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Anomaly - Advanced Course - Lesson 4 - Sessions Killzone — Transcript

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0:04Hello everybody. Welcome to the anomaly
0:06course core constant lesson four. Here
0:09we're going to be covering if then
0:11statements using profiling. So,
0:15if Asia consolidates,
0:18what should we expect London to do?
0:19Reverse, right? Off of Asia's low. And
0:23if London reverses, then we should be
0:25expecting a New York continuation using
0:28key levels that London created after it
0:31expanded away. So, as you can see,
0:33London reverses, expands away.
0:36Here we have our gap.
0:38That is going to be our key level for
0:40New York to continue. As you can see, we
0:43have some order blocks for continuation
0:46as well. So, now,
0:47what happens if
0:49Asia nor London reverse?
0:52Well, it's pretty simple, right?
0:54We're going to reverse off of London's
0:56low. So, as you can see, London prints a
0:59low, which is the current low of day. If
1:01neither of the previous sessions
1:02reversed, then you have to create a
1:05reversal profile, right? So, it's pretty
1:07simple. Previous sessions didn't
1:09reverse,
1:10then we're expecting a
1:12reversal profile for the session that
1:14you're trading.
1:16If the previous sessions did reverse and
1:18hit a key level, then you're expecting a
1:21continuation profile for your session.
1:24Here we're going to be covering the if
1:25then statements for sessions with an
1:28example.
1:29Here we're going to be covering
1:30Asia/London
1:32session. So, if Asia consolidates and
1:35doesn't form an established low or high
1:37of the day, we're going to use the Asia
1:40session high to reverse off of, right?
1:43So, if we play price forward,
1:45as you can see, London forms an
1:47established high of day. It forms that
1:50V-shape signature and hourly change
1:52state of delivery.
1:55So, if London forms the high of the day,
1:58what can we expect New York to do if
2:00they're still in open draw?
2:01We would expect it to continue.
2:04And where should we expect it to
2:05continue from? It's from a key level
2:08that London actually created. So, if we
2:11just zoom in here
2:12back from the previous session's range
2:15here. Right now, it's 9:00.
2:17We can see that we have this gap here.
2:19And really, this is the only area to
2:20continue from if New York is going to
2:22continue. So, let's play price forward.
2:25And as you can see,
2:26we expand
2:28away from London's high and close near
2:31the lows, forming a reversal into
2:33expansion daily candle.
2:35So, now let's go ahead and go over an
2:37if-then statement where Asia and London
2:40do not reverse. So, if they do not
2:42reverse, then you have to expect a New
2:44York reversal. So, as you see, Asia does
2:46nothing. What does London do? London
2:49kind of just consolidates at this low,
2:52right? So, that's not really an
2:53established low of the day. So, ideally,
2:55we come back down here
2:57and manipulate this relevant low. As you
2:59can see, the space in this low
3:01and these lows down here make it
3:03relevant. We have failure swings
3:05on the opposing side over here that we
3:07can use for targets. So, let's see what
3:10price does.
3:12So, as you can see, price doesn't really
3:13trade into anything up here.
3:15We come back lower. We use Asia's low to
3:18reverse from. And there's actually an
3:21SMT divergence here as well with this
3:24overall low. And now, we can expect Asia
3:26to continue to our draw on liquidity.
3:29And as you can see,
3:30since the previous session didn't
3:31reverse, we're going to demand New York
3:33session to reverse off of those levels
3:36for our invalidation level. So, now
3:38let's go over an overview of the session
3:41kill zone times. So, for London session,
3:43you're going to be trading one 4-hour
3:45candle.
3:46Which candles are we mainly concerned
3:48with? That is the 2:00 a.m., the 3:00
3:50a.m., and the 4:00 a.m. candle. Not so
3:52much the candle that runs from 5:00 to
3:546:00 a.m. That's not really the most
3:55relevant time um in the day.
3:58So, here's the 30-minute as well. It's
4:00going to be those first six out of eight
4:03candles that make up a 4-hour candle.
4:06Now, let's go over the relevant timing
4:07within a 6:00 a.m. 4-hour candle. That
4:10is going to be 8:00 a.m. to 9:00 a.m.
4:136:00 and 7:00 a.m. Again, no volatility,
4:17not relevant. Why is 8:00 a.m. to 9:00
4:19a.m. relevant? Because those are where
4:21the drivers exist, right? 8:30 red
4:24folder news, we have 9:30 equities open.
4:27You want to be positioning yourself in
4:29the market with high volatility.
