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Anomaly - Advanced Course - Lesson 1 - Phases Of price — Transcript

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0:04Hello everybody. Welcome to the anomaly
0:06advanced course.
0:08Core content lesson one. We're going to
0:11be covering phases of price in this
0:13first section here. We're going to be
0:15covering if-then statements. So firstly,
0:17let's cover consolidation. So, one thing
0:20we must know about every single phase of
0:23price, consolidation, retracement,
0:24reversal, is that they all start and end
0:29with expansion, right? So, if the market
0:32expands, right? Consolidates, then what
0:36can we expect? We will always expect
0:38continuation, right? Consolidation is a
0:42continuation signature, meaning that it
0:44cannot reverse from consolidation. Of
0:47course, the market can reverse
0:48consolidation, but we are not going to
0:50engage with that, right? If it
0:51consolidates, we're automatically
0:53assuming it's going to continue. But one
0:55thing we must understand is that it
0:56actually does not have to manipulate
0:58this low. We just demand it to
1:00manipulate this low, right? Because that
1:02is the only way we can ever expect it to
1:04expand, right? How are you going to
1:06expect price to expand with the
1:07consolidation with no reversal
1:09signature, right? So, ideally, you want
1:11to see that AMD, right? That expansion,
1:13that accumulation, manipulation of the
1:16consolidation low, that prints a
1:18reversal, and reversal is the trigger
1:21for expansion.
1:23So, now let's go over the if-then
1:24statement for retracement. So, like I
1:26said, every single phase of price starts
1:30with expansion. So, as you can see,
1:32price expands,
1:34it retraces. What will happen next?
1:37It will expand.
1:40Now, let's go over the if-then statement
1:42for reversal.
1:43If price trades into a relevant level,
1:47prints a reversal signature, what should
1:49follow?
1:50Expansion.
1:52Now, let's cover phases of price and
1:54their signatures. Starting off with
1:56expansion, we're going to be
1:58highlighting highs and lows.
2:00How does price react to highs and lows
2:03within an expansion? So, so firstly,
2:05after price puts in a reversal and gives
2:08us that V-shape away, that reversal
2:10signature,
2:11it should be displacing through highs
2:14and rejecting lows.
2:16Now, we're going to be talking about
2:17order flow within an expansion. What
2:20should we see happen? Respecting
2:21opposing candles and fair value gaps.
2:25Another thing to talk about is the
2:26retracement size within an expansion.
2:29After price puts in a reversal, on its
2:32way to a draw on liquidity, we should
2:33not be seeing deep retracements.
2:35Ideally, you don't even want to see
2:37price hit EQ, especially deep discount
2:41within a bullish expansion.
2:43So, if you ever see a deep retracement,
2:45that is a red flag.
2:47So, looking here with higher timeframe
2:49expansion candles, that is exactly where
2:51this small wick logic comes from. This
2:55small wick is just a lower timeframe
2:57retracement, right? Respecting
2:59equilibrium of the previous candle's
3:00range. We don't want to see those deep
3:02retracements into EQ of the previous
3:05candle's range.
3:06Now, let's go ahead and talk about
3:07consolidation signatures. So, what will
3:10we be seeing within a consolidation?
3:12It's after price expands, price will
3:15stay range bound in between a low and a
3:18high, creating failure swings on both
3:20sides. We will not engage with this
3:22price action until one of the sides of
3:25the range is met.
3:28Another way consolidation will look is
3:30what we call seek and destroy or a
3:33broadening formation. Pretty sure you've
3:35heard this term. So, if price expands,
3:38consolidates,
3:40and manipulates the high first, if
3:42you're actually bullish, maybe there's a
3:44a draw on liquidity up here not yet
3:46taken. So, you're not really expecting a
3:49bearish move lower. This manipulation
3:52can just be used to go lower to
3:54manipulate the range low, and if price
3:56fails to displace through this low, that
3:58is what we call a seek and destroy
4:00markets, and it is a type of
4:03consolidation. You can actually trade
4:05this back into the high to get back on
4:08side with order flow, cuz remember,
4:10price is not reversed consolidation.
4:13Now, let's go ahead and talk about
4:14retracement signatures. This is when we
4:17expand,
4:18we start to come back into the range,
4:21but with the way price prints, it's very
4:24telling. What you're going to see is
4:26very close proximity highs, right? Very
4:29deep pullbacks back into the retracement
4:31point high, very lackluster in its
4:34movement, and typically, you'll see
4:37price retracing after we hit objectives,
4:40and it will trace into gaps.
