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Anomaly - Advanced Course - Lesson 7 - Asset sync — Transcript

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0:04Hello everybody. Welcome to the Anomaly
0:06course core content lesson 7. Here we're
0:10going to be going over SMT breaks for
0:13reversals. So the first step is you're
0:16going to create an SMT with a correlated
0:19market. And what will make it obvious
0:21that the assets are likely to break this
0:24SMT is if the SMT is in close proximity.
0:28As you can see the failure swing high is
0:31in close proximity with the high that is
0:33being manipulated on the leading asset.
0:36Now the next step over here is the SMT
0:39actually is going to break. So that SMT
0:42is not going to hold because that
0:43proximity is very very close. Once this
0:46asset breaks the SMT that's essentially
0:49a trigger for the market to actually
0:52reverse. So, as you can see, here is a
0:54depiction of that happening, right? As
0:56soon as that middle asset, it's
0:58typically going to be the middle asset,
1:00breaks that SMT, this is when that
1:02leading asset actually starts to
1:04reverse.
1:05In the ideal scenario is this triad
1:08sequence where the leading asset creates
1:10SMT with the middle and lagging asset.
1:14It doesn't hold. That middle asset
1:16breaks the SMT, but that lagging asset
1:18actually does hold that SMT. It doesn't
1:21matter if it's close proximity S&T or
1:23not on the sitting asset. This is
1:25exactly ideally how we want to see this
1:27sequence play out. Now, let's go over
1:30another ideal scenario for S&T brick
1:32reversal. And this is a two-stage SMT in
1:36the form of a string switch. It's going
1:38to create a high, as you can see, a high
1:40on this asset, a high on this asset, and
1:43then that lagging asset actually goes
1:44ahead and breaks that SMT and
1:47simultaneously creates a new one. As you
1:50can see, this asset breaks the overall
1:52SMT, but creates a new one with the high
1:55that was actually created
1:57with that first stage SMT. It kind of
1:59looks like a roof SMT, but it's in the
2:02form of a strength switch, right?
2:03Because this asset over here was
2:05stronger as you can see because it took
2:07out the high, but now it's showing
2:08weakness as it could not take out this
2:11high. So, it's showing weakness and
2:13creating that SMT divergence while also
2:16breaking that original SMT, which is a
2:19trigger for reversal. Now, let's go
2:22ahead and go over some examples of every
2:24concept within asexization.
2:27First concepts we're going to be
2:28covering is SMT break for reversals. So,
2:33as you can see, how do we know when SMT
2:34is likely to break? When a leading asset
2:36runs deep through a low or a high. So
2:40you can see this asset fails to
2:41manipulate slow that means the middle
2:43asset which is going to be over here ES
2:46right if YM is the uh weakest then ES
2:50will be the middle asset that's when the
2:51middle asset is likely to run out that
2:53same low and when it runs out that low
2:56that is when price can reverse in the
2:59most high probable sequence is when the
3:02strongest asset is actually not even
3:04taking out that low it's actually
3:05creating SMT so this is the triad
3:08sequence for SMT break reversal. Now
3:12let's go over another high probability
3:14sequence for SMT break reversal. This is
3:18in the form of a strength switch. So you
3:20can see what is going to happen is that
3:22price is going to make an original SMT,
3:25right? And we know this is likely to
3:26break because of how close proximity
3:28this SMT is. This asset runs to the
3:30high, right? It's going to print a swing
3:33high.
3:34this asset, this lagging asset is going
3:36to break that overall SMT and actually
3:39create a new SMT with the high that was
3:43created on the the asset that was
3:46originally stronger that created that
3:47original SMT. So, it looks like that
3:49roof SMT uh and this is another way
3:52assets can reverse for SMT break. So now
3:56let's talk about when we expect the SMT
3:59to actually break within the middle
4:01asset and that is when we create close
4:03proximity SMT. So you really really see
4:06this when the leading asset here trades
4:10through a low and you can see this when
4:12we drop down to lower time frame. You
4:14can see when we engage with this low
4:15here we failed to manipulate it. We
4:17consolidated. When that happens and
4:19you're creating this close proximity
4:21SMT. So check out this close proximity
4:23SMT that we once created right here.
4:26At one point this was close proximity
4:29SMT as you guys can see
4:33right there. Um we know this is likely
4:35going to break if we do not reverse here
4:38right and I know there's a strength just
4:39PSP here guys but it happens at 1500 so
4:42very very late in the day so it just
4:44doesn't end up holding. Um but yeah as
4:47you see price clearly doesn't manipulate
4:48it. So that means that the trigger for
4:51this SMT to hold is going to be when ES
4:55the middle asset breaks, right? And we
4:58went over this and SMT break for
5:00reversal. So as soon as ES breaks the
5:02SMT, look what happens. We reverse while
5:06the middle assets is doing what? Holding
5:08it inside of a gap. So this is when we
5:12typically require that SMT break to
5:14happen.
5:16Now, let's go ahead and cover advanced
5:18premium discount. Advanced premium
5:20discount is really simple. It's all
5:22about proximity in the space between
5:25SMT. So, as you can see, the asset that
5:27creates a failure swing is essentially
5:29going to create its failure swing in
5:32premium of the range or an EQ, right?
5:35That's ideally where you want it to be
5:37created. And ideally this asset is
5:40creating its fair swing inside of a gap
5:42while that lagging asset is actually
5:44manipulating that range low. Right? So
5:46really simple this asset is in premium
5:49of the range or in discount while this
5:50asset is manipulating the range low
5:52creating that spaced out SMT. Really
5:55simple. So now let's view this within a
5:57triad where we have three correlated
6:00markets. This is ideally how we want it
6:02to look is that strongest asset that
6:05leading one will be creating its S&T in
6:08premium. This asset the middle asset
6:11this middle asset over here is going to
6:13be creating its low in equilibrium while
6:16that lagging asset is going to be
6:19manipulating that range low. Now this is
6:22more of a negative condition. this asset
6:24is maybe in premium or equilibrium and
6:27that middle asset makes a really deep
6:29run back into that range low and this
6:32asset is actually making a deep
6:34manipulation through this low. So when
6:37we have that sequence, this is what
6:38we're going to wait for right here.