4:31So, what is the relevant timing within a
4:3310:00 a.m. 4-hour candle?
4:35Ideally, that's going to be 10:00 a.m.
4:38to 11:00 a.m. especially when trading a
4:40reversal candle. Ideally, it's the early
4:43hours within that candle, right? So,
4:45here's the 30-minute candle. It's going
4:47to be about half of that time span. P.M.
4:49session really starts at 12:00 a.m. So,
4:52it's a totally different kill zone. If
4:54you're a New York A.M. trader, you
4:56really want to cut off your trading at
4:58about 12:00 o'clock.
5:00So, now we're going to view sessions
5:02through 4-hour candles. We're going to
5:03really simplify it. We're going to view
5:05a 4-hour candle as a session, right? So,
5:08there's 1 2 3 4 5 6 4-hour candles
5:12within a daily candle, and each candle
5:15will represent a specific session. So,
5:17the Asia session
5:19is going to be made up of two 4-hour
5:21candles.
5:22So, if you're looking to trade an
5:24expansion within your session, you're
5:26essentially looking to trade a 4-hour
5:29expansion candle, right? That represents
5:31the session that you want to trade. So,
5:33if you want to trade an Asia reversal /
5:36continuation,
5:38then you're looking to trade the 1800 /
5:402200 expansion candle. It's pretty much
5:42that simple, right? So, when can we
5:43expect an Asia
5:46continuation? That is either when
5:49late in the day the previous day 1400
5:52reverses and the day is opening up
5:55within a C3 on the 4-hour time frame.
5:58So, essentially PM session late in the
6:00day previous day reverses.
6:03So, you're going to expect an early day
6:04expansion, right?
6:06Late day reversal, early expansion
6:081800 expanding. If you get that nice
6:11closure, you're expecting 2200 to expand
6:13if there is a draw on liquidity open
6:16or if the first half of Asia session, so
6:19the first 4-hour candle within the day
6:23prints a C2 reversal hits a key level
6:26and all that good stuff
6:27then you can expect 2200 to expand and
6:30continue. So, now let's talk about Asia
6:32reversals. So, here would be on the left
6:34side would be some negative conditions.
6:36We wouldn't do not want to really
6:37participate in these Asia reversals
6:40especially within the first half, you
6:42know, if 1800 forms a low day but has a
6:45large wick you're not going to trade
6:46this this first half of Asia. You're
6:48going to trade that 2200 continuation.
6:52If 1800 doesn't form a low day but 2200
6:55does but has that large wick you're not
6:57going to trade a Asia reversal. You
6:59would trade a London continuation,
7:01right?
7:02This is the way you can trade in Asia
7:04reversal, right? If you hit a key level
7:06we have that small wick maybe 1800 hits
7:09the key level or it doesn't hit the key
7:10level but it simply doesn't reverse then
7:13you're going to want to reverse off of
7:141800 low, right? If it has that small
7:16wick either or then you're pretty much
7:18good to go.
7:20So, now let's go over how to trade the
7:21Asia session. So, firstly let's go over
7:24Asia continuation.
7:26So, this is either where 1400 reverses
7:29and 1800 continues or 1800 reverses and
7:322200 continues. Here we're talking about
7:35the 4-hour candles, right? So, as you
7:36can see here, we have this low put in
7:38the market. We have an SMT divergence.
7:41Now, when was the low of the day put in
7:43over here?
7:44Let's go to the 4.
7:45So, as you can see,
7:471400 prints AC2. So, 1400 prints AC2
7:51after hitting a relevant level, this is
7:53where we can expect 1800 to actually
7:55expand.
7:57And it doesn't really have to create
7:58some like crazy open low. All it has to
8:01do is respect the previous 4-hour
8:03candle. So, what we're going to do is
8:05look for a refined key level in the
8:07previous 4-hour candle range. So, let's
8:09drop down to the hourly time frame.
8:11So, here within that previous range, you
8:13can see that we have an hourly gap. And
8:15this is the only level to reverse from.
8:17This is the very rare case you're going
8:19to you can actually use an hourly gap as
8:22your refined key level. And that's when
8:25you make that reversal really late in
8:29the day. As you can see, the low of the
8:31day is 1400 here.
8:32Um and if we're not going to stick out
8:33that previous day's low,
8:35then we pretty much have to use this
8:37gap, right? So, we're going to expect
8:391800 to open low. So, here's the open
8:42right now. Let's mark that out.
8:45Here.
8:46So, it opens low first,
8:48prints that C2 candle.
