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Advanced MMXM Logic: Continuations — Transcript

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0:02[music]
0:05>> Um, we have defined so far swing
0:07formations, guys, in context of these
0:09market maker models. And we said that
0:12the reversal occurs where? So, I'm going
0:15to We're going to go interactive back
0:17and forth just to check your knowledge,
0:19right? Check your understanding.
0:21To Mr. V's model next. Yeah. He did some
0:24crazy YouTube video with like a whole
0:25bunch of streamers. I was watching it.
0:27Key level, what is going to be that key
0:29level?
0:37Swings or gaps, right? ERL or IRL,
0:40right? And if we're talking about the
0:41daily range, yes, right? The 4-hour gap
0:44or 1-hour order pair range. Okay, cool.
0:46So, swing extremes are what we've gotten
0:48really proficient at identifying. These
0:51C2 candles. And we use cracks in
0:53correlation as your first filter to
0:56define a swing formation. So, when we
0:59have key levels that we're looking to
1:01trade reversals from with higher time
1:03frame sponsorship, we then go and use
1:06things like cracks in correlation and
1:08candle profiles, open high low close,
1:12protraction profiles to get on side
1:15these universal models, right? So, the
1:17order of operations is always expansion
1:20requires a swing, which is a candle two
1:22candle three formation. Swing formations
1:25are these market maker models that
1:27you've learned about, which are forms of
1:29liquidity. And when we identify swings,
1:32we
1:33filter them with cracks in correlation
1:35and candle profiles. Now, we're going to
1:37get into this next part, which is
1:39trading away from these true reversals.
1:43So, once we identify areas of extreme in
1:46market maker models, meaning the smart
1:49money reversal, right? We now want to
1:51look at how we can trade away from those
1:53established swing points towards the
1:55opposing side of the draw. So, before we
1:58get into today's lecture, I have two
2:00more qualifying questions.
2:02Okay. What types of candle closures can
2:06be reversal candles? So, if we don't
2:09trade reversal, but instead look to wait
2:12and see reversal being confirmed by a
2:14candle closure, what types of closures
2:17do we typically see? What What are the
2:18three types?
2:25Who knows?
2:27Right? So, we're not trading that C2,
2:30right? That swing extreme. We're now
2:31looking to trade away from it. What are
2:34we How are we going to confirm that we
2:35have a
2:37a swing formation without trading that
2:39reversal candle?
2:46Well, this this is your first lecture,
2:48right? What What do we learn about? It's
2:49It's candle It's candle two formations,
2:51right? There's C3 closures, C2 reversal
2:54expansions, and C2 reversal candles,
2:56right? So, characteristically,
2:59right? What I'm trying to emphasize at
3:01this point, guys, is that whether or not
3:04we have a true reversal at a swing
3:07formation when trading continuation is
3:09rather irrelevant. So, if we have a
3:14two-stage crack and correlation paired
3:17with a key level at this C2 extreme up
3:20in here, what does that become? What
3:22What word do we use for this reversal
3:24candle? What is this called?
3:26When it's a two-stage crack and
3:27correlation in the key level followed by
3:30that candle closure, what do we call
3:31that?
3:33Yeah, it's a C2 reversal, but it's also
3:34a true reversal, right? That is where we
3:37have the appropriate cracks in
3:39correlation, right? To say this candle's
3:41high should be intact before what?
3:45We can only say true reversal when a
3:47candle's higher or low is going to stay
3:48intact before what?
3:53Before it closes, right?
3:55Think about trading reversals. Reversals
3:57really require you to establish a swing
4:00point before the candle closes. Does
4:02that make sense? Do we all agree with
4:03that?
4:05When you're trading a reversal, has the
4:07higher time frame swing point closed as
4:09a reversal candle yet?
4:12No, right? It's still printing. So, we
4:15utilize our filters,
4:18right? So,
4:19we utilize
4:21our filters, which are cracks in
4:24correlation,
4:25key level,
4:27and candle profile
4:29to trade the reversal candle
4:33as
4:36it prints
4:39before it confirms the swing via
4:42closure.
4:44This is the key caveat of trading
4:47reversals. Is that we are assuming that
4:51this high is going to stay in place.
4:53Now, once this candle closes, a swing
4:56point is confirmed, okay? And the logic
5:00we're going to utilize for trading
5:02continuations is going to extensively
5:04rely on the idea that a swing point is
5:08confirmed here, okay? So, once we
5:11confirm a swing here like this,
5:14with this candle two closure,
5:18once this is confirmed, right?
5:20We don't need to have the same necessary
5:24confluences to trade away from that
5:27swing point. And this is where we're
5:28going to talk about the idea of cracks
5:31in correlation and using it as a
5:33function, right? Of swing profiling. And
5:36I know this might sound complex, but
5:37it's it's really really logical. When we
5:40have less information about a candle,
5:42right? Meaning when it's forming an
5:44extreme, what do you guys think? Do we
5:46require more or less
5:48confluences to say that's the high if we
5:50have not closed the candle yet?
5:53More, right? Simply because the candle
5:57closure itself is a mechanical reversal.
6:00Meaning in all cases, once this candle
6:02closes, you can say that this is a C2
6:04candle. Now, what are the instances,
6:07guys, where a C2 candle ends up doing
6:09something like this? It prints an
6:11intra-candle high, but then eventually
6:13ends up creating a new high. Have you
6:15guys seen that happen before?
6:21Yes. And that is typically when
6:24reversals fail because they lack the
6:26necessary confluences for us to trade
6:29away from them. What our eye draws to
6:32for the for this lecture today, guys, is
6:35this candle, okay? And any candles
6:38thereafter until what? We frame
6:40continuation until what is hit?
6:47The draw. Let's use even more specific
6:49words. The draw is what in the case of
6:53liquidity imbalance theory,
6:56right?
6:57The universal model has two types of
6:59liquidity. What are those two types of
7:01liquidity?
7:05Yes. So, what is that second word in
7:08both of those variants of liquidity?
7:13What is the second word in ERL and IRL?
7:18Nope.
7:19It's not internal relevant
7:22low or high.
7:24It's range. So, when we are trading
7:26continuation, we frame continuation
7:29until what is met?
7:31The opposing side of the range. It's
7:35always a range.
7:38It is always
7:42a range.
7:43Always.
7:46Whole, I cannot spell, guys.
7:49Okay? So, when we trade continuation, we
7:52trade continuation away from one side of
7:56the range towards the opposing side of
8:00the range. The language we use is very
8:01important here. Because
8:04if this is not the opposing side of the
8:06range down here, but instead we have
8:07another candle, and this is just a
8:09short-term low, is this the draw on
8:11liquidity?
8:12Or is the real draw on liquidity the
8:14opposing side of the range here?
8:19Where is the draw on liquidity? Here or
8:21the opposing side of the range?
8:25Yes. And what determines
8:29We're moving or moving a bit ahead, but
8:30this is coming in the future. What
8:32determines if I'm going to call this low
8:35the relevant swing or some low below it
8:39the relevant swing? What What determines
8:42that that? So, what determines what the
8:44opposing side of the range is?
