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Anomaly - Advanced Course - Lesson 2 - Key Level Filtering — Transcript

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0:04Hello everybody.
0:05Welcome back to the anomaly course.
0:08Core content lesson two.
0:10In this section we're going to be
0:11covering key level filtering.
0:14And the first key level we're going to
0:15be talking about is how to filter out
0:17highs and lows. But firstly, we must
0:19define what is a relevant swing. It is
0:22really simple.
0:24It is simply spaced out highs and lows.
0:27We're looking at the proximity. I would
0:29say a uh fairly easy way to mechanically
0:32define a relevant swing is by using the
0:35premium discount tool. I don't have a
0:37slide going over this, but it's simple,
0:39right? Mark out from low to high. 50%
0:42will be around here.
0:44Any low printed at EQ or in premium is
0:47definitely a defined relevant swing. If
0:50it's in deep discount, I really wouldn't
0:53define that as a relevant swing.
0:56But relevant swings are essentially
0:58the highs and lows that we want to be
0:59using
1:01for our key levels. So now let's talk
1:03about what a failure swing is. It is the
1:06exact opposite of a relevant swing.
1:08It is not spaced out highs and lows,
1:10right? So you can see the space between
1:12that, right? If you mark out premium
1:14discount from here to here, this is in
1:16premium, right? It has that large
1:18proximity that we want. Over here we
1:20have that close proximity,
1:22right? From low to low.
1:24So this low here, we're not viewing this
1:26as a relevant key level. So if price
1:28comes down here and tags this low, we
1:29don't care about it.
1:31We care about the relevant swing being
1:33tagged, all right? So as we see, if you
1:35mark out from low to high, this low is
1:38printed in deep discounts.
1:40So when price engage with the failure
1:42swing, we do not look for a reversal. We
1:44only look for reversals at relevant
1:46swings. We'd actually rather target
1:48failure swings as a draw on liquidity.
1:50So now let's go ahead and cover what a
1:52protected swing is. And that is simply
1:54when price engages with a relevant swing
1:57and manipulates it, right? Once price
1:59engaged with a relevant swing,
2:01manipulates it, expands away,
2:03essentially you have higher resistance
2:05liquidity being created, and there's no
2:07reason to return to this level because
2:10the proximity to the next relevant area
2:13is far away, right? Price has cleared
2:16out all liquidity in this given area,
2:18therefore there's no reason to return.
2:21So, as you can see this fair value swing
2:22here, just sitting above this relevant
2:26swing, we only care about the relevant
2:28swing being engaged. So, in this little
2:30slide here, it's going to be talking
2:32about when to use 15-minute gaps versus
2:351-hour so that's 30-minute gaps. It's
2:37really, really simple. So, when you have
2:39a higher time frame draw on liquidity
2:40and that reversal, you're going to have
2:43internal objectives on your way to the
2:46overall draw on liquidity, right? So,
2:47you see this relevant high here, this
2:49space between these highs, right? That
2:50would be a relevant high.
2:52When we engage with these relevant uh
2:54levels on the aligned time frames, the
2:56lower time frames, this is where we can
2:58get new phases of price, right? So, very
3:01early on in that reversal, you're going
3:03to be within, you know, an an hourly C2,
3:06C3, C4.
3:08This is typically where you're going to
3:09find 15-minute gaps. It's actually
3:11within the creation of these hourly
3:14swing points, right? But, once we engage
3:16with these hourly relevant levels to the
3:18left on our way to our overall draw,
3:21you know, as time passes, it's going to
3:23create, you know,
3:25candle five, candle six on the hourly
3:26time frame, etc.
3:28This is when you can get an hourly gap,
3:30right? Or an hourly new phase of price
3:32after we hit an hourly key level. So,
3:35really, this is a mechanical way to
3:37decipher where to use the 15-minute gap.
3:40It's going to be low in the range early
3:41on the reversal, higher in the range
3:43after hitting relevant levels. You know,
3:45this is where we're going to get new
3:47phase of price on the 30 minutes, that's
3:48the hourly. So, that's when to choose
3:50those higher time frame gaps. So,
3:52another way to look at it is like this.
3:55Here's your higher timeframe universal
3:57model, right? Mark it out from higher
3:59timeframe drill liquidity to higher
4:01timeframe reversal. And below EQ, you
4:04can use 15-minute gaps. And above EQ and
4:07premium, we're going to use those higher
4:09timeframe gaps. So, now we're going to
4:11talk about how to filter your entries.
