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Anomaly - Advanced Course - Lesson 6 - Gxt model — Transcript

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0:04Hello everybody. Welcome to the anomaly
0:06course core constant lesson six.
0:08In this lesson, we're going to be
0:10covering the entire GXT model. Let's go
0:13ahead and start with the alignment. So,
0:15what is the entire goal of the GXT
0:18model?
0:19And that is to mechanically align three
0:22time frames in the same direction.
0:24Specifically, three multi-time framed
0:27expansion candles. And that's going to
0:29be the daily, the 4-hour, and the hourly
0:32/ 30-minute. So, within the daily
0:34candle,
0:35you have six 4-hour candles. So,
0:37essentially,
0:39within your time window, you're going to
0:40try to align a specific 4-hour candle
0:43with the daily candle. And within that
0:454-hour candle / session, you're going to
0:48time it by aligning a hourly or
0:5130-minute expansion candle within that
0:544-hour candle.
0:55So, this is what that will look like.
0:58The daily is an expansion candle. We
0:59need to take a trade.
1:01The 4-hour being expansion candle, we're
1:02not going to trade within this 4-hour
1:04time window. Why? Cuz it has a large
1:05wick, right? And when you take a trade,
1:07the hourly / 30-minute will also be an
1:10expansion candle, right? As you can see,
1:11this is expansion candle. This is an
1:13expansion candle. This one is not,
1:15right? It trades to a key level, C2
1:17candle. Now we're ready to be aligned
1:19again. You can trade this expansion
1:21candle, right? So, let's just take this
1:23for example cuz it's a good
1:25candle to trade here. As you can see,
1:26when you take this trade, this has a
1:28small wick on the hourly.
1:30This has a small wick on the 4-hour, and
1:32the daily has a small wick. And now
1:34you're just aligning all three candles
1:36in the same direction. So, now let's get
1:38into how to actually do this
1:40mechanically.
1:41All righty, so here we are. We're going
1:43to be talking about how to profile a
1:45higher time frame candle
1:47with an aligned swing. So, there is
1:49three sequences to the GXT model. The
1:52first one we're going to be covering
1:54is the continuous in sequence using the
1:57weekly as the higher time frame candle
1:59and the daily as the aligned swing.
2:02So, this specific aligned sequence is
2:05when a higher time frame candle
2:07opens up within an aligned swing. So,
2:09notice how this is the higher time frame
2:11open
2:12and it's opening up within a C3, right?
2:14So, it's going to be opening up within a
2:16C3 or C4, the higher time frame open.
2:20And because of that,
2:21it doesn't really have to put in a
2:23significant low. It should just expand,
2:25right? Because the previous candles
2:26before it have already reversed. So,
2:29this is the continuation sequence.
2:32So, now let's get into the reversal
2:33sequence. So, the reversal sequence is
2:35really simple.
2:37It's a higher time frame candle's high
2:38or low, in this case the low,
2:41is formed from a aligned swing, right?
2:44So, instead of looking for this weekly
2:47low to be formed from like a specific
2:50time frame CSD, we're going to wait for
2:52a daily C2. Once a daily C2 is put in,
2:55we're going to assume that's the low of
2:57the week and we can trade the following
2:59expansion. So, this is a reversal
3:01candle. Now, let's get into expansion
3:03candle. So, this is when we do not open
3:06up within an aligned swing. So, the low
3:08of the week has to be formed from one,
3:10right? Now, let's go over the aligned
3:12sequence. The aligned sequence is when
3:14price is already within an existing
3:16higher time frame expansion candle and
3:18on the lower time frame price misaligns
3:21itself, it retraces. So, this is when
3:23you wait for the aligned time frame
3:26to realign
3:28and form a C2 candle. Once that C2
3:30candle is put in, now you're back on
3:32side with the higher time frame
3:33expansion candle and the higher time
3:35frame expansion candle can now continue.
3:38Now, let's cover the GXT sequences
3:40using the weekly and daily candle
3:43profiling alignment. So, this is going
3:45to be GXT continuation sequence
3:47where a weekly candle is opening up
3:50within a daily swing. Let's go to check
3:52that out.
3:53So, here we are on the daily chart and
3:55notice how we're opening up this new
3:57week in an aligned swing, right? A daily
4:00C3. This is the GXT continuous sequence.
4:03We're opening up a higher zipper candle
4:05within a swing formation on the aligned
4:07time frame, right? So, this is where
4:09Friday reverses
4:10and we're expecting money to continue,
4:12right? Within a C3. Or if it maybe the
4:15week opened up as C4. That would also be
4:18okay.
4:19So, now let's go ahead and cover the GXT
4:22reversal sequence. This is where an
4:24aligned swing forms the high or low of
4:28the week within a reversal candle or a
4:30continuation expansion candle. So,
4:33you're going to see that both of these
4:34candle these weekly candles, right?
4:36They're both they're going to be
4:37confirmed by a daily swing formation
4:39confirming the high of the week. So, as
4:41you can see, we hit this weekly fair
4:43value gap. So, there's a reason to to
4:45assume that this candle can reverse into
4:47expansion because it has a small wick.
4:50We're consolidating, it hits a key
4:51level, and all that good stuff. Once we
4:53close here at that C2 candle, so we can
4:56assume continuation over here on uh the
4:59weekly candle three, right? We have open
5:01objectives down here. So, everything
5:03checks out. Now, let's go see what
5:04confirms the high of the week here.
5:06So, here we are on the daily time frame
5:08and let's look at how these candles
5:10form, right? We want expansion candles,
5:12especially bearish in this case, to open
5:14high first. Let's see how they form.
5:17Opens high first. The high of the week
5:20is confirmed by a swing formation.
5:22Candle two closure here. Perfect.
5:25Closes like an expansion candle, so
5:26expect the next um couple days of the
5:29week to go ahead and target all of these
5:32fair value swings, right?
5:34And as you can see, Friday hits that
5:36level there. And if we're going to
5:37continue the previous week from the
5:39previous week's range, we're going to
5:41look for a key level within the previous
5:43week's range, right? What do we have
5:44here? A gap within the 50% area.
5:48And the week opens high into it, which
5:50is confirming this continuation, right?
5:53Um going from IRL to ERL and ultimately
5:55to those draws to the left, right? But
5:58as you can see here, what confirms the
5:59high of the week is Wednesday C2 candle.
6:03Now you can expect the next couple of
6:05days remaining within that week to
6:07continue towards that draw over here to
6:09the left.
6:11Now we're going to be going over GXT
6:14align sequence. This is essentially
6:16where the candle that you're currently
6:17within is already an expansion candle.
6:20And then we realign ourselves on the
6:22align timeframe to continue that
6:23expansion. So as you can see, this is a
6:27candle three on the weekly timeframe.
6:29It's already expansion candle, so let's
6:30drop into the daily and see what I'm
6:32talking about. So here is that weekly
6:35open. Here we go on the daily chart. And
6:37you can see price expands significantly
6:39away from the weekly open. Now you are
6:41aligned with the bearish expansion
6:44candle. Um and as you can see, we sort
6:47of misalign ourselves as price retraces
6:49back to the open price. So now you do
6:51not have two timeframes aligned, right?
6:54You have the weekly candle as a bearish
6:55expansion candle. But now this daily
6:57candle that you're currently within does
6:59not support expansion lower. So it's
7:00essentially waiting for it to hit a key
7:02level within the current candle's range.
7:05And then once it closes, you have a nice
7:07swing formation. Now you can assume the
7:09next candle realign itself with the
7:11higher timeframe candle. So now you're
7:12aligning the weekly and the daily as an
7:15expansion candle. There's also a reason
7:16to continue as we have uh these failure
7:20swings, right? We always want to use
7:21context. And this is my favorite way to
7:25trade the GXT align sequence is when we
7:28have a gap within the current candle's
7:30range. We retrace into it. We have a C2
7:32candle.
7:33And C3 will align itself with the higher
7:36timeframe expansion candle. So now let's
7:38go over the continued sequence using the
7:40daily and the 4-hour. This is what
7:42you're going to be using to profile the
7:44daily candle is using 4-hour swings. So
7:47here, this is a bit of a rare one, but
7:49this is when a daily candle opens up
7:51within an aligned swing, typically when
7:53PM session reverses, and then that's
7:56when you can expect Asia to expand
7:57because the first 4-hour candle of the
8:00day is opening up as a C3. Now here we
8:03are on the reversal sequence. This is
8:05mainly where we're going to be using to
8:07profile the daily candle is waiting for
8:09a swing points to form the low or the
8:11high of the day. So here, as you can
8:13see, we have a daily reversal to
8:14expansion candle, and what is forming
8:16the low of day? That 4-hour swing. We're
8:19mechanically aligning these time frames
8:21in the same direction, and here we have
8:23a daily expansion candle. What forms the
8:25low of day? A swing point aligning these
8:28two time frames. So here is the daily /
8:304-hour aligned sequence. This is when
8:33the day expands and then retraces.