6:40We're going to wait for that middle
6:41asset to manipulate that range low and
6:44break SMT just like we went over
6:46previously. And that will be the trigger
6:48for the market to reverse. Now, let's go
6:51over an example where we can use the
6:52previous candle as our range high and
6:55low. And this is typically going to
6:57happen in the form of a PSP when they're
7:00expanding in opposite directions. So,
7:02why does that naturally happen? Because
7:04this candle is opening up in premium of
7:06the previous candle range and this
7:07candle is opening up in discount of the
7:09previous candles range. This asset is
7:10going to run out that low creating a
7:12two-stage PSP. This asset is not. It
7:14stays up into premium/ EQ of the
7:17previous range. that naturally just
7:19creates that space out SMT that we're
7:22looking for. Now, let's go ahead and go
7:24over advanced pre and discount. This is
7:26essentially what we want to see, a space
7:28out SMT. It's where one asset takes a
7:31range high, manipulates it, while the
7:33lagging asset is either in discount or
7:36around EQ. We don't really want it to be
7:38in deep discount because that's creating
7:40the close proximity SMT. We want that
7:42SMT that is more so spaced out. And
7:46ideally the asset that's creating the
7:48filler swing or not taking out the high
7:50is actually in a fair value gap. So this
7:53is a great way we can mechanically
7:55define space SMT by using the premium
7:58discount tool. And ideally the way we
8:00trade this is we have a string switch at
8:04the point of reversal. Now you don't
8:06need a string switch at the point
8:08reversal if the asset taking the high is
8:11actually printing those V-shaped
8:13signatures and actually manipulating the
8:15high. But if it actually runs deep
8:17through a high or not really reversing,
8:20you absolutely need a string switch.
8:22Now, this is the most ideal scenario
8:24when looking at a triad um when viewing
8:28a premium discount range. So, this is
8:31where the lagging asset takes out the
8:33range low. We're going to look at where
8:35the Feder swings are being printed on
8:37the middle assets and the leading
8:39assets. So, look at this leading asset.
8:42Where is it at? it is in high in
8:44premium, right? Very very high in
8:46premium while the middle asset is more
8:48in discounts or EQ area. This is
8:51perfect, right? Um this is the most
8:53ideal scenario when trading uh advanced
8:57premium discount. So now we're going to
8:59go over another way we use advanced
9:01premium discount and that is going to be
9:03using the previous candles higher low as
9:06a range higher low. So, typically we're
9:09only going to do this, not always. It
9:11can be with any candle really. You're
9:13going to see it mostly happen when it
9:15the previous candle is a PSP because you
9:18have one candle opening near the low end
9:22of the previous candle's range. Well,
9:23this candle is opening near the high end
9:25of its previous candle's range. So,
9:27naturally, you create that two-stage PSP
9:30and you create that separated SMT,
9:32right? So, we drop down lower time
9:34frame. So, here we are on the hourly
9:36time frame. What do we see? This asset
9:38is running the previous candles range.
9:40This asset is not creating that space
9:44that S&P want to see. And what is this
9:46asset creating low in inside of a gap?
9:50So now let's go ahead and talk about
9:52failure swing SMT where we actually
9:54don't have really an advanced premium
9:56discount. So what we're going to wait
9:58for is the GXT universe sequence which
10:01is really simple. After price creates
10:03that failure swing SMT, just wait for
10:05price to expand away and create a
10:0750-minute or above gap. We're going to
10:10use this gap. We're going to wait for it
10:11to be confirmed with an SMT fill, some
10:13type of form of SMT, and then we can
10:15trust to trade away from these fair
10:17swings. As price has showed us the
10:19willingness to trade away, creating that
10:21gap that is the mechanical way to define
10:24displacements and once that gap is
10:26confirmed, we can assume continuation
10:28away from this fair swing S&T. Now, here
10:30we are viewing price within a tri again.
10:33This is we're going to have that failure
10:34swing SMT with that middle asset which
10:36is what you're going to see in most
10:38cases actually where this asset might be
10:40in premium. This assets way in deep
10:42discount creating that flare swing SMT
10:45while that lagging asset is creating
10:47that deep manipulation. So, what you're
10:49going to be waiting for is a strength
10:50switch between that leading asset and
10:52lagging asset. Once you have that
10:54typically that means that this asset is
10:56not going to reach these lows because
10:58the lagging asset the weakest one is
11:00switching strength and actually
11:01reversing. So if this asset is reversing
11:04then this asset is also going to
11:06reverse.
11:07And now here is the last way we can tell
11:10if price is likely to leave this flare
11:12swing SMT and that is when the lagging
11:15asset over here is actually manipulating
11:17the range low not making that deep run.
11:19If it's making that deep run through the
11:21low, then that means typically that
11:23middle asset is also going to break the
11:24SMT. But if it the lagging asset is
11:27actually manipulating it, then of course
11:29if the weakest asset is going to reverse
11:31here, then of course that middle asset
11:34will not reach this low, right? So it's
11:36really simple. If we're actually
11:37manipulating that range low with that
11:39lagging asset, the middle asset will not
11:42break this SMT. So now let's go ahead
11:44and talk about failure swing SMT. We can
11:48definitely trade away from fair swing
11:50SMT. It's going to happen like this a
11:52lot, right? We're not always going to
11:53have that space at SMT. So, we can trade
11:55this, but we need extra confirmation.
11:57So, let's go over some of the things we
11:59can require to do so. So, the first
12:02thing is a crack and correlation in the
12:05form of a strength switch at the point
12:07of reversal. So, notice how this asset
12:09takes a low. This asset gets really
12:11close to this low. If we mark that out,
12:13check that out. Very, very close
12:15proximity. If you have a strength switch
12:16there, you could typically trust it. I
12:19like to wait for a clear Vshape away on
12:21lower time frames creating fair value
12:24gaps. So, as you can see, clear Vshape
12:26creating gaps. I actually took this
12:28trade right here from this gap. I took
12:30it exactly right there. Um, and that
12:33lower time frame expansion away is
12:35showing displacement away. So, the
12:36intent to reverse, um, you're typically
12:39good there. Or you could wait for price
12:42to keep expanding away and create that
12:45gap in price on the 15-minute or above.
12:48So check this out. Here we have a
12:5115-minut or above gap and you're
12:53essentially going to trade that
12:54continuation sequence, right? Where
12:56you're just waiting for price to really
12:58expand away, create those gaps on the
13:00higher time frame. You're going to use
13:01these gaps to then uh trade away into
13:05your draw liquidity, right? So if you
13:07play price as you can see we get that
13:10SMT fill this asset does not tra the gap
13:14this asset does. So now that is your
13:17extra confirmation to go ahead and
13:18target all these highs and trade away
13:21from this fair swing SMT. You really
13:23have two options, right? Like I said,
13:26you either trade the reversal and wait
13:29for a strength switch or let price
13:31expand away, create a couple of
13:33expansion candles, that's going to
13:35create the higher gap, and that's what
13:37you're going to use to trade away from
13:38this fer swing SMT. So, if this assets
13:42that is the weakest does not actually
13:44reject this low, right, it fails to
13:46manipulate it when you create SMT, maybe
13:48consolidates, whatever, maybe trades
13:50right through it. That's when we expect
13:52ES to also break this SMT and be the
13:54trigger for the reversal potentially,
13:57right? Well, maybe YM holds that SMT.
14:00But if you have a strength trait between
14:02the weakest asset in the strongest
14:04assets, that is when we can trust that
14:09ES will not break this SMT because that
14:12means that in Q the weakest asset is
14:15actually reversing and YM can uh also
14:18expand of course, right? So you can
14:20actually see that here except this asset
14:23manipulated. So it's not like we need
14:24the strength switch anyways. But you
14:27only need that like I said if in Q
14:29failed to reverse here. You can see that
14:30this asset the low is Tuesday um here
14:35and the low over here is indeed
14:37Wednesday. So that is another scenario
14:40where you would have to require that
14:42strength switch.