8:50That C2 candle should form the low of
8:53the 4-hour candle um as GXT
8:57confirmation, right? But, it's also
8:59technically forming the low of the day
9:00as well, right? So, as you can see,
9:03that 4-hour candle
9:05expands 1800.
9:07Now, here's an example of a 1800
9:10reversal and 2200
9:13uh continuation. So, here on the daily
9:16chart, we have SMT with the previous
9:18day's high.
9:20You have a previous day's close as a C2.
9:23So, what are we going to do?
9:24Look within this wick for a refined key
9:27level. Let's first drop to the 4-hour
9:29time frame. So, here we are on the
9:304-hour time frame. And as you can see,
9:34we have a key level close to the daily
9:36open. This is going to be that daily
9:37open.
9:39And yes, we do.
9:41As you can see with that forward gap.
9:42So, that's going to be our refined key
9:44level. And this is when you can expect
9:46Asia reversals, guys. Is when the day
9:49the daily open is actually opening near
9:52the refined key level, right? Because if
9:53if it's opening near that refined key
9:55level,
9:56then of course Asia's going to hit it
9:58likely. So, Asia can actually reverse.
10:00It's pretty much as simple as that. So,
10:02you can see that this new 4-hour
10:04candle's opening near it. So, you can
10:05expect an Asia reversal. That's how you
10:08trade Asia reversal. As long as it has
10:10that small wick,
10:11you're pretty much good to trade that
10:124-hour candle, right?
10:14And as you can see, we have our candle
10:16closure at um 1800. So, as long as you
10:21have a drawing liquidity, you can trade
10:22continuation. It's as simple as that.
10:25So, we This is how you can expect a 2200
10:27candle
10:28to continue as an 1800 reverses. And as
10:31you can see,
10:32it's going to reach this target and even
10:34further. Now, let's talk about London
10:36session. We're going to be viewing
10:38London session in 1 4-hour candle, which
10:40ranges from 2:00 a.m. to 6:00 a.m. So,
10:43what would that look like for a London
10:45continuation? That is either where Asia
10:47puts in the low of the day. That can
10:49happen two ways, whether 1800 puts the
10:52low of day in, then you have to have
10:542200 expand, or if 1800 doesn't put the
10:58low of day in, but 2200 does, then you
11:00can trade C3 continuation. Then you can
11:03trade C3 London continuation on the
11:064-hour. Now, let's get into some chart
11:08examples of covering the London session.
11:11Firstly, we're going to be covering the
11:12London continuation. Here's an example
11:15where 1800 is actually the high of the
11:18day.
11:18This is honestly the perfect example
11:20because 1800 expands very largely. So,
11:24when a session expands very large, you
11:27really don't want to trade continuation
11:30um for the next session. But, we can see
11:33the first half of Asia expands, the
11:35second half retraces.
11:38That creates a gap on the closure of the
11:402200 candle, which
11:43the London session is opening near,
11:44right? So, if it's opening near it, we
11:46can create that uh reversal to expansion
11:48candle. And this candle can actually
11:50expand,
11:51and this retracement,
11:53or the current low of day, is actually a
11:55draw on liquidity that we can use.
11:59So, here we have an example of London
12:00continuation where the low of the day is
12:04created at 2200. So, here is the daily
12:07open, right? Opens low first. That's
12:09what we want to see for a bullish
12:10reversal. We have this sweep of a low.
12:15It doesn't have to close a perfect um
12:18you know, C2 candle where we have to
12:20close back inside this candle. Has that
12:22large wick respecting it, right? As long
12:25as you have those um lower time frame
12:26reversal signatures, you're pretty much
12:28good. And as you can see, we can trade
12:30this continuation because we have that
12:32small wick. We have no established high
12:34of the day and
12:37an established low of the day with a
12:39draw open. Now, let's talk about London
12:41reversal. This is where the previous
12:43sessions do not reverse, so you're
12:45essentially going to be reversing off of
12:472200 low, and it's all about wick size,
12:49man. You see this wick size? We're
12:51trading very far beyond this low. That
12:54is creating that large wick, which is an
12:56invalidation, right? We want that
12:58reversal to expansion candle at all
12:59times. We ideally want to be trading
13:01expansion candles.
13:03Now, let's go ahead and go over a London
13:06reversal. So, here we have a C2 candle.
13:10So, what are we going to do? We're going
13:11to mark out the previous candle's range
13:13cuz we have this C2 candle on the daily
13:15time frame. We're going to look for a
13:16refined key level in the lower half of
13:19the previous candle's range.