8:47There's one good word. It starts with
8:49the word P.
8:51Proximity, yep. This is where you'll see
8:53me say the word proximity matters,
8:55right? In trading.
8:56The spacing in between swing points is
8:59what makes them ranges. I'll say it
9:01again. The space between swing points is
9:05what establishes ranges. One more time.
9:07The space between swing points is what a
9:09range is. That's what a range is. Or
9:11else the market wouldn't have ranges.
9:13We'd just have price action. Okay? The
9:16reason why we have ranges is because the
9:19spacing between swing formations
9:24is relevant. That means that because
9:28proximity here is sufficiently large,
9:31this swing, if it is manipulated, can
9:34see a reaction to the other what? What
9:36would this be called here?
9:38The
9:40opposing side of the range, right?
9:44This is why we call
9:47manipulation ranges order paired ranges.
9:50They're You're order pairing levels
9:52always in the market. And this This
9:55might seem trivial to think about, but
9:57it is exactly how we view, right, swing
10:00formations as ranges. And uh again,
10:04it's not random when we say stuff like
10:06this, okay? And the reason why I spend
10:07time em- emphasizing this theory is
10:09because, look,
10:12right? Swing formations are market maker
10:14models.
10:16Right? And that's a very important
10:18concept because these market maker
10:19models are ranges, internal and external
10:22ranges, okay?
10:25And we can trade candles away from
10:28extremes towards opposing side of ranges
10:31using the sequences I'm going to teach
10:33you today. So, that is our logic, okay?
10:35Is everyone understanding how we're
10:36building from the previous lecture
10:37content now into continuation? Or are
10:40there any questions about this core
10:42logic?
10:50Yes. Yes.
10:52No major questions?
10:53Okay, good. That's very important. We
10:55need to understand that this core logic
10:57in order for us to move forward, or else
10:59it becomes very difficult, right, as we
11:01get into some of the nuances, right?
11:03These nuances or filters are all going
11:05to be based on the fundamental model.
11:07Okay, perfect. Let's keep going, guys.
11:09So, I'm glad you guys understand that. I
11:11I spend time emphasizing that for a
11:12reason. So, let's take a look at the
11:15first, right, component of our logic,
11:18which is the universal model, also known
11:21as IRL and IRO. And let's look at where
11:23continuations are framed within this.
11:26So, in any higher time frame, right,
11:29order paired range, whether you're going
11:31from internal to external, external to
11:33external, right, external to internal as
11:36a retracement, we're going to be forming
11:38these swings.
11:39And uh on the lower time frame, you're
11:41going to always see a C2 C3 definition,
11:45right? Now, C1 is always going to be
11:49defined as the candle range that is
11:52manipulated.
11:53Okay, this is why there's a there's a
11:55there's a type of trading called candle
11:56range theory. It's talking about
11:58manipulation of a key level. Now, what
12:00is critical about candle one? What does
12:04it have to be in relation to based on
12:06the universal model and this framework
12:07I've given you? So, as opposed to
12:09trading, you know, candle range theory,
12:11which randomly looks at every single C1
12:13C2 C3, what filter is very critical for
12:16our analysis?
12:21What do we use that gives our candle
12:24range theory real logic behind it? Yeah,
12:26key levels, right? Yes. And those key
12:28levels are gaps or swings, okay? We're
12:31not looking at candle 1 2 3 formations
12:33anywhere. That's quite simply just
12:36asinine. That's not how that's not how
12:37markets book price, right? It wouldn't
12:39make sense for markets to do that. They
12:40need to be in context of a relevant
12:42level for a swing to form, or else a
12:44swing won't form there, or it will form
12:46and it will be traded against, right?
12:49Every true swing formation delivers the
12:51opposing side of the range. Every false
12:54swing formation, right, fails to do
12:56that. Simple as that. We want to trade
12:58the true swing formations. I'll say it
13:00again, every true swing formation will
13:03deliver the other side of the range
13:05because that is liquidity imbalance
13:06theory. An opposing side of range must
13:09be delivered from the key level if it's
13:11a real swing formation, or else it's
13:12going to look like this. And you guys
13:13have seen it all the time, right?
13:17And then we'll do like this, right?
13:19We'll end up forming this fake swing,
13:21we'll end up liquidating it, and then
13:22we'll deliver the other side of the
13:23range, but the true swing will always
13:26deliver the opposing side of the range.
13:28And that is very powerful logic because
13:30we're going to be filtering via key
13:31level, cracks in correlation, all that
13:34good stuff. You guys at this point are
13:36sufficiently, right,
13:38good, or I would say you guys are quite
13:40honestly experts at filtering this
13:42candle. So, again, we're going to be
13:44doing active recall checks.
13:46What
13:48elements of a C2 candle do you guys use
13:51to filter it? To define it as a true
13:53swing formation. Give me several.
13:57Write write these several in the chat
13:58that you you've learned from me to
14:00utilize.
14:05Key level, absolutely.
14:08V-shape, absolutely. Two-stage cracks in
14:11correlation, yes. We haven't talked
14:12about string switching yet, but that's
14:14something as well. What about What about
14:16the type of uh
14:18What about the two components of a
14:20candle, these axial components, which is
14:22going to be time and price?
14:24Right, gaps, yes. Displacement, small
14:27wick, yes. Open high low close or open
14:30low high close confirmed by wick size,
14:32absolutely. So, you guys are very good
14:35at filtering candle twos. Now, we're
14:37going to be using a similar logic,
14:39right, for candle three. However, I'm
14:41going to convince you of an equation
14:43shortly as to why candle three is uh
14:47requires less confluence and why we look
14:50for it to form in specific areas. So,
14:52we're going to get into that next.
14:54Okay? This is an example of a universal
14:57model fractalized
14:59utilizing candle one, two, and three
15:01logic. So, for every higher time frame
15:04swing formation, we are going to have
15:06What is this called in here to the
15:07right? What is this called, guys?
15:12Okay, why is my pen not working?
15:16Oh, my pen's broken. That sucks.
15:19This is a market maker model, yes, which
15:21involves areas of reversal,
15:24reaccumulation,
15:25and liquidation of an original
15:28consolidation. My question for you is
15:30what phase of market maker models is
15:33candle two, and what phase of market
15:35maker models are candle threes?
15:38Or candle fours?
15:47C2 is reversal, C3 is continuation, yes.
15:51Now, can we have the case where
15:54continuation also happens within the
15:56reversal candle on a lower time frame?
16:01Ab- absolutely. What types of candles
16:04are those called? What type of candle
16:06closure is that as a reversal candle
16:07called?
16:09Where the reversal candle both reverses
16:10and then ex- exactly. It's in the name,
16:13guys. It reverses and expands, right?
16:16Both phases of price from redistribution
16:19and uh reversal occur within one candle,
16:22which is why we call it a C2 reversal
16:24into expansion. Expansion is
16:27continuation. Okay? Reversal is
16:30expansion with expansion creating wicks.