14:44Now, we're going to be covering asset
14:45signalization going over reversals. And
14:49the trigger for asset signalization is
14:51going to be a concept that I created
14:53called string switching. And this is how
14:56we typically confirm reversals. Um, this
14:59is how we confirm S&T breaks. Um, it is
15:03a two-stage S&T, but it is the most
15:06powerful type of two-stage S&T. And we
15:09are going to be covering every single
15:10type here. So firstly, let's go over the
15:12strength switch PSP. So it's just like
15:15any two-stage SMT where you have an SMT
15:19with the key level and you have a PSP,
15:22but it is a strength switch. So how is
15:25it a strength switch? Well, look here.
15:27This asset by not taking out the low,
15:29right? The asset that is um creating the
15:32failure swing SMT is showing strength,
15:34right? These assets are showing weakness
15:36over here because it's taking out the
15:38low. But the confirmation, the two-stage
15:41confirmation being a PSP is now showing
15:44weakness by this closure here. You see
15:46that bearish close? Well, these assets
15:48are now showing sudden strength with
15:50this close, right? Showing weakness,
15:52showing strength by this bullish close.
15:55Weakness, right? That is your strength
15:57switch. Now, this typically means that
15:59all assets are set to reverse. Right? My
16:03personal favorite reversal confirmation
16:05is a strength PSP. It's the easiest,
16:07right? you have the candle closure. Um,
16:10you have the strength switch, you have
16:11the key level SMT, it's just great. So,
16:14this typically means that all assets are
16:17going to expand typically and reach the
16:19same drill liquidity. Not always, but it
16:22is typically the case um, depending on
16:25the narrative. Yeah, this is my favorite
16:27type of reversal confirmation. Super
16:29simple. Now, let's go over the next
16:31confirmation for strength switch
16:33reversals. This is where we have that
16:34key level SMT and the next stage SMT
16:38that strength switch is going to be with
16:41the swing point right the swing point
16:43that's essentially created SMT right or
16:46the lowest point uh at reversal right so
16:48you can see this C2 is the lowest point
16:50and then this asset over here takes out
16:53that C2 candle low well these assets
16:55over here do not right and which assets
16:57do we want to trade by the way it's
16:59always going to be this asset here right
17:01because it's closest to the draw
17:02liquidity it's overall stronger. So, we
17:04want to trade this asset here. Okay.
17:08Now, let's go over the last type of
17:10strength switch for reversal, and that
17:13is going to be with swing highs and
17:15lows, SMT. So, essentially, we're going
17:17to create an SMT divergence. We're going
17:20to print a low, right? So, you can see
17:21there's no two-stage here at all. Um,
17:24and that second stage SMT is simply
17:27going to be with that swing low that was
17:28created. As you can see, it looks like a
17:31roof, right? Okay, like an inverted roof
17:33is kind of what it looks like for that
17:35strength switch. Um, and what this
17:37really is honestly, dude, is a higher
17:39time frame swing point low. It's
17:41literally the last slide basically. Um,
17:44but when you view on the lower time
17:45frame, it looks like this. But really,
17:48you can visualize maybe that this is a
17:50new 4hour open, for example. This is the
17:52previous 4-hour low and it's simply
17:54swing SMT, but this swing low is a
17:57higher time frame is a higher time frame
17:59candles low. That's typically how it
18:01would look, but it's essentially the
18:03same thing as the last slide. Yeah,
18:05really simple. So, here we are going to
18:07be covering what is a strength switch.
18:09So, strength switch is a second stage
18:11SMT confirmation, but it is essentially
18:14where we get a short-term strength
18:16switch between correlated markets. And
18:19once we have that, that means that all
18:21assets are essentially ready to expand.
18:24So, let's go over these string switch
18:25variants. There is three variants. The
18:27first one here, which is my favorite, is
18:29a strength PSP. So, as you can see, the
18:32asset that was originally stronger
18:35because it took out the high, closes
18:37bearish, showing short-term weakness,
18:39and the asset that was originally weaker
18:41because it fails to take out the high
18:42shows short-term strength as it closes
18:44bullish. This is a high probability
18:48reversal signature.
18:50And one thing you will see about
18:51strength switching a reversal is when
18:53all assets start to expand away from
18:55that, they typically all reach the same
18:57draw on liquidity. Now, let's go over
19:00another example of a strength switch.
19:02So, here just going over a little bit of
19:03narrative. We have a two-stage SMT fill
19:06here. We can see this candle is a PSP.
19:10The high of the PSP is a gap. So, you
19:12have that SMT fill. This says that's
19:14bearish. So, there is our first stage
19:16SMT. In this strength switch variant is
19:18where you get swing SMT confirming the
19:21overall larger time frame SMT. So as you
19:25can see this asset shows strength
19:27because it is sweeping at the high. Then
19:29it shows short-term weakness as it fails
19:31to take out the swing high. And over
19:34here you have that weakness creating a
19:36failure swing and that short-term
19:38strength allowing both assets to expand
19:40towards draw liquidity. And as you can
19:42see both assets are pretty much
19:43V-shaping away. So what does that mean?
19:45They're probably both going to reach
19:47that overall draw on liquidity. Now,
19:50this is the last strength switch variant
19:52is very similar to the last one is where
19:55you have your overall SMT with your key
19:57level. Price prints a swing high and
20:01then price strength switches with that
20:03swing high. So, you can see the highest
20:05point here is 10:00 a.m. The highest
20:07point over here is 12 p.m. Now, let's
20:11cover asset synchronization
20:13SMT filtering. So now we're going to go
20:16ahead and cover assetization
20:18SMT filtering and this is how we can
20:20tell which SMTs are typically going to
20:23hold in the market. So this is really
20:26simple, right? So when you have all
20:28assets reversing, right? They all hit a
20:31key level, they all two-stage SMT, no
20:33strength switch, but the important thing
20:34we're seeing is that they're all
20:36expanding away and then this asset
20:38reached on liquidity first. This is
20:41going to happen every single time the
20:43market reverses. Every single time the
20:45market reverses, the leading asset is
20:47going to hit the drilling first and make
20:49an opposing SMT. So, it's like which S&T
20:51do you trust? Do you trust the ones at
20:53the lows or the highs? And this is what
20:55we're going to be going over. So, now
20:57we're going to talk about how to
20:58anticipate SMTs to break. And there's a
21:01couple things we're going to look at.
21:03So, the first step is, is there a
21:05two-stage SMT at the point of reversal?
21:07Yes, that's what you want to see, right?