8:36You're just waiting for that 4-hour to
8:38re-align itself with the already
8:39existing daily expansion candle.
8:42So now let's go ahead and cover the
8:43daily and 4-hour alignment for the GXT
8:46candle profiling. So here we are on the
8:48daily chart. Let's go over a little bit
8:50of narrative here. What do we have here?
8:52Daily gap.
8:54Daily C2.
8:56And we have this here as our ERL. So IRL
9:02ERL C2 candle. So here, in this first
9:05example, we're going to be going over
9:06the GXT continuous sequence. And that is
9:09when you're opening up a higher time
9:10frame candle with an aligned swing. So
9:13here we're on the daily, so we're going
9:14to be opening up the daily candle
9:16within a 4-hour C3 or C4. Let's go ahead
9:20and go to the 4-hour time frame. So here
9:23we are on the 4-hour time frame. And as
9:25you can see, this is always going to
9:27happen usually where 1400 reverses, so
9:31we hit a key level really late in the
9:33day, and we come back into the the
9:35forming a C2 candle. Um so you're going
9:38to have a 1400 reversal and a 1800
9:40continuation like so. So, you can
9:42already begin to trade at 1800 looking
9:46for an expansion within C3.
9:49Now, let's go over the GXT reversal
9:51sequence. First, let's go over a daily
9:54reversal candle. We're going to be
9:55confirming the low or high of a higher
9:58time frame candle with an aligned swing.
10:00So, here we're on the daily. We're going
10:02to drop down to the 4-hour to look for
10:03that confirmation.
10:05So, here just a little bit of narrative.
10:07We have taken out this daily ERL. And we
10:11have SMT. So, what we can actually do is
10:13look back from the previous day's range
10:15for a gap. We're going to be trading ERL
10:17to IRL. So, how do you want a bullish
10:20day to form? Ideally, is you want it to
10:23open low first, right? So, exactly what
10:25we do is we open low first, confirm the
10:27low of the day with a C2 candle as our
10:30confirmation. Now, we have aligned
10:33multiple time frames, right? We have a
10:34small enough wick to expand back into
10:37the range targeting IRL.
10:40And that is a beautiful example as we
10:43have C3 closing very nicely. So, you can
10:46trade C4 in PM session as there is an
10:49open draw.
10:51So, now let's go over the GXT reversal
10:53sequence where we are going to be
10:55confirming the higher low of a candle
10:58with a swing formation again.
11:00But, this is going to be an expansion
11:01candle.
11:02So, as you can see, the previous day
11:04closes the C2 from a gap. So, we're
11:06essentially trading IRL to ERL. And
11:09we're going to confirm the high of the
11:10C3 with a 4-hour swing.
11:13So, here we are on the 4-hour time
11:15frame. And as you can see, the first 2
11:17hours of the day consolidates. So, if
11:19Asia consolidates, what can we expect
11:20London to do? To manipulate to form the
11:22high of day. We have a beautiful
11:24reversal candle here.
11:26No objectives have been taken out. So,
11:28we can absolutely expect New York to
11:30continue.
11:31So, a very simple C2 of the high day, C3
11:34continuation towards these targets. Now,
11:37let's cover the GXT alignment sequence
11:39using the daily and the 4-hour. So,
11:41let's go over a little bit of narrative
11:42here. Looks like we have some sort of
11:43manipulation over here.
11:47Price expands away into a relevant low.
11:50You can kind of see how we have this
11:51clear retracement phase of price, right?
11:54There's There's no real expansion going
11:56on here. Very lackluster price action.
11:58That's a continuation signature, right?
12:00So, as you can see,
12:01we have a relevant high here. The space
12:03between this high and this high makes it
12:05a relevant high. When manipulated,
12:07right? Confirms that's and that also
12:09confirms a high of day. So, as you can
12:11see, the high of day is formed from a
12:13reversal candle. So, this whole
12:15expansion candle here, this daily
12:17reversal into expansion candle, is
12:19confirmed by the GXT reversal sequence.
12:21But, here we're going to be trading
12:22continuation cuz as you can see, price
12:25expands a very very far away from the
12:27open price. So, we know the daily is
12:29aligned. But, now we have this
12:30misalignment here where this C2 candle
12:33has this large wick or maybe it's
12:35indecisive in its direction, right?
12:37Maybe some consolidation going on after
12:40expansion. So, we're just waiting for a
12:41key level to get hit for that
12:43realignment to trade C3 again, right?
12:45So, I always like to have a gap back
12:48within the current uh range of the high
12:51achievement candle. Waiting for that C2
12:53to realign itself to then trade candle
12:56three, aligning the daily and the 4-hour
12:59again to target this low.
13:02And one thing to note, if you're ever
13:03going to do this, you always want an
13:05open draw. And lastly, let's go over the
13:07continuation sequence for the 4-hour
13:10as our higher time frame and the hourly
13:12and 30-minute as our confirmation. So,
13:15simply here is when a higher time frame
13:16candle opens, what is it opening into?
13:19An aligned candle three or four. In this
13:22case, we're going to be using the hourly
13:23and the 30-minute. And here we are with
13:25your reversal sequence. If you're
13:27trading a reversal to expansion candle,
13:29you're going to be confirming the low of
13:31that reversal candle with a 1-hour /
13:3330-minute swing formation. And if you're
13:35trading a continuation candle, you're
13:37simply going to ask yourself, is this
13:394-hour candle opening up within a line
13:41swing? If it's not, then you must
13:43confirm the low of this candle with an
13:45aligned swing. Now, let's cover the
13:46aligned sequence using the 4-hour and
13:49the hourly and 30-minute within the
13:514-hour candle that time is currently
13:53within price has already put in a low,
13:55it's already expanded, but then it has
13:57started to retrace. You're simply
13:59waiting for the hourly and 30-minute to
14:01hit a key level, realign itself to catch
14:03the continuation, and for price to
14:05continue this higher timeframe
14:06expansion. Now, let's go over candle
14:08profiling when using the 4-hour as our
14:10higher timeframe and the 1-hour and
14:1230-minute as our confirmation for the
14:15alignments.
14:16So, first let's go over the GXT
14:18continuous sequence. There are really
14:19two ways this will happen. It's either
14:21where the previous 4-hour candle
14:23reverses, the next candle expands, or
14:26you're opening up within a continuation
14:29C4, like either one of these, you know,
14:31these expansion candles, and you're
14:33opening up within an aligned swing. So,
14:34the GXT continuous sequence is really
14:36simple. You're opening up a new higher
14:38timeframe candle within an aligned
14:39swing. So, it should just expand,
14:41basically. So, let's go see if we're
14:43opening up within an aligned swing here.
14:46So, here we are on the hourly chart, and
14:47if you mark up 10:00 a.m. open
14:50right here,
14:52what is it opening up as? A C3 on the
14:55hourly timeframe. So, this is that
14:57higher timeframe candle opening up
14:58within an aligned swing. So, we could
15:00pretty much go straight to entry right
15:02when 10:00 a.m. opens.
15:03Now, here is another GXT continuation
15:06sequence, except we are opening up as a
15:09C4. Um it can be a C, you know,
15:12anything. It doesn't have to be a
15:14necessarily within a swing formation on
15:16the 4-hour. It's just ideal, right? Um
15:18it's just simply that the right before
15:20the higher timeframe candle opens, at
15:23the end of the previous candle's
15:24lifespan, it had already retraced, hit a
15:26key level, printed a swing formation,
15:29and now this new higher time frame
15:30candle is opening up within it. Let's go
15:31ahead and drop down to a lower time
15:32frame.
15:33So, here we are on the hourly time
15:35frame. As you can see, at 1300, which is
15:38the last hour within the 10:00 a.m.
15:39candle, we print a C2. So, what is this
15:42next 1400 4-hour candle opening up as? A
15:45C3. So, it's opening up within an
15:47aligned swing. We have a key level,
15:48which is this low. If I go to a
15:5030-minute, you're going to see that low,
15:52right? It's technically opening up
15:54within a 30-minute C4 as well.
15:58So, this is a GXT continuation sequence
16:02for an expansion candle.