4:42So, another way price will look within a
4:45retracements is if price expands, then
4:48consolidates,
4:50and then trades into the low of that
4:52consolidation, but fails to manipulate
4:54it. This is typically a higher temp
4:57consolidation. There will be a higher
4:59temp fair value gap in the range that it
5:01wants to go to, instead of manipulating
5:03this consolidation low to then go
5:05higher, because we know that price
5:07cannot reverse consolidation. So,
5:09typically, this is another way you will
5:11see retracements form.
5:13So, now let's go ahead and talk about
5:14reversal signatures.
5:16This is simply when price expands into a
5:19key level, expands away, giving us that
5:22V-shape signature.
5:24This is what you will look for on all
5:26time frames
5:27to confirm your high probability
5:29reversal.
5:30Now, let's talk about the confirmation
5:32to a reversal. It is simply the
5:34expansion into the key level.
5:37That expansion into the key level
5:39creates an opposing candle or an order
5:41block. When price expands away from the
5:44key level, that creates a CSD. When we
5:47close above the opening price here. and
5:49And that change of state delivery is
5:51your confirmation.
5:53So, another reversal signature that we
5:55will always be using is SMT divergence,
5:58pairing that with our key level that we
6:00want to see price reverse off of. Now,
6:02let's go ahead and talk about higher
6:03time frame signatures.
6:05So, here we have consolidation. This is
6:08where price expands.
6:10The next candle fails to take out the
6:13previous candle's high and the previous
6:15candle's low.
6:16This inside bar is a lower time frame
6:18consolidation.
6:20Now, let's go ahead and talk about
6:21higher time frame retracements. This is
6:23where price expands
6:25and leaves these close proximity highs,
6:28right? This previous is high was not
6:30taken. This previous is high was not
6:31taken. And this high here is very close
6:34proximity to the previous is high. Well,
6:36they all are. That's what's creating
6:38that low resistance liquidity or those
6:40failure swings, those deep pullbacks
6:42into the point of retracement. And this
6:45is typically that continuation signature
6:47that we want to see, right? Price
6:49straight into this gap and expand again,
6:51right? Expansion, retracement,
6:53expansion. Because consolidations and
6:55retracements are both continuation
6:57signatures.
6:58Now, let's go ahead and talk about
7:00expansion signatures.
7:02This is simply, right, having that small
7:04wick within respect of the previous
7:07candle's closure. So, as you can see
7:09here, we have that reversal candle,
7:11right? Whenever a reversal candle closes
7:14near its own high, you mark out the
7:16whole entire range. You almost treat it
7:17like an expansion candle, right? So, we
7:19want to see this candle three have that
7:21small wick that is that expansion
7:24signature, right? We want price to
7:25expand away from the reversal. As you
7:27see, it expands away. Once it closed an
7:30expansion candle, we essentially do the
7:32same thing, right? Mark out the whole
7:33entire range. This is where we want to
7:35see that continuation towards our drawn
7:37liquidity in respect of that previous
7:40candle's range, forming that small wick.
7:43Now, let's go ahead and talk about
7:44higher time frame reversal signatures.
7:47That is simply a C2 or reversal candle
7:50after hitting a key level.
7:52Now, let's go ahead and put it all
7:54together using the higher time frame in
7:56the lower time frame to confirm it.
7:59Firstly, let's cover reversal. So, here,
8:02as you can see, we have our higher time
8:05frame key level, which is a fair value
8:07gap. This candle hits that fair value
8:09gap, so we are within a higher time
8:12frame C2 candle or reversal candle.
8:15And the way to confirm this reversal
8:17candle is when we drop down to lower
8:19time frame, this would be the lower time
8:21frame view within this higher time frame
8:22candle. We want to see those
8:25those V-shape signatures, that reversal
8:27signature after hitting that key level,
8:29right? So, this high right here would be
8:30the previous day's high or the fair
8:33value gap low. And as you can see, when
8:35price trades into it, it's creating
8:37these swing points,
8:39right? And those swing points are
8:40confirming the high of this reversal
8:42candle, right? They're creating that
8:44V-shape signature, right? So, look over
8:46here. What do we see? Expansion to the
8:48high, expansion away, change in state
8:50delivery, right? Candle one, candle two,
8:53candle three, creating that expansion
8:55away. So, even on the lower time frame,
8:57you're going to want to see the same
8:58thing, right? To confirm this C2 candle,
9:01you want to see the same thing on the
9:02lower time frame, right? So, let's say
9:04this is the daily chart, this is the
9:05hourly chart, the lower time frame to
9:07confirm this C2, maybe the 5-minute
9:10V-shape, right?