21:09You ideally want to see that two-stage
21:11SMT at the point of reversal. The next
21:13step is all assets expanding away,
21:15right? That expansion away is going to
21:18create the opposing S&T, right? And if
21:21we start to see these things, we can
21:23anticipate if it's going to break or
21:24not, right? Another thing we want to see
21:26is that expansion away on these lagging
21:28assets and middle assets here. Where is
21:31the fair swing being printed? If it is
21:34in close proximity to the high in
21:36premium of the range, see how it's in
21:37premium of the range here, right? This
21:40is a negative condition. If you want to
21:42see the S&P hold, right, it's likely to
21:44break. So here I have this, you know,
21:47showing this proximity here in blue
21:49because that's a good thing if if you
21:51want to see continuation for this SMT to
21:53break. So now let's go over a negative
21:56condition and it is quite the opposite
21:58of our last slide, right? We have the
22:00two-stage SMT at the point of reversal,
22:03but what do we not see? We do not see
22:05both assets here. you know that middle
22:07asset and that lagging asset both
22:09expanding away with that litting asset.
22:11These assets are very lackluster in
22:13price action. It's just consolidating
22:15really. And what else can we see? The
22:17price didn't really expand and create
22:19that close proximity SMT. So this S&
22:22that you're seeing here is likely to
22:24hold and you're just not likely to see
22:25that asset synchronization for those
22:27lagging assets to catch up and break the
22:29SMT for continuation. Now here we're
22:32going to go over as a synchronization
22:35trigger for continuation and that is
22:37going to be strength switching. Right?
22:40So in this first example or variance it
22:42happens with an S&T fill where this
22:44asset shows momentarily weakness by
22:46trading into the gap while that middle
22:48and lagging asset shows short-term
22:50strength by not tagging the gap. Right?
22:53That is a trigger and confirmation to
22:55know that this S&T is going to break.
22:57And this is when we want to trade that
22:59lagging asset now to this exact high
23:02that this asset failed to manipulate.
23:05Now, here is the second strength switch
23:07confirmation for continuation. And that
23:10is going to be a strength switch PSP. As
23:13you can see, they both hit the gap. So,
23:15we don't really have a SMT for our
23:17strength switch, but we do have that
23:19candle closure as a PSP as our strength
23:22switch. As you can see, this asset after
23:25engaging with that draw liquidity shows
23:28short-term weakness by closing bearish.
23:31This asset shows short-term strength by
23:34closing bullish. And again, how do we
23:37even anticipate this is probably going
23:39to happen anyways because these assets
23:41are both having two stage SMT. This
23:44asset, where is its fair swing SMT being
23:46printed in premium? So we already know
23:49the asset synchronization is probably
23:50going to happen but the strength switch
23:52confirms it. So now here is the last
23:55form of strength switching to confirm
23:58asset signization and continuation and
24:00that is simply where we create an SMT
24:03divergence. We print a low and you have
24:05a strength switch with that low. Right?
24:07So as you see both assets print this low
24:08right here and here. This asset takes
24:11out the low showing short-term weakness.
24:13Well, this asset shows short-term
24:15strength to confirm that strength switch
24:18and break that S&T. This is with the
24:20asset you want to trade and target that
24:22same high that the leading asset already
24:25traded into. So, now let's go ahead and
24:27cover asset synchronization
24:29continuation. So, this is where ideally
24:32you're coming off of some type of
24:34reversal where both assets are expanding
24:36towards a draw liquidity. There's some
24:38things you want to see right when the
24:40leading asset reaches that draw
24:41liquidity. So as you can see this
24:43leading asset reaches the draw liquidity
24:47and that is always going to create SMT.
24:49As you can see every single time the
24:51leading assets reverses it will always
24:54reach the drawing query first and create
24:56SMT. But we need to decipher which SMT
24:59is real and which SMT is fake. So here
25:03you can see maybe you think this is
25:05strenous PSP to go higher. Maybe you
25:07think that, right? But where is the SMT
25:11being created? Where's the the failure
25:14swing assets um creating that low? It is
25:18creating the low in deep deep discounts,
25:21right? So when you see this happen, this
25:24is typically we're going to see that
25:25lagging asset actually catch up, right?
25:28And if it is going to catch up, it is
25:30going to create that string switch. This
25:34is what confirms it for us, right? So
25:36there's a couple variants of strength
25:38switching we can use. Firstly here with
25:41gaps. So as you can see this previous
25:43high is a gap on the daily time frame
25:48created on both assets. So if this asset
25:51is going to catch up, we want it to show
25:54shortterm weakness
25:56so it can catch up to the low that this
25:59asset already took out, right? That
26:01leading asset. So you're going to see
26:03here what happens. We have a strength
26:05switch in the form of an SMT fill,
26:09right? Perfect. So, this asset just
26:12switches strength to catch up to the
26:16asset that already took this low, right?
26:18So, doesn't that just make sense? Since
26:20this asset's stronger, they want to
26:22create the same highs and lows, right?
26:24In a core market, that's what price
26:25does. They create the same highs and
26:27lows. So if they're out of sync, this
26:30asset is going to switch weaker to catch
26:33up to that stronger asset. And that's
26:35what we see here. So now let's go over
26:38another example. So this is where you
26:39want to see price coming off of some
26:41sort for form of SMT divergence. So as
26:43you can see with this triad, we have a
26:45crack and correlation. And what do you
26:47want to see guys? All assets expand
26:49away. When all assets expand away, then
26:52we create that SMT,
26:57right? We're going to look for one
26:58thing. Where is the failure swing assets
27:01or the lagging assets, the middle asset,
27:03where is that fail swing being printed
27:05in terms of premium discount? As you can
27:08see, deep in premium that is an SMT that
27:11is low probability. This SMT, the high
27:13is low probability, right? um we can
27:16already decipher that this S&P is
27:17probably fake and these lag assets are
27:19going to catch up because all assets
27:21reversed at the lows, right? So this is
27:24where we can use SMT ideally in the form
27:27of strength switch like we have here
27:29with a swing high or low in this case.
27:32enter bullish. We want these lagging
27:34assets to show strength and not take out
27:36a low. While YM, the leading asset,
27:38takes out a low, showing short-term
27:40weakness, allowing these lagging assets
27:42to catch up and break the SMT. And what
27:45do you see? This asset over here, the
27:48middle asset does not take out the low.
27:51The weakest asset does not take out the
27:52low, but the strongest asset does. That
27:55is a strength switch. That is a
27:56confirmation for asset synchronization.