16:04Now, let's go ahead and cover the GXT
16:06reverse sequence for a 4-hour reversal
16:09candle. You're only going to be trading
16:11the reversal sequence when you have a
16:13reversal into expansion candle. As you
16:15can see,
16:16this candle hits a key level, has SMT,
16:19small wick, so we can expect it to
16:20expand. So, you're simply going to
16:22confirm the high of this reversal candle
16:24within an aligned swing. So, go ahead
16:26and drop lower. What do we see? First
16:29off, the daily candle is opening up like
16:31this,
16:32right? Opening high first, leaving a
16:34bunch of low resistance. So, this
16:35profile, this daily profile is really
16:37set up for this move. And as you can
16:39see,
16:4010:00 a.m.
16:41opens really close to this key level.
16:43So, we can expect it to just open high,
16:45create that small wick, hit the key
16:47level, create SMT. We're going to
16:49confirm the high of that candle with an
16:52aligned swing. Here we are on the hourly
16:53time frame. And as you can see, it is
16:56confirmed by this hourly C2 closure. We
16:58expect that to be the high of 10:00 a.m.
17:00and then trade the expansion of 10:00
17:02a.m.
17:02So, here is an example of the GXT
17:05reversal sequence, except we're going to
17:07be confirming the high of a continuation
17:09candle here.
17:10This is simply where you open up a
17:12higher time frame candle, and it's not
17:14opening up within an aligned swing. So,
17:16we must confirm the higher low of that
17:18candle with a swing formation. So, here
17:20we are on the hourly time frame and we
17:22can look back within that previous
17:244-hour candle's range where we have a
17:27key level, right? What are we going to
17:29confirm that key level with? A swing
17:31formation. Once we have that swing
17:32formation, that is not only confirming
17:34the key level but also the higher time
17:36frame expansion candle high, which is
17:38then set to expand towards targets such
17:41as these lows.
17:44Now, let's talk about the GXT aligned
17:46sequence.
17:47This is where the current 4-hour candle
17:50is already an expansion candle. You're
17:52looking for further targets. The 1-hour
17:54or 30-minute is misaligned. So, you're
17:56waiting for price to come back within
17:58that current candle's range into a key
18:00level, realign itself by forming a swing
18:02formation, and they're going to catch
18:03that continuation of the higher time
18:06frame candle.
18:07So, dropping down to lower time frame,
18:09let's go ahead and mark out that 10:00
18:10a.m. open.
18:11So, 10:00 a.m. opens here. And as you
18:13can see, it opens low first, reverses
18:15off of the previous 4-hour low, then
18:17expands away. So, when it expands away,
18:20we're already aligned on the 4-hour.
18:22This candle here, since we just hit an
18:24objective, right? We kind of
18:25consolidated a little bit, kind of go
18:27over this little consolidation here.
18:29So, now we are misaligned, right? We
18:31don't have We're not within a swing
18:32point on the 1-hour / 30-minute. We're
18:35like in candle five or something. We
18:37need to always be within a swing point
18:39on the 1-hour and 30-minute, always
18:41candle three or candle four.
18:43So, we don't have that. So, we're just
18:44waiting for a key level to get hit. On
18:46this asset, you cannot see a key level.
18:48But, what you do have is an SMT between
18:5112:00's low and 12:00's low on another
18:54asset
18:57is an SMT fill.
18:59And that is confirmed by this bullish
19:01candle
19:04and this bearish candle, which is a PSP.
19:06So, you have a two-stage PSP
19:09and that key level is that gap fill.
19:12And as you can see, we have a C2 candle
19:14closure.
19:15And then you can expect 1,300 open to
19:18expand again. If you have further
19:21objectives, you can at least target here
19:23as a little internal to external move
19:26for that continuation of that 10 a.m.
19:28expansion candle.
19:29Now let's go ahead and go over entries.
19:31Here we have a little image putting it
19:33all together. This is going to be
19:35covering the reversal sequence. So how
19:37do we confirm the high of a reversal
19:40candle? It's a swing formation. Once you
19:42have a swing formation, what do we need?
19:44A CSD within that C2. Once you have that
19:47CSD within C2, you are good to go ahead
19:50and trade C3. How are we going to
19:52confirm the high of C3 or the wick? Is a
19:55order block. Once you have that change
19:57of state delivery, you are good to enter
20:00at least targeting 2R. Now let's go over
20:02the continuation sequence. This is when
20:04the 4-hour open is opening up within an
20:07already existing 1-hour / 30-minute
20:10swing formation. So as you can see, this
20:124-hour candle is opening up as a C3 on
20:15the hourly time frame. So you are good
20:17to go. All you need to do is confirm
20:19this wick. As you can see, price opens
20:20up testing this order block,
20:23then closes through this propulsion
20:25block
20:26or continuation order block. Once it
20:28does, set your limit there, stop loss
20:30above the high, and target at least 2R.
20:33So here is example of using the align
20:35sequence. As you can see, the 4-hour
20:37candle opens high first, it expands,
20:40then it starts to retrace into a key
20:43level that the 4-hour candle has
20:45printed, then it starts to retrace into
20:48a key level. If we're going to continue
20:50this 4-hour candle as an expansion, this
20:52gap is going to hold. This candle is not
20:54aligned bearishly. It also has not had a
20:56key level. So you're essentially waiting
20:58for price at a key level reverse.
21:01Now you are re-aligned with this already
21:03existing 4-hour candle on the hourly /
21:0630-minute time frame. Once you have that
21:08C2 candle, look within it on the lower
21:11time frame to have that CSD. Yes, now
21:14you can trade C3. All you got to do is
21:15confirm the high of the candle. And as
21:18you can see, price opens up, hits a key
21:20level, then has that change of state
21:22delivery, confirming the high of C3.
21:25Entry off of the order block, stop loss
21:27at the high, target 2R. Now, let's go
21:30over the entries within the GXT model,
21:33and that is essentially trading swing
21:35formations that confirm the high and low
21:38of 4-hour candles. And the whole goal is
21:41to mechanically align time frames. So,
21:43we always want to be at least aligned
21:46with two time frames, which is either
21:48going to be the 4-hour as your higher
21:50time frame, and then the 1-hour / 30
21:52minute as your confirmation. And the
21:55daily candle doesn't necessarily have to
21:57be aligned, but it needs to have the
21:59profile supporting it, right? The size
22:02of a daily wick is just telling us how
22:05far the day can expand, right? But we
22:07don't necessarily need to have a huge
22:09expansion day to catch at least 2R. So,
22:13let's see if the profile supports this
22:14idea. So, for one,
22:16we open low first. That is perfect. And
22:19then we have and need a key level,
22:21right? So, this 4-hour swing low, we
22:24also have SMT. Okay, so when we create
22:27this SMT,
22:28we create it at 6:00. Now, does this
22:306:00 candle support expansion? The
22:32answer is yes. So, that means that we
22:34can actually trade this reversal into
22:36expansion candle. So, all we need to do
22:38is confirm it on the 30-minute or the
22:40hourly.
22:41So, let's go ahead and drop down to
22:42those time frames.
22:44So, here we are on the 30-minute time
22:46frame. And as you can see, we open low
22:48first
22:49at 9:00 is when we put in that C2
22:53reversal candle, which confirms the low
22:56of 6:00 a.m. Let's go ahead and mark out
22:586:00 a.m., which is about right here.
23:01Boom. Let's go and delete this real
23:03quick.
23:04So, we have that small wick. We're good
23:05to go. So, really all we need to do
23:09is have a CSD
23:11in candle two.
23:13Then we can trade candle three. So,
23:14let's go ahead and drop down to the
23:15three-minute or the five-minute time
23:16frame. It's completely up to you.
23:19So, here is the end of that C2 candle.
23:21And as you can see, the last 5 minutes
23:23of that C2 candle, we indeed do have
23:25that CSD. This is where you have to
23:28decipher, are you a reversal trader? Do
23:30you want to take the first CSD like
23:32this? Right?
23:34Put your stop with your TP up here or up
23:36here. Or do you want to wait for extra
23:37confirmation? Right? So, that's up to
23:40you. If you want to wait for extra
23:41confirmation, you're simply waiting for
23:43the next candle to open low
23:46or put in some type of continuation CSD,
23:49which happens right here. So, this is
23:52the open of 9:30, which is the C3 on the
23:5530-minute time frame.
23:57As you can see, it opens high first, so
23:59it doesn't really give you an
23:59opportunity, but then it comes all the
24:01way back down, forms a new low um within
24:04these fair value gaps, and that is then
24:06confirmed
24:07uh by this CSD. So, now the wick of that
24:11C3
24:12is now protected by this propulsion
24:14block here. So, this is where you can
24:16enter here.
24:18Put your stop loss down here
24:20and target a minimum of 2R.
24:23So, let's go ahead and see how that
24:25plays out.
24:26Personally, I probably wouldn't put my
24:27stop loss all the way down here.