13:21As you can see on the forward chart, we
13:23have no refined key level, so we're
13:25going to drop down to the hourly.
13:27In here, Asia session consolidates, that
13:30consolidation creates a uh relevant
13:33swing in the market. Where this relevant
13:36swing is positioned in the lower half of
13:38the pre-stage range. As you can see, we
13:41tag this key level
13:43and we print a C2 candle, right? So, now
13:46you're going to ask yourself, does the
13:474-hour wick support expansion? Let's go
13:49see. Yes, it does. Very, very small
13:51wick. So, that means that this specific
13:54candle can actually expand.
13:57Now, let's go over London reversal where
13:59we cannot engage within this 4-hour time
14:01window or within the 2:00 a.m. 4-hour
14:03candle. And that is simply because when
14:06we take out this key level, what do we
14:08do? We have this large run away from the
14:12opening price, which creates that very,
14:14very large wick.
14:15So, you're not going to be trading the
14:16London reversal. You're going to be
14:18trading the 6:00 a.m. continuation.
14:21Now, let's go over the New York a.m.
14:23session,
14:24which is created from two 4-hour
14:26candles, but specifically, we're first
14:28going to be talking about the 6:00 a.m.
14:304-hour candle.
14:31So, now let's go over New York
14:33continuation. Ideally, this is where the
14:35day opens low, 2:00 reverses, creating
14:38that C2. Then you can trade that 4-hour
14:416:00 a.m. continuation as a C3. Now,
14:44let's talk about New York reversal.
14:46Essentially the same thing, right? The
14:47previous sessions do not reverse, so you
14:50know that this 6:00 a.m. 4-hour candle
14:52must reverse. If it has that large wick,
14:55you're not going to be trading that.
14:56You're going to be trading 10:00 a.m. If
14:58it has a small wick, you can engage with
15:00this reversal profile. Now, let's talk
15:02about the second half of New York a.m.
15:04session, and that is going to be the
15:0610:00 a.m. 4-hour candle. What will that
15:08look like in most cases, or the most
15:11ideal case, is where 6:00 a.m. hits that
15:14key level, reverses, but has that large
15:16wick. So, we're not really going to be
15:17participating in this. We're going to
15:19wait for 10:00 a.m. to open because
15:20that's when the expansion will occur.
15:23So, how to trade a New York reversal,
15:26right? Same thing on all of these
15:28candles, man.
15:30Large wick, you're not going to trade
15:31it. That's an invalidation for this
15:33reversal profile or this time window to
15:35reverse. If it has a small wick, then we
15:38know that this candle can indeed expand
15:40and we can participate in that New York
15:43reversal profile. Now, let's talk about
15:45the New York PM session, which is
15:47composed of one 4-hour candle, which
15:50opens up at 14:00.
15:52So, now let's cover the New York
15:53continuation. And one thing that is
15:55absolutely crucial about trading the New
15:57York continuation for PM session is
16:00there needs to be an open draw
16:03no matter what, right? Because this is
16:05towards the end of day, especially when
16:07it is a large expansion candle.
16:09The day is most likely capped off at
16:12that point. So, you trying to trade on
16:14an already existing expansion candle,
16:17right? That ADR could be already capped
16:19off. And you could just consolidate in
16:21this 4-hour candle. So, it's really
16:23important that there's an open draw
16:24liquidity.
16:25And as you can see here, 10:00 a.m.
16:26reverses, what do we have at 14:00?
16:29When it opens, it's an open draw, and
16:31that's where we can look to trade a New
16:34York continuation.
16:36Now, let's go ahead and cover the PM
16:37session trading the 14:00 4-hour candle.
16:41So, here we're going to be going over
16:42continuation. That is when 10:00 a.m.
16:44reverses, as you can see the profile
16:47here is very ideal. Where we open high
16:49first into a low high, create SMT there.
16:54And the most important thing for trading
16:55continuation is there is an open draw in
16:58close proximity to the 14:00 open,
17:01which is right here.
17:05As you can see,
17:06there is plenty of time in the day to
17:08get to the strong liquidity, and that's
17:10really what you need to trade
17:11continuation. So, now let's go over the
17:14New York reversal for PM session. So,
17:18typically, this is going to be happening
17:20when you're trading a reversal candle.
17:23Let me explain. So, over here to the
17:25left, as you can see, this daily candle
17:28is likely going to print that large
17:29wick, right? So, here, price expands
17:31away from the opening price, which is
17:33creating that very, very large wick when
17:35price returns back to the opening price.