4:13So, with this little example here,
4:17what is the problem here? It looks all
4:19good, right? C2 candle, C3 expansion,
4:22right? You have the candle opening low
4:24first. You have an order block that
4:27looks good to enter, right? But, there
4:29is a problem here with what exists
4:32inside of this C2 candle on the
4:3515-minute timeframe. Let's go to the
4:36next slide and check it out. So, when we
4:38look within
4:40this previous C2 candle, what do we see?
4:43Price has a 15-minute fair value gap
4:46within it.
4:48So, if you're entering before we tag
4:51this 15-minute gap on the lower
4:52timeframe, you're essentially putting
4:54your stop loss right above a higher
4:57timeframe gap, right? Which is obviously
5:00not a protected level. So, the way this
5:03usually forms, where we have a C2 candle
5:07and a 15-minute gap within it, is when
5:09you create a reversal into expansion
5:11candle, right? With these big expansion
5:14candles on the hourly timeframe, whether
5:15it's a C3 expansion, C4 expansion, or a
5:20C2 reversal into expansion candle, they
5:22can create these 15-minute gaps. So, you
5:24want to look within these candles to
5:27make sure there's no gap within it.
5:29That's basically what you need to wait
5:31for, right? If there's a gap, you need
5:32to wait for it to get hit,
5:34and then price should reverse, because
5:35that would be a protected lower
5:37timeframe entry.
5:38Um if you're just putting your stop loss
5:40right above a 15-minute gap high, that's
5:44not a protected level, right? For the
5:46lower timeframe. Wait for that lower
5:47time frame to hit that key level, and
5:50that will be protected, right? So, here
5:52is putting that all together.
5:54And this is essentially the same thing,
5:56but the 15-minute gap
5:59is forming when C3 opens, right? So,
6:03basically, when we open this candle,
6:05right? When we open this candle, is
6:06there a gap technically? No. But,
6:08there's a future gap going to be
6:10created. We know that. Because when this
6:1215-minute candle closes, right? Look at
6:15these wicks. They're not meeting.
6:16They're not meeting together, which
6:17means there's going to be a future gap
6:19there, right? So, you got to be careful
6:21for existing 15-minute gaps when looking
6:24for entries
6:25um in these swing formations and future
6:2815-minute gaps, right? So, look Look
6:30what happens here, right? You see this
6:31wick right here? Price opens low first
6:33to create the wick of C3.
6:35You think this is a protected level,
6:37right? So, maybe you enter there or
6:39whatever.
6:40Um
6:41but you're going to get swept out. Why?
6:43Because when this 15-minute candle
6:44closes, that low
6:46is the 15-minute gap high.
6:49So, you're putting your stop loss on a
6:50future 15-minute gap when this candle
6:52closes, right? That's not a protected
6:54level.
6:55Wait for it to close,
6:56and then we wait for price to tag this
6:58gap here.
6:59You get your CSD to confirm that that
7:01gap there, and that is the low of C3.
7:05That's a protected lower time frame
7:06entry. And sometimes it's going to leave
7:08the gap open. So, what, right? We're
7:11trying to go over the highest probable
7:13lower time frame entries, and that is
7:15where there is is no reason to return
7:17lower, right? If we tag this gap here,
7:19there's no reason to return lower.
7:21Uh if you start entering, you know,
7:23above gaps and stuff, there's a reason
7:25to for price to retrace take you out of
7:28your position, which we don't want.
7:30Now, let's talk about the creation of
7:32future higher time frame gaps. It's
7:35essentially what I just showed you in
7:36the last slide. So, let's go over it
7:38here.
7:39So, looking at the 15-minute chart here,
7:41you might think this is a valid
7:4315-minute gap. You have your SMT fill,
7:45your confirmation. Maybe you have a
7:47lower time frame CSD to confirm this.
7:49While it's printing, price might look
7:51like this.
7:52Right? You see this?
7:54Price might look like this, but again,
7:56when this candle closes, what is it
7:57going to create?
7:59A future gap. So again, you're you're
8:01basically putting your stop loss on a
8:03future gap
8:05um high, which is again, not a protected
8:08level. So you want to avoid this, right?
8:10Wait for the higher time frame gap to be
8:13created, so you have to wait for this
8:14candle to close.
8:16Once it gets tagged is when you can then
8:18look for an entry. So now let's talk
8:20about key level alignments. So this is
8:23essentially aligning a higher time frame
8:24model with an aligned model, or a model
8:27within a model. So what does that look
8:29like? We have a higher time frame
8:31universal model, right? Reversing off of
8:33range low. We're going to target that
8:35range high, right? But once price
8:37reverses at the range low on the lower
8:38time frames, or the aligned time frames,
8:41price will displace away.