16:32So, sometimes you'll get exaggerated
16:33candles that both involve a reversal
16:36phase and an expansion away from that
16:38reversal, typically defined by your, you
16:40know, intra-candle CSDs and and whatnot.
16:43We've talked about this, right? You guys
16:44are experts at this so far. Okay, you're
16:46you're starting to piece together some
16:47of this logic.
16:49Right?
16:50Part one re-tapping. Okay, we're going
16:51to just recap what defines a true
16:53reversal. I I don't think I need to ask
16:55this again seeing that we've done it
16:56like 10 times, but humor me. What What
16:59defines a true reversal, guys?
17:04Cuz again, I I I can't really move
17:06forward until you guys understand this
17:09better than anybody else.
17:14Two-stage CIC.
17:16Key level.
17:18Appropriate wick size, right? And
17:21displacement. Okay.
17:23You guys understand this better than
17:24anybody else in our space, as you
17:27should. This is entirely mechanical,
17:30right? Most people use subjectivity to
17:33define reversals, you no longer do that.
17:35So, once you identify the reversal, your
17:38job is now to understand how to trade
17:40this candle in continuation. Now, at
17:42this point, I want to step back and ask
17:44you another question.
17:46If we do not see the relevant true
17:50reversal signature at candle two's
17:53extreme,
17:55and it closes as a mechanical reversal
17:58candle, can we still trade continuation
18:01away from candle two's low?
18:04And this is really the power of what
18:06you're learning.
18:11Yes.
18:13Because once we confirm a swing as a
18:17mechanical closure,
18:20what do we print in the range of candle
18:23two?
18:24What do we print?
18:28Use the I word. Yeah, yeah. It could be
18:31a gap, it could be an order paired
18:32range, but what does it become?
18:36An invalidation.
18:39That is to say, if you ever distrust the
18:43area of reversal,
18:45what you can do is allow the reversal to
18:48form,
18:50and then trade from a new invalidation.
18:54So, an invalidation, definitionally, is
18:57this.
18:59An invalidation
19:02I don't know why I went to white, that's
19:03weird. Let me just change this font back
19:05to black.
19:09An invalidation
19:11is mechanically defined
19:13as
19:15a swing formation where price will not
19:18return
19:20before delivering the opposing
19:24side of the range. It's a It's a
19:26mouthful, but that is what an
19:28invalidation is mechanically defined as.
19:31So, if we ever encounter
19:34a candle two extreme with no clear
19:38invalidation, we wait for the mechanical
19:42closure and a new invalidation to print
19:46in a continuation. That means we don't
19:49need to trade away from this swing, we
19:52need to trade away from a new
19:53established relevant invalidation, not
19:57the original one which we distrust. Tell
20:01me some reasons why I may distrust
20:06a C2
20:08extreme.
20:09What are some reasons I would want to
20:11avoid trading at reversal and instead
20:14trade continuation?
20:15The biggest one is the presence of
20:18failure swings.
20:20So failure swings are a large red flag.
20:24Why? What is failing to be paired with
20:26failure swings?
20:32Orders, liquidity, and which it becomes
20:34your key level, right?
20:36Yes, the the opposing range. Yes,
20:37exactly. You're failing to offer an
20:40opposing side of the range and reversing
20:42off of, you know, failure swings or a
20:45failure to manipulate liquidity. That is
20:48probably the single most telling
20:50mechanical invalidation of a swing that
20:53you would want to not trade away from.
20:54Meaning you don't want to trade away
20:56from failure swings and you'll hear that
20:57used like as a heuristic quite
20:59frequently by educators, right? We don't
21:01trade away from failure swings. Instead,
21:02we wait for, you know, expansion away.
21:05Now, once we expand away from failure
21:07swings, of course, we're going to have
21:08gaps and whatnot. These become your new
21:10invalidations, which you guys
21:11understand. What else could be
21:14um
21:15an invalid What else could give you a
21:17hesitation about trading the extreme of
21:19a reversal besides failure swings?
21:24What other filters would you consider
21:26that would maybe be lower probability?
21:31S.
21:32Shitty lower time frame slow Sisti
21:34accumulation failure to manipulate,
21:36right? So So the red flags, right? The
21:39red flag. I mean, just copy this.
21:42The red flags for trading C2,
21:45right? Trading away from C2 before it
21:48closes.
21:50Biggest one is failure swings.
21:52Another one is lower time frame
21:54dynamics, which you guys are talking
21:55about. Dynamics just means the way price
21:57delivers, right?
21:59This is going to be seen as a
22:01failure to manipulate, right? Or a
22:05continuation signature.
22:07Number three is a lack of
22:11CIC. In this case, two stage, okay? So a
22:14lack of true reversal logic, right? With
22:17a two stage crack and correlation with
22:19failure swings, right? With unfavorable
22:22lower time frame dynamics, these are
22:25going to give you a harder time trading
22:28at that extreme, right? At that order
22:30paired extreme. Instead, it will be
22:32beneficial to then wait for candle three
22:34to open, form a new invalidation, and
22:37thereafter trade expansion, okay?
22:40What else
22:42could filter you out of candle two,
22:44right? On the topic. So we we've talked
22:45about a couple of them. What else could
22:47I add to this list?
22:49Think about candle profiling.
22:53Mhm.
22:55An exaggerated protraction phase of this
22:57candle. We know there is an inverse
23:00proportion between the size or the depth
23:03of manipulation and the expected
23:05expansion of a candle.
23:07There's an inverse proportion to that.
23:09The larger the wick, the smaller the
23:12body
23:13because more time is spent in that
23:15manipulation phase. So the last
23:18confluence we can add is going to be an
23:21exaggerated
23:22a large wick or you could say
23:25large protraction
23:28phase
23:29of a candle. Again, uh generically
23:31speaking, it is better to use this word,
23:33like these words, than simply just
23:35saying large wick. That doesn't really
23:37mean much. We define protraction
23:39mechanically as the distance, right?
23:42Between the opening price and the low or
23:45high of a candle. That is what we want
23:46to use, right? So that large wick is
23:49also based in time, right? Not just
23:52not just the depth of this wick. It's
23:54not just the depth of it. It's also
23:56based on when this wick forms over time.
23:59For example, if we close back the
24:01candle,
24:02right? And we have lots of time. Say we
24:04have another 3 hours left in this
24:06candle. Does this wick size mean as much
24:09as if we have 1 hour left? What do you
24:11guys think?
24:16If there's more time left in the candle
24:17despite the large wick, is it more or
24:19less permissible?
24:25Yeah, it's it's obviously more
24:26permissible because there is more time
24:28for the candle to print expansion, okay?
24:31So we don't pattern trade these things
24:33ever. We never pattern trade anything,
24:34right? Clearly.
24:36Um
24:36But but there is a there is a more
24:38defined reasoning, right? So we're going
24:40to talk about protraction in both time
24:42and price, not just the size of a wick.
24:45You'll notice many large wick candles
24:48eventually, in some cases, do indeed
24:50form expansion candles that look like
24:52this, dude. You'll see it all the time.