9:11Now, let's go over consolidation. So,
9:14once price reverses, we are now in the
9:16expansion phase. So, what do we want to
9:19see in expansion? On our way to the draw
9:21on liquidity
9:22is consolidations and retracements
9:25because they are what? Continuation
9:27signatures, right? So, as you can see
9:29here, within that previous candle,
9:31right? We hit that previous day's low,
9:33which is right here. We want to see this
9:36fail to be manipulated, right? Because
9:38this is our overall draw, right?
9:40What is this universal model? Internal
9:42to external, right? This is the actual
9:45draw on liquidity that's important,
9:46right? Anything internal to the reversal
9:49out of the key level in this higher time
9:51frame draw on liquidity is essentially
9:53irrelevant. We really want to see this
9:55internal objective, right? When engaged,
9:58print continuous signature, right?
10:00So, when can we expect expansion? After
10:02reversal, when can we expect a new phase
10:04of price? When price expands into
10:06objectives, right? So, this internal
10:08objective on maybe, let's say, the
10:10hourly time frame is when you're going
10:12to get an hourly new phase of price,
10:13right? So, here we can see that price
10:16consolidates, which is a failure to
10:18manipulate, and it continues in
10:19signature. So, that means that price
10:21should not reverse from this low, and it
10:23should continue through it to this low
10:25and the low that was put in here, right?
10:27So, here we have consolidation. How do
10:30we want to treat consolidation? We want
10:31to wait for a manipulation of that,
10:33and then you do the same thing, right?
10:35We Once we engage with this high, which
10:37is a key level, then you want to see
10:39that reverse signature, that C2 candle,
10:41and that expansion towards your draw on
10:43liquidity. So, now let's go over
10:45retracements, how to put it all
10:46together, right? Once we reverse, here's
10:49that C2 candle. We engage with that low,
10:52expansion into something relevant. Here
10:55is an hourly relevant low, but again,
10:57not necessarily relevant to the bigger
11:00picture.
11:01But you take an hourly low, you can get
11:02an hourly new phase of price. We want to
11:04see those continuation signatures,
11:06right? We do not want to see price
11:07reverse at this low, right? Cuz that
11:09would be a failure to reverse from the
11:11overall higher time frame key level. So,
11:13as you can see, price engaged with this
11:15low. Do we get a reverse signature? No,
11:17right? What are we doing? Very
11:19lackluster price action,
11:21creating those really close lows,
11:24creating those failure swings at the
11:26point of retracements. And how do we
11:28typically cap our retracements? From a
11:30fair value gap. So, once we get to this
11:32fair value gap, we're expecting price to
11:34go from expansion, retracement,
11:36expansion. So, you confirm this key
11:38level with a reversal, and that's when
11:41you get the expansion. So, now let's
11:43talk about expansion.
11:45When can you expect it? Well, once you
11:48have that key level on a higher time
11:49frame, that higher time frame reversal
11:51candle, you're expecting the next day to
11:53expand, right? But, even within these
11:56candles here, so from the high of these
11:58candles, you're going to have lower time
12:00frame expansions, right? That make up
12:01these candles. So, as you can see here,
12:04what makes up this reversal candle here?
12:06Isn't price trades into the previous
12:08high or the fair value gap below, right?
12:11Once price reverses there, that's when
12:13price expands lower time frame, right?
12:15Which is what is causing this candle to
12:17become a reversal candle, right? And
12:20then it closes off. We retrace. So, we
12:22already know this is good, right? This
12:25phase of price is supporting the idea
12:27for a C3 expansion, cuz it's
12:29retracement, which is a continuous
12:31signature. We want this next day to
12:32continue, because C2 reversed from a key
12:35level, and we have a draw on liquidity,
12:36right? So, once price trades into a key
12:39level and prints that reversal candle,
12:42now we expect this high to be put in,
12:43right? And that's when we expect the
12:45expansion to actually follow, right?
12:47It's after hitting a key level, putting
12:49in that C2 candle, that reversal
12:51signature,
12:52and we want to see those clear-cut phase
12:55of price to support our idea.
12:57So, here we are on gold on the weekly
13:00time frame. Like I said, this is a
13:01fractal concept. So, we're going to be
13:03looking at the weekly as our universal
13:05model, right? Price trades into a high
13:08on a correlated asset, creates SMT. Like
13:11I said, we like to pair SMT with our key
13:14levels. What does price do? Prints a C2
13:17reversal candle on that weekly time
13:19frame.