8:43That displacement away will create a
8:44gap.
8:45So what do you have here? A key level
8:48and the draw on liquidity.
8:49A IRL to ERL on our way to our higher
8:52time frame draw on liquidity.
8:54So now you're aligning draws on
8:56liquidity
8:58and key levels, right? You're going to
8:59use this key level to get to our draw on
9:01liquidity, right?
9:02Once you have this alignment,
9:04this model inside of a model,
9:06there is nothing more high probable than
9:08this specific scenario. So as you can
9:10see, price expands away from the IRL,
9:13leaves failure swing, so we know this is
9:14probably a retracement lower, right? Or
9:17a consolidation. Once price engages with
9:20this low, which is a relevant swing,
9:22look at the space between these lows.
9:24This can be our aligned range low to get
9:27to our overall draw on liquidity,
9:30aligning multiple models in the same
9:32direction.
9:33Now let's go over a short example for
9:36relevant swings.
9:38So, here we are on the daily. We always
9:40want to start off with the higher time
9:41frame universal model. And as you can
9:43see, we're going to be using
9:44manipulation ranges, which the key level
9:47is going to be a swing low.
9:48And of course,
9:49how do we filter out swing highs and
9:52lows is we want relevant swing highs and
9:54lows, right? So, as you can see here,
9:56the space between these lows is what
9:58qualifies this as a valid swing low to
10:01use as a key level.
10:03And we get that C2 candle confirmation.
10:06We have the SMT.
10:07Every time we get to the relevant swing
10:09high or low, or any key level in
10:10general, we want to have SMT, and
10:13ideally two-stage SMT, which is actually
10:16what we have here.
10:17So, as you can see here, you have a SMT
10:19to the key level, and you have a SMT
10:21with the swing,
10:23which is kind of like that roof SMT,
10:24right? This is what we like to see, and
10:26it's also a strength switch. So, if you
10:28go over here to In Q, you're going to
10:30see that here.
10:32As you see,
10:33it's showing relative strength,
10:35and then short-term, it's showing
10:37relative weakness with that two-stage
10:39SMT.
10:40And now let's talk about how to use
10:42relevant swings
10:44within the universal model. So, on the
10:47left side of the curve, going from point
10:50A reversal to point B drawing liquidity,
10:54inside of this range, you're going to
10:56have relevant levels on the lower time
10:59frame. Now, in this case, you can see we
11:01have a relevant level
11:04on
11:05the daily chart actually. You can see
11:06You can see this internal high here.
11:08This is not the important high
11:10necessarily, right? It's actually this
11:12one.
11:13Uh these highs I would deem to be not
11:15relevant. This is not a relevant high in
11:16my opinion. It's kind of hard to to make
11:19it fully mechanical, right? Um I did
11:22give you guys this example where, you
11:23know, we can use like the premium
11:26discount tool. Um but it's not always
11:28the case, right? You You of have to
11:30eyeball it really. You're going to get a
11:31feel for it. Um but premium discount,
11:34you know,
11:35for example, like
11:36ideally, you know, this low is ideally,
11:38you know, an EQ or like premium. That's
11:41like really easy to make a mechanical,
11:43but this is fine as well. But it feels
11:44like, you know,
11:46down here or something, obviously that
11:48would not be a relevant swing. These are
11:50These lows would be too close. But this
11:51is okay, right? We also have the the
11:53confirmation to it regardless. This is
11:55what we use to stage SMT to filter out
11:58key levels as well.
12:00But let's go over to lower time frame
12:02and let me show you guys how to use
12:03relevant swings
12:05um on the left of the curve and the
12:07right of the curve.
12:08So, dropping down to the lower time
12:10frame, you're going to have these
12:12internal targets to the left, right?
12:14Where we're not expecting price to
12:15reverse from. We ideally want to see
12:18when price engages with them, price to
12:20fail to manipulate. That's exactly what
12:22we want to see. And once price engages
12:24with these levels, they're typically
12:25going to be found in the hourly, the
12:2630-minute, you know, the 4-hour. We're
12:29waiting for a new displacement
12:30right? Um we're waiting for
12:32retracements, consolidations.
12:34We're waiting for those key levels to
12:35get hit uh to then expand again, right?
12:38Um
12:39so when you look inside of this here,
12:41right? This is very very very clean.
12:45We're going to remove this SMT and we're
12:46going to pretend it's not here, right?