27:58and we can actually trade these lagging
28:00assets to the same high. Now, let's go
28:03over another example of asset
28:04synchronization. You're going to see the
28:06same thing happen, right? It always
28:08starts with a SMT, both assets expanding
28:11away. Once the leading asset reaches
28:13that low, you're going to look for where
28:16is the lagging assets putting its
28:19failure swing at. And clearly, this is
28:21extremely deep in discount. So, we know
28:24this little SMT here is highly likely to
28:26be a fake SMT, right? Um, but these
28:29SMTs, what they do is they can be used
28:31for retracements. Almost every single
28:33retracement reversal in the market has
28:35an SMT. So, we know which as we know
28:37which SMTs are likely retracements and
28:41reversals. We want to trade the
28:42reversals, right? Um, so this SMT can be
28:45used to retrace price. And where is it
28:47going to retrace into a key level? So,
28:49as you can see, both assets hit this
28:51gap. And then we can use a form of
28:55Kraken correlation ideally that creates
28:58a strength switch to confirm the next
29:02phase of price which is expansion and we
29:04want that expansion to go ahead and
29:05break the S&T. Right? So in this case
29:07the strength switch is in the form of a
29:10PSP. This asset closes bearish. This
29:12asset closes bullish. That's that
29:14short-term weakness that we're looking
29:16for for this lagging asset to go ahead
29:18and catch up to that leading asset. Now,
29:20we're going to be talking about how to
29:22anticipate when a SMT is going to break,
29:26right? And this side here really shows
29:28when the leading asset hits a draw on
29:31liquidity, for example. And if there's a
29:33reason to continue beyond that draw
29:35liquidity, then that lagging asset is
29:38probably also going to engage with this
29:39high as well. So, another way we can
29:42anticipate assets are going to break SMT
29:45is by the failure to manipulate. So,
29:47here we're going to go over price
29:49signatures. over here to the left. If
29:51that leading asset just straight up
29:53expands through a high, then obviously
29:55the S&T is not likely to hold. We might
29:58just get an expansion candle through the
29:59high. So, the way to confirm that is a
30:01lower time frame CSD. As you can see,
30:04this candle engages with that relevant
30:06high. Once we retrace back through the
30:09range and close through, that is your
30:11breakout signature and your confirmation
30:13for the S& to likely break. Now the
30:16second price signature is when price
30:18engages with that high creates SMT but
30:21then consolidates. We know that
30:23consolidation is not a reversal
30:25signature and when price consolidates
30:27and after SMT we know it's likely to
30:29break and those lagging assets are
30:31probably going to catch up and break it
30:33as well. And the last signature of
30:35course is going to be retracement. We
30:36know that consolidation retracements are
30:38both continuous and signatures. So, as
30:40you can see, there's no type of Vshape
30:42or nothing like that. Creating fair
30:44failure swings and lackluster price
30:46action. Know this SMT is not going to
30:48break. So, we're essentially just
30:49waiting for that confirmation to again
30:52trade that expansion through this high.
30:54Ideally, you can trade those lagging
30:56assets to that same high. And one thing
30:59to importantly note is when you have
31:01these failure to manipulate signatures,
31:04you do not need a shrink switch because
31:06we're expecting that leading asset to
31:08continue through it. So obviously if
31:10it's going to continue through it,
31:11there's a reason for the lagging asset
31:13to continue higher. So that lagging
31:15asset can of course catch up to the same
31:17high that the leading asset failed to
31:19manipulate. So as you can see, both
31:22these assets engage with this gap here.
31:24But the candle that engages with the gap
31:26also creates SMT with this high, which
31:28is a relevant swing, right? And once we
31:31break out of this high here and fail to
31:34manipulate it with that lower time
31:35frame, there's a reason for this asset
31:37to continue, which means that we don't
31:40really need a strength switch on this
31:41lagging asset to just to catch up to
31:42this high. Now, once that leading asset
31:44engage with this high, it kind of
31:46restarts the process, right? Are we
31:48going to consolidate, retrace, or just
31:49displace through it? If we are, there's
31:51a reason to continue even further beyond
31:53this high, then again, we can expect
31:55this asset to reach this high, right?
31:57But if you don't get those signatures,
31:59then you would need a string switch to
32:00catch up to this high. Now, here's
32:03another example of not needing a string
32:05switch where that leading asset again
32:07has a reason to continue. It
32:09consolidates, right? When we have that
32:12consolidation, that is our trigger to
32:15know that we don't not need that
32:16strength switch. It's going to continue,
32:18right? Because when you have SMT, you
32:20consolidate. That's not a reverse
32:22signature, right? So, all you need
32:23essentially is an SMT, right? An SMT is
32:26the catalyst for every expansion in the
32:28market or every high probability
32:30expansion or reversal. So that's really
32:32all you're waiting for. Here is an
32:34example where that fail to manipulate
32:36signature is a retracement and then
32:38confirmed by a PSP. So now let's talk
32:42about signatures within assets
32:44organization. This is where we engage
32:46with either an internal high or the
32:48overall draw liquidity and we print a
32:51continuation signature. price either
32:53expands right through it showing failure
32:55to manipulate, consolidates, or
32:58retraces. Either way, those are all
33:00failure to manipulate signatures. And
33:02that is typically where you expect the
33:04lagging asset to catch up to either that
33:06internal high at the very least or the
33:09overall draw on liquidity. So, in this
33:11case, we're going to be looking at an
33:13internal high. As you can see here on
33:16the daily chart, we engage with this
33:18range low and we can target the range
33:20high. an internal to that we have an
33:23internal high and as you can see price
33:25just rips right through that internal
33:27high. So at this point we can clearly
33:30see that price does not care about this
33:32SMT at all. Price is going to go through
33:35this internal level and expand to the
33:37overall draw on liquidity. And that's
33:39where we can expect the lagging asset to
33:41at least catch up to this internal high.
33:44Now here's another example we've gone
33:46through throughout the course. We have
33:48an SMT at the lows. Price has expanded
33:53into the overall draw liquidity. What
33:55does it do? It consolidates. And once it
33:58consolidates, it prints any type of
34:01continuation signature. This is where we
34:03do not need a string switch necessarily.
34:05We just need a Kraken correlation to
34:08time the expansion and synchronization
34:11to the same high. In this case, we do
34:13have a string switch. We have a strength
34:16switch. Of course, that's better. we
34:17don't necessarily need it. As you can
34:19see, every asset consolidates. So when
34:22you print this SMT, that's not a
34:24reversal signature. It's a continuation
34:26signature. So as you can see, price will
34:28catch up. You can target that same high
34:31that the leading asset failed to
34:33manipulate. So here we are on the daily
34:35chart and what we see is a cracking
34:38correlation here and price expand into
34:40this internal high and then it gives a
34:43retracement signature after creating SMT
34:46here.
34:47Right? It's creating that really close
34:50proximity SMT. So, we already know it's
34:51low probability or on the low
34:54probability side of things. So, if we
34:56print a retracement signature into a
34:58daily gap and then print that SMT,
35:00right? No string switch. Like I said,
35:02you don't need it. Then, we can expand
35:04through this SMT. This asset has a
35:06reason to continue. And then I say to
35:08get to this draw liquidity. Let's go and
35:10drop down the 4hour time frame and look
35:11at this retracement signature that
35:13confirms the retracement to expansion
35:17phase of price. So, as you can see here
35:19on the 4hour time frame, very very clear
35:22retracement phase of price here. Very
35:24lackluster price action. Every time we
35:27take out a low rejecting price, making
35:29these deep runs back in price, there's
35:31literally not one there's like not one
35:32single fair value gap in this whole move
35:34lower. That is an indication of a
35:37retracement. So, all you're really
35:39waiting for price to do is retrace into
35:41a key level, print SMT, and that should
35:43be the trigger for price to expand again
35:45through this SMT. The lagging asset will
35:48catch up and break the SMT while this
35:50leading asset trades into a further
35:53objective. So, here we are on the daily
35:55chart, and as you can see, we have a
35:57two-stage cracking correlation. We have
35:59an SMT with this low. We have a
36:02two-stage PSP out of it. Right? This
36:05candle is bullish. This one is bearish.
