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How To Use Phases Of Price — Transcript

by Ferocious Trader · 2,628 words · 376 segments · language en · Watch on YouTube

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0:02Yo guys, Ferocious here. In today's
0:04video, I'm going to talk about how I use
0:06phases of price. Before I move on with
0:09the video, I want to say that I do not
0:11claim um any of these concepts in this
0:14video as my own concepts. This is just a
0:17video about how I apply phases of price
0:19to the market day by day. The topics I'm
0:22going to talk about today are key levels
0:24I'm using for the phases of price,
0:26consolidation, reversal, expansion,
0:30retracement, and I will give great
0:32examples at the end of the video how I
0:34apply this to the real market.
0:39First of all, I want to give a small
0:40introduction about each phase of price.
0:43Starting with a consolidation. This is a
0:45phrase of price where price is ranging
0:47between a specific high or low and where
0:50is not a lot of movement inside the
0:51market. Expansion is the easiest p price
0:55price movement to trade. The market is
0:56trending in a certain direction higher
0:58or lower and u with speed and not a lot
1:01of pullbacks. Retracement is a phase of
1:04price where price makes pullbacks after
1:07um the expansion phases.
1:10Reversal is a phase of price where a
1:12relevant level is hit and price starts
1:14to trade aggressively away from this
1:16level forming a V-shaped signature at
1:19this relevant level.
1:23The first phase of price I'm talking
1:25about is consolidation. When can we
1:27expect a consolidation phase of price?
1:30This is after we hit a relevant key
1:32level or we had a large expansion. And
1:35this is logical since the market cannot
1:37expand forever, right?
1:39What can we expect after a
1:41consolidation? We can expect a new
1:43expansion phase or a reversal phase. So,
1:46how can we engage with consolidations?
1:49The first scenario is waiting for the
1:50range low to be taken out. If we are
1:52bullish,
1:54we want to see a strong reaction form on
1:56the asset we want to trade from this
1:58range low and form a reversal signature
2:00higher and uh trade a new expansion
2:03phase higher. Right?
2:05The second option is to wait for an SMT
2:07to form at range low. If we are bullish,
2:10this means we want to see at least one
2:12asset inside the triad take the range
2:14low and reverse. Then the assets that
2:17are not taking the low, for example,
2:20this asset here can be traded higher as
2:22well. If all assets are reversing from
2:25this SMT, to qualify a high probability
2:28SMT, we require all assets to expand
2:31away from this SMT formation. So even
2:34the asset that is taking range low
2:37should expand higher from the SMT
2:39formation. So we can trade the strongest
2:42asset to trade higher.
2:46The second phase of price I'm going to
2:48talk about is reversal. When can we
2:51expect a reversal phase of price? This
2:53is after we hit a relevant key level and
2:56we form a manipulation move at this key
2:59level. What to expect after we form a
3:02reversal? we can expect a new phase of
3:04price expansion.
3:07So how to qualify a high probability
3:09reversal? We need a relevant key level.
3:12At this key level, we want to form a
3:14V-shaped signature like we see here. We
3:17see price going down.
3:20Hitting the key level, we see it trade a
3:23little bit higher. Take the range low
3:25one more time. And with speed, we form
3:27our reversal and continuation signature
3:30higher. This is marking a V-shaped
3:32signature.
3:34The second option to trade a reversal is
3:37basically almost the same. We are
3:39trading down hitting a relevant key
3:41level. We take a little bit time at this
3:44key level. We form a SMT instead of a
3:48range low purge here. So we have a SMT
3:51into a continuation. And again, how do
3:54we qualify this as a high probability
3:57SMT? You want to see the other assets
4:00trade higher after we form this SMT
4:02formation as well to trade a new phase
4:05of price expansion.
4:10The third phase of price I'm going to
4:12talk about is expansion. We can get an
4:14expansion after we had a consolidation
4:16or a retracement. And what can we expect
4:19after a expansion? We can expect a
4:22retracement, a consolidation or a
4:25reversal in price.
4:27expansion is really important to
4:29understand because there can happen like
4:31three things after we get an expansion
4:34and this is the main thing I'm using in
4:36my trading. So um stay tuned for the end
4:39of the video where I go over the
4:41examples of how to apply this in the
4:44real market. So the signatures we want
4:46to see in expansion phase of price are
4:49shallow moves against the expansion we
4:51want to trade. In this example, we want
4:53to trade the expansion higher and we
4:55want to see price finding support at key
4:57levels we use for intraday price action
5:00such as flli gaps and order blocks. So
5:03you can see prices expanding higher. We
5:06form a shallow retracement finding
5:09support in our flli gaps and making um
5:12closures above these order block candles
5:14to trade a new expansion higher. And we
5:16repeat the process until we met our key
5:19level. We can use previous candle's
5:22range. So we measure range low to range
5:25high and if the next candle is going to
5:27expand, it should stay above 50% level
5:30of previous candle's range and it should
5:32not make a large wick at the bottom. In
5:35this case, in this case, we can see
5:37price forming a small bottom wick and we
5:39stay above previous candle's range and
5:41this qualifies to be the next candle,
5:44this candle to be an expansion candle.