12:48So, I'm going to show you guys something
12:49here.
12:50So,
12:52when you look to the left,
12:54ev- every single high internal, we want
12:56to see price fail to manipulate. So,
12:58this is the most recent high right here
13:00after we create the SMT. I can see price
13:02is not manipulate it. This is the first
13:05sign that's your universal model is
13:08actually going to play out, right? We're
13:09actually going to continue.
13:10But this is one of the best things you
13:12can actually see.
13:13It's when price creates an SMT
13:15and then it reverses, it expands,
13:18right?
13:19But it falls short of an internal level
13:21or the overall draw on liquidity and it
13:23starts to retrace,
13:25that's going to create a um failure
13:28swing. You know, if it retraces deep
13:30into those levels,
13:32it creates a failure swing. So,
13:33essentially we have at the point of
13:34retracement is a failure swing, which is
13:36not a protected level. And on the
13:38opposing side of that, you have a
13:39protected
13:41swing, right? A manipulated
13:44relevant low. So, this range that you
13:47see here is actually very very high
13:50probability in price, right? And every
13:52single low, every single relevant low
13:55that we put in on the right side of the
13:57curve, we want to be manipulated to
13:59continue higher. So, you guys see the
14:01space between this low
14:03and the overall low over here?
14:07Right? This is exactly what we want to
14:10see price do, right?
14:12We actually have SMT here between RTY as
14:14well. I'll show you that really quick.
14:17So, even if you don't have SMT in here,
14:19this would also be valid cuz RTY, as you
14:22can see an SMT right there.
14:24So,
14:25now you have a new universal model. We
14:28have a point of reversal.
14:30And on your way to these highs to the
14:31left, you engineered a new high, right?
14:34We're all always going to be engineering
14:35new highs
14:37whether they're relevant or failure
14:38swings that we want to target, right?
14:40These are lining draws of liquidity,
14:43which is what we're going to talk about
14:44in just a bit. But, let's just talk
14:47about this universal model, right? Order
14:49paying ranges to this low and this high,
14:52you have an internal relevant high,
14:54right? So, now let's go into price
14:56action here and you're going to see
14:57exactly the same thing.
14:59So, we drop down, what do we have? A
15:01manipulation. Kind of price looking a
15:04little sloppy, but what does it do when
15:06it starts to retrace, right? What does
15:08it do? Leaving failure swings here.
15:10So, you have a failure swing and a
15:11relevant swing here.
15:13And if you look back from this range,
15:16what is the only
15:18level to really react off of?
15:21Right? It's this relevant low. Look at
15:24the space between this low and this low.
15:26So, now if we're going to continue
15:28this is where we need to
15:30reverse from, right? And you're going to
15:31see here
15:33that that triad sequence for SMT break,
15:36right? Look at this. It's beautiful.
15:39Right when ES breaks this level, price
15:41reverses.
15:42And NQ over here has an SMT there.
15:45Perfect.
15:46Right? And we're using that triad
15:48sequence with an actual relevant low,
15:50not just any low ever, you know.
15:52Uh it has to be a relevant level, right?
15:54As you can see, price when we engage
15:56with this high here, this relevant swing
15:57we want to see price do what?
15:59Fail to reverse, right? As you can see,
16:01it's just trading right through it.
16:02That's perfect. So, now we know that
16:04this range should be holding.
16:07If we have protected swing as the low of
16:09the range and look what price does. This
16:11point of retracement, it doesn't trade
16:13into anything relevant. What is it
16:14creating?
16:15Failure swings again. This is exactly
16:17what you want to see, right?
16:18Uh is this right here.
16:20So, as soon as we start to fall back in
16:22the range
16:23you're looking for a either a relevant
16:24swing internal to this range, you're
16:26looking for the most recent gap in
16:27price, [clears throat]
16:28or you're looking for a relevant low to
16:30be
16:31actually printed. So, that's what we do.
16:33We actually print a relevant low in the
16:35retracements.
16:37As you can see
16:38the space between these lows. And this
16:40is where you want to see manipulation.
16:41Now, price doesn't manipulate slow.
16:43There's no SMT, so you can't trade this
16:45expansion. It's as simple as that.
16:48So, now jumping back to the 4-hour time
16:49frame, as you can see, we finally get to
16:52this higher time frame you know, that
16:54daily's uh failure swing. And this is
16:57where you want to see what? Price fail
16:58to manipulate. That's exactly what it
17:00does.