36:08You see this? This is the day that
36:10created the SMT, but we reached up the
36:12low here
36:16like so.
36:18And so we have some internal objectives
36:19on our way to this overall draw on
36:22liquidity, right? So we have this here.
36:24Let's go ahead and mark that out and
36:26let's drop to the lower time frame and
36:28see if we print any continuation
36:30signatures when we engage with it. So
36:32here we are on the 4 time frame and you
36:35see that the daily profile if we zoom in
36:37is a seek and destroy profile right
36:40we're opening high first and opening low
36:42with an SMT here right a seek and
36:44destroy profile uh is a form of
36:47consolidation so this adds on to the
36:50probability that we will continue
36:52through this high to our overall
36:55objective and this is actually a
36:57strength switch not that we need it but
36:59we do have it and we can expect the next
37:01candle to expand into our overall draw
37:05liquidity while this lagging asset
37:07catches up to that same high that this
37:10asset failed to manipulate.
37:12So now we're going to cover relative
37:14strength with the indices triad. This is
37:17really the only trade we can really do
37:19this and it's very important you
37:20understand this. So it's pretty simple.
37:23When in Q is the leading assets in this
37:26example we're bullish, right? when it's
37:28the leading assets, ES will almost
37:32always be the middle asset in any
37:35scenario. If if the market's bearish um
37:38on INQ or whatever, ES is always the
37:40middle asset, right? And YM will be the
37:43weakest. It'll always be the lagging
37:44asset. If INQ is the leading asset,
37:46right? If YM is the weakest, then what
37:49does that mean for INQ? It's the
37:50strongest. ES is always in the middle.
37:52So, that's something that's really,
37:53really important to understand. Now,
37:55here we're going to go over intermarket
37:57relations for relative strength. This is
37:59something we can use to our advantage.
38:01It's not something we want to
38:03independently use. This is the way that
38:05I use it personally. I look for a market
38:07that is extremely strong in one
38:09direction. And that's how I gauge
38:11whether to pair it with my bias. This is
38:14something you're going to pair with your
38:15bias. Really, not a solely independent
38:19thing. Um, you're not going to put too
38:21much weight on it. It's like a
38:22confluence. All right. So this is
38:24typically how markets move together. If
38:27indices is bullish, typically metals is
38:30also bullish and oil is bearish and the
38:33US dollar is bearish, right? If oil is
38:36bearish, metals is bullish, etc. Right?
38:38So we can kind of use this to our
38:40advantage. If I see that oil is
38:42extremely bearish, right, and I'm not so
38:45sure the bias for metals, I'm going to
38:47lean bullish because metal because oil
38:51is really bearish. So you get how I'm
38:53kind of using this. I'm not using
38:54intermarket SMT or anything like that.
38:57I'm just using it for strength and
38:59weakness for a given market. Now let's
39:02go ahead and cover relative strength. So
39:04here's an example of the indices triad.
39:07And this is something we can only view
39:08with the indices triad. When NQ is the
39:12strongest, YM is the weakest. ES is the
39:15middle. And when YM is the strongest, NQ
39:17is the weakest and ES is still going to
39:19be the middle. is how it pretty much
39:21plays out all the time. You barely ever
39:23see ES as that uh leading asset. So,
39:27first off, when you [snorts] have a
39:28crack and correlation like so, let's go
39:30and mark that out.
39:34It is very important to trade the
39:35weakest asset because it is going to get
39:38to the draw liquidity first, right? So,
39:40let's draw this opposing low.
39:43You can see let's draw that same low
39:45over here
39:47and the middle assets.
39:50Okay. So, as you can see, look how much
39:53sooner this asset gets to uh that low
39:56when compared to INQ and ES. ENQ hasn't
39:59even reached it, right? You can see that
40:01when INQ is the strongest, as you see,
40:03it took the high. It also just closed or
40:06it hit this high a lot sooner rather
40:08than ES. You can see that, right? And
40:10then of course if ENQ is the strongest,
40:12YM is the weakest. And you can see that
40:15right? You can see even throughout the
40:17whole entire day, this is the asset that
40:20pretty much filled in the entire gap
40:22while this asset didn't even hit half of
40:24it really, right? Um it's making it's
40:28also filling this gap here. Making
40:29deeper runs in price. So it's important
40:32to trade that weaker asset. Um this is
40:34going to be a lot easier for you. You
40:35can see this asset here like almost
40:37takes this high out. Um, it's filling in
40:39the target gap. Like I said, look at the
40:42retracement size. You know, it goes into
40:45a premium of this range where this ass
40:47over here doesn't even reach it to EQ,
40:49right? So, you're going to have a lot uh
40:52um easier time to get your draws
40:53liquidity, trading the weaker assets.
40:56This is the asset that's going to be,
40:58you know, sweeping highs at a lot of
40:59times, trading into gaps to form SMT to
41:03go lower. Right? If there's SMT here,
41:05etc. You be trading this weaker asset.
41:08Now let's talk about intermarket
41:10relations. So this is something we can
41:12use as just a confluence. All right. Um
41:16and that is the relationship between the
41:19three markets that I personally trade
41:21which is going to be indices gold and
41:24oil over here. Right? So when
41:27indices is bullish so will metals be
41:31most of the time and
41:34oil will be bearish and vice versa.
41:37Okay, if uh oil is bullish, then
41:40typically indices and gold will will be
41:43um bearish, right? And it's something
41:46you can use more as a confluence. For
41:48example, like if I'm like, you know, on
41:51the fence about a bias on a certain
41:53assets, right? If I see oil is like
41:56two-sided or something, not very clear.
41:59I'm not really sure. If I look at
42:00indices and it's it's just expanding
42:02like with aggression that I'm going to
42:04assume I'm going to be bearish on oil
42:07because of the intermarket relation
42:09right if indices is bullish then oil
42:12more times than not will be bullish not
42:14always is not always the case it's not
42:17something we're going to use you know
42:18S&P with or anything like that it's
42:20simply a confluence
42:22now let's go over decoupling so what is
42:25decoupling this is essentially when
42:28within a triad of correl correlated
42:30markets they are not correlated they're
42:32going to be expanding in opposite
42:34directions so specifically on the
42:36indices market because of the relative
42:38strength that we understand if ENQ is
42:40expanding higher YM is always expanding
42:43lower you always always want to avoid ES
42:46within a decoupled market because it's
42:49just going to be consolidating because
42:51it's the middle asset so when markets
42:54are decoupling this is essentially a
42:57form of a manipulation it's one asset
42:59that's going to a key level while the
43:01other asset expands towards the draw
43:03liquidity. Right? Think about it. One
43:05asset is making the fake move expanding
43:08away from the draw liquidity to
43:10manipulates to create SMT while the
43:13middle asset just waits for the
43:14manipulation essentially. And that
43:16leading asset is the real move towards
43:18the draw liquidity. And this SMT is
43:21going to be the trigger for the markets
43:23to reync. So with markets expanding in
43:27opposite directions that creates
43:29expansion candles that close in opposite
43:31directions which is a PSP rate. So what
43:34is the trigger for markets to reync it's
43:37essentially a manipulation rate which is
43:38going to manipulation of a range low.