5:50The last phase of price I'm going to
5:52talk about before we go into the
5:54examples is retracement. We can expect a
5:56retracement to form after we had a key
5:59level or after we had a expansion phase
6:01of price. What can we expect after a
6:04retracement? We can expect a new phase
6:06of price expansion.
6:09After price makes such a large range, um
6:12price can most likely form a smaller
6:14range heading into a retracement phase
6:16of price. If we are bullish, the
6:18expansion should be fast and large as we
6:21can see here and the retracement should
6:23be slow and shallow to qualify a new
6:26phase of price after the retracement for
6:28an expansion phase. After we hit a
6:31relevant level, we can expect a new
6:33phase of price. One of them is
6:36retracement. As you can see on the right
6:38picture here, we hit a relevant level.
6:40We form a shallow retracement with a
6:43continuation signature for higher
6:45prices. This is one thing I use a lot to
6:47still find trades after we hit a
6:50relevant key level.
6:53So now I will go over some examples of
6:56how I used the phase of price logic uh
6:58myself in the market. First example is
7:01ENQ. We can see we formed a higher time
7:05frame reversal here, but that doesn't
7:07really matter since I want to focus only
7:10on this piece of price action. As we can
7:12see, we see 6M approach this relevant
7:16high. Like I said, we use swing highs,
7:19swing lows or previous candle highs and
7:22lows. So, this is a relevant swing. The
7:23next swing is this one. So, price is
7:27failing to reverse from this level. So,
7:29we either going to consolidate here or
7:32we retrace and form a new expansion
7:35phase of price. Right? So if you are
7:38approaching that relevant level, we can
7:43look for one of the signatures. As we
7:45can see, price is in the first place
7:47hitting the key level here.
7:50For us to trade shorts, we want to see
7:53us trade aggressive down forming a CISD
7:56and see continuation lower. Right? But
7:59what do we form here in the first place?
8:02We form a fair value gap
8:05like this.
8:08So what can we expect after we form a
8:11fair value gap and we are not trading
8:13aggressive away from this um these highs
8:17here those relative equal highs we can
8:19expect a continuation into the new high
8:23here. So we are not shooting for home
8:26runs but we can expect if we are failing
8:29to reverse from this high here we can
8:31expect a new phase either a
8:33consolidation or a um retracement into a
8:38new expansion phase. Right? And what we
8:39do we get here we get a retracement into
8:42the value gap and we form a continuation
8:44signature
8:46by trading away out this gap and we um
8:50can trade a continuation here. So this
8:52is the retracement into a new phase of
8:53price expansion. But what could also
8:56have happened here?
8:59We could have still approached the high
9:01here. We can form some sort of
9:03consolidation here. Then we take range
9:07low and we can still look for an
9:09expansion, right? to take the range lows
9:11or we form a consolidation and trade
9:15away higher since we form a SMT at these
9:18lows to trade um the expansion higher.
9:22So in this case we had our retracement
9:25into a new expansion but we could have
9:28also consolidated into a new expansion
9:30higher since we are failing to reverse
9:33from this relevant um high intraday high
9:36on the 4 hour. So now let's go over the
9:39second example. This is basically the
9:42same example. Same logic I applied here.
9:45We have those relative equal highs on
9:47the 4our. We are forming a internal to
9:50external potential move but we are
9:53trading and approaching this relevant
9:54high. So then we are going to monitor
9:57how we are um reacting to the high. Like
10:00I said are we reversing?
10:03So in the first place by this candle is
10:06a little bit weaker than the previous
10:07example but we still do not trade
10:10aggressive down form the change here for
10:14continuation lower right we still form a
10:18small move down and we form a
10:21continuation signature here like I
10:22explained in the slides. So we have
10:24again we approach these equal highs
10:26here. We can see price retrace a little
10:30bit shallow retracement not deep and we
10:32form a continuation signature out of
10:34this gap.
10:37So once again this is a retracement
10:39phase into a new expansion phase where
10:41you could have traded this candle higher
10:44to the new
10:47target like we had here to this new
10:50target. If we are not reversing from
10:53this high, we go to the next highs. It's
10:55just it's as simple as that. So, what
10:58could have happened too here?