24:54Okay?
24:55And that is usually because of drivers,
24:57volatility, time, right? Order pairing,
25:00all this good stuff.
25:02Okay.
25:03So this is how we define We're going to
25:04recall some reversal sequences now.
25:07We're going to define our major reversal
25:08sequences. We have PSPs confirming SMTs.
25:12That is where the candle closure
25:14confirms the swing.
25:17Candle closure confirms the second stage
25:19crack and correlation of the swing.
25:22We have SMT confirming precision swing
25:24points. That is typically when candle
25:26one engages a key level or creates a key
25:30level. So this is where either one
25:33Right? No, it's
25:36I don't know why this is.
25:41We'll see C1
25:43engage a key level
25:46IRL YRL.
25:50Right? C2 sweep.
25:53That is one permutation of a candle one
25:57PSP with SMT. Alternatively, candle one
26:00could create the key level.
26:06Right?
26:08One of those two things. And again,
26:11we're going to talk more about that
26:12logic of there is a definitive sequence
26:15that will occur at every single
26:16continuation. It's either SMT in a gap,
26:20is SMT with a gap, or it's SMT in and
26:23with a gap. And it's the same way C1 and
26:25C2 can form. C1 is either going to be
26:27forming at like look, see how this C1
26:29here forms in the key level? Yeah, it
26:31should be better if I showed it to you
26:32like this. Look.
26:37See how this C1 trades into a key level
26:39and then C2 sweeps and we get a
26:41reversal? That is because C1 does not
26:43have time in this case to form a C2
26:46because it trades into the key level. It
26:47doesn't reverse yet. So candle two
26:49requires what? What do we require to to
26:52to form uh
26:54expansion?
26:56What do we require to form expansion?
27:01A swing, right?
27:03So then we'll see candle one trade into
27:04the key level.
27:05Candle two will form the swing and
27:07expand. Sometimes we'll see candle one
27:10create the key level and then candle two
27:13reverses off of it. It's only ever one
27:15of those two. It's never anything else.
27:17It's never been anything else. It never
27:19will be anything else. And if you can
27:21find an example of anything else, then
27:23the entire logic we built falls apart,
27:25right? It is one of those two things.
27:28We either reverse off of a candle in a
27:30key level or we create a key level via a
27:34candle formation and reverse off of it.
27:36No other ways do swing forms. There's
27:37never been a chart that's shown you
27:39otherwise, okay?
27:41And the last one, of course, is going to
27:42be your two stage, right? SMTs. And this
27:45really is where we're going to later
27:47involve the concept of
27:49strength switching. And and we're not
27:51going to touch too much on strength
27:52switching yet because it's a more of an
27:53advanced confluence, but we will get
27:55there. But for now, we are looking at
27:57these generic types of two stages. Just
27:59remember that strength switching in
28:01particular has a more of a application
28:05in respect to two stage, okay? SMT.
28:08This roof shape that you're used to
28:09seeing, right? Something like this or
28:11this, okay? But we're going to touch on
28:13this later. So this will be your
28:14strength switch application and it'll
28:15come later, not yet. Just remember that
28:17this is a way that swings can also form.
28:20Okay.
28:23We're now going to get into swing
28:24invalidations, right?
28:28And again, the reason why I make you
28:29watch the lecture beforehand, guys, is
28:31because my job is to add color to the
28:35concepts and then reinforce them.
28:38Everything is out there for you, but I
28:39want you guys to understand this better
28:41than anybody else and I want you to
28:42understand it from not a pattern based
28:44perspective. It needs to be highly
28:46rational for you, right? So these are
28:47invalidations that you have, which are
28:49logical invalidations, right? Things
28:51like equilibrium of previous candles
28:54wick of previous candles ranges. If we
28:56are going to expand away from a low,
28:59what should we not be doing?
29:01What does expansion not offer?
29:09Deep retracement. So equilibrium and the
29:12PD arrays, right? The price delivery
29:14arrays, in this case fair value gaps
29:15near EQ of the range, become the most
29:18critical key levels. You want to look
29:21for gaps in the upper half of the
29:23previous candle range near the opening
29:26price of the new candle. We don't want
29:28gaps near the opening price of the
29:30previous candle. That would be referring
29:32to gaps way down here. Think about it.
29:35Time and price. The opening of a higher
29:37time frame candle is going to form its
29:39wick and ideally it will expand away
29:41from that. You want to look for gaps
29:42near the open
29:44in the upper half of the range. Two
29:46axial filters, guys. Time
29:48and price, okay? There's a logic to it.
29:51It doesn't want to form a deep wick in
29:53price. That's also going to be wasting
29:55time coming well back into the range,
29:57okay?
29:58This is why we use equilibrium. It's a
30:00very, very solid filter for both X and Y
30:04axis, time and price, okay?
30:08And you can see, when we have these
30:10large wicks, they don't support
30:12expansion, then you will often use the
30:14candle three continuation, right? As a
30:18new invalidation. So, we'll look for
30:20candle four to expand.
30:22Tell me also why you wouldn't want to
30:24trade continuation in this case, in this
30:26C3.
30:27Away from candle two's low.
30:30What concept in here would you be
30:32hesitant to trade based on this
30:34formation?
30:36Yes, large wick
30:38and failure swings, right? Expansion
30:41does not offer deeper retracements into
30:44the range. Failure swings are very low
30:46probable to trade away from. So, we wait
30:50for what? The candle to confirm, staying
30:52in respective of the low, for the new
30:54candle to open, form its wick in a key
30:56level, and expand, right? There you go.
30:59Same exact logic as above, utilizing a
31:02filter of that, right? Previous candle's
31:05range.
31:06Cool.
31:08Now, we need to look at the idea of
31:13swing grading, okay? This This is better
31:15known as swing grading. If I have an
31:18opposing side of the range here,
31:21and I have a point of reversal here,
31:24it is reasonable to assume that there
31:26will be several failure swings on the
31:29left-hand side of the curve.
31:31These failure swings are not anticipated
31:34to form reversals from,
31:36right? So, what do we expect to see when
31:39price trades into a failure swing on the
31:41left-hand side of this market maker
31:43model?
31:45What do we expect to form?
31:48Remember, we're looking to trade into
31:49the opposing side of the range.
31:52A new phase of price,
31:54right?
31:55We're looking to trade into the opposing
31:57side of the range, so this side of the
31:59range will be a new phase of price. I
32:01have done uh the liberty here of just
32:04making that a bit more obvious, right?
32:06And you can see what those signatures
32:08are. These are continuation signatures,
32:12right? For order flow.
32:14Retracement, consolidation. Namely, you
32:17are not seeing that V-shape, right?
32:20You're not seeing expansion met with
32:22expansion, wherein price is reversing
32:25from a key level, right?
32:29Likewise,
32:31do you think that any SMTs that form
32:35like this are going to hold
32:38if we see
32:39uh signatures like this, away from a
32:41true reversal?