43:41Let's assume the draw liquidity is
43:42higher then we know this move away from
43:44the draw equity into a key level for
43:46example is the fake move right. So we
43:49know the SMT at the lows is going to
43:50reset the market which is actually the
43:52creation of a two-stage PSP.
43:55So now let's go over what decoupling is.
43:57The coupling is essentially when
43:59correlated markets expand in opposite
44:01directions. For indices specifically or
44:05any any asset in general really any
44:07asset class, you're going to avoid the
44:08middle assets. You're going to wait for
44:10the market to reync. What is going to
44:12reync the markets is essentially
44:14manipulation. Right? One asset will
44:17expand towards a key level and that key
44:20level is going to be used to reync
44:22price. So as you can see this asset here
44:25is expanding higher into a relevant high
44:27creating SMT right while this asset
44:30expands away from that high right so the
44:33asset that is manipulating its job is to
44:36decouple into a key level to create SMT
44:38to reync price it's that simple right
44:41and as you can see many times you will
44:44have a two-stage PSP resync price so as
44:48price expand opposite directions they
44:51close as opposite expand expansion
44:52candles. As you can see, this candle
44:54here is a bullish expansion candle, and
44:56this is a bearish expansion candle. This
44:58bullish expansion candle is trading into
45:00the high, as you can see. And it's only
45:03going to resync when the next candle
45:05supports expansion essentially, right?
45:07And it's going to turn into a two-stage
45:09PSP, right? Obviously, this candle is
45:11going to take out this candle's high.
45:12So, you have this two-stage piece like
45:14that. while this asset creates a filler
45:17swing and you're going to wait till this
45:19asset uh reverses to reync price. So now
45:23let's go over how we can actually
45:25anticipate the coupling. In this case,
45:28it's going to be reversal. So this is
45:30essentially when the market is already
45:32decoupled in terms of premium and
45:35discount. So notice how this asset
45:37before the decoupling is way in in
45:39discount, right? Well, this assets in
45:42premium above a high. Well, it's in
45:44Dremium because it's manipulating the
45:46high, right? Creating that space on S&T.
45:48So, the market is already decoupled in
45:51terms of premium discount and it's going
45:54to reync in the form of decoupling.
45:57They're going to expand towards each
45:58other, right, to actually become
46:01correlated again. And this is the
46:03creation of a two-stage S&T in the form
46:06of a strength switch PSP, right? When
46:08this candle closes, it's going to create
46:10that bearish close. this asset closes
46:13bullish, right? That is the creation of
46:16that strength switch become correlated
46:18again, right? And we can use context
46:20clues to actually understand it's going
46:21to happen, right? Because there's no SMT
46:23at reversal. Notice how there's no SMT
46:25at the lows, right? So, we already know
46:27that, you know, this is unlikely to
46:30probably catch up, right? Um, and break
46:31this SMT up here. And also, in terms of
46:34advanced pre discount, this asset is an
46:37EQ, right? It's not creating that close
46:38proximity SMT, so it's probably not
46:40going to catch up, right? So we can
46:42actually begin to trade this. We can
46:43understand that you know this decoupling
46:46move is likely to reync price. So now
46:50let's go over decoupling sequence for
46:52reversal. So this is going to happen
46:54when we decouple
46:56into an SMT. Right? So notice how this
46:59asset expands higher creating a cracking
47:02correlation. This asset expands lower
47:05while this asset is manipulating. This
47:07is where we can actually trade this
47:08asset. you have to use context who's
47:10right because we have the advanced pre
47:12discount have no SMT at the lows. So we
47:14know that the expansion higher is
47:17probably just to reync price going to
47:19create the SMT and we can actually trade
47:21this asset to these lows. And if you
47:24want to trade that lagging asset we have
47:27to wait for this candle to close again.
47:28That's going to create a PSP and
47:30obviously this PSP is an expansion
47:32candle so it's likely to take out the
47:34high to create that two-stage PSP and
47:36that'll reync the market rate. Now,
47:38let's go ahead and cover decoupling
47:40anticipation. First, we're going to go
47:42over reversals. So, since we have a
47:45decoupling in the form of a strength
47:46switch where over here, if I have bar
47:49play, the SMT will happen prior to the
47:53decoupling happening. So, we already
47:56have this S&P in play and then 930 rolls
47:59around and the asset that manipulates
48:02is going to expand away from that
48:03manipulation and the asset that's
48:05creating the fair swing is going to
48:06expand um towards that SMT high. Uh this
48:11usually happens in the form of advanced
48:12pre- discount, right? They're just
48:13gravitating towards each other,
48:15expanding toward each other and it is
48:17the creation of a strength switch rate.
48:19So, a strength switch PSP is typically
48:20what is going to be created. Um, you can
48:23actually trade this asset here if you
48:26don't want to. You simply just wait for
48:27the candle to close and you trade C3.
48:29It's simple as that. And remember guys,
48:32we're going to be using profiling and
48:33narrative to decipher which SMT to
48:36trust. So, as you can see, the profile
48:38or the low of the day is 1,800 on this
48:41asset, which is not a relevant level.
48:44that is pretty much supporting our idea
48:47of this being a fake move on YM and this
48:51being the real move on INQ.
48:53So here is an example of price not
48:56manipulating prior to the decoupling
48:59happening. So here you can see we put in
49:00a high here. We put in a high over here
49:04as you guys can see have this high here.