17:01It consolidates here. We want to see
17:02those continuation signatures, you know,
17:04retracements, consolidations. It
17:07consolidates. That's a continuation
17:08signature, which we know
17:10when we have that, we're going to
17:11continue through it towards our overall
17:14draw on liquidity which is exactly what
17:16price does.
17:18Now, let's go ahead and talk about gap
17:21filtering. So, we're always going to be
17:22applying
17:24these concepts to universal models. So,
17:26let's go ahead and use this example
17:27right? We engage with this relevant low.
17:30Space between these lows
17:32makes it relevant, right?
17:34We want to have our confirmations. We
17:36have SMT.
17:37Uh, we have a C2 candle. So, when you
17:39have the C2 candle
17:42as soon as this prints, you're going to
17:44look at the 30-minute
17:47and the 50-minute to see if there is
17:49going to be a future gap, right? Do you
17:51see any gaps in price that can be
17:54created on the 50-minute? No.
17:55What about 30-minute? No. So, you're
17:58immediately good to go to entry.
18:00Just right off rip, right? Um, and as
18:02you can see, we have a nice V-shape.
18:05For sure.
18:07We have our
18:09gap here.
18:10We have
18:11a potential CSD. So, as soon as this
18:14gets created, you're pretty much good
18:16for entry, man. So, boom.
18:19You can enter here.
18:21Put a stop loss at the low or here,
18:23wherever you guys choose. We can target
18:25our overall um, universal model high.
18:28Um, and this would be a valid entry,
18:31right? But, I'm going to show you an
18:32example where this would not be valid.
18:35So, if you play price forward a little
18:36bit
18:37price kind of chops around for a bit,
18:38for sure.
18:39Um, but when it reaches this high here
18:43these internal relevant swings to our
18:46overall draw on liquidity, you're always
18:47going to have those internal levels.
18:49This is where we're going to wait for a
18:50new face of price, right? Um, so you're
18:53going to see here, we kind of just
18:54retrace really deep back into the range.
18:56Uh, we're not so concerned with this
18:59being a winner or a loss, you know? This
19:01trade here, I don't care. That's not the
19:02point of this video, anyways. I'm not
19:05here to show you the most perfect
19:07entry ever. Um, really what I'm
19:09concerned about here is showing you guys
19:11when to
19:13wait for gaps and when it's valid to
19:15enter. So, let's just use a C2 candle as
19:17a
19:18as a um example.
19:21Now, there's no key level here, so I
19:22wouldn't really trade it necessarily. Um
19:25but
19:26there is actually that's
19:28There's an SMT here on the lower time
19:29frame, so it could be fine. Um using
19:32that logic, you have a relevant swing
19:33here. I have SMT SMT break, which is
19:36what I went over it in relevant swings.
19:38You watched this before. Um so, it could
19:40actually be fine. But, if you look at
19:42the hourly, technically no key level,
19:44but this would be the actual valid
19:45entry. But, anyways,
19:47we have a C2 candle, right? We have that
19:49closure.
19:50So, again,
19:52let's go to 30 minute. Are we going to
19:54create a future gap here? No. What about
19:5650 minute? No. Boom. You can enter this
19:58trade. Um your lower time frame, your
20:02stop loss will not be on a higher time
20:03frame gap. Um you're going to see
20:05exactly what I'm talking about in a
20:06couple minutes.
20:07But, this would be a valid entry. Look
20:08at that V-shape. Continuation CSD.
20:11There is nothing wrong with this trade,
20:13man. Um that would be good. Now,
20:17here, you are not going to be entering
20:20within this C3 right here.
20:24You're not going to be entering this
20:25right here.
20:27Now, why is that?
20:29You might think it's a nice
20:30continuation,
20:32right or whatever. For one, the RR,
20:36right? It to this relevant high is
20:38really low.
20:39Um you ideally wants QR to these
20:42relevant levels. That's not really the
20:43point though. The point here is you're
20:45putting your stop loss on a gap low,
20:48right?
20:49Look at this gap low here
20:51on the 15 minute,
20:53on the 30 minutes, which is actually
20:56right here.
20:57Right? Do you see that when this candle
20:59closes, it's going to create a future
21:00gap? So, you're putting your stop loss
21:02basically
21:04at that gap. That's not a protected
21:05level. So, when you engage to these
21:07levels, especially, you're going to get
21:09those new physical price, those are
21:10trades wins on the 30-minute and
21:12whatnot. And at this point, you're going
21:13to be waiting for the 30-minute / hourly
21:16to create that gap because we just
21:18engaged with that relevant
21:20internal level to your universal model,
21:23right? So, if you play price forward
21:25here,
21:28we get that hourly gap, right? This is
21:30exactly what we want to use, right? And
21:34you wouldn't be entering this either.
