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Daily Bias That Actually Works (Using Only Highs and Lows) — Transcript

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0:00Every single highquality trade starts
0:02with framework off of the higher time
0:04frames. And this is not something that
0:06you need to know many concepts to get
0:08right. All you need to know are highs
0:11and lows. But the question still remains
0:13of which highs and lows do I actually
0:15focus on? And this is where the idea of
0:17relevant swings comes into play. This is
0:20something that is the absolute
0:22foundation of my system and is included
0:24in every single trade that I place. It
0:27tells me if there's opportunity in the
0:29market, where the opportunity exists,
0:32and which side of the market I should be
0:33focused on, while completely removing
0:36all the unnecessary noise. Getting right
0:38into this, it's first important to
0:40understand the actual goal of relevant
0:42swings. The idea is that we want to
0:44remove the guesswork, the doubt, the
0:46ambiguity from identifying certain highs
0:48and lows from the normal way that most
0:50traders would approach this. We're going
0:52to be focusing on the highs and lows
0:54that exist at the extremes relative to
0:56the current market. And what that does
0:59is that when something is at the
1:00extremes and the market engages it, we
1:03know without a doubt that what happens
1:05there is meaningful. And you're going to
1:07get to that understanding of how we
1:09identify them using a very simple
1:11three-step process, but also the simple
1:14reactions that we look for at these
1:16points that give us a bias going
1:18forward. The problem most traders face
1:20when trying to identify highs and lows
1:22is that they are all over different time
1:24frames. They're trying to mark out
1:26session highs and lows, highs and lows
1:28above and below opening prices around
1:31all these different times. These are
1:33things that add confusion. They add
1:35doubt and there's no certainty in the
1:38sense of what we should be looking for.
1:40We are going to be completely removing
1:41that noise by doing a few simple things.
1:44First, we want to be focusing on the
1:46right time frames. We are only going to
1:49be using the daily chart for identifying
1:51relevant swings. And as you can see
1:53here, you have the option to go below
1:56where there's the 4 hour and the 1 hour.
1:58But that gives you too much detail. When
2:00we go above the daily to the weekly or
2:03the monthly, that is too little detail
2:05in price. The daily hits this sweet spot
2:08for intraday trading where we are going
2:10in and out of the market within the same
2:12day, holding trades for a few minutes to
2:15a few hours, getting in and out. This is
2:17where we want to be focused on because
2:19it gives us enough detail to be fluid
2:21and biased, but also not giving us so
2:23much detail in price that we are seeing
2:26too many things at once and we're not
2:28actually able to identify the areas that
2:30matter. And on the opposite spectrum,
2:32the weekly and monthly, it is too high
2:34of a time frame to see the current
2:36development, to adjust a bias, to go day
2:39by day, and it's really not something
2:41that you want to be focused on for day
2:42trading. The first and truly most
2:44important concept of identifying
2:46relevant swings is going to be
2:48understanding what a failure swing is.
2:51The concept of failure swings is
2:53extremely simple. It's when we set
2:55either a high or low in this current
2:57example in the market. An initial low is
3:00formed and following that we make deep
3:03runs back into that initial low
3:06following that point. And these deep
3:08runs that get back into that low are
3:11considered failure swings. The reason
3:13being is that when we create a low in
3:15the market that could be reversed off
3:17of, it should not make deep runs back
3:20into that point. Once price reverses, it
3:23should expand away, make shallow
3:25retracements. That is a sign of an
3:27expansion or a continuation. when we
3:30make deep runs back down into it, that
3:32invalidates that point of reversal and
3:35shows that lack of wanting to turn in
3:37the market. So, anytime we see an
3:39initial low formed like this here, that
3:42is the first low formed. Then we have
3:45price come up, retrace deep back into
3:48that low and then again deep back into
3:51this low. These deep runs back in are
3:54considered failure swings. failure swing
3:57and that is the initial low in the
3:59market that we would want to be focused
4:00on. This here is what we would consider
4:02the extreme of the lows. So this low is
4:05not a failure swing to any other daily
4:08low to the left, but we have these
4:10failure swings that follow it. We want
4:12to look for that initial high or low
4:14that was formed. And we can show you an
4:16example on the other side of the market.