11:01Instead of retracing into a new phase uh
11:04expansion, we could have consolidated a
11:06bit, take range low and then expand
11:09higher by taking the lows and expanding
11:12higher. or we could have consolidated
11:15and expanded away from this
11:17consolidation by creating a valid SMT
11:20throughout the triad. So this example is
11:23basically the same as the first example
11:25here. So now let's go over to the
11:30third example.
11:32It will all look the same. So I
11:34basically look for this logic every day.
11:37Remove this one here. So again, we have
11:40two highs here.
11:43We have a relevant high here to the left
11:45and we have this high here.
11:48So
11:50we can see price approach this high.
11:55And what are we doing? We are expanding
11:58through it. We are not reversing, not
12:01aggressive reversing down. So what can
12:03we look for? We can look for a
12:05consolidation into taking the range low
12:08into an expansion or we can look for a
12:10consolidation into expansion by creating
12:13an SMT or we can look for a shallow
12:16retracement into a new expansion phase.
12:18So what do we get here? We get our
12:20farewell gap again
12:23and we get our CISD out of it.
12:29You could have traded something like
12:30this once we closed above. You can put
12:33your stop loss in this gap here and you
12:36could have still squeezed out something
12:37like 2 R I think. Yeah, you could have
12:40squeezed out two R trading into this
12:42high here. So once again we are
12:46monitoring how we react to relevant um
12:494hour daily highs, weekly highs. It's
12:51all fractal. In this case we had a 4hour
12:54high. How are we we reacting from this
12:58um this level? Right?
13:01So that's basically the third example.
13:03So now let's go over to the last example
13:06of this video. This one is started on
13:08the daily. This is previous daily candle
13:11qualifying as a expansion candle. We are
13:14closing near its high. We expanded um
13:16after taking this low. We are failing to
13:19trade away from this high. So we can
13:21look at this high. We can form a new
13:24face of price. This is previous candle's
13:26range. So the new daily candle should
13:30not trade anywhere near to this 50%
13:33level and we should not form a large
13:35wick at the bottom and we trade an
13:39expansion phase. Right? So here we can
13:41look for a new expans a new phase at
13:43this high.
13:47So what's going to happen here? We had a
13:48daily high. What is the 4 hour doing?
13:52The 4hour is more in a retracement phase
13:55since we are not um aggressively trading
13:58away from this high. So we are retracing
14:00to for example this F value gap. So we
14:03have a retracement on the daily. We are
14:06still forming that small bottom wick
14:08qualifying for an expansion candle. We
14:10are still in premium of previous day
14:13range here as you can see. So we have
14:16our daily high in a new phase of price.
14:19we can look for a retracement into a
14:21continuation. So again we had our daily
14:24into 4 hour. Now we have our 4 hour into
14:28for example 5 minute here or I think I
14:32traded the 3 minute here. So we have our
14:364hour high. What is price doing here?
14:40You all can see we are aggressively
14:43trading away from the value gap forming
14:44a reversal signature. We have our
14:48Vshape here, V-shaped signature as a
14:51reversal.
14:53So, what are we doing at this high? Are
14:56we approaching the high and trading
14:58aggressive away from it forming a
15:00reversal or are we going to consolidate
15:04into a SMT going higher? Or are we going
15:07to consolidate taking the low range low
15:10and then going higher or do we form once
15:13again this fair value gap
15:16a continuation signature. So we approach
15:19the high we retrace and we form our
15:22continuation. Right? So again I traded
15:24this order block here.
15:27So I was monitoring this high. We traded
15:31to the high. We retraced and we formed a
15:33continuation and traded the continuation
15:36here
15:39for like 2 and 1/2 hour to
15:42to here. So that was a good trade. So to
15:46make a small summary of this video, the
15:49main thing I'm using is the uh new face
15:52of price around those highs and lows. Um
15:55I want to see what we are doing at the
15:57high. Are we reversing, retracing,
15:59consolidating?
16:01um to qualify for still a trade after we
16:03hit a relevant high. So a lot of people
16:06will will close charts once we hit the
16:08high but we can still look for
16:10continuations if we are not reversing
16:12from this high if we form one of the
16:14continuation signatures like I said
16:16consolidation SMT or consolidation range
16:18low or retracement into continuation.
16:22So this was basically the end of the
16:24video. I hope you all appreciated the
16:26video and um you guys learned something
16:28from the video how how I approach um the
16:31face of price. So, please leave a like
16:34and subscribe since I'm um already
16:36working on the next video. Peace.
16:39[snorts]

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