24:30I'd probably just put it at the open or
24:32maybe here, like EQ of the wick,
24:34something like that, but we'll just play
24:36it out. Doesn't really matter how this
24:38plays out. We just care about the
24:40mechanical process, but here you can see
24:42that we have at least 2R
24:44uh and our target's met.
24:46Now, let's go ahead and cover the GXT
24:48continuation sequence, putting it all
24:50together all the way down to entry. So,
24:52here on the daily time frame, we have a
24:54two-stage SMT fill where the PSP is
24:59creating that gap, and then we have an
25:00SMT with the PSP high, which is also the
25:02gap, so you have that two-stage SMT
25:05fill,
25:06or two-stage PSP, whatever you want to
25:07call it, right? But, we know that we
25:09want to trade this reversal out of this
25:11gap. We have a small wick, so we are
25:13trading a reversal into expansion
25:15candle. So, the next step is confirming
25:17the high of this candle with a 4-hour
25:19swing. So, let's go do that.
25:21Okay, perfect. So, we need a profile.
25:23What do we do in the previous sessions?
25:24They just consolidate. They don't hit
25:26any key levels. This is the key level
25:27right here.
25:28We can see that 6:00 a.m. hits that key
25:29level, and when we hit that key level,
25:31you're just going to check the size of
25:33the wick on the 4-hour. You see this big
25:35wick right here? That means that we want
25:37to wait for the closure of that 4-hour
25:39candle. So, boom, we wait for the the
25:41closure of that 4-hour candle.
25:43And then, all we're going to ask
25:44yourself at 10:00 is if we are opening
25:47up within a 1-hour/30-minute swing
25:49formation. If we are, we can go straight
25:51to entry.
25:53So, here we are on the 5-minute
25:54timeframe. Let's go ahead and mark out
25:5610:00, which is C3,
25:58um on the 4-hour, but also on the
26:0030-minute/hourly timeframe. So, boom,
26:03here's 10:00. Do we have a CSD before
26:0610:00? Yes, we actually do.
26:08Boom, we have that CSD.
26:11Um it happens in a V-shape fashion.
26:13That's how we want it to happen. Um
26:15now,
26:16this here may look valid to you guys,
26:20right? Cuz you hit a you hit a key
26:21level, you have the propulsion block,
26:23but this is risky because when we jump
26:25up to the 15-minute timeframe, the high
26:28of that
26:29of that CSD is a 15-minute gap. So, this
26:33is a tricky one, right?
26:34Um where this is not really a protected
26:37level, right? We could easily do
26:39something like this. Price could trade
26:41into this relevant low,
26:43right? And then retrace into that gap,
26:45right? ERL/IRL, and then continue. So,
26:47it's really something you want to be
26:48careful about
26:50um when looking for entries. I never
26:52want to put my lower time frame stop
26:54loss on a higher time frame gap like
26:56this um on the 15-minute and above. So,
26:59that's something to be aware about. But,
27:00if we actually drop down to the 3-minute
27:02time frame, you will see something very
27:04interesting. So, on the 5-minute we have
27:06a CSD, right? On the 3-minute we do not.
27:08So, we can already assume this is the
27:10reversal's already put in, right? We
27:12have the V-shape here um and you can see
27:14that 10:00 a.m. on the 3-minute opens up
27:18into this gap here.
27:20Into this gap.
27:22We already have the 5-minute CSD, so I'm
27:24doing this right here as a propulsion
27:26block in the high of C3 and 10:00 a.m.
27:30right here, right? Shallow retracement
27:32is what we want to see creating that
27:33small wick into a key level. So, I'm
27:36almost viewing this as a propulsion
27:38block. So, this is an absolutely valid
27:40entry to take just like this.
27:44And what are we going to target, guys?
27:45It's all the way down here, right? Which
27:48is that
27:49um daily
27:51IRL technically, right? So, basically
27:52trading daily IRL ERL aligning expansion
27:56candles in a mechanical fashion and this
27:59is an opportunity of 6.6 RR.
28:02Now, lastly, let's go over how to trade
28:06the GXT align sequence where we're
28:09aligning the daily, the 4-hour, the
28:121-hour / 30-minute. So, here we can see
28:15that we have traded into the previous
28:17day's high. We have an SMT. When we
28:20trade into that, we have the small wick,
28:22right? So, we can expect this to be a
28:23reversal expansion candle. We have the
28:26profile supporting it, right? What does
28:27it do? Lackluster just opening high
28:29first leaving a bunch of fair value
28:31swings. So, this is what we can target,
28:33right? It's a pretty large wick, but the
28:35profile supports us trading that
28:37reversal candle. So, everything checks
28:39out. Now, let's go ahead and drop down
28:41to the 30-minute.
28:42So, now check this out here.
28:44The high of the 4-hour candle is
28:47actually going to be confirmed by this
28:48hourly C2 candle. So, we're technically
28:51trading C3 right now. If you drop down
28:53to the 30-minute though,
28:54you can see that we can't just directly
28:57enter this trade at
29:00um 11:00 because we're going to create
29:02that future gap, right? If you open high
29:05first, like we actually did. So, check
29:07this out here. This candle printed, it
29:09opens high first, right? Maybe it gives
29:12you a lower time frame entry, but that's
29:13risky. Why? Because it's a future
29:16uh gap right here, right? You can
29:18actually see we actually retrace into
29:20it, but this is the weaker asset, so it
29:22didn't trace into it, right? So, you got
29:24kind of lucky. You're going to see that
29:26YM did indeed trace into that.
29:29Right? So, if you try to get on YM,
29:31you would have got stopped out because
29:32your stop loss is again
29:34um on a higher time frame gap, so here
29:37you can see that the 4-hour is already
29:38aligned.
29:39So, we're waiting for it to retrace back
29:41into the expansion candle's range, hit a
29:44key level, and realign itself. So,
29:46here's the C2 candle in an SMT, right?
29:48So, we go back to NQ, the weaker asset.
29:51We can view this as a C2 because it hit
29:53a key level, has SMT. So, now we're
29:55going to trade C3 and realign ourselves
29:58with the already existing 4-hour
30:01reversal to expansion candle, right? We
30:03There's a reason for this 4-hour candle
30:04to continue because it's open draw.
30:08So, let's go down to 3-minute.
30:10So, here we are on the 3-minute time
30:11frame. When we look back within that C2
30:13candle, do you have a CSD? We do indeed
30:16have a CSD.
30:18So, again, it's all up to you.
30:20Do you want to just mark execute right
30:21when the candle opens, put your stop
30:22loss up here,
30:23or do you want to wait for extra entry?
30:25Whatever you want to do.
30:26But, essentially, we would need this
30:28right now. We need this CSD right now if
30:30we're going to confirm the high of the
30:32next candle. Let's just play out price.
30:34What do we do? What do we do?
30:36Okay. So, we just took out this high
30:38here.
30:40So, now this becomes the most recent
30:42opposing candle. So as soon as we close
30:43below there, you can go ahead and look
30:45for entry.
30:47Boom, we closed below right there. So
30:50you market execute on the close, put
30:52your stop loss at the high.
30:54And again, we're going to be targeting
30:55at least 2R.
30:56But what we really want to target is
30:59that daily open or all these lows
31:01really. Right, so if you play price,
31:03you're going to see that we get pretty
31:04close to stop loss.
31:06So it maybe if this is too risky for you
31:08or whatever, maybe use the 5-minute for
31:10entry, right? Well, if you use the
31:125-minute, that's your CSD right here.
31:16Right?
31:17Doesn't really matter. Whatever you
31:18choose, I don't see a big difference
31:20between the two. Um but as you can see,
31:22this plays out very nicely all the way
31:24to the lows.
31:25Um let's see if you can enter this CSD
31:27here. Is it a higher timeframe gap? Yes,
31:30it is. I wouldn't trust it. Um the only
31:33time you ever see these gaps being left
31:34open, it's typically really high in the
31:37ranges, like really high in the ranges,
31:38kind of like this, okay? Um but we'll go
31:41over that in a later lesson.
31:43Um but also in really heavy markets,
31:45like really expanding markets, which is
31:47sometimes hard to harder to anticipate.
31:50Um but yeah, this is an example of the
31:52GXT online sequence.
31:54So what is one way we trade a C2 candle?
31:57Is you have to hit a key level, you have
32:00to have SMT, and you have to have a
32:02small wick, right? For price to create
32:05that reversal into expansion candle. If
32:07it has that large wick, you typically
32:09want to avoid it. Now, what are we going
32:11to confirm this wick with? A CSD.