4:18Here we look at the highs. We have this
4:20initial high that was formed, the
4:22highest high in this current range. And
4:24then following that, price made deep
4:26runs back into that high. Deep runs back
4:29into it and it created a failure swing,
4:32another failure swing, and that final
4:34initial high. And again, this point is
4:37what we would consider the extreme of
4:39highs. These are the points in the
4:41market that we want to be focused on.
4:43Anything that is considered a failure
4:45swing, these deep runs are not
4:47considered and they would be irrelevant
4:50for us to be noting them out. we simply
4:52block them out of our perspective and
4:54focus on the extremes. Just to reiterate
4:56that point, any reactions that we see at
4:59those failure swings, not the extreme
5:01highs or lows is considered irrelevant.
5:04We don't want to care about it. We don't
5:06want to focus on it because that is what
5:08we consider the noise that we are trying
5:10to filter out. The extremes in that
5:12market is where we know without a doubt
5:15that once price engages that point the
5:18reaction there is going to hold weight
5:20and significance for what should happen
5:22going forward. The second step that we
5:24have to understand in identifying daily
5:26relevant swings is price separation. So
5:29you understand what a failure swing is
5:31when we have that initial higher low
5:33that was formed and any deep runs back
5:35into it are considered failure swings
5:37and should be ignored. Our focus remains
5:40on the extremes. Now when we bring that
5:42to a real daily chart, we have to
5:44understand price separation to help us
5:46identify which highs and lows are going
5:49to matter. Here in this example, we'd be
5:51on a daily time frame. And our first
5:53instinct should be where are the extreme
5:56highs and lows of this current range.
5:58We're going to be focusing on the lows
6:00here. And we can just go one by one. We
6:02have a low that is set. Is this an
6:05extreme of the lows? No, because this is
6:08just a failure swing to this next daily
6:10low. We have that deep run back into
6:13this initial low that was set. So, we
6:15are not going to note this out. But this
6:17in itself could be considered an extreme
6:19of the low. We look even further left.
6:22We have another daily low. Would we
6:24consider this an extreme of price? No,
6:27because it has this deep run back into
6:29this initial low. This here in itself is
6:33not a failure swing to anything else to
6:34the left. So this could be considered
6:36another extreme of the low here. We have
6:39both of these potential relevant lows
6:41noted out on the chart. This low here,
6:43this one here, ignoring the failure
6:46swings, focusing on that extreme. The
6:48question here, and this is where the
6:50idea of price separation comes into
6:52play, is that we want to be thinking in
6:55the case that the market engages this
6:57first and initial relevant low, would
6:59that create a failure swing to this next
7:02relevant low? That is the idea that we
7:05really want to be taking into account.
7:06So this is a visual of that price
7:08separation between the two potential
7:10relevant lows. And this would be
7:12considered valid separation. The reason
7:15being here is again if we were to think
7:17about price coming down manipulating
7:20this relevant low and trading higher off
7:22of that, would we just leave behind
7:25failure swing lows? And the case would
7:27be no. because the distance between
7:29these two daily lows has enough
7:32separation to the point that this is not
7:34a deep run into that next daily low. So
7:37they remain separate and individual of
7:40themselves. So at this point we'd be
7:42working with two separate extremes of
7:43the market. This is engaging a relevant
7:46low. And if this were to be the case of
7:48a manipulation because it didn't leave
7:50failure swings off the lows, which we
7:52know is irrelevant. And another rule is
7:54we don't want to trade away from failure
7:56swings. Then this would be a valid
7:58manipulation. This is a valid relevant
8:01swing and we could trade the
8:02continuation away from this low. Now
8:05let's think about another example. We're
8:07going to go through that same exact
8:09process again focusing on the lows for
8:11these here. We're going to be looking at
8:12this initial daily low. Thinking about
8:15is this an extreme of the lows. This
8:18would be no because we look to the left
8:20and we have another daily low. that
8:22initial low that we went really deep
8:25back into creating a failure swing to
8:28this low here. So, we have a potential
8:30relevant low in the market. Some
8:32separation to this next one, but we look
8:34to the left again. Would this be an
8:37extreme of the lows? No, because this is
8:39a very deep run back down into this
8:41initial daily low. So, we have two
8:44potential daily relevant lows here that
8:47we could think about marking out, but we
8:49have to bring in that idea of price
8:50separation. With these two points now
8:53noted out on the chart, we have this
8:54visual that we can consider. We want to
8:56again think about if price were to come
8:58down and engage this first relevant low,
9:02would that just create a failure swing
9:04to this next daily relevant low? Because
9:06in that case, if we do have a failure
9:08swing, then we can't trade this to the
9:10upside. we have an irrelevant point
9:12because again failure swings are
9:13irrelevant and we completely filter them
9:15out. So let's consider this here. Again
9:18this is our separation visualized and
9:20this would be a case of invalid
9:22separation between two potential daily
9:25relevant swings here. We can envision
9:27price trading down into this potential
9:29relevant low. That run only creates a
9:33failure swing to these next daily lows.