13:20And then we want to see price expand,
13:22right? Those higher time frame
13:23expansions to get straight. We see
13:25small wick, small wick, small wick,
13:27small wick, All the way towards our
13:28drawn liquidity. This is order paying
13:30ranges or manipulation ranges, whatever
13:33you want to call it. But when we look
13:35within
13:36these higher time frame expansion
13:38candles, that's when we're going to see
13:40those lower time frame signatures that
13:42essentially confirm these expansion
13:44candles and what make up these expansion
13:46candles on the higher time frame. So,
13:48we're going to be using that weekly and
13:49daily alignment. So, let's go ahead and
13:51see the daily time frame.
13:53So, here we are on the daily time frame
13:55and as you can see
13:57when price creates this crack in
13:59correlation here with that weekly time
14:01frame
14:02before that weekly candle even closes,
14:05what is forming the high of that weekly
14:07candle is a daily C2 reversal signature,
14:10right? Price expands away
14:13into a relevant low.
14:16But remember, this is an internal
14:18relevant low, right? We have the
14:19reversal
14:20and the drawn liquidity. So, anything
14:22internal to this range here
14:25anything internal to it
14:26anything you see to the left is
14:28essentially irrelevant, right? Anything
14:30that's engineered to the right side
14:32is irrelevant, right? We want to see
14:34price trade into those levels and then
14:36print continuous signatures, right? Or
14:38failure to manipulate to continue all
14:40the way to our drawn liquidity. Those
14:42are things we want to see, right? So,
14:44what does price do? Price gives us that
14:46V-shape, right? That expansion away from
14:49our key level. After price creates that
14:52SMT, price trades into that relevant
14:54level. This is where we want to see
14:56consolidations and retracements. What
14:57does price do?
14:59Consolidates. Clear consolidation,
15:01right? What is the way we want to trade
15:03consolidation?
15:04Wait for the high to be traded into
15:08or manipulated. In this case, the high
15:11is a fair value gap. So, that is good as
15:13well. But what do we notice here? Price
15:16prints a C2 candle
15:18and C3 does not really expand away. So,
15:20this is something we're not even going
15:22to engage with. We're going to simply
15:24wait until price expands away.
15:27Once price expands away showing the
15:28willingness to trade away from this,
15:30that's when we can start to look for
15:32continuation. As you can see, price
15:33continues,
15:34trades into this low.
15:36If we zoom in here,
15:39when we hit this low here, what does
15:40price do? Right, very, very small range
15:43candle.
15:45So, once we print that small range
15:46candle,
15:47we view that on a lower time frame,
15:49what do we see? Clear consolidation,
15:52right? Very, very clear consolidation.
15:54So, what does that mean? Price should do
15:56what?
15:57It should continue through this low,
15:58right? This is what we want to see. We
16:00want to see price fail to mimic this
16:01low, so we can expand through it to
16:03continue through that low towards our
16:06overall drawing liquidity way down here,
16:08right? What do we see over here?
16:10Price expands away.
16:13This is really what we want to see as
16:14well. We take this low,
16:16and if price really trades through low,
16:19it is highly likely we're going to
16:20create a new low, right? Once price
16:23starts to retrace, right? So, price
16:24trades way through this low.
16:27Once we pre- create this new low, right?
16:29Candle one, candle two, candle three,
16:31right? We're probably going to take out
16:32this low again, right? Because
16:34this key level here was not manipulated,
16:36so deep manipulations through lows are
16:39good to see for continuation, right? In
16:41a bearish range. So, that's what we see
16:43here.
16:45What are we creating, guys? Shallower
16:47retracements.
16:48And this is the higher time frame,
16:49right? Very, very shallow retraces, not
16:51even reaching EQ. We don't need to reach
16:53EQ.
16:54If we take, you know, however you
16:56measure it, man. How do you measure it
16:57from here to here,
16:59right? Are we seeing a really deep
17:00retracement? Nope. What about right
17:02here?
17:04Nope.
17:05Right? No deep retracements. This is
17:07what we want to see. This is strong
17:08uh expansion signatures, right? So, what
17:11do we see here?
17:12A gap.
17:16This is a consolidation, so price
17:17expands. We have an inside bar that is a
17:20higher timeframe consolidation
17:22signature.
17:23What do we want to see?
17:24The manipulation of consolidation. We
17:26have the reversal into expansion candle
17:29away from it, right? Let's move on.
17:32Price expands again and falls short of
17:35the overall draw on liquidity. This is
17:37another great, great thing to see
17:40when trading retracement, right?
17:42Let me just draw this up for you.