21:36You wouldn't be entering this 30-minute,
21:37you know, gap. Why?
21:42Because in an hour,
21:43when this candle closes in an hour,
21:45you're going to create a future hourly
21:47gap, right? So, as soon as this candle
21:51four, a lot of people think they're
21:52going to trade a candle four here
21:54cuz you have a valid C3 closure, right?
21:56Candle one, candle two, candle three.
21:58Um you can't trade candle four here,
22:00right? If it just does this and respects
22:02EQ, right? It cannot meet these wicks.
22:04These wicks cannot meet. Meaning that
22:06you're putting your stop loss on a
22:07future hourly gap, right? I'll show you.
22:10So, as you can see, this is the low
22:11here.
22:13Right? You also just can't enter this
22:1430-minute gap either because again,
22:16these wick the hourly wicks on the
22:18higher time frame would not meet.
22:19Um
22:20But as you can see,
22:22let's say you entered, you know, right
22:24here.
22:25Right here, exactly.
22:28This CSD,
22:29your stop loss is on a 15-minute, or
22:32sorry, your stop loss is on an hourly
22:34gap high.
22:36You know, that's going to be created in
22:36the future. Now, in this case, it works
22:38here
22:39technically.
22:41You get a little bunch of RR, but
22:43something you want to be careful of,
22:44especially because we we didn't even hit
22:46the 30-minute gap either, right? So,
22:48it's it's really not valid, right? Um
22:50so, there's really no entry there.
22:51You're just going to have to wait. Just
22:52wait patiently until we start to engage
22:56with these these higher time frame gaps,
22:57right? Um
22:59and that's going to give you
23:01that um
23:03nice key level on the higher time frame
23:04since
23:06if we draw out using our premium
23:08discount tool from reversal point to
23:10draw on liquidity, look where we are.
23:11We're in premium, so we're going to look
23:14for the 30-minute and above for gaps,
23:16not the 50-minute way up here. You're
23:18going to get destroyed. Um but as you
23:20can see, price now tags this gap here.
23:23Tags this gap.
23:25You're good to go. You have a C2 candle.
23:26Now again, you're going to do the same
23:27thing. Are we going to form a future
23:2930-minute gap? No. 50-minute gap?
23:32No.
23:33Right?
23:33This 50-minute candle is a C3. It's just
23:35going to go like this.
23:36Right? There's no gaps to be created. Um
23:39so you can go straight to entry here,
23:41technically. Right? And again, I'm not
23:43really too concerned with how it plays
23:44out. It does end up playing out here.
23:47But that's really my point, right? Um
23:49but now when we engage this higher time
23:51frame fair swing on the on the daily,
23:53look at that, the daily. At this point a
23:55lot of time has passed, right? So you're
23:56probably going to create like 4-hour
23:57gaps, you know? Cuz again we're really
24:00high in the overall
24:02range
24:04from
24:05daily reversal to daily
24:07draw on liquidity. So you see how
24:08there's there's a bunch of ranges we're
24:10all lining them.
24:11Um
24:12as you can see
24:13play price forward.
24:15This is the gap that you want to be
24:16using right here.
24:19Right? That's the gap filtering that we
24:21want to be using.
24:22Um inside of the previous its range, you
24:24can see price consolidates.
24:26Once you engage with this, boom, you're
24:28pretty much good to go.
24:30Now you're going to do the same thing,
24:31man.
24:32This is a universal model in itself from
24:35the
24:36um 4-hour key level
24:38to the 4-hour draw on liquidity.
24:40Internal to this, what are you going to
24:41have?
24:45Internal levels, internal draws on
24:47liquidity. You guys see that?
24:48So you're not going to trade this
24:514-hour C2
24:53or sorry
24:55you're not going to trade this
24:58So you're not going to trade this hourly
25:00C4 because again look look where we're
25:02opening. We're opening
25:05where these wicks are not going to meet.
25:07Right? We open low. Unless it does all
25:10the way down here, which we don't even
25:11want to happen honestly cuz that would
25:13just be disrespecting EQ here.
25:16Um
25:17we can't trade it, right? This is why
25:18C4s are kind of not ideal. C3s are
25:21really what you want to trade. C4s, you
25:24know, you can get new basis of price and
25:26all that especially after tagging this
25:28gap here. You're going to see there's no
25:29entry. You just got to live with it,
25:31man. Um
25:33price engages this high before we even
25:34can create the hourly gap. You just have
25:36to live with it, right? Um we're trying
25:38to trade the highest probable trades
25:40here and that's what I'm teaching here.