9:35And that changes the dynamic of what we
9:37would be considering a reaction here. As
9:40we note this out, this only creates a
9:42failure swing to this low. This low is
9:45just a failure swing to this low. And
9:47this is the actual extreme of the lows.
9:50This is our relevant swing that we want
9:52to be thinking about because the price
9:53separation here is not enough that a
9:56reaction here would be considered
9:58relevant only because it just ends up
10:00creating more failure swings. And when
10:03we have failure swings off the lows, we
10:05can't trade that higher and failure
10:07swings in themselves are irrelevant and
10:09we should not be focused on them in the
10:11market. We want to point our focus to
10:13the extremes. And if the market were to
10:15come down and engage here, then we would
10:18consider that reaction valid and
10:20something that we would weigh heavily
10:21for what should happen going forward.
10:23The third and final step of identifying
10:25relevant swings on the daily chart is we
10:28want to set a look back period. What
10:30this means is how many daily candles in
10:32the past we're actually going to
10:34consider and look for our daily relevant
10:37swings. That number for us is going to
10:39be 30 daily candles in the past, not 30
10:42calendar days, 30 daily candles. And you
10:46can draw back on your charts and use
10:48that range to say anything within here
10:51can be considered for noting out and
10:54identifying relevant swings. But
10:55anything that falls outside of this
10:5730-day look back period, we are not
11:00going to be considering as relevant at
11:02all, regardless of what price looks
11:04like. And the reason for doing this is
11:06to not get caught looking so far back in
11:08the past action of price that you're
11:10starting to look at highs and lows that
11:12are months and months and maybe even
11:15years in the past that don't hold the
11:18same significance on the current market.
11:20We want to be focused on more recent
11:22times. Again, recalling back to this is
11:24day trading. We're focused on the daily
11:26chart. We want to be fluid and bias. We
11:29don't need to be taking in that much
11:30information. So, we're going to cut it
11:32off at 30 daily candles into the past.
11:35If you want to know how to do this
11:36quickly on your Trading View chart, you
11:38would go and hover over the current
11:40daily candle, hold shift on your
11:42keyboard, leftclick on your mouse, and
11:45drag to the left until you see -30 on
11:48the daily candles. You can put a line
11:50there if you want or just get a general
11:52idea, but that is going to be your
11:5430-day look back period where you look
11:56to identify daily relevant highs and
11:58lows. So just as a recap to understand
12:01relevant swings, it's not an overly
12:03complicated process. If you understand
12:06failure swings where we have initial
12:08highs and lows that are set in the
12:09market and then we have deep runs back
12:12into it, those deep runs, what we call
12:14failure swings are irrelevant and we
12:17don't want to trade away from those
12:18areas in the market because they are
12:20unestablished reversals. But when we
12:22focus on that extreme in price, that is
12:25your relevant swing. Then we bring in
12:26the idea of price separation. When
12:29you're looking at your daily chart and
12:30you have all these candles here, you're
12:32identifying potential relevant swings
12:35using your idea of failure swings, the
12:37extremes of the market, noting those
12:40points out, but thinking, is this enough
12:42separation between one daily relevant
12:44swing to the next that if I were to
12:47engage this point, is it the true
12:49extreme or will it just create a failure
12:51swing to that next daily high and low?