32:45No. This is where we will extensively uh
32:48introduce asset synchronization in the
32:50future. So, we will introduce the idea
32:53of
32:54uh
32:55asset sync
32:57paired with strength switching in
32:59continuation, okay? And this will be
33:02something that we spend a couple weeks
33:04on. It's a very powerful logic utilizing
33:07asset synchronization to break old highs
33:10and lows that were asymmetrically
33:12created. Meaning, when one asset trades
33:15into a high or a low, and the other
33:17asset has yet to do that, we will
33:19utilize the idea of asset
33:22synchronization to get there, okay?
33:26All right. Here is another invalidation.
33:29This is going to be directly paired with
33:31your understanding of phase of price.
33:34When we are looking for reversals,
33:36right? Which a lower time frame
33:38continuation
33:40Sorry, a higher time frame continuation
33:42from a key level is still going to be a
33:43what? This is your C2 extreme,
33:46and this is your C3 extreme from a key
33:48level. What is that still going to be on
33:50the lower time frame?
33:54Reversal, which is why I extensively
33:56taught you reversals before
33:58continuations because the signatures of
34:00price are still going to be utilized.
34:02You want to trade V-shape recoveries,
34:05the creation of gaps, which indicate
34:08institutional sponsorship of a price
34:10leg. You do not want to trade choppy
34:14consolidation like signatures out of key
34:17levels. That's unlikely to offer you
34:19that lower time frame
34:21reversal, which will be the higher time
34:23frame continuation that you're
34:25observing, okay? It's very important not
34:27to neglect these reversal signatures.
34:30This signature here is the fundamental
34:32truth by which all key levels are
34:34filtered.
34:35This signature right here is the
34:37fundamental truth by which all key
34:40levels are filtered in the market. You
34:42pair this with your cracks in
34:44correlation, your filters. You pair this
34:47with asset synchronization, strength
34:49switching, everything I will teach you,
34:50but this fundamental truth does not
34:52change. This is what a reversal looks
34:54like on any asset, on any time frame,
34:57right? From any level. Be it an old high
35:00or old low or gap. It is this. It is not
35:04this.
35:05Very important, okay? Here is your
35:07relevant swing, right? That is forming.
35:10Here is that lower time frame signature.
35:12Please pay attention to your CSDs, your
35:14creation of gaps, the time spent below a
35:18key level. Think about this.
35:20Would you want that to be long time or a
35:22little time? If we are spending time
35:25below this key level, is that a higher
35:27or lower probability reversal?
35:35Price does not linger at key levels. Uh
35:37you guys are all right. It does not
35:39linger. It will form a V-shape recovery
35:41for this wick formation. If not, it is
35:44more likely that the body of this candle
35:47will close inside of the range of that
35:50key level,
35:51and therefore, we may need to do what to
35:53reverse? Because what is required for
35:56expansion? We may need to form a new
35:58swing.
35:59That is a failure to manipulate. Ah, so
36:03when this happens,
36:05when price trades into a key level and
36:07starts to accumulate, remember that this
36:09candle body is actually forming like
36:11this,
36:13and we are not forming a wick out of
36:15that level.
36:16So, the next candle is likely to open,
36:19form the wick, right?
36:21And then expand away, right? That is the
36:24key understanding is that consolidation
36:28signatures in a key level are likely to
36:31see a swing formation form from them as
36:34a what type of universal model? What
36:35would that be? What would this universal
36:37model be?
36:44An order paired range. Yes, because
36:48look, just like we talked about earlier,
36:51if C1 trades into the key level,
36:55but does not reverse,
36:57it is going to be consolidating, maybe.
36:59And in this case, candle two, if candle
37:02one is consolidating into the level, can
37:04form the swing formation with a small
37:06wick and expand, right? This is so
37:09critical to understand is that when you
37:11fail to see that reversal signature, you
37:14create what? What does candle one's low
37:16become?
37:18And I'm actually going to share this
37:20lecture with all of Latherus, right? And
37:22even probably social media because this
37:24concept is not taught well, guys. And
37:26it's a It's a disservice because you are
37:28looking for reversals here, but you're
37:30not looking for the signature. I see so
37:32many of my students fail to look for
37:33this signature, right? Because they
37:35simply have the key level. What does
37:37this become in here, guys?
37:41When you when you engage this, again,
37:43think of proximity. Think of the key
37:45level. What does this become?
37:48This manipulation.
37:49Yes, you create a relevant
37:54swing,
37:55okay? That is a relevant swing because
37:57it's in your key level, right? It's
38:00order pairing this lower time frame
38:02consolidation,
38:03and you could expand. So, do not trade
38:06those lower time frame dynamics that are
38:08offering you, right? Consolidation
38:10because it's likely to be swept
38:13to create the swing that you want to
38:15trade away from. Um you guys would be
38:18astonished how many of your losses are
38:19just a function of trading consolidation
38:23reversals or consolidations out of key
38:25levels. Uh wait for order pairing and
38:27significant displacement, and you will
38:29see your You will see your uh trade
38:32strike rate uh increase rapidly, um
38:35exponentially even, right? For me, that
38:37was very key when I was learning this
38:39stuff was to understand that this here
38:42is really the the king. And it pairs
38:44with every logic I will teach you,
38:46right? Uh in our curriculum. It always
38:48comes back to signatures of price and or
38:50what we call them phases of price, okay?
38:53Reversal is a phase of price.
38:55Awesome.
38:56Let's get into sequences. So, now you
38:59have learned, you know,
39:00what continuation is, where it exists
39:03within market maker models. We'll now
39:05continue to understand um
39:07Let's make sure this is in place. We'll
39:09now continue to understand what these
39:11sequences look like, okay?
39:13So, let's get into it.
39:16Here is a sequence that I will teach
39:18you.
39:19When we engage a key level, right? This
39:22higher time frame reversal expansion
39:23candle, we talked about it, is going to
39:25be a market maker model. But more
39:27importantly, no matter where a swing is
39:30forming, what is required for a swing
39:32formation? Irrespective of whether it's
39:34candle two
39:36or it's candle three, what is required
39:38for a swing formation?
39:41For wicks, where do wicks get created,
39:43guys?
39:48In key levels.
39:51What did we say about swing formations
39:54that are created at random levels, i.e.
39:57not relevant swings in the market, not
40:00fair value gaps?
40:02That's just candle range theory and it's
40:04garbage, right? It's not relevant.
40:07We need key levels.
40:09Therefore,
40:10the logic precedes that any form of
40:13continuation is always going to be what?
40:17It's on the page. It's listed for you.
40:18What's going to be?
40:20A model within a model.
40:22You're going to be forming some form of
40:26internal model to get to an external
40:29opposing side of the range.
40:32Remember, what do we define a true
40:35reversal as?
40:38A swing formation that delivers what?
40:42The opposing side of the range. That's a
40:46true reversal.
40:47So, therefore, it follows that a
40:50continuation
40:52away from the extreme of a true reversal
40:55will form a model within the higher time
40:58frame model to bring you to that
41:00opposing range. This is going to be one
41:03of two types. Type one is a order a type
41:07one is a retracement into expansion
41:09signature, which creates the
41:12continuation low inside of a what?