32:14Ideally, it forms in a fashion of this
32:16V-shaped signature. Once it forms that
32:18signature, you can go ahead and put your
32:20entry there. Now, the other way we're
32:22going to trade a C2 candle is a
32:23two-stage PSP. This is when the previous
32:26candle is a PSP, then it runs out the
32:29previous candle's low,
32:30forming that small wick, the SMT, then
32:33you confirm that with a CSD, and And
32:35course, you need this formation out of
32:37the key level, as always. So now let's
32:39go over entry types C3 positional entry.
32:43So this is when we have a previous
32:46candle closure, we mark out equilibrium
32:48of the entire candle.
32:50We're going to look for a key level
32:51within the previous candle's range. In
32:53this case, we're going to be talking
32:54about a fair value gap. And as you can
32:56see, it's the only key level in this
32:58area, so price is going to continue.
33:00It's the only area to continue from. So
33:02this is something we can take advantage
33:04of and put our limit at that fair value
33:06gap, put our stop loss at the low. Here
33:09is essentially the same thing, except
33:11we're looking back within the previous
33:12candle's range for that CSD or that
33:14change of state of delivery. Going to
33:17mark that out, and as you can see, this
33:20is the only area for price to really
33:22continue from. So you can set a limit on
33:24that change of state delivery, assuming
33:26that price is going to continue in your
33:28given direction without extra
33:30confirmation. Now here we are in entry
33:32type C3.
33:34This is when we actually confirm the low
33:36of C3, so it's a little bit more
33:38conservative. Now this is when candle
33:40three opens low, and the open low of the
33:43candle, which is forming the wick on the
33:45lower time frame, will be an order
33:46block. So as you can see, price opens
33:48low, the open low causes price to create
33:51down close candles. When closed through,
33:54confirms the wick of the higher time
33:56frame candle, right? So now the low of
33:59this candle is protected by an order
34:00block, and that will be your entry and
34:02confirmation to C3. Once C3 low is put
34:05in, then you can expect it to expand. So
34:07really there's pros and cons for
34:09positional entries versus inter-candle
34:12change of state delivery. For positional
34:14entries, you have less confirmation, but
34:16you're typically going to get in more
34:17often, whereas change of state delivery,
34:20there's more confirmation, but you could
34:21get left behind. Now we are going to be
34:23covering entry types. So there is a lot
34:27of different ways you can enter the
34:29market. You can trade C2 candles, C3
34:32candles, You can take the early entry at
34:35the reversal. You can take continuation.
34:38This all is up to you. It's not for me
34:40to decide. It is for you to decide.
34:42Gather data. I'm going to give you some
34:44options.
34:45Uh the mechanical process to trade each
34:48one, the pros and cons. So, first we're
34:50going to be going over how to trade C2
34:54candles.
34:55There's really two ways to trade a C2
34:58candle. Um
35:00This is going to be the first example
35:01here. And that is where you have you
35:04need to have three things really.
35:06That it's a key level.
35:07So, check one. Is this swing high as a
35:09key level? You need to have SMT. That's
35:11check two.
35:12And you have a small wick because we
35:14want to trade a reversal into expansion
35:17candle, right? So, it's a one-stage SMT,
35:20right? Which is the least probable way
35:21to trade a C2. We'll get into the
35:23others. But all you need is to have a
35:26V-shape CSD. And you're essentially
35:28entering that first CSD. So, let's drop
35:30down to a 3-minute or the 5-minute
35:32chart. All righty. So, here we are on
35:33the 3-minute chart. It's a trade that I
35:35actually took. So, as you can see, at
35:389:30 we were around this high. So, we're
35:39pairing this with the driver as well,
35:41which is what makes it a little bit more
35:42high probable. And we see that V-shape
35:44away, displacement away. At this point,
35:47price has now started to expand around
35:49the opening price of this 30-minute
35:51candle, which is really good. You can
35:53see this 30-minute candle opens high
35:54first as well. So, these are all
35:55pointing towards bearishness here. Uh I
35:58personally take
36:00this fair value gap entry right here.
36:03Right? Um you have some opportunities to
36:06maybe get this limit, but I didn't know
36:08if we're going to get this limit or not.
36:09Um also,
36:11price is going to be very quick at this
36:12moment. So, this is like the pros and
36:14cons to entering a C2 candle. It's
36:18you're always going to get the entry,
36:19usually.
36:21But, you know, that propulsion block is
36:23like never a guaranteed, right? That's
36:25the That's the cons of the propulsion
36:26block. But, it's a lot more safer,
36:28right? There's a lot more confirmation.
36:30So, you see the pros and cons here.
36:32Also, my stop loss is naturally higher
36:35in the range. If I enter here, my stop
36:37loss is higher in the range near the
36:38actual reversal. Whereas, if I enter
36:40here, it's like lower in the range. You
36:42get what I mean? So, there's pros and
36:43cons to both. I do like entering the
36:46first CSD when it's really, really, uh,
36:49you know, creating that that
36:50displacement away, that V-shape. I like
36:52to see lower time frame gaps. Um,
36:55so, that's just my personal style. Let's
36:57go ahead and go over the other ways to
36:59trade a C2 reversal. So, here are in the
37:03last way to trade a C2 reversal into
37:05expansion candle, and that is the same
37:07thing as the last example. It's a
37:09two-stage PSP, except the key level is a
37:13gap, right? Um, so, any two-stage PSP
37:16you trade has to be from a key level,
37:18right? Whether you have SMT at the key
37:20level
37:21or not. So, whether you have SMT at the
37:23key level and then a two-stage PSP or no
37:25SMT at the key level and then a
37:27two-stage PSP, either one works, right?
37:29Here, we have SMT with the key level,
37:31but it's a continuation PSP, right?
37:34Where the PSP high is a gap, right? Um,
37:38so, this is the way we like to trade
37:40continuation PSPs. We don't trade
37:41continuation PSPs alone.
37:43The PSP high is is a key level, right?
37:46Um, so, as it runs out this high and
37:48trades into the gap, we have that key
37:50level SMT. It has a small wick, right?
37:53Remember we talked about how to trade a
37:54reversal candle. What do you need? Key
37:56level,
37:57SMT, small wick, right? We have that,
38:00but in the form of a two-stage instead
38:02of a one-stage SMT.
38:04So, you can trade this
38:05expansion candle here.
38:07And as you can see, when you drop down
38:08to lower time frame,
38:10what we got?
38:12We have a beautiful CSD here
38:16and a propulsion block here. So, that is
38:20something you could take, either or, all
38:22up to you.
38:23So now let's go over the second way to
38:25trade a C2 reversal candle, and that is
38:28with a two-stage PSP.
38:30In this case, we're going to be trading
38:32a two-stage PSP away from a swing higher
38:34low.
38:35And it doesn't matter if you have SMT
38:37with the key level or not.
38:39Um
38:41with a swing higher low, but it is ideal
38:43always to have SMT with your key level.
38:46Right? So in this case, we do have SMT
38:48with that key level, and then it's
38:50confirmed by a two-stage PSP. Right? But
38:53you don't even need this PSP here. This
38:55is another variation where you have SMT
38:57with the key level. In this case, you
38:59would need that. You would need that SMT
39:01because if you don't have SMT here,
39:04you don't have a PSP here, you only have
39:05one stage cracking correlation, right?
39:07But now in this case, you have two-stage
39:09cracking correlation, right? We have SMT
39:10with the key level,
39:12and then you have your um
39:14strength switch SMT via consecutive
39:16candles, so you can trade this C2 candle
39:18here. Um but like I was saying earlier,
39:20if it's a two-stage PSP,
39:23um and if both assets hit the key level,
39:25it's okay if there's no SMT with that
39:27key level, it's okay because the
39:28two-stage PSP is a two-stage cracking
39:31correlation. So you guys understand? Um
39:33but let's go ahead and see what price
39:34looks like inside of this C2 candle.
39:37So here we are inside of that C2 candle,
39:39and as you can see,
39:41that first CSD, we can technically take,
39:43right? Because this is the last opposing
39:45candle after price creates that SMT, we
39:48displace higher, we close through. So
39:51we're going to assume that this is the
39:52low of that C2 candle because it that is
39:55the two-stage SMT. So then you can put
39:58your entry here,
40:00entering on that first CSD. What are we
40:02going to target? The external high.
40:05Any targets beyond that. Here is a 4.3R.
40:09And you can also as well,
40:11once you close above here,
40:13for C3 on the 15-minute time frame, as
40:15soon as you close above there, you can
40:17take that
40:19as well. So, boom, you can take that.
40:21Put your stop loss down here if you want
40:22to take that continuation.
40:25And price ultimately hits our target.