12:53we would not want to be considering that
12:55reaction. Then finally, we have our look
12:57back period looking 30 daily candles
13:00into the past from the current day. And
13:03that's that range you're going to want
13:04to be focused on. Anything that falls
13:06outside of that, you don't want to be
13:08considering at all. Now that you have
13:10your foundational knowledge down on how
13:12to identify relevant swings, we're going
13:15to move into some real chart examples.
13:17These are daily charts from actual
13:20markets that we are going to walk
13:21through. Not only to show you how to
13:23identify them in different scenarios
13:25across the chart, but also showing you
13:27the reactions and what that means for
13:29price going forward because that is how
13:31you set your bias. Starting here, it's
13:33important to remember that your first
13:35instinct should always be I want to look
13:37left off the highs and the lows and I
13:40want to be seeing if I can identify any
13:42extremes in the market that the current
13:44price has already engaged. And what did
13:46it do there? Or can engage soon in the
13:49future because that's where the
13:50opportunity exists. When we see here, we
13:52have an initial low that is close in the
13:55market. So, I could potentially mark
13:57this out. But I also want to draw my
13:59eyes further left. We have a potential
14:02deep run back into this initial low that
14:05was set here. The question is, is this a
14:08failure swing? The potential is to say
14:10yes. But we could even consider the idea
14:12of invalid separation because in the
14:15case that this following day were to
14:17come in and manipulate that low. What
14:20would that do? That would only create a
14:22failure swing to that extreme and
14:24initial low in the market. And we do not
14:27trade away from failure swings in that
14:29sense. So this would be invalid
14:31separation. So what that means for us is
14:34this is not a relevant low. Instead,
14:36this is the true extreme of the market
14:39that we want to be marking out. Now once
14:41we see this reaction at this relevant
14:43low, we clearly have a manipulation. So
14:46the daily candle drops down into this
14:49relevant low and what it does there
14:51matters because this is the extreme and
14:53we can think without a doubt this ways
14:56in the market. We have a manipulation
14:58and a strong close in the opposing
15:00direction. This means I want to be
15:02trading away from this low. And this is
15:05the time where I'd be looking on the
15:06other side of the market for a potential
15:08draw or something to trade into. We look
15:11left from this high. And we see this
15:14first initial daily high. Is that the
15:16extreme? Clearly not because we have
15:18that deep run into this initial high. So
15:21this is not a relevant swing because it
15:23is only a failure swing to this initial
15:26high. This is the extreme that we would
15:28want to be noting out in the market. And
15:30what we have here is this following day
15:33we could be trading the continuation
15:35assuming price should draw up into this
15:38high. We have a failure to fully
15:40continue. There is likely an opportunity
15:43to trade up close into that high. But
15:45this following day, if it either fails
15:47to confirm or we don't trade that
15:49opportunity, what we have on this
15:51following day is still a one-sided
15:54opportunity. We've left failure swings
15:57off the highs because we look here, we
15:59have deep runs but not quite going
16:01through this initial high. So, we have
16:04failure swings off the highs. That is
16:06not only a draw, but it's also something
16:08meaning that this following day, we
16:10can't trade away from this high because
16:13it's left behind failure swings. We
16:16still have this low that is a
16:17manipulation. So, we want to be thinking
16:20expansion to the upside. We are still
16:22assuming continuation up until this
16:24point here. The question remains, how do
16:26we actually get there? We look to the
16:29left because now we're considering the
16:30lows. We look at this daily low and we
16:33could note that out because we know
16:35inside of this daily candle because of
16:37how close this closed to that daily low,
16:41we know it's not likely that this next
16:43day is going to turn higher without
16:45taking this out. And we also think this
16:47is a daily low with deep separation
16:50between this next daily low. So this is
16:52valid separation. This is considered the
16:55extreme low of the current range. And
16:58that is a relevant swing in itself. So
17:01we see this next day come through open
17:03into that low forming and expanding off
17:06of that up into the failure swing highs.
17:09This is valid framework for us to be
17:11using this as a relevant low and this as
17:14a relevant high. Failure swings above.