25:42So check this out here.
25:44We engage with this low.
25:47And let's ask ourselves, can we take a
25:49trade? We have a C2 candle. When I look
25:51back within the lower time frame,
25:53you know, within this candle, are we
25:55going to create a gap? No, we're opening
25:57a C3 over here. 15-minute? Yes.
26:00You guys see that?
26:02This is a C4. You see the problem with
26:04C4s? By trading C4s,
26:07um you're going to create that future
26:08gap. So it it looks valid on the hourly
26:11like ooh C3.
26:13But when we open low, C3 open low,
26:16high,
26:18you know, close or whatever.
26:20Um or even before it closes, that wick
26:22is going to create that lower time CSD.
26:24But that CSD low is a future 15-minute
26:26gap. So what we're going to do is wait
26:28this candle to close.
26:31Boom. Now you wait for this gap to be
26:34triggered, right? So as you can see,
26:37you get an SMT fill here.
26:39Look what's going on in Q.
26:42In Q trades inside that gap, right? Um
26:46so if this is like a move higher or
26:47something, there's a CC there. You're
26:49going to get stopped out. Now since we
26:51have
26:52engaged with this 15-minute gap, there
26:54is no reason to return lower now. We've
26:58tagged every key level, right? Um so at
27:01this point, your lower time frame
27:03entries now protected.
27:05So, now we're going to be covering
27:07alignments, aligning models within the
27:09models. This is how we get the highest
27:12accuracy within our trading is when you
27:14even get in before we even take out
27:17these internal models holding our trades
27:20into the overall external highs to the
27:22higher time frame. This is how we get
27:24excellent RR, how we improve our win
27:26rate, and overall, it's just a great
27:28framework to have. So, let's get into
27:30it.
27:31So, dropping down to lower time frame,
27:34let's talk about internal levels. This
27:37is very important. So, every time we hit
27:39a internal level to the left,
27:42right? Internal to the reversal, to the
27:43draw liquidity on the higher time frame
27:45reversal model, every time we hit an
27:47internal level is where we get a new
27:49phase of price. Um ideally,
27:52you know, on the hourly and 30-minute
27:53cuz that's what we trade, right? That's
27:55what forms the low of our 4-hour
27:56candles. Um if you're going to form a
27:59low of day, we know that key level must
28:01be the hourly above.
28:02Um
28:03and typically, we're trading the the
28:04daily model. So, those internal levels
28:06are going to be found on the hourly and
28:084-hour.
28:10Um but
28:11when we engage with these internal
28:13levels, we're going to get these new
28:14phase of price, right? And that's where
28:17the key levels on the right side of the
28:19curve are created, okay? So, you see
28:22price expands away,
28:24right? We fall short of these highs,
28:26and then we start to retrace back in the
28:27range, right? Once price engages with
28:29these levels or expands, we get a new
28:31phase of price.
28:32Like I said, this is where we get our
28:34key levels to continue higher, right?
28:37So, price retraces, engineers a low
28:41on the right side of the curve, and this
28:43is exactly what we're going to be
28:44trading, right? This is what we want to
28:46be used to go higher, to continue
28:48higher. This is like our honestly like
28:50our last line of defense to go higher,
28:52right? Any move away from the draw
28:54liquidity, so this is a move away from
28:55the draw liquidity
28:56is to be viewed as manipulation to get
28:58back on side with the overall direction
29:01in the market, right? And this is a
29:03really fractal concept, so you're going
29:05to see that exactly here.
29:08So, you could say that this is a
29:11universal model,
29:13right? Where you have this um
29:16manipulation of low and manipulation of
29:17high. You have a internal level here.
29:21And once you engage, like I said,
29:23you're going to get these new hourly and
29:2430-minute swings. So, now you have this
29:26model aligned, right? You're aligning
29:29key levels and draw liquidity, right?
29:31Key level
29:33inside of our overall
29:35You got You have like three universal
29:37models aligned here, right? You have the
29:38daily.