40:28So, now we're going to talk about how to
40:29enter a positional entry. And this is
40:31essentially entering on the reversal,
40:34but you're going to be waiting for the
40:36C2 candle to close. So, on C3, what
40:39you're essentially doing is looking back
40:42within C2's range, looking for a key
40:45level within it, and entering off that.
40:47So, first let's go over how to do this
40:49with a gap. So, since we are on the
40:5115-minute time frame, we're entering
40:5215-minute C3.
40:54We're going to use the 1-minute chart.
40:56So, how do we validate a C2 candle?
40:58Is if we have a CSD within that previous
41:00candle's range. We do here.
41:02And as you can see,
41:04this right here is the opening price of
41:07the candle three. And when I look back
41:08inside of this range in the upper half,
41:10what is the only key level there? A fair
41:12value gap.
41:13So, this is where you're going to assume
41:15that C3's low is going to form from this
41:18fair value gap. You're assuming that
41:19price is going to going to go like this.
41:21Open, low inside fair value gap, and
41:23then expand higher. Essentially, right?
41:25So, you're going to enter your limit
41:26there.
41:27Your TP up here. Put your stop loss at
41:29the body here.
41:30And yeah, that's essentially what you're
41:32doing. Instead of waiting for the
41:34confirmation of this
41:37um
41:38candle, candle's low, this candle
41:40three's low.
41:41Um and this is the this is the um cons
41:45to waiting for a
41:48propulsion block, right? Like, sometimes
41:50price just expands like this, and you
41:52don't really get an entry. But typically
41:54with with a positional entry, you're
41:56always going to be in the trade. Um
41:59it's just less confirmation.
42:01So, here we're going to talk about two
42:02types of entries. We're going to talk
42:04about the second way you can enter a
42:05positional entry, and then the way we
42:07trade continuations.
42:09So, here we're on the 30-minute chart.
42:11We run out this low.
42:13We're going to target this high. We
42:15always use swing formations paired with
42:17order pairing ranges. So, we're going to
42:18do here is mark out our previous
42:20candle's range. We have a C2. So, what
42:23are we going to do? Look for a key level
42:24within the previous candle's range, in
42:27this case the upper half since it's a
42:28bullish C2 candle. So, we're going to
42:30look for a key level that we can put our
42:33limit on for a positional entry.
42:35So, here we are on the 5-minute chart.
42:37Let's go ahead and bar replay right when
42:39this candle opens. It's about right
42:40here.
42:41So, this is an example of putting your
42:43limits on the CSD
42:47that confirms C2, right? So, this is the
42:48first CSD that confirms C2. So, you're
42:51going going to be assuming that candle
42:53three opens low into it and expands like
42:55this, right? So, boom.
42:59Let's go ahead and put that limit on
43:00like this.
43:04I'd probably put my stop loss at EQ of
43:05this wick. That's fine. TP up here for
43:08at least 2R.
43:09So, boom.
43:10You are now in this trade. Let's mark
43:12out the open of C3,
43:14which is right here, as you can see.
43:19All right, so you're in this trade,
43:20right? There's no missing this trade
43:21now.
43:22Um you just have less confirmation. So,
43:24now we're going to talk about how you
43:25would take a continuation trade, right?
43:28And this is waiting for price
43:30[clears throat] to open low first.
43:31You're not entering yet. Hitting a key
43:33level within the previous candle's
43:34range,
43:35right?
43:37And then waiting for the confirmation.
43:38So, the confirmation to a key level is a
43:40CSD.
43:44So, boom.
43:46We get that CSD. So, what this is
43:48actually doing is confirming the wick of
43:51C3. If I go back to the 30-minute here,
43:55you can see we just put in that wick. We
43:57open low into a key level within the
43:59previous candle's range. We confirmed it
44:01on the 3-minute chart. So, now this is
44:04way more extra confirmation, right?
44:06You're going to be entering a little bit
44:07more high in the range,
44:08but those are the the cons, right? Is
44:10you have way more confirmation to this
44:12trade.
44:13Um it's all up to you what you guys want
44:15to do, but that is how we trade
44:16continuation. It's letting the wick form
44:19with C3, or just letting the wick form
44:22for whatever higher time frame candle
44:24you're trading. Um
44:26I personally
44:29like entering the first CSD, and we're
44:31going to go over why
44:33when we go over management. Let's see
44:35how this plays out.
44:37As you see, they would both play out
44:40for a very nice trade.
44:41So, now let's go over stop loss
44:43placement. This is where we're going to
44:44put the stop loss at the body of the
44:47order block, and that is typically when
44:49price creates either a very bulky
44:52opposing candle. As you can see, this
44:54move lower is made up of mostly body, or
44:57when price just expands away
45:00and you're entering from a gap, you
45:02would never expect price to come all the
45:03way down to this body,
45:05reject you, and then go in the
45:07direction. It's typically very unlikely
45:09to happen. Of course, it can happen
45:11sometimes, but this is just a way you
45:13can get extra RR. This is typically what
45:15I do personally, just because we know
45:17that expansion signatures after reversal
45:19do not create these deep pullbacks. So,
45:21now let's talk about stop loss placement
45:23when putting it at the swing low.
45:25And that is essentially when looking at
45:26the CSD that confirms the reversal is
45:29made up of mostly wick, or has a large
45:31wick, and it's like 50% wick, 50% body.
45:35You can't just put your stop loss here,
45:37right? That can easily get wicked out.
45:38So, we're going to put the stop loss at
45:40the actual swing low. Now, let's talk
45:42about stop loss placement for
45:43continuation.
45:45For continuation, I usually always just
45:48put it at the swing low, because the
45:50higher and higher you go,
45:52the more we can pull back, what not. But
45:54early on in the reversal, guys, we
45:55should never be returning very deep back
45:57into low, like ever. Um so, typically, I
46:01will just put it at the at the actual
46:03swing low. It's up to you guys, though.
46:04Trade management is all personal to you
46:06guys.
46:07Now, let's get into trailing the stop
46:09loss. So, this is something that is
46:12really beneficial to my trading. So,
46:13let's go ahead and go over it. So,
46:15here's an example of when you're
46:16entering the first CSD, which I am
46:19personally also a fan of. I actually
46:21like entering the first CSD, and here is
46:24actually why. This slide actually shows
46:25it perfectly. So, boom. You enter the
46:28first CSD. Ideally, you want to have a
46:30V-shape and a gap ideally, but a V-shape
46:33at the very minimum. So, boom. You enter
46:36your trade right at the opening price of
46:38this CSD, put your stop loss at this
46:41low. And once price retraces to tag you
46:43in and then continues, that's going to
46:45give you that propulsion block. This is
46:47what most people enter off anyways,
46:49right? If you're a continuation trader,
46:51you're already entering off of this CSD
46:53here and putting your stop loss here
46:54regardless. This is where you take your
46:56stop loss from here and move it to that
46:59propulsion block. So, now you're cutting
47:01your trade in half, for actually like
47:04even more than half, right? Without even
47:06being up a lot of RR. We're not even up
47:08one R and we just trimmed our stop loss
47:11like 60%. It's really, really powerful.
47:14And if we let price keep going, it's
47:15going to create order blocks above our
47:17entry, which should be in theory
47:20protected levels in expansion. So, once
47:24we form that order block above our
47:25entry, this is when we can actually go
47:27break even. So, now let's talk about
47:29trailing your position when trading a
47:31continuation. So, this is when you enter
47:33off that propulsion block. Once price
47:35revisits that propulsion block or just
47:38forms that order block above your entry,
47:40this is essentially when you can go
47:41break even. Another way you can go break
47:43even is simply if you hit two R. So, now
47:46let's go over when you should really go
47:48break even, when to trust which order
47:50blocks, etc. And that is all about the
47:52size of the retracement on a lower time
47:54frame. So, as you can see here, we're
47:56entering off that first CSD. And this
47:58little pullback right into high and
48:00premium is not a relevant level to go
48:04break even at. We can easily retrace
48:06here, right? Over here is more so what
48:08we're looking for is if you retest your
48:11entry, you sweep out a low, any type of
48:14extra confirmation like that, that
48:16deeper retracement is when we can
48:17typically go break even, right? And this
48:19is the real ideal example here is when
48:22price retraces into EQ or even deeper
48:25back into your entry. We don't want it
48:27to go too deep, but this is like
48:28perfect. We should never return back
48:30into this level here. Yeah, you know, EQ
48:33and below should never be returning.
48:34That's when you can really trade your
48:35stop loss confidently. Now, let's talk
48:37about targets. You will never target
48:39under 2R. Now, the way I personally
48:42trade, your average RR, you know, when
48:44you're holding with the daily candle to
48:46these objectives, your average RR should
48:49be a lot higher than two. Should be in
48:51the three to four range-ish, right? But
48:532R is a bare minimum. Now, let's talk
48:56about partialing. This is really what
48:58I'm talking about with being higher than
49:01a 2R. So, I'm not the biggest fan of
49:04just targeting 2R and partialing there.