17:38What do we know about large wick
17:39candles? They cannot expand, especially
17:41beyond the opening price. So, when 10:00
17:44a.m. comes up here and dips above that
17:46opening price,
17:471400 is going to have a very hard time
17:50expanding beyond this level of this
17:53daily open, right? So, looking for a New
17:54York reversal back into the range is
17:57often a pretty good trade. Now, let's go
18:00ahead and go over this reversal
18:01scenario.
18:02It's somewhat similar to this, but it's
18:04a it's actually a little bit different.
18:05This is more so with a daily profile.
18:08This over here is really showing, you
18:10know, hitting an actual key level. So,
18:13when the day when a daily candle hits a
18:16key level,
18:17this is where we can
18:19obviously get a reaction, right? And
18:21what you're really looking for this day
18:22to kind of do
18:23is ideally, you know, close back within
18:26this range. You know, that's going to be
18:28the reaction off that key level. Maybe
18:29it's a form of C2, right? A C2 candle
18:32typically closes back within this daily
18:33range to form that large wick. That's
18:35what this is creating right now, right?
18:37The daily open's here, price is coming
18:39back into the daily open to form that
18:42large wick. So, you're kind of
18:43anticipating that to happen. You could
18:45view it maybe as this as well. Maybe
18:47three expansion candles in a row into a
18:49key level, coming back in the range, or
18:51maybe ERL is a key level, IRL is your
18:53drawing liquidity.
18:55Whatever Whatever you view it as, uh it
18:57can be a good scenario for a 1400
18:59reversal.
19:01Now, let's go over how to trade a 1400
19:03reversal.
19:04And this is going to be using a specific
19:06profile that is a delayed retraction
19:08profile, just like we went over for
19:12the 10:00 a.m. candle.
19:13And as you can see here,
19:15the daily candle opens low first, right?
19:19But, what's the problem here?
19:20We can't trade continuation. Why? Cuz
19:22price has made a very significant move
19:26away from the daily open, creates that
19:27large wick, right? So, price going to
19:29have a really hard time expanding beyond
19:31the high. So, we can use that to our
19:33advantage and understand that the 14:00
19:35candle is not actually likely to
19:37continue higher. It's probably going to
19:38close back inside of the range. And we
19:41can trade a little countertrend trade.
19:43Maybe you can target EQ or a gap within
19:46the previous 4-hour candle. So, it's
19:48really like trading IRL to IRL
19:51countertrend, basically. And as you can
19:53see, price reverses
19:55off of the previous candle's high
19:57at 14:00, and you can look to target
20:00some of these gaps.
20:02Now, I'm going to be talking about the
20:04most ideal way to trade a 14:00 New York
20:07reversal.
20:09And that is when the day expands into a
20:12relevant level. This is very important
20:14to understand because what we're trying
20:17to go for
20:19is the anticipation of a daily reversal
20:22candle forming, right? Where we hit a
20:24key level late in the day,
20:26and that day is going to be capped off
20:28by 14:00 to come back into the daily
20:31range, to kind of close back inside of
20:34the previous day's range, or kind of
20:35create that wick that the next day will
20:37use to continue off of. So, as you can
20:39see, this is even better when all three
20:42sessions prior
20:43all expand the same direction. Because
20:45when you have all three
20:47sessions expanding the same direction,
20:49PM session is not going to continue,
20:51usually.
20:52It's really going to cap off its daily
20:53range and come back into the the range
20:55here. But, when it's all three sessions
20:57into a key level,
20:59I mean, that's even better, man. Um
21:01really, you don't want to see two
21:03sessions expand in the same direction. I
21:05would avoid that next session. But,
21:07that's what you see here, man, every
21:08single 4-hour candle prior is an
21:10expansion candle. So we're expecting
21:13that reversal off of the 1400 low. We
21:16can trade that continuation.
21:18We can trade that reversal back into the
21:20day range targeting gaps or any gaps in
21:23this previous
21:244-hour candle.
21:26In this specific logic also works very
21:29well if 10:00 a.m. reverses off of a
21:32daily key level and you trade 1400
21:34continuation back into the range.
21:37So now let's go ahead and show you guys
21:38how to put it together using the daily
21:41and the 4-hour chart. We'll be covering
21:43how to trade a reversal day, right?
21:45Using IRL to ERL. So how to trade a
21:48reversal candle, you always need a key
21:50level. So IRL is our key level. And what
21:54are we going to confirm the low of this
21:55reversal day is a 4-hour swing, right?