41:15What do you guys see here?
41:20A gap. This is the highest probability
41:25continuation signature the market will
41:27offer you. This was taught to you by the
41:30MMxM trader as internal to external
41:32range liquidity. It was taught to you by
41:35through ICT as the 2022 model, right?
41:38Liquidity sweep, break of structure,
41:40fair value gap. It was taught to you by
41:43Garrett's GXT as the universal sequence
41:46and it's being taught to you now by me
41:48as a type one continuation. These are
41:51all of the same things. They are all
41:53representing a model within a model and
41:55it's all derived from the exact same
41:58logic we've used to define every type of
42:00swing delivery.
42:01Okay?
42:03So, whatever you want to call it, I
42:04don't care what you want to call it. I
42:06don't It doesn't matter. It's a type one
42:08continuation. It is the highest
42:09probability
42:11continuation sequence in the market that
42:13you will learn. It is based on the
42:14universal model. It is internal range
42:16liquidity on a lower time frame,
42:19right? To the higher time frame swing
42:21formation you are trading away from a
42:23true reversal.
42:25Recall, this is your true reversal.
42:28You now have a gap away from that that
42:31you trade a lower time frame
42:34reversal.
42:36Here is where I'm going to introduce an
42:38equation. Okay? And this is the only
42:40time we're going to use math for the
42:41entire lecture and I know you guys
42:43don't necessarily take study with me to
42:46learn math, but it's important logic,
42:48okay? So, bear with me. One equation.
42:53The number
42:54of cracks in correlation you require
42:59to validate or in this case you could
43:01say to filter
43:02a swing is going to be equal to
43:06n, okay?
43:08We're going to call that just n.
43:14The most number of cracks we will ever
43:16need
43:19the highest number of cracks
43:21we will need is at a reversal.
43:25True reversal.
43:28That is going to be when n
43:31is equal
43:34to two.
43:36Okay?
43:37For every continuation away from that
43:42true reversal
43:45n
43:46is going to equal So, this is going to
43:48be like what is called this
43:51a big n. Order Again, this is the only
43:53time I'm going to use math because
43:54there's just a general logic to this,
43:56right? It's going to be n minus one.
44:01What does that mean?
44:03For any continuation away from that true
44:05reversal, we need n minus one
44:09cracks in correlation.
44:11Okay, I can zoom in. Yes, of course. I
44:13didn't realize.
44:14And there's a reason why my brain thinks
44:16like this cuz I just got into
44:17engineering, guys, and I come from a
44:18background in math. This makes more
44:19sense than me just saying you need one
44:21crack in correlation here. That seems
44:23just like random pattern. It just
44:26doesn't have a got a lot of logic to it.
44:27I'd rather spend just 5 minutes with you
44:30and convince you of why this math, you
44:32know, this equation makes sense.
44:34The number of cracks in correlation we
44:36need to filter a swing is going to be
44:37defined as n.
44:38The highest number of cracks, which is a
44:39constant, this is a constant, is going
44:42to be two and that's at a true reversal.
44:45Every continuation away from that true
44:47reversal is going to require one less
44:50than that true reversal. So, n minus
44:52one. Okay?
44:54So, that means in
44:56layman's terms
44:58Let me draw something here.
45:04Okay.
45:08This is the higher time frame key level.
45:11How many cracks in correlation do I need
45:13at this extreme C2?
45:19Two. We always know that at true
45:21reversal we need two.
45:24In a continuation
45:26in the higher in the higher time frame,
45:28so this is candle three. This is candle
45:29two.
45:31This is candle three, right? Some of
45:32that.
45:33How many cracks in correlation do I need
45:34in this gap for a type one continuation?
45:37How many
45:38cracks in correlation do I need?
45:40n minus one
45:43one
45:46For continuation
45:48away from this, so look, if I zoom in
45:50here now, look, zoom zoom zoom zoom. I'm
45:52going to use this little
45:53This is going to be a magnifying glass.
45:55We're going to look at this and we're
45:56going to zoom in. It's going to look
45:57like this, okay?
46:03How many cracks in correlation do I need
46:05in this fair value gap on the lower time
46:08frame to the continuation?
46:17zero
46:20Right?
46:22This is why I never look for cracks in
46:26correlation on my what time frame
46:27charts, guys?
46:31Do you ever see me look for an M3 SMT
46:34fill?
46:35Do you ever see me look for an M3 CSD
46:39SMT or an M3 PSP or an M1 SMT? Do you
46:44ever see me do that ever?
46:48Have you ever seen it?
46:50in any of my recaps?
46:52Everyone should answer with a resounding
46:54no.
46:55Have I ever done that? The answer is no.
46:56I've never gone and been like, now I
46:58have a 3-minute PSP I'm entering off of.
47:00No, because the logic is consistent to
47:04profile swings based on cracks in
47:07correlation to the entry time frame.
47:10By the time I'm at my entry time frame,
47:13I'm no longer using cracks in
47:15correlation.
47:17Okay? I'm going to write this out.
47:24So, at a higher time frame reversal
47:28I need two CIC, okay?
47:32At a higher time frame continuation, I
47:33need how many cracks in correlation?
47:40one CIC
47:43At a lower time frame continuation,
47:46which is exactly the same thing as this,
47:47okay?
47:48So, a lower time frame continuation
47:51right?
47:52is going to be based on that higher time
47:54frame, right?
47:56So, it's going to be that lower time
47:57frame reversal, you could say,
47:59right? In here, that lower time frame
48:01reversal from this higher time frame
48:02continuation. How many cracks in
48:04correlation do I need?
48:06zero CIC
48:08Okay?
48:10So, for every continuation away from the
48:13reversal, I need one less the true
48:15reversal. So, when the higher time frame
48:17forms its swing down here, guys, look.
48:18Higher time frame is forming its swing
48:20down here.
48:23How many cracks in correlation do I need
48:24right here? Two.
48:26I need two cracks in correlation here.
48:29Now, when we come into this higher time
48:31frame continuation, which is going to be
48:32what in this case? What is it going to
48:34be?
48:36What is this here?
48:39a gap
48:41Right?
48:43Okay. When we come into the higher time
48:44frame gap, I need one crack in
48:47correlation. This on the lower time
48:49frame looks like this, guys.
48:55How many cracks in correlation do I need
48:57if I enter on a fair value gap here?
48:59How many cracks in correlation do I need
49:01on my lower time frame reversal here?
49:04zero
49:07This filters swing formations via crack
49:11in correlation down to the entry time
49:15frame.
49:16On the entry time frame, I am not
49:18requiring a crack in correlation.
49:22I utilize that filter to find a swing
49:26that I can trade continuation away from.
49:28At which point, once I have that crack
49:30in correlation, I look for what? My
49:33lower time frame reversal signature,
49:37which is right here. Okay? You learned
49:39it right in here.
49:41In this lower time frame reversal
49:44signature from a gap, I do not need to
49:47see an SMT fill. I do not need to see a
49:50PSP. I do not need to see any cracks in
49:53correlation. What am I instead using
49:55here? What concept is this? Exclusively.