17:17This is a one-sided expansion that we
17:19would want to be trading again. The
17:21following day, we still have these
17:23failure swings above in the market. We
17:24could trade the continuation assuming
17:27price should draw up into that high and
17:29that would be that completed move. And
17:31now we would reset because we've reached
17:33that opposing relevant swing. Just to
17:36clear this out for a more simple
17:37perspective, we know we have this daily
17:39relevant high that is now being engaged,
17:42but we can see later in this price
17:44action that we start to develop these
17:46following days that don't quite continue
17:49or reverse. We're creating new failure
17:52swings in the market. As we can see
17:54here, we have this following day that
17:56creates a deep run into this initial
17:59high. So, we start to create failure
18:01swings off the highs. Same with this day
18:03here. deep run into this high. So, we're
18:06creating failure swings which are not
18:07relevant. But because this is the
18:09initial high in the extreme of the
18:11current range, this becomes a new
18:14relevant high. Now, we look off the
18:16lows. We see there's a lack of
18:17continuation. We're creating more
18:19failure swings off the lows. We have a
18:22deep run down into this low. This is a
18:25failure swing to this low here. Now, we
18:28can start thinking about valid
18:29separation again. we have this next
18:31daily low that we can mark out. Is this
18:34considered valid separation? And the
18:37answer is yes. Because as we see this
18:39manipulation take place on a potential
18:41relevant low, we have that deep
18:44separation between the two points that
18:46this low is not creating a failure swing
18:48to that next daily low. So this here is
18:51a valid manipulation. This is a valid
18:54relevant low and we can use this
18:55reaction to consider this meaningful in
18:58the market. And we again see price drop
19:00down into this relevant low, expand off
19:03of that as a manipulation, and then we
19:05have a second type of reaction. So
19:08manipulation off the low is how we see
19:10price trade higher, but we're also
19:12getting a close daily relevant high.
19:15When we see a closure through a daily
19:18relevant high or low, that deep closure,
19:21this is where we can assume continuation
19:24because we have both types of reactions
19:27taking place. The relevant low has a
19:29manipulation. We could trade away from
19:31that. But the relevant high also has a
19:34breakout signature where we have that
19:36deep daily candle closure through. And
19:38you see these following days starting to
19:41continue. One day of continuation, 2
19:43days of continuation, and we just see
19:46that trend continuing on from this
19:48point. Zooming out on this example
19:50quickly, you start to see the logic come
19:52together of simply using failure swings,
19:55separation, and price, and the type of
19:57reaction we're getting here to navigate
19:59this price action and filter out the
20:02things that are not relevant or should
20:04not be considered in the first place to
20:06even be trading within certain days.
20:08Again, we have this relevant daily low.
20:11This one is not relevant because of the
20:13lack of price separation between these
20:15two points. The reaction at this
20:17relevant low shows a manipulation. And
20:20when we create failure swings off the
20:22highs to this next daily relevant high,
20:24we cannot trade the downside. So we look
20:27for any ways for price to draw up into
20:29that high. This low has a lot of
20:32separation to that next daily low. That
20:34means this is a relevant swing on its
20:36own and we see price manipulate that low
20:39to then trade higher the next day
20:42continuing into this relevant high. Then
20:44again we start to establish a new range
20:47where we create failure swings to both
20:49sides of the market and we would wait
20:51for one side to be engaged and then
20:53judge the bias from there. We have a
20:56reaction off of this relevant low which
20:58has valid separation to this next daily
21:01low. So this is a relevant swing
21:03manipulation
21:05continuation through the highs. That
21:07deep closure through is an additional
21:09confluence. While not necessarily needed
21:12in this case because we already have the
21:14manipulation of the low, we also have a
21:16deep closure through this relevant high
21:18which we then see follow through on the
21:20next two days of more continuation and
21:23that would be biased to look for inside
21:24these days continuation long setups.