49:06I'm more of a fan of partialing at
49:08relevant levels. So, if this is your
49:10final TP, your higher time frame draw on
49:11liquidity, this is the reversal. Let's
49:14kind of walk through everything here.
49:15So, here you can enter off this gap,
49:17right? Once you form the CSD, you can
49:20pretty much move this up to here. I
49:22should have probably added that, maybe.
49:24But, I don't really think I was going
49:25for that. I wasn't really trying to
49:26explain that in this
49:28slide here specifically, but that's what
49:30you would do. Once you get the CSD here,
49:32this propulsion block, you can move your
49:33stop loss to break even like already,
49:35right? That's a pretty decent size
49:37retracement into EQ. That's more so what
49:39I'm talking about. Um you want that
49:40decent size retracement. But, anyways,
49:42for targets, you're going to look for
49:44internal levels on your way to the draw
49:46on liquidity.
49:48As you can see, this is the relevant
49:49high on your way to the draw on
49:50liquidity, right? This is where you want
49:52to be partialing half your position at
49:54least above 2R, right? You're going to
49:57be partialing
49:58um at 2R 50% and then let the rest run
50:02to your final TP. That's what I do
50:04personally. I always take off 50%
50:05usually
50:06um if the final TP is very realistic to
50:10to get hit.
50:11Now, here we're going to be going over
50:12trade management, where to put your stop
50:15loss, when to trail your stop loss, when
50:18to partial, all that good stuff.
50:21So, first let's talk about when you can
50:22put your stop loss
50:23at the body of a candle versus the
50:26actual swing high.
50:28So, first let's talk about how you can
50:29actually put your stop loss at the body
50:31versus the swing high.
50:32It is simply when the opposing candles I
50:34using to confirm the reversal are bulky
50:37or mostly made up of body. So, as you
50:40can see clearly, this is mostly made up
50:42of body. So, you can enter here
50:45or set a limit, either or.
50:47And you put your stop loss at the bodies
50:50up here. The reason for that is if we
50:52take a fib tool,
50:54mark it from low to high,
50:56we would never ever want to see price
50:58come all the way up here. That's not
51:00reversals do. They don't make these deep
51:02retracements.
51:03So,
51:04there's really no difference between
51:05putting it here and here.
51:06Um there's no reason to put up here,
51:09right? It shouldn't be coming up here to
51:11begin with. So, you can actually
51:13increase our RR slightly by doing this.
51:17Now, here's an example of where
51:19the opposing candles is not so, you
51:22know, bulky. There's wick, right? So,
51:25now here is an example of where you got
51:27to put your stop loss at the swing low.
51:30So, an easy way to tell if these bodies
51:32are too small
51:33is by marking a
51:35premium discount tool from the wick to
51:38the opening price of those opposing
51:39candles.
51:40And you see how the end of these
51:41opposing candles are kind of around EQ.
51:44If it's in premium,
51:46that's definitely not good. You don't
51:47want to put your stop loss at the body
51:49like ever.
51:50Um in this case, it's around there. It's
51:52kind of hard to tell. So, really just
51:55enter here.
51:57At the very least, put your stop loss at
51:59EQ the wick.
52:00Because again, it's like the same logic,
52:01right? You don't really want to see
52:03price coming all the way down here.
52:06It's like the same thing. It's like here
52:07versus here, not really much of
52:09difference. But here, it's like
52:12it's around 50%. You know, it's kind of
52:13hard to trust.
52:14Um
52:15so, in this case,
52:17you can put it at 50% or here, up to
52:19you. Um but yeah, you can see what
52:21happens.
52:22You can easily come down in here and
52:23wick that area.
52:26Especially, like I said,
52:28if the end of those opposing candles or
52:30end the premium end of what we just
52:31marked out for our premium discount
52:33tool,
52:34uh it's definitely a no-go.
52:37Now, we're going to talk about
52:38continuation entries, when to put your
52:40stop loss at the body versus the wick.
52:43And it's really the same thing.
52:45I will say it's a little bit riskier in
52:47continuation versus reversals to put
52:49your stop loss at the body.
52:52That's just because naturally in
52:53continuation, we've already expanded um
52:57you know, it's all it's really all about
52:59the opposing run size, right? For the um
53:04retracements or the order blocks, if
53:07they're large, right? Then typically,
53:09we're we're not going to retrace again.
53:10But if it's like some shallow stuff, you
53:13know,
53:13let's say we get the reversal,
53:15it's really shallow. It's really hard to
53:18trust putting your stop loss here. I'd
53:20rather just put it here, man. There's
53:21not really too much of a difference. The
53:24reason why you can be really aggressive
53:25at the reversal
53:26is because when you reverse,
53:28there should be we should not be
53:29retracing uh very deep, right? Think
53:32about a reversal expansion, no
53:34expansion. It's like I don't want to see
53:36price come up all the way up here again.
53:37Whereas,
53:38you know,
53:40in continuation, we've already expanded
53:42a lot. Naturally, you're already in
53:46you know, really low on that range
53:47technically, right? You're in discount
53:49still, you know? So, it's a little bit
53:51different. It's a lot different. Uh it's
53:53up to you, but you can apply the same
53:55rules.
53:56But typically, I just put it at the
53:57swing higher or low.
53:59Now, let's talk about how you can trail
54:01your stop loss when trading a reversal,
54:05right? So, this is basically trading the
54:06first CSD
54:08or the first um gap, you know, when
54:11trading a C2 candle or when taking a
54:13positional entry. I personally love
54:15doing this. I'm going to show you
54:16exactly why. You can pretty much trail
54:19your stop loss extremely quick, right?
54:22So, in this case, you would definitely
54:24be waiting for a gap to form. So, why is
54:26that? This candle creates a CSD, but
54:28that wick size
54:30but that stop loss size is way, way too
54:32large. So, in this case, when this
54:34happens, you're just going to wait for a
54:35gap to form, and you're going to wait
54:37for that gap to um be tagged. You don't
54:40want to wait for a CSD limit here. It's
54:42highly unlikely to happen because
54:45remember, after reversals, we don't
54:47really want to see those deep
54:48retracements into deep, deep OTE. That's
54:51what this would have to do for um price
54:54to tag this um CSD. So, we're going to
54:58to put our stop loss here.
55:00That is good enough RR
55:02um
55:03and whatnot. So,
55:05this would be your first entry. This is
55:06where you're entering early on in the
55:07reversal, okay?
55:09So, as price tags you in,
55:11it should be creating opposing candles
55:13into your
55:15entry or to tag you in, right? Um into
55:18that refined key level, right? There's
55:20always going to be a key level
55:21typically. Um
55:23and to confirm that key level, you need
55:24a
55:25CSD, right?
55:26So, boom, you're going to wait for that
55:28CSD to happen.
55:29So, boom, as soon as the CSD happens and
55:31price retests your entry or tags in your
55:34entry,
55:35there should be no reason to return back
55:37to here.
55:38Right? This should be
55:40the new invalidation level. This was the
55:43invalidation level before.
55:46Boom. As soon as you get tagged in,
55:48price
55:49goes in our direction just a little bit.
55:50That's all we need price to do, to go in
55:52our direction a little bit. Notice how
55:53we're only up
55:551 R. We're only up 1 R. But what we can
55:57do is already start to trail your stop
55:59loss to here because this is what most
56:02people enter off of anyways. Right? This
56:04is the safer entry technically to take
56:06right here.
56:08So, this is all you need price to do.
56:10So,
56:10you know, your stop loss is this big,
56:12you know, 94 points or whatever.
56:14And now it's only 35. You know, you just
56:17cut your stop loss in half. And what you
56:19could do as well, if you really wanted
56:21to, was add on to this position.
56:23You You technically could do that,
56:25right? You could add on to this
56:26position. This is how you get your
56:27winners to be huge, you know?
56:30Uh when you do this, your winners are
56:32absolutely massive. You would
56:34technically only lose less than 1.5 R
56:37technically, right? Um but that's
56:39something you guys can do. This is
56:41something I love doing. It's so powerful
56:44because most of your losses are not even
56:46full full losses, right? Um so, it's
56:49extremely powerful. I highly recommend
56:51you do it. Um but again, this is
56:54completely optional. It's all
56:55personalized with uh entries and trade
56:59management. So, it's something for you
57:00to test.