50:03The phase of price, the reversal
50:07signature. Because it is fractal by the
50:10point at which I've already filtered
50:12this as a continuation from a gap.
50:15Okay? Away from a reversal down here.
50:20I do not need to see more cracks in
50:23correlation on this time frame. That is
50:25simply noise and it is irrelevant. Okay?
50:28The logic is very simple. We filter
50:31cracks in correlation to find swings
50:34down to our entry time frame, at which
50:37point we simply take entries.
50:40Okay? So, I hope that little aside of
50:42that 5 minutes of math is helpful,
50:44because there's a logic to it, right? We
50:46are using one less crack in correlation
50:49to filter each confirmed swing. Why?
50:52What is What is more confirmed? A lower
50:55time frame reversal or a higher time
50:58frame continuation? Which one has more
50:59confirmation?
51:03The lower time frame reversal, right?
51:05The lower time frame reversal gives you
51:06that immediate confirmation with that V
51:08shape, right?
51:10Think about it. What what By the time
51:12you come into a key level like a gap,
51:15if you're going to confirm a swing here,
51:17right?
51:18What's going to confirm the swing more?
51:20That candle closure, right?
51:22Which you're going to be seeing in the
51:23lower time frame as that V shape out of
51:25it. So, that is obviously more confirmed
51:29in price action than the simple swing
51:31formation itself. Just like at the low,
51:34you're requiring two stages because it's
51:37the most premium, right?
51:39This is the most
51:41extreme of the market maker model. Look
51:43Look down here, guys. Right? Where you
51:45are at in the market maker model down
51:47here is the point of reversal. The point
51:50of reversal is the most unconfirmed in
51:53what?
51:54Market structure. By the time you've
51:56expanded away from the point of
51:58reversal, you have more confirmation of
52:00market structure. So, the continuation
52:03that you're seeing is more confirmed.
52:05It's in a gap. But, you still want to
52:07make sure that that higher time frame
52:08continuation is going to form from that
52:10gap. So, you require that one stage of
52:12crack in correlation. By the time that
52:14one stage of crack in correlation forms
52:16in the gap away from the low, when you
52:18already have structure, do you need to
52:20see the lower time frame here? Like 3
52:23minute, 1 minute, 5 minute give you more
52:25indication? No. It's the most confirmed
52:27because it looks like this away from
52:28that swing point, right?
52:30This is why we don't require a 3 minute
52:32PSP or a 3 minute SMT. You mean you can
52:35see it sometimes. Sometimes you'll get
52:36this SMT fill, right? Or you'll get a
52:39PSP in a gap like this. This will be a
52:40PSP in here. But, it doesn't mean you
52:42need to see that cuz this is the most
52:45confirmed, right? And then the reversal
52:47down here is the least Where is it? The
52:50least confirmed. You need the most
52:53filters,
52:54second most filters, no filters by the
52:56time you get into here. Okay? There is a
52:58logic to this The second type of
53:01continuation, guys, is order paired
53:03ranges. And this is simply when candle
53:06two does not do what? It reverses, but
53:09what what does it What does it do after
53:10reversal? So, the phase of price in in
53:12this variation is reversal into
53:15expansion into retracement into
53:17expansion.
53:19Okay?
53:20What is the phase of price here? We have
53:22reversal into
53:26What phase of price?
53:27Are you saying in here?
53:31Consolidation.
53:33Yes. So, that means your type two
53:36continuation, which again is taught to
53:38you as many things, whether you call
53:40them manipulation ranges, order paired
53:42ranges, ERLs ERL, I don't care. I want
53:45you to think of the logic of what is
53:47happening. We are trading away from the
53:49established true reversal. We are
53:50forming a range, and you're pairing one
53:53low to get to a failure swing high,
53:56which is going to be what? A model
53:58within a model. Think about why we call
54:00the models within a model.
54:04This is your drawing liquidity, okay?
54:07What does this high in here become?
54:11When you order pair the low, what is
54:12this high become? This is your internal
54:16model draw.
54:19The IMD. And we're not going to use more
54:21acronyms. This is your internal model
54:24draw. I don't care what you call it. In
54:26this case, right? We have a higher time
54:28frame draw. We have
54:30reversal into expansion into retracement
54:33into expansion. What is this high
54:34become?
54:35Guys, from the gap.
54:37What is this high?
54:39Your internal
54:42model draw. Does that make sense to
54:44everybody? How these are models within
54:47models? Does that word Is that language
54:50make a lot more sense when we consider
54:51it like this? It's a model within a
54:54model. Okay?
54:56This is why it's so powerful to trade
54:58continuation because you have
54:59established points of reversal, and
55:01you're trading to these failure swings
55:04to the draw. So, these internal draws
55:07are always failure swings. Always. Every
55:09single time. They will never be
55:11a non-failure swing to the higher time
55:14frame draw, which gives you two pools of
55:16liquidity to draw into, both the
55:18internal high and the external high,
55:21which makes it extremely extremely high
55:24probability, folks. Extremely high
55:26probability. Okay? So, this is your
55:28universal model logic. It is either
55:31going to be, right? An order paired
55:33range or it's going to be internal to
55:36external. As these internal models
55:38before we get to the relevant objective,
55:40which is the opposing side of the draw.
55:42Which one of these would I prefer you
55:44guys to trade as my students?
55:47Type one or type two?
55:53Type one. Type one is always going to be
55:56preferable because what is it showing
55:59you in candle two?
56:04Away from the true reversal. It is
56:06showing you expansion phase of price
56:09away from the true reversal followed by
56:11retracement signature into the gap.
56:14We'll talk about re-signatures a bit
56:15more um in a future lecture. And then
56:17expansion [clears throat]
56:18signature away from the gap. As opposed
56:20to seeing expansion met with
56:21consolidation, where we could get
56:23something like this and actually reverse
56:26off an order paired range, right? This
56:28signature of retracing into a gap shows
56:30us the market wants to go higher. Right?
56:32Institutionally sponsored moves higher
56:34creating gaps. So, type one is where I
56:37want you to focus, guys. Spend all of
56:40your energy and we're going to do a
56:41type, okay? Exclusively. And we'll We'll
56:43look at these, but these are not ideal.
56:45These are less They're sub sub-optimal.
56:46Lower probability. Yeah?
56:50Yeah.
56:51Um especially because you'll notice in
56:53some cases, does price need to pair this
56:56low in all cases?
56:59The answer is no. Price can go You saw
57:01this last week on your Nasdaq charts in
57:04the 4-hour. You'll see.
57:07I want to point your eye to what
57:08happened last week. Let me get rid of
57:10all this.
57:12Um Look at what happened here.
57:15Right? We had expansion.
57:19We had a range being created. And we had
57:22a failure of all correlated markets.
57:25Look at all correlated markets
57:27failed
57:29to pair this low. So, if we look at this
57:33range, so we had an higher time frame
57:34back up here, right? We had all markets
57:37fail to pair the low. This was not order
57:41paired range logic. This was
57:44failure swings that we reversed from,
57:46right? You see that?