21:27Moving on to our next real daily chart
21:30example, I want to focus in on one
21:32specific point here. We're going to look
21:34at this area in the market and we're
21:36going to be thinking about what is the
21:38extreme of lows when we're waiting for a
21:40certain type of reaction for this market
21:42to become actionable and directional. We
21:45see this low here in the market. If we
21:47were trading or looking inside this day
21:50for extra context on what the bias is,
21:52we would think about this low. This is
21:54just a previous day low. And when we
21:56look left, there is not another daily
21:58low until down here and down here. So we
22:01have a lot of separation to these next
22:03daily lows. In a case like this,
22:06previous day low becomes the relevant
22:09swing. So we have this noted out here
22:11and we're waiting for a reaction to take
22:14place. We see that this next day comes
22:16in, trades down into that low and closes
22:19back up into the range. This is
22:21something that would be showing a
22:22manipulation. We trade down into it and
22:25back up. Closing into the range, that is
22:27a sign of a manipulation. And valid
22:30manipulation means reversal into
22:32continuation. For some added detail to
22:35this particular situation, there may be
22:37a case like this where this daily
22:39closure may not be convincing enough for
22:41you to be one-sided on this market or
22:43for you to fully call this a
22:44manipulation yet. We could wait for one
22:47more day of context if needed. So, we
22:49have this day here. When we see the
22:51market expand away from this low that we
22:54could consider a potential valid
22:56manipulation, that would be your full
22:58confirmation to say we are expanding
23:00away from this low and we can trade the
23:03continuation. And when we look left,
23:05we're looking for that opposing relevant
23:07high. We draw our eyes to the extremes,
23:09deep runs all the way until we get to
23:12this initial high. That is your opposing
23:14relevant swing. So that is your draw in
23:17the market. You could trade this day if
23:19you initially saw this as a valid
23:21manipulation. But once we see that
23:23expansion away on the daily chart, we
23:25would trade this next day as a
23:27continuation all the way until we reach
23:29this opposing relevant high in the
23:32market. And what do you see as we draw
23:34up into it? We have these expansion days
23:36that can be capitalized on, but once we
23:38engage that opposing relevant high at
23:40the extremes, that's where you start to
23:42see opposing reactions. This here could
23:45be traded to the downside or it can be
23:48your sign to say I was trading the
23:49continuation prior. Now I should be
23:52stopping that bias because I know when
23:54we react in this way that may be the
23:56pause in the trend and I need to
23:58reassess my bias at this point or it may
24:00be creating a new opportunity to trade
24:03away from this relevant high seeing this
24:05as a manipulation and now I want to
24:07trade the downside in the other
24:08direction. Moving on to the final daily
24:11chart example. I want to bring your
24:13attention to this area here. If we're
24:15trading in this market, again, that
24:17first step is always going to be looking
24:19left off the highs and the lows, looking
24:21for potential relevant highs and lows
24:24that we can note out at the extremes
24:27that can create potential opportunity or
24:29maybe already setting a bias if we've
24:31already had that reaction. So, we look
24:33off the highs and we see a deep run into
24:36an initial high that was formed. This is
24:38a failure swing. So I'm not going to
24:40note it out. This is the initial high.
24:42This is the area that I want to be
24:44focused on in the market. Then we look
24:46to the lows where I see this current
24:47daily low is a deep run to this next
24:51daily low. That is where we would call
24:53it a failure swing. So this low is not
24:55relevant to be noted out. We are going
24:57to use this low as a potential relevant
25:00swing because we look below. We have
25:02deep separation to these next daily lows
25:05here. So this would be an independent
25:07daily relevant low that we could note
25:10out in the market. And we also have
25:12these areas below. While price may not
25:15engage here, it's still worth noting
25:17them out in the case that this becomes a
25:19target in the future. So it's still
25:21something that you'd want to have on
25:23your chart. Moving back up to this area,
25:25we see price action starting to play
25:27out. And again, we're making even deeper
25:30runs back into these highs. So it's
25:32creating failure swings off the highs.
25:34And as price draws lower, because we
25:37have these failure swings off the highs,
25:39which is an unestablished reversal,
25:41something that isn't giving us the
25:42context for price to move in one
25:44direction when it starts to fade away
25:46from these failure swing highs, we are
25:48not trading this downside or attempting
25:51any move. And on the other side of the
25:53market as well, because we also have
25:55failure swings off the lows up until
25:57this relevant low here, we're also not
26:00trying to assume or attempt any upside
26:03move. So this is what we consider a
26:05range in price because we have failure
26:07swings off the highs and off the lows
26:10and price is trading internally in
26:12between those points where we are
26:14completely neutral and are not trying to
26:16establish a bias here until the market
26:18either reaches this relevant high or
26:21this relevant low. Until that happens,
26:23we are completely handsoff. Eventually
26:26we do get price first engaging this
26:28daily relevant low. And what happens
26:31there because this is the extreme of the
26:33market we know has weight and we know
26:36that it matters. Price comes down into
26:38that daily relevant low and we see that
26:40wick formation again trading down into
26:43it closing back up into the range. That
26:46there is a valid manipulation again. We
26:48have that separation. So this is not
26:50creating a failure swing to that next
26:52daily low. So valid manipulation at a
26:55relevant low that next day because we've
26:58already reversed and established it. we
27:00would assume continuation away from that
27:03low and that's what we get here. So that
27:05next day bias is bullish and because we
27:07have failure swings off the highs, we're
27:09not going to be shorting anything here.