21:58So as you can see,
21:59once we engage with this 4-hour key
22:01level, this candle doesn't reverse. So
22:04what do we expect? A reversal off of
22:06this previous candle's low. Once we
22:08create that and get our confirmations,
22:09we can trade this candle here, right?
22:12You can It can be any session, right?
22:14Maybe this is the London session. Maybe
22:15this is 1800, 2200. This is 2:00 right
22:18here. If it has a small wick, you can
22:20trade it, right? If you have that
22:22drawing including the open, we're
22:23expecting that New York continuation,
22:25right? And this swing formation, this C2
22:28candle is confirming the low of this
22:314-hour candle. We can even trade this
22:33candle before it closes because it has
22:35that small wick, right? So as you can
22:36see, we're kind of aligning expansion
22:38candles, right? Daily reversal to
22:40expansion candle, 4-hour expansion
22:42candles. Now let's go over the same
22:44thing using IRL to ERL, but a
22:46continuation day. This is where the
22:49previous day expands. We're going to
22:50mark out equilibrium of that previous
22:53day's range. A refined key level within
22:55the upper half will be a fair value gap.
22:57And when we engage with that level, if
22:59we have that small wick, we can trade
23:00it, right? Aligning expansion candles in
23:03the same direction. Now, let's go over a
23:05reversal day using manipulation ranges.
23:07This is where the daily candle engages
23:09with a range low,
23:11and the low of the day is printed from a
23:134-hour C2 candle. We can look to trade
23:16back to the daily open, right? What do
23:19we want this data form like? Open low
23:21first, has a very large wick. So, what
23:23are we going to do? We're going to go
23:24ahead and target that opening price,
23:26right? Which is right here. As you can
23:28see, price can have trouble trading
23:30beyond that level. Now, let's go ahead
23:32and cover a continuation day using
23:35manipulation ranges. This is where the
23:37previous day reverses a refined key
23:39level within the upper half is a
23:41relevant swing. That relevant swing is
23:44your manipulation ranges. Going to
23:46reverse off that relevant swing. 4-hour
23:48reversal candle confirm the low of day.
23:50We're going to be looking to trade that
23:51continuation into the opposing range
23:54high, which is the previous high, and
23:56potentially to further objectives.
23:58Now, let's go over manipulation ranges.
24:00Manipulation ranges you can use on any
24:03time frame. It doesn't have to be a
24:05daily key level. It can be a 4-hour. It
24:08could be the 1-hour. It just has to form
24:11a high of day. The key level will be
24:12used to form the high of day. So, here
24:15it can be a reversal candle,
24:16continuation candle. Here, we're just
24:18going to be going over a reversal candle
24:19first. So, as you can see, we take out
24:22the previous high, which if we drop down
24:24to lower time frame, this is a relevant
24:27high.
24:28Um you can see the market profile. We
24:30trade into this relevant low. We do not
24:32manipulate it. So, we're likely to
24:33continue lower. We are in seek and
24:35destroy conditions. So,
24:37when we engage with this high at the
24:38external range, uh it is likely to
24:41continue that movement lower. So,
24:43essentially, it's expansion,
24:44consolidation, expansion. So, dropping
24:47down to lower time frame, what do we
24:49have? A relevant high. You can see a C2
24:52candle forms the high of the day at
24:5410:00 a.m. So, we can expect a 1400
24:57continuation as the low of the day is
24:59currently 1,800, which is a fair swing
25:01to the previous day's low. So, the low
25:03of day wasn't created from anything
25:04relevant. We have a bunch of fair
25:05swings, that's a perfect recipe for it,
25:09a draw on liquidity.
25:10Now, here we are on the daily chart. You
25:12can see on the higher time frame we're
25:13trading I R L to E R L technically.
25:16That's our draw on liquidity, but this
25:17is a continuation day using manipulation
25:19ranges. We have a valid C2 candle here.
25:22We're going to mark out the whole
25:24candle's range. And we're going to look
25:25for a low that we can use to trade away
25:29from and create the low of the day to
25:31get to our overall draw on liquidity.
25:34So, let's go ahead and drop up to the
25:35hourly time frame.
25:37So, as you guys can see, here we are on
25:38the hourly time frame. You can see the
25:40current low of day was London session.
25:42We had no reversal prior to the low of
25:45day or the high of day. So, this is
25:47essentially a manipulation range, right?