17:43So, if price comes off of like this, for
17:47example, at a key level,
17:50maybe this is your draw on liquidity. If
17:52price expands away like this,
17:54right? And remember, what are we doing
17:56here? Displacing through highs, deep
17:58runs through highs, which is what I just
17:59talked about with this low right here.
18:02These are good things to see, right?
18:04It's even better
18:06if we start to retrace
18:07and we fall short of the overall
18:09objective, cuz what are we doing right
18:10now?
18:11We're engineering
18:12close proximity highs or failure swings,
18:14right? Which is a retracement signature.
18:16Um, so because we haven't reached an
18:18overall draw on liquidity, because we're
18:20engineering these highs,
18:21this range right here becomes a very,
18:24very high probable range for a expansion
18:27retracement expansion, right? So, we're
18:28going to look back within this range
18:30for a gap in price, and that's going to
18:33be a really high probable gap, right?
18:35So, this is exactly what you see right
18:36here.
18:37Look at these close proximity lows.
18:40When price engineers this first swing
18:42point, we want to start to see
18:43retracement signatures, and that's what
18:45we see here, dude.
18:46Look at these close proximity lows.
18:48Very lacklustre in price action. Look at
18:50these big candles, these big bearish
18:52candles,
18:53and these really small candles following
18:55that, right? That there is a
18:58consolidation {slash} retracement
18:59signature,
19:00right?
19:01What do we see here? A key level, a fair
19:03value gap. This is about where you want
19:06to see that retracement capped off,
19:08right? When we think about daily
19:10profiles,
19:12what is this day doing?
19:15Let's see.
19:16It is opening high first, right? Into a
19:19key level.
19:20Okay. So, when we hit this key level,
19:21what do we want to see, guys?
19:23We want to see
19:26expansion signatures,
19:28reversal signatures.
19:32So, let's go to the lower time frame
19:33here on the hourly chart. What do we
19:34see?
19:35Price trades into this high,
19:38right?
19:39Prints a C2 candle
19:41on the hourly time frame.
19:43So, what what is this going to be,
19:44right?
19:46This is going to be high of day
19:47potentially, right? Cuz it's printing
19:48that reversal signature, right?
19:51And then we expand away. Look at that
19:52V-shape signature.
19:53We We do not manipulate this low here,
19:56as you can see.
19:57We do not manipulate it. We're making
19:59that deep run through it, right? No real
20:01reversal candles through it.
20:03And then we retrace, not creating that
20:05deeper trace. We don't want to see that.
20:06Into a gap. Same thing, right? Prints
20:09that pretty much a C2 candle, long wick.
20:12Expands away, expanding through lows,
20:14really deep retracements. And then what
20:16are we doing here, guys? Same thing.
20:17Look.
20:18We're creating those that really deep
20:20expansion back to lows.
20:23And what are we doing? Retracing. And
20:25like I said, that gap is going to be
20:26high probable for continuation, right?
20:30And once we trade this low,
20:32we don't care about this low because it
20:34is not a relevant level, right? This is
20:36the relevant level on our higher time
20:38frame, right? So, we engage with these
20:39these levels here, right? What do we
20:42want to see? Again, continuation
20:43signatures, which is consolidations and
20:46retracements. So, what did you hear?
20:47Consolidates.
20:49The consolidation high is a fair value
20:51gap low on the hourly time frame. We
20:54manipulate it, which is what we want to
20:55see, right? You want to see
20:57expansion, consolidation, manipulation,
21:01expansion. That's how we actually trade
21:02it. Price doesn't technically have to do
21:04this. It can just expand, consolidate,
21:06and expand, but we're not going to trade
21:08that. But as you can see,
21:10the day again, how does this daily
21:12candle
21:13form? It opens high first, right? We
21:16went over this in uh candle profiles,
21:19right? Price opens high first, trades
21:21into our key level,
21:24prints a reversal signature, C2 candle,
21:26C3, C4 expansion. So, as you can see how
21:30we're putting this all together, right?
21:31We're having phase of price support our
21:32narrative. We're having candle profile
21:34support our narrative. And this is how
21:36you build high probability conviction to
21:40framework.
21:41So, zooming back out one more time, what
21:43do we see? Higher time frame expansion
21:45candles and lower time frame
21:47continuations signatures that support
21:50the idea for those candles to become
21:52expansion candles. You can see over
21:54here, you have daily expansion candles.
21:57When you drop down to the lower time
21:58frame, what do we see? 4-hour and 1-hour
22:02continuations signatures, right?
22:04Retracements, consolidations. Once we
22:06hit key levels, they reverse, forming
22:09the high of these higher time frame
22:10expansion candles, which we look to get
22:13on side with.

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