this is just one of the setups, you know that I teach and there's a There's a stop hunt candlestick a specific stop hunt candlestick Entry that we look for within this context that allows us to take advantage of the The stop hunt because what we want is the central bank Confluence, you know, that's what we're looking for because we've done our fundamental analysis research. We've done our risk off and risk on research and So of the banks and they understand value and so do we right? We're not following price you know, we're trying to take advantage of the Supply and demand equation and the iceberg orders and manipulations at levels and once we see certain things happen in and around that area there Yeah, that lower area Around here This is where we're looking to take advantage and trade along with the financial Institutions and these stop hunts happen more often than then you think and it happened on all time frames as well So we have three main stop hunt technical Set up entries around this area and what it looks like etc. And what we're looking for to trade alongside the financial institutions so to wrap up We focus on the process always the process First of all stage one. I look at fundamental and sentiment analysis The spreadsheet. Yeah for my forex pair selection and directional bias Number two what I do is I look for supply and demand zones Technical analysis daily and weekly time frames to identify potential value on a price chart Three I look for capture pain relief location Zones right to understand the zero sum game and the supply and demand equation at a price zone and within supply and demand zones and then I will also look for stop hunt trading bank manipulation Confluence of round areas of supply and demand and everything if you notice everything is tied Within, you know the supply and demand Ethos, it's not just okay. You know learning a strategy in five minutes about Valley based drop drop base Valley We are in a market where 80% of traders lose money Right not to mention necessarily break even if you think that you know A Simple technical analysis is going to work and maybe it will make it maybe it won't but if it doesn't work for you And it never worked for me Then maybe you might want to try and go a bit deeper and understand more advanced trading strategies like this. Yeah, and This gives you not only an edge from a fundamental perspective Gives you an edge from a technical analysis perspective from a psychological perspective and from a market manipulation Perspective so we've got pretty much all bases covered and this is my focus On the process and this is my four-step process and this is what I do We can week out. So I hope you have Enjoyed this and I hope you actually have learned something You know, it's not just a again a simple supply and demand strategy if you stuck and stuck to the end By the way, if you stuck to the end, you're probably, you know, maybe again, maybe 20% of people that do stick to the end of videos The other 80% who probably dropped off somewhere are going to continue going around and around chasing it tells an insane Circle unfortunately, but if you are here Well done to you. If you have any questions, please email me at info at trading 180.com and I look forward to your questions or leave a comment in the section box below. Take care guys and Until the next video speak to you soon