25:48Manipulate the low of the range to
25:50create the low of the day and target the
25:52high of day. Now, let's go see if we
25:544-hour confirmation created the low of
25:56the day.
25:57And as you can see here on the 4-hour
25:59time frame, what do we have?
26:01A 4-hour C2 candle created at 6:00 a.m.
26:05The profile opens low first. Once we put
26:08in that C2 candle, we're assuming that's
26:10the low of day from our manipulation
26:12range key level on the hourly or above.
26:14We can expect 10:00 a.m. to continue
26:17to expand towards our draw on liquidity
26:20and creating that C3 daily expansion
26:22candle for continuation. Now, let's go
26:24over an example of a reversal day using
26:26E R L to I R L. This is where the daily
26:29candle engages E R L
26:31and we're looking for that to turn into
26:33a reversal day to target I R L, the low
26:35of the day again confirmed by a 4-hour
26:38swing, aligning expansion candles in the
26:40same direction. And now, this is the
26:42same thing, a reversal day using E R L
26:44to I R L, except your I R L will be
26:47actually found within the previous day's
26:48range, right? This day here might expand
26:52into a key level, right? So, you're
26:54going to reverse off the previous low
26:55since this candle did not reverse.
26:57And when you look back within this
26:59previous day's range, you will find
27:014-hour gaps.
27:03So, as you can see, price expands,
27:05consolidates. Here's that previous low.
27:08Once you engage that, we're looking for
27:10our 4-hour reversal into expansion
27:13candle or our 4-hour C2 candle and we're
27:16looking to target back to the previous
27:18range into the IRL as our draw on
27:20liquidity. Now, here's another way a
27:23reversal day can form where your IRL
27:26will be within the current day's range.
27:29So, as you can see, the day starts off
27:30by expanding into a key level. We're
27:34going to get a reaction off of that key
27:35level.
27:36That can be your ERL.
27:39Your IRL will be found, like I said,
27:41within the current day's range. So, I
27:43went over this earlier within an example
27:46with PM session. And this is often when
27:48you will have this set up here is if the
27:51net 1400 candle, right? Basically, this
27:53key level will cap off the daily range.
27:55Price will come back into the daily
27:57range and form that large wick or that
28:00reversal candle.
28:01Now, let's go ahead and go over ERL IRL
28:04with some chart examples. As you can
28:06see, this is going to be a reversal day.
28:08Every single ERL IRL
28:10trade you take is pretty much counter
28:12trend
28:13um off of a higher low. You're going to
28:15target a fair value gap. So, this is
28:17going to be where we trade into a higher
28:20low on the daily time frame and you're
28:23going to be targeting the previous day's
28:25low, which is a
28:28fair value gap, right? So, technically,
28:31you don't have to hit a key level on the
28:33daily time frame as a swing higher low.
28:36It could technically be this as well
28:38where maybe you have consecutive days of
28:40expansion. Maybe you have a fair value
28:42gap here. And on the lower time frame,
28:44the previous high is a
28:48Maybe it's a relevant high, right?
28:50So, this would be your daily
28:52you know, the next day opens up, maybe
28:54consolidates, hits that ERL.
28:56You know, has SMT or something. This
28:58will be your ERL. This will be your IRL
29:00into the precious low, which is a gap.
29:01Is this is trading back into the
29:03precious range, which is IRL. But, as
29:05you can see, this day specifically does
29:07trade into a daily swing high or low.
29:11And we're going to print that reversal
29:13day and target that IRL.
29:15So, let's go into the 4-hour chart and
29:17see what forms a high of the day. And as
29:19you can see, how does this day print? It
29:22opens high first, which is exactly what
29:24we want to see.
29:26What forms a high of the day? 2:00 a.m.
29:28reversal candle.
29:30So, what can you expect the next candles
29:32to do?
29:33It's make its way back to this
29:34unestablished low of the day. Very, very
29:36large wick. So, what do we target as our
29:38maximum TP? Is the current low of the
29:40day
29:41or just beyond it. And that level here
29:44is the daily fair value gap high. So,
29:47now let's go over an ERL to IRL example
29:50where the IRL or the fair value gap
29:52exists in the previous day's range found
29:54on the 4-hour time frame generally,
29:56okay? And this happens where the current
29:59day is a reversal candle and it either
30:01reverses off of the previous day's low
30:04and then we trade into the precious
30:06range targeting that 4-hour IRL
30:08or the day trades beyond the precious
30:10low into a key level like here, like in
30:13this example,
30:14reverses and then we target that IRL
30:17found in the precious range. So, let's
30:19go ahead and go to the 4-hour time
30:20frame. So, here as you can see, how does
30:23the day form? It opens low first.