29:39Inside of that, you have this hourly,
29:41and inside of the hourly, you have this
29:43hourly, you know? It's This is when you
29:45get really high probable um
29:48confirmations um to your to your overall
29:51draw liquidity and bias and whatnot,
29:52right? So, as you can see, we failed to
29:54manipulate. This is perfect, man. This
29:56is what you're going to be trading. But,
29:57even inside of these little fractal
30:00these little fractal
30:01um
30:02universal models inside of your models,
30:05you're going to have
30:06uh the same thing, man. So, let's drop
30:08down to the 50-minute. You're going to
30:10see that we have a relevant level within
30:12this
30:13low,
30:14within this reversal point to this draw
30:16liquidity.
30:18So, as you guys can see,
30:20when price expands away
30:22towards your draw liquidity, if you want
30:24to continue, right? Or even after
30:26hitting a draw liquidity,
30:27you're going to immediately look for the
30:29closest
30:31relevant low opposing to the draw
30:34liquidity
30:35or the closest gap, right? And that key
30:37level is what's going to be used to
30:39continue through these draw liquidities
30:41or it's, you know, to be used to expand
30:43again, right? Those are also key levels
30:45you want to be using SMT with.
30:47So, we look at this when price starts to
30:50retrace, it hasn't even reached this
30:51drawing liquidity, right? Which is
30:53actually a good thing.
30:54Um now we have a again a line draws on
30:56liquidity. This is great. But we look
30:58inside of this range here
31:00from reversal to retracements, right?
31:02There's no key level to be used, right?
31:04What key levels do we only use?
31:06Highs and lows and gaps, right? We're
31:07keeping it simple, right? We're not
31:09using order blocks.
31:10Um but as you can see there's no key
31:12level. So, we must engineer it. When
31:14there's no key level, you must engineer
31:15it. Meaning price will
31:18expand, retrace,
31:20and then create a swing low.
31:21Right? That swing low is what you're
31:23going to be going to use for your key
31:25level, right? And as you can see, it is
31:27a relevant low in the market.
31:29The space between these lows is good.
31:31So, this low is what you want to be
31:33using to expand again, right? Uh as you
31:36can see, we kind of don't really
31:37manipulate it. We engage with it once.
31:39And then again, I'm like create suit two
31:41C2 candles.
31:42And you're going to see the um
31:45sequence that we cover in the advanced
31:47section, which is the last section.
31:49You'll be learning this last.
31:50But you can come back to this example.
31:52I'm going to show you real quick. This
31:54is the SMT break triad sequence where
31:57this asset kind of trades through low.
31:59The middle asset is over here.
32:01Right when it breaks it, price reverses.
32:04And NQ
32:06that uh leading asset creates SMT with
32:08it, right? Very high probable sequence.
32:10So, it might not make sense now, but it
32:12will later. You will come back to that.
32:14So, we have an SMT with our relevant
32:16low.
32:17And this is what you can um
32:19use to get back on side with the market,
32:21right? This is aligning models inside of
32:23models, very very high probability. So,
32:26now let's go over another example,
32:28right? Here we talked about price being
32:31inside of that daily universal model.
32:33And inside of that higher time universal
32:35model, you know, as price expands away,
32:37a lot of time has passed, we're going to
32:39create these higher time frame gaps. So,
32:41this universal model we're going to be
32:43aligning with our overall draw on
32:45liquidity. So, once that is engaged,
32:49you're going to have
32:50internal
32:52to external.
32:54So, now let's drop into lower time frame
32:56and see the same thing repeat.
32:58So, here we are on the 15-minute time
33:00frame and as you can see, this is our
33:03universal model, internal to external.
33:05We have those internal levels. This is
33:07an internal relevant swing here.
33:10When engaged, right?
33:13We get the new phase of price. We get
33:14that consolidation.
33:15Now, in this case, I would want a higher
33:17time frame gap to form.
33:20As you can see, from draw on liquidity
33:21to reversal, we are hitting that
33:23internal level.
33:24We're also in premium, so naturally, I'm
33:26going to wait for a hourly or 30-minute
33:29gap, personally.
33:31But, early on the reversal, you're going
33:32to get these universal models uh to be
33:35aligned, right? And that's what we have
33:36right here.
33:37We have this 15-minute gap.
33:39This actually gets tagged here on NQ.
33:42So, this is a great example of aligning
33:44models, right?
33:45So, as you can see,
33:47this asset is not traded to that gap,
33:49but if we go over here on NQ,
33:52we do indeed trade into the gap, which
33:54is a continuation PSP, right? Price
33:58reverses, expands away, hasn't hit the
34:00draw on liquidity yet. Prints a PSP. We
34:03want SMT between candle one and candle
34:04two.
34:06That is a continuation PSP and your
34:08confirmation to continue higher,
34:09aligning multiple models in the same
34:12direction.

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