49:08But what's important to note is on in Q
49:12here
49:14we have an SMT fill. So you guys see the
49:16SMT fill technically SMT fill. So this
49:21decoupling move right here um but even
49:24if you didn't have that right simply if
49:25you have a relevant level put in um and
49:29your draw is lower right that relevant
49:32level we want this decoupling to
49:35manipulate price right so you're
49:36automatically going to assume that this
49:38is going to cap off the decoupling this
49:40is where you can trade this asset
49:41towards your draw on liquidity as you
49:44see price trades and expands there or
49:47you can simply wait and actually confirm
49:49decoupling which is the safer move which
49:51is often what I do because the coupling
49:53markets can be somewhat tricky but this
49:56is typically the protocol and the
49:57framework that we're going to follow in
49:59this course. Um and as you can see that
50:01plays up very nicely. You're simply just
50:03waiting for the most recent level to be
50:07traded into and you're going to assume
50:10that that is the area that the
50:12decoupling will cap off. Wait for the
50:14resync to get back on side with the
50:16higher temporary move in line with that
50:18daily IRL to ERL universal model. Now
50:22let's go over to coupling anticipation
50:23for SMT break which is going to be
50:26continuation over here. And this is when
50:30we come into the market and we have that
50:32perfect framework for an SMT break uh
50:34continuation where we have two stage at
50:36the lows unlike last example. We have
50:39that lagging asset also expanding away
50:42creating its fair swing in premium right
50:44we know this S&P is probably already
50:46going to break. So when you see the
50:47market decouple back into the range on
50:50the leading assets and that middle and
50:52lagging assets starting to expand
50:53towards draw liquidity this is a
50:55strength switch right to become
50:56correlated. We we will understand this
50:59and know that this is the fake move and
51:01this is the real move. Now let's go over
51:04decoupling market reync and again the
51:07decoupling is going to be in the form of
51:09a string switch and this is when we have
51:11that same sequence right to say just the
51:14highs that leading asset had already
51:16reached a draw liquidity and the move
51:18higher the decoupling move higher is
51:21simply a strength switch right this
51:23assets going into a key level while
51:25these assets expand away right creating
51:28that decoupled move are expanding
51:30opposite directions to become correlated
51:33Now, let's go ahead and cover how to
51:36anticipate the coupling continuation.
51:39That is very simple. You must be coming
51:42off of a two-stage SMT and you have must
51:45have a universal model, right? So,
51:47here's the draw liquidity. We already
51:49know this is likely going to catch up
51:50because this left of screen asset rips
51:54right through that level there. And then
51:57you're seeing here that this asset's
51:59consolidating very high in premium and
52:02you actually see the strength switching
52:03here.
52:07So you're already starting to see some
52:09formative decoupling not really
52:11expanding is in this side of this wick.
52:13This has expanding lower or maybe
52:15consolidating while this is more so
52:17expanding right kind of gravitating
52:19toward each other. That strength switch
52:21that's exactly what we want to see is a
52:24strength switch. um in the form of the
52:27coupling um to break the SMT. So when we
52:31drop down to lower time frame on the 30
52:34minute here at 9:30, we see the stronger
52:38asset to the left that took out that
52:40drawing liquidity a long time ago starts
52:42to expand lower while this asset on the
52:44right which is very very close to the
52:46draw on liquidity to break the S&P is
52:49expanding higher. So we understand that
52:52this asset here is simply going to
52:55continue. This is the real move. This is
52:58the fake move in the form of a strength
53:00switch. So now let's go over decoupling
53:03putting all together reversal verse
53:06continuation. So firstly let's look at
53:08decoupling example at the reversal. So
53:11as you can see price had created an S&
53:14divergence and then we see decoupling
53:16happen right. So decoupling away from
53:18the key level is typically the real
53:21move. And for continuation, decoupling
53:24that happens away from the drawing
53:25community is the fake move, right? It's
53:27essentially just price expanding to a
53:29key level to again reync price to
53:33manipulate, right? To manipulate to then
53:35get back on side of the price. And that
53:37is simply how we decipher which asset is
53:40likely the fake move verse the real one.
53:44Now let's go over to coupling. We're
53:46going to put it all together and you're
53:48going to understand how to decipher
53:49which asset is manipulating. So here we
53:53are on the daily chart and this is going
53:55to be going over reversal. So as you can
53:58see we have an SMT here, an SMT here. So
54:02you have your key level SMT and we have
54:06no opposing reversal at the highs. This
54:09is important. So why is this important?
54:11We have no opposing reversal at the
54:13highs, just failure swings. Uh this is
54:16important because this is less likely
54:19for the lagging asset to actually catch
54:21up to this asset down here. You have an
54:24established reversal down here, but no
54:26established reversal up here. Right?
54:28That is exactly what you want for a
54:31universal model. You want an established
54:33reversal at the point at the key level
54:35basically and no established reversal as
54:38the draw on liquidity. That's exactly
54:40what we have here, man. So when we see
54:42price start to decouple when price
54:47creates this SMT that is the formation
54:49or the creation of a strength switch
54:52right where assets are gravitating
54:54towards each other to become correlated.
54:56So it's not the cleanest example of all
54:58time but it's a good example of showing
55:01you guys how there's a reversal
55:06down here and no reversal up here.
55:08That's how you decipher it. Let's drop
55:10down to lower time frame so you can kind
55:12of see this. So here you can really see
55:14it at 9:30. That's when the coupling
55:16happens. Typically on indices it's at
55:189:30. This asset over here to the right
55:21that was once weakest that took out that
55:23daily low to the left is expanding
55:24higher while INQ is expanding lower. But
55:27at this point remember you shouldn't be
55:29confused. What you're pretty much
55:30waiting for is a manipulation and it
55:34doesn't really happen the cleanest. So
55:36you can't really do much about it. You
55:37have to wait till ENQ engaged with this
55:39low and then you can look to uh trade
55:42that expansion higher. You get some
55:44decent move. You know, you can you can
55:46trade that decently with this two-stage
55:48SMT here. But you have to be patient.
55:51You have to wait for this uh
55:53manipulation here. And as you can see,
55:55this asset was more so expanding
55:57throughout the day. This one's
55:58consolidating.
55:59um at the end of the day they create
56:01that decoupled uh or that change in um
56:07candle closures which is a PSP. So
56:09they're pretty much moving opposite
56:10directions after we engage with the low.
56:14But you have to understand that YM is
56:17the asset that is trading towards the
56:19draw liquidity and that INQ is the asset
56:22that is going opposite of the draw
56:25liquidity to manipulate to resync price.
56:29Now let's go over to coupling for
56:31continuation. This is extremely simple.
56:34You're going to have a universal model
56:36SMT there. So what is our universal
56:37model here? Manipulation ranges really.
56:39So we have SMT at the lows. This is our
56:42draw liquidity which is higher on the
56:44daily chart. So it's really simple. Any
56:46move away from the draw liquidity is
56:49viewed as the asset that's manipulating.
56:51Right? So let's go to lower time frame
56:53and see this decoupling happening.
56:56So here we are on the 4hour time frame
56:58again. When does the coupling happen?
57:00Typically within the 6 a.m. 4-hour
57:02candle at 9:30. That's exactly what
57:05happens here, right? This asset starts
57:06to expand lower back towards the
57:08reversal while this asset expands
57:11towards the high. Our universal model
57:13draw liquidity. So we already know which
57:16asset is the fake move, right? And which
57:19asset is the real move. It's clearly YM
57:22going towards a draw is the real move.
57:24This asset is the faker, right? It's
57:27just retracing price, trading into key
57:29levels to resync price. So, as you can
57:32see, when markets are a couple, they
57:35create these expansion candles opposite
57:36directions. We want this to be a
57:39two-stage PSP to reync price. So, what
57:41are we going to require? A manipulation
57:43of this low to create that two-stage PSP
57:46to resync price. Let's see how that
57:47looks.
57:49And as you can see, this asset creates a
57:51C2 reversal to expansion candle. Well,
57:54this asset just continues towards the
57:56draw on liquidity.

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