30:25A C2 forms a low of the day. What can we
30:28find in the previous day's range? Is
30:31that beautiful fair value gap, right?
30:33So, here is your ERL and here is your
30:35IRL
30:36for your universal model putting them
30:39all together.
30:40Now, lastly, we're going to be covering
30:41ERL to IRL when fading a higher time
30:45frame expansion candle. So, it's going
30:47to be something like this where
30:49ideally,
30:50you have a reason to come back into the
30:52range, whether that's
30:54you know, three consecutive expansion
30:56candles in a row
30:57to come back into the range and you face
30:58a price, or just one large expansion day
31:02into a key level on the daily time frame
31:04where you're going to cap off that daily
31:06range, something like that, right? So,
31:08you can see this daily candle's really,
31:09really large. We're just coming off of a
31:11very, very large expansion in general.
31:13So, you kind of have that logic. You
31:14need that logic in order to do this. Uh
31:17we're basically just fading a
31:19expansion candle back into its own range
31:22and targeting the IRL that exists uh in
31:25that range that basically created the
31:27expansion in the first place,
31:29um or the expansion candle in the first
31:30place. We're kind of assuming that it's
31:32going to close like this wick, right?
31:34Really just looking for a swing
31:36formation
31:37that's going to cap off that higher time
31:38frame candle's range. We're going to
31:40look for the expansion back into the
31:41range. Target the IRL.
31:44So, now here we are on the 4-hour time
31:45frame. As you can see, price has
31:46expanded very far away from the daily
31:49open, right? Price cannot expand
31:50forever. So, we're kind of looking for
31:52this range to be capped off, and that's
31:54going to happen from a C2. And as you
31:56can see, 6:00 a.m. candle reverses off
31:58of 2:00 a.m.'s candle,
32:00and that creates a level
32:03for price to target, right? Going from
32:06ERL to IRL, right? We can trade 10:00
32:09a.m. continuation as 6:00 a.m. confirms
32:12that reversal. We can target the IRL
32:14back into the daily range.
32:18Now, let's go ahead and put it all
32:19together. Here, we're going to be
32:20showing examples on how to trade out of
32:23universal models on the higher time
32:25frame, how to confirm the high and low
32:28of these expansion candles, reversal
32:30candles, away from these higher time
32:31frame universal models with 4-hour swing
32:35formations. So, here we're going to be
32:37going over IRL ERL first, talking about
32:40trading a reversal day. You can only
32:43ever trade a reversal day from IRL on
32:46the daily time frame. As you can see,
32:48this daily candle
32:50is opening low, taking out the previous
32:52candle's low, so we know it's a reversal
32:54day. As this day is tagging the IRL,
32:57we're going to anticipate it to turn
32:59into a reversal into expansion candle,
33:02given the small wick making its way
33:04towards the ERL. So, simply
33:08IRL
33:10ERL
33:12and we want to confirm the low of this
33:14reversal candle with a 4-hour swing. So,
33:16let's go ahead and drop down to 4-hour.
33:18So, as you can see, we are on the
33:194-hour. How does the day form? How do we
33:21want reversal days to form or any
33:23bullish day? We want to open low first
33:25ideally.
33:26And as you can see, we get that reversal
33:29candle on the 4-hour time frame. There's
33:31plenty of range to go. We can target
33:33these fair value gaps or the 10:00 a.m.
33:35continuation.
33:37Now, we're going to be talking about how
33:39to trade a expansion candle or a
33:41continuation from a 4-hour gap, which
33:45will reside in the previous candle's
33:47range.
33:48So, here as you can see, candle one,
33:50candle two, candle three is then
33:52confirmed as it closes above C2's open,
33:57validating a C4 expansion.
34:00Now, let's go ahead and drop to the
34:014-hour time frame and look at the 4-hour
34:04key level that is going to be used to
34:05create the protraction phase or the wick
34:08of this higher time frame bullish
34:10expansion candle.
34:11So, here is the previous day's range.
34:14What do we see within it?
34:16This gap in premium end of that previous
34:19candle.
34:20And what are we going to use to confirm
34:22the low of the day? Is a C2 candle on
34:25the 4-hour time frame. As you can see,
34:27London reversal. How does the day form?
34:30It essentially opens low first. This is
34:32perfect IRL to ERL using the daily
34:36profile combining all the concepts
34:38together.

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