57:02So, now let's talk about how to manage
57:04your trade when you enter a um
57:06continuation entry. All right? This is
57:08where you do not enter the first CSD,
57:10right? If you did enter the first CSD,
57:13it would look something like this,
57:14right? So, you see this big wick if you
57:16mark out from the opening price here
57:20to the actual swing low. This is what
57:22I'm talking about where the end of those
57:24opposing candles is in premium. You got
57:26to put your stop loss at least
57:28at the 50% of wick or down here. That's
57:30just too big of a stop loss, though. So,
57:32like EQ of the wick is fine.
57:34Something like that. And then as you can
57:35see, when price tags you in
57:38and that's confirmed,
57:40that's when you can trail your stoploss
57:41to here. All right?
57:42But, we're talking about if you enter
57:44right here with the propulsion block.
57:47The way you're going to
57:48basically um
57:50manage your stoploss is the same thing,
57:52really.
57:53You're just going to wait for price to
57:55retrace back to your entry.
57:57All right?
57:59Put in a decent uh
58:01propulsion block or opposing move lower.
58:03We're just going to talk about how to
58:04mechanically know this is valid later.
58:07But, once it does that and then we
58:08basically create a CSD above your entry,
58:14that's when you can go break even. All
58:16right?
58:17So, this is technically
58:19the protected level. So, boom, you go
58:21break even.
58:22Now, you're
58:23you're already,
58:25you know, risk-free and you're only up
58:27about 1.3R
58:29at the time.
58:30And you can see what happens here. It
58:31completely saved you.
58:34Now, we're going to talk about how to
58:35filter out
58:37these order blocks that we're using to
58:39go break even.
58:40It's all about the opposing run size
58:43using premium and discount. So, as soon
58:45as you get your CSD,
58:47you're going to mark out from the
58:49um reversal points to the retracement
58:52high. So, at the point this is the
58:53retracement high. And where you want
58:55this CSD to print ideally is around EQ.
58:58Notice how the CSD only retraces into
59:00premium.
59:01That is not enough, right? That's too
59:03little of an opposing move, right? We do
59:06not want to go break even too quickly,
59:08you know, just to get whipped out, break
59:10even, and then price to go in another
59:11direction, right? We don't want to over
59:13overly manage. We manage with logic, all
59:16right? There's a reason why we can do
59:18this, right? It's not It's not cuz I'm
59:20scared to lose.
59:21No, in expansion, we should be creating
59:24shallow retracements, right? But, not
59:27just any shallow retracement. We got we
59:28got to add some type of filter. That's
59:30what we're doing here.
59:31Um so, we're not going to move our stop
59:32loss here.
59:33Right? Going to wait
59:35for price to create a more established
59:38um level, right? To move our stop loss
59:40at. So, you're always going to move your
59:42you're always going to move your premium
59:43discount tool as price expands. So, this
59:45is the highest point at this moment.
59:47This is more what we're talking about
59:48right here.
59:49Is a more well-defined retracement into
59:53EQ or maybe sweep it not that low. You
59:56know, if it sweeps out the low in in
59:57premium, that's okay, too. Like, we just
1:00:00want some like, you know, extra
1:00:01confirmation here. Um so, a a nice sweep
1:00:04of a low, even if it's still in premium,
1:00:06that's that's okay, too.
1:00:08Um but, as you can see, we sweep out
1:00:10this low in EQ.
1:00:11So, our stop loss would look something
1:00:14like this, where we'd enter off of here.
1:00:17Stop loss down here.
1:00:18Again, no reason to put it down here. Um
1:00:21but, as soon as you have this CSD,
1:00:26right here,
1:00:29our stop loss goes from 82 points all
1:00:32the way to here.
1:00:34Right? So, basically, you can go break
1:00:35even, honestly, at this point because
1:00:37price shouldn't be coming down here. If
1:00:38If this is truly going to hold, it
1:00:39shouldn't be coming down here. Um so,
1:00:42that is a great example of
1:00:44how to actually move your stop loss and
1:00:46how to filter out
1:00:48uh when to move your stop loss.
1:00:51So, now we're going to talk about how to
1:00:53hold your trades, when to partial. Um
1:00:56so, we're always going to be trading a
1:00:57universal model, and we ideally want to
1:00:59hold our trades to that draw on
1:01:01liquidity, right? So, we're always going
1:01:03to be trading away from some key level
1:01:04on the higher time frame. And our draw
1:01:06on liquidity is the opposing side of
1:01:08that, right? So, this is IRL, ERL. So,
1:01:10the higher time frame ERL is going to be
1:01:12our overall draw on liquidity.
1:01:14And I'll show you guys how to partial.
1:01:15So, let's drop down to a lower time
1:01:16frame.
1:01:17So, here we are on the hourly time
1:01:19frame. We're We're to be trading this
1:01:21C3, right? This is our overall draw on
1:01:23liquidity, but what you're going to look
1:01:24for
1:01:25is internal relevant levels within
1:01:29the draw on liquidity and the actual
1:01:31reversal, right? Anything relevant in
1:01:33there is where I want to be TP'ing. It
1:01:35at least has to be 2R. So, now let's
1:01:37drop to the lower time frame.
1:01:39So, as you can see, we have that V-shape
1:01:41signature. This is actually an example
1:01:43I've used, so you guys are familiar with
1:01:45this where we have that 5-minute CSD
1:01:47already. Um and we kind of have this
1:01:49proposal block on the 3-minutes um
1:01:52confirming 10:00 a.m., so this is what
1:01:54you'd be entering off of right here.
1:01:56First stop is up here.
1:01:58And as you can see, I'm not just going
1:01:59to TP at 2R,
1:02:01right? Especially, I'm not going to TP
1:02:03the whole thing, but I'm not just going
1:02:04to partial at 2R.
1:02:06There's no reason to, right? If price
1:02:07can come all the way down here, it's
1:02:09highly likely to hit this low. So,
1:02:11you're kind of just giving away like
1:02:120.3R. I know it doesn't sound like much,
1:02:15but in other cases, it's a lot more.
1:02:17Um there's just there's no reason for
1:02:19price to reverse from, right? If price
1:02:20can do it sometimes, yeah, price can do
1:02:22anything it wants, but in most cases,
1:02:25it's not. It's going to go to the the
1:02:26actual draw on liquidity, you know,
1:02:28relevant levels, right? Um and even
1:02:31this, it's like this low here, it
1:02:33shouldn't be reversing price, right? We
1:02:35want to be holding at least 50% of our
1:02:38position to our draw on liquidity,
1:02:40right?
1:02:41So, I only personally, if you're asking
1:02:43me, I only TP 50% of my position
1:02:46typically at relevant levels, unless
1:02:49there's just not enough time in the day
1:02:51or I just don't think price is going to
1:02:52get to a certain level,
1:02:53which is going to take some experience
1:02:56for you to understand. But, that's
1:02:57typically what I'm doing if I think
1:02:58price is going to get to the overall
1:02:59draw on liquidity, my first partial has
1:03:02to be at least 2R
1:03:03from a relevant level internal to the
1:03:06universal model,
1:03:08and I only take out 50%.
1:03:10So, when you're holding your position to
1:03:11the overall draw on liquidity,
1:03:14your RR will be well above
1:03:172R for your average.
1:03:19So, when you are actually holding your
1:03:21entire trade to the overall universal
1:03:24model drawing liquidity, your average RR
1:03:26should be well above 2R. It should It
1:03:29should realistically be somewhere
1:03:31between three to four average RR. You're
1:03:34going to look for a win rate of 40 to
1:03:3750%. That is amazing with that RR,
1:03:40right? If you are a 2R trader, right?
1:03:43I'm not going to tell you how to trade.
1:03:44If you want to just take base hits, you
1:03:46know, 1.5R, 2R,
1:03:48anything above 50%, man,
1:03:50is killer, right? Um if you're like a
1:03:53beginner or something, that's something
1:03:54you could really strive for. Even like
1:03:5740% win rate, man, with 2R, you can
1:03:59still make a ton of money. You don't
1:04:01need an 80% rate. You're not going to
1:04:02have an 80% rate. I don't have an 80%
1:04:05rate. Don't expect it.
1:04:07Expect a 40 to 50% win rate when holding
1:04:10your positions to these targets, and the
1:04:12RR will play out in your favor.
1:04:15And the way I manage, personally, a lot
1:04:17of my losses, you know, are not even
1:04:19full losses, right? We can go break even
1:04:21super quickly, etc. So, it actually ends
1:04:24up playing out very, very, very, very
1:04:26nicely.
1:04:27But, yeah.
1:04:28Trade management,
1:04:30um
1:04:31and entries, is completely personalized.
1:04:33It's all up to you how you guys want to
1:04:35trade.
1:04:36So, just keep that in mind, study, back
1:04:39test, journal, and you will find exactly
1:04:41what is right for you.

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