27:11We have a target, a series of failure
27:14swings that is drawing our eyes back up
27:17to this daily relevant high which is an
27:19opposing objective. So we are going to
27:21hold that bias until we reach that point
27:24or some new structure is formed that can
27:26reshape this scenario. But as we stand,
27:29we're going to look for that
27:30continuation. That next day has a
27:32potential opportunity from that open
27:34drawing up into that high. But as it
27:36fails to do so, this leaves another
27:39failure swing. So we are not trading the
27:41downside the next day. We are wanting to
27:43think what needs to happen. What do we
27:45need to see for price to draw up into
27:48that opposing relevant high? We have a
27:50similar situation from that first
27:52example where we have failure swings off
27:54the high. So we're not shorting. We're
27:56still assumed in the continuation, but
27:59we have a previous day low that has that
28:01large separation, valid separation from
28:04these daily lows. So, this in itself,
28:07previous day low is a relevant swing.
28:10And when we see price manipulate that
28:12low on this following day, open low and
28:16then expansion, we can trade that move.
28:19And this is our framework for this day
28:21to trade up into this high. So, that
28:24would be your bias. That would be your
28:25framework. And we understand the
28:27opportunity on this day occurs at
28:28previous day low. Manipulating that to
28:31finally get up into our opposing
28:33objective of this high. So this is an
28:35example of a range in price where we
28:38start to create these failure swings off
28:39the highs, failure swings off the lows
28:41and we are waiting for the extremes of
28:43the market and we see true reactions
28:46that actually matter and it gives us a
28:48bias and a framework of where to look
28:50for that opportunity and how to know
28:52which lows we should be focused on to
28:54get up into the continuation for this
28:57high, that opposing objective in the
28:59market. You now understand the three
29:01core steps to identifying daily relevant
29:04swings. We want to know what failure
29:06swings are and how deep runs back into
29:08initial highs means we want to
29:10completely ignore the failure swings and
29:13focus on the extremes of price because
29:14that's what actually matters and
29:16reactions there hold weight in the
29:18market. The second is valid separation.
29:21So when we're looking on a daily chart
29:22and we find potential relevant highs and
29:25lows that we could be using, we want to
29:27be considering the separation to that
29:29next daily high and low. So in the case
29:31that we do engage it, we're not just
29:33forming new failure swings. It is
29:35actually separate from that next
29:37relevant swing. That's when we know
29:39we're working at two different extremes.
29:41So the reaction there will truly matter.
29:43And finally, the third thing is our look
29:45back period. Only looking 30 daily
29:48candles into the past. Anything beyond
29:50that, we don't want to be considering it
29:52because it's just added noise when we're
29:55trading intraday getting in and out of
29:56the market within a few hours. Now, what
29:59I want you to do is to go back into your
30:01charts and start looking for this
30:03signature. You're going to realize how
30:05much noise is being removed from the
30:07charts and focusing on the extremes. The
30:09reactions there are really going to hold
30:11a lot of weight for what happens going
30:13forward. And not only can you go into
30:15your own charts, but I posted so many of
30:18my trades on my Instagram, YouTube
30:20recaps, Twitter from the past that you
30:23can go back into and look at the highs
30:25and lows that I'm focused on, the ones
30:27that I'm identifying and where my best
30:29opportunities come from because it all
30:31starts with the relevant swing. With
30:33that said, that is everything I have for
30:35you in this video. I hope you found it
30:37valuable. There will be a lot more to
30:39come on this topic.

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