57:47So, we had these targets. We had higher
57:49time frame draws up here, and we did not
57:51manipulate the range low. Look, failure
57:54swings on all assets. Because in
57:56expansion, we do not need to manipulate
57:59the range low to expand higher. What we
58:01can do is we can expand, consolidate,
58:04expand, retrace, expand. This is a
58:06breakout signature, right? And it does
58:08not need to pair the lows. So, when you
58:10see expansion met with consolidation,
58:13oftentimes it becomes tougher to trade
58:15because you can either sometimes
58:16manipulate the low or sometimes not
58:18manipulate the low.
58:20It is better to see something like this.
58:22Expansion, retracement, expansion. Like
58:23what's better to see this?
58:25Okay?
58:26So, this this signature here is much
58:28more difficult to trade. Not that it
58:30doesn't occur. It's just simply more
58:32difficult to engage.
58:34Okay. So, these are the major sequences
58:36I want to teach you. And again, you guys
58:38now know these high probability
58:40sequences. The last chapter, which we'll
58:42go through for notes, right? And
58:44whatnot, is going to be these high
58:46probability sequences. These are all one
58:49stage or two stage cracks in
58:53correlation. You don't need to have two
58:55stage. You must have a single stage. And
58:58we're going to utilize them to filter
59:00swings in continuation. You get the idea
59:02that N for this is going to equal one.
59:05Sometimes it'll be two, but we need at
59:07least one. Okay? So, these are the three
59:10types of cracks in correlation. It is
59:13only ever these three types, guys. Never
59:17anything else. It's crack in correlation
59:20at a gap. And we're going to focus on
59:22gaps. Notice how we're not doing order
59:23paired ranges here. I'm focusing on this
59:25high probability type one continuation
59:27for you, okay? We're focusing on this.
59:30It's crack in correlation at a gap. What
59:33do we know this as? What is this called?
59:37It's called SMT
59:40what?
59:41Fill.
59:42Okay? So, we have SMT fill. And in
59:45future lectures, we're going to be
59:46building on the idea of strength
59:48switching and asset synchronization,
59:50okay?
59:52Not yet. Today, we're not doing it, but
59:55we will talk about these concepts in
59:58relation to continuation
1:00:00in the future. We're not there yet.
1:00:02Trust me, we're going to get there in
1:00:03curriculum. I want to teach it to you in
1:00:04a way that makes it very easy to
1:00:06understand the logic, okay?
1:00:08But that for now, we have SMT fills.
1:00:10Don't worry about these strength
1:00:11switching correlations between them. The
1:00:13second one is going to be cracking
1:00:15correlation via a closure inside the key
1:00:19level. This is known as a what?
1:00:25PSP,
1:00:27a precision swing point, which is a
1:00:30crack in the closure of a candle to
1:00:33confirm a swing, okay? This in here is
1:00:36the lowest probability
1:00:40one stage
1:00:42continuation.
1:00:43Typically speaking, this is the type of
1:00:46continuation where you'd want to see
1:00:48something like a type three form from,
1:00:51which is going to be a crack in
1:00:52correlation paired with
1:00:55right? An SMT. So, where you see, you
1:00:57know,
1:00:58either some form of two stage SMT
1:01:01or you see some form of PSP paired with
1:01:05another SMT to go higher. A single stage
1:01:08PSP is the lowest probability form of
1:01:11continuation. That is typically when you
1:01:13see type three, which is a crack in
1:01:15correlation at the key level via like
1:01:18SMT fill.
1:01:19And then a crack in correlation with the
1:01:21key level or in it, right? Via a candle
1:01:24closure. This is much more probable than
1:01:27simply a one stage PSP.
1:01:29Everyone understand?
1:01:30So, there's three types of cracks in
1:01:32correlation for continuation. Type one,
1:01:35cracking correlation at the key level.
1:01:37Type two, cracking correlation in the
1:01:40key level either via consecutive
1:01:43candles, right? Like SMT in there.
1:01:46Or via a swing point closure and a PSP.
1:01:50The third is at cracked at the key level
1:01:53and in the key level. SMT fill, PSP.
1:01:57Right? Stage one SMT, stage two SMT. So,
1:02:01that's a crack, right? At the key level
1:02:03and then in the key level as well via
1:02:05consecutive swings.
1:02:07I have them listed for you here. We will
1:02:08do this in your tutorial. We will go
1:02:10through and I will prove to you that
1:02:12concept that continuation always offers
1:02:14one of these three cracks.
1:02:16Okay? So, these are your high
1:02:17probability sequences at, in, or at in.
1:02:20I've done the liberty of just showing
1:02:22them here to you in a little schematic,
1:02:24right? You guys have studied this stuff.
1:02:25And then again, this reversal signature,
1:02:28right? Do I need to see um question for
1:02:30Chris. Do I need to see a CIC on the
1:02:33lower time frame now in this reversal
1:02:34signature?
1:02:36No, right? N is equal to zero. This is
1:02:39a, right? Or lower time frame
1:02:42reversal
1:02:44from a higher time frame
1:02:48continuation, yeah? So, this is one
1:02:50cracking correlation, this is zero.
1:02:53Every time you go up, right? Higher time
1:02:54frame reversal.
1:02:58Two. You just go down by one every time
1:03:00you get more and more market structure.
1:03:02This becomes more and more confirmed via
1:03:05market structure. That's why we don't
1:03:07require a crack in correlation. It's a
1:03:09very, very, you know,
1:03:11tidy way to to present that logic, okay?
1:03:15I'm not going to talk today about asset
1:03:17synchronization for you with you guys
1:03:19yet because we have an entire lecture on
1:03:21asset synchronization in the future. I'm
1:03:23also um
1:03:26I I'm going to do an entire lecture with
1:03:28you guys as well on gap selection and
1:03:31utilizing ranges. I want to make sure
1:03:33that we have enough time to get into
1:03:34some of this stuff because there is a
1:03:36lot of nitty-gritty. Advanced premium
1:03:38and discount sequence, we're going to be
1:03:40tying this concept in to asset sync.
1:03:44We're going to be tying um invalidations
1:03:46in as its own lecture. This will be a
1:03:48new lecture
1:03:50in curriculum that I have created for
1:03:52you guys. So, we'll do this probably um
1:03:54probably next week or the week after.
1:03:56We'll do uh gap selection, which is
1:03:58going to be filtering continuation. And
1:04:00then asset synchronization and strength
1:04:02switching is going to come later, okay?
1:04:03So, this will probably be like week
1:04:05nine. So, I am breaking up the lecture a
1:04:08bit because I want to present it to you
1:04:10in far more um detail than, you know,
1:04:13what is here. And I want to make sure
1:04:15you understand the components and how
1:04:16they fit together as opposed to simply,
1:04:18you know, trying to consume all the
1:04:19information. Today, chapters one through
1:04:22four are where I'm going to end this uh
1:04:24this recording on.
1:04:27Okay, we're going to end the recording
1:04:28there just over

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