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Protraction Profiling (The Missing Piece) — Transcript

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0:00Most traders do not fail in their
0:01ability to identify, draw on liquidity,
0:03[music] or execute on a lower time frame
0:06entry technique. What they fail in doing
0:08is building a price narrative. [music]
0:10I'm going to teach you exactly how to
0:12bridge this gap through protraction
0:13profiling. You're going to have a far
0:16better ability to predict and involve
0:18yourself in these crucial market
0:20expansions. Plus, I'm going to be adding
0:22in a set of repeatable, mechanical, and
0:25actionable frameworks that you can
0:26[music] use in your trading every day.
0:28Okay, so now we're going to get into the
0:30first chapter of this lecture, which is
0:33going to be on the core logic of
0:34protraction profiling. What you're going
0:36to learn in this chapter is how to
0:38define the two stages of a candle, the
0:41manipulation or protraction phase and
0:43the expansion or distribution phase. In
0:46addition to learning how wick size and
0:48the profile are related, the first core
0:52logic element you need to understand is
0:54the protraction phase of a candle.
0:57Before we move into that, I want to
0:59preface this by saying the higher time
1:01frame candle that you see associated
1:03with this logic is fractal. For the
1:06purpose of this lecture, we're going to
1:08be focusing on daily protraction
1:10profiles. However, in the future, you
1:12will also be utilizing various timeframe
1:15candles with the same logic to profile
1:17sessions and intraday candles. So the
1:20protraction phase or the manipulation
1:23phase of a candle is defined as the
1:25deviation below its open. So for a
1:28bullish candle that opens low, the
1:31protraction or manipulation phase is the
1:34creation of this daily wick before it
1:37later expands creating its low to high.
1:41That brings us into the second phase of
1:43a candle which is going to be the
1:45expansion phase. The expansion phase is
1:47once the wick has been created, the body
1:50of that candle from low to high and
1:53eventually off its high to its close is
1:55considered the expansion phase of a
1:58candle. For the bearish case, this is
2:00equivalently true with open to high
2:02being defined as the protraction or
2:04manipulation phase and high to close
2:07being deformed as the uh expansion phase
2:11of that candle. Our investigation of
2:13protraction profilings is really going
2:15to understand where these highs of days
2:18are made and what conclusions we can
2:20make about session dynamics based on
2:23those highs and lows of days forming on
2:25daily candles. Before we move into that
2:28though, we must understand wick size and
2:30profile alignment. There are a couple of
2:33key conclusions I want you to be able to
2:35draw from this slide here. The first is
2:39that a small wick is going to support a
2:42large body. That is to say, there is an
2:45asymmetrical relationship between wick
2:47size and body size. So if we have a
2:50small wick candle that prints a large
2:52expansion for the body, we'll refer to
2:55that as classic protraction.
2:58In the case where a bullish candle for
3:00example opens with a large opposing run
3:04higher, we would say that this large
3:07wick candle does not support expansion
3:09and we will call this a delayed
3:11protraction profile. This is very
3:14important because expansion through the
3:16open is going to be considered to be a
3:19negative condition of this type of
3:21profile and therefore 1,800 or the daily
3:24open is going to become a key level in
3:27our analysis for all delayed protraction
3:29profiles. And we're going to touch on
3:31this in much more depth in a future
3:33chapter. So to wrap up chord logic
3:35chapter 1, we understand that there are
3:37multiple phases of a candle. there is
3:40the protraction phase and there is the
3:42expansion phase and that there is an
3:44inverse relationship between wick size
3:46and body size. So let's hop onto a chart
3:48and quickly denote some of these things
3:50to make it crystal clear. All right, so
3:52now that we're on a chart, what we're
3:54really going to do is pay attention to
3:56the first chapter's logic. And what I
3:59want you to focus on is the relationship
4:01between the wick size of a candle and
4:04its body or the distribution size. We're
4:07going to get later on into some more
4:09nuance, but for now, this is an very
4:11important distinction that you need to
4:12be able to recognize. So, let's run
4:14through a few days of price and see what
4:16the protraction profiles are. So, as you
4:18can see on this candle here, we have a
4:21reversal candle forming and we have a
4:24rather large wick. Now, I wouldn't call
4:26this necessarily a large delayed
4:28protraction wick. However, you can see
4:31that the relationship between the body
4:33and the wick is somewhat proportional.
4:36That is to say, this time spent above
4:39the opening price from open to the high
4:43is defined as the protraction phase. And
4:46therefore, the time spent creating the
4:48body of this candle is the expansion
4:51phase from the high to the low. Here you
4:54can see price opens, creates a rather
4:57large wick and then expands. However, it
4:59does not offer a large distribution like
5:02in other candles you will see based on
5:04that wick size. So, pay attention to
5:07that as we move forward. Okay, let's go
5:10into the next day. As you can see with
5:12this next day, we have a very classic
5:15delayed protraction. Sorry, that's kind
5:17of difficult to understand if I say it
5:19like that. We have a delayed protraction
5:22candle that is presenting itself to be
5:24quite textbook. As you can see, we have
5:27a large deviation from open to low. So,
5:30at one point in time, I want you to
5:32think about what this candle looks like.
5:34And perhaps we can rewind to show you
5:37what it looks like. We are actually
5:39having a candle that looks to be rather
5:41largebodied to the downside. This candle
5:45opens with a small wick and expands
5:48lower. Now, what are we expanding into?
5:50A key level. potentially this imbalance
5:54or this redistributed area of price and
5:57you can then see that price flips its
6:00open with a large wick. Okay, so this
6:04large wick that you're seeing in here is
6:07that expansion phase, right, which is
6:11going to be capped at its open. Like we
6:14said, there's an inverse proportionality
6:16large wick, small body. And when we get
6:19into later chapters, we're really going
6:21to investigate how we can trade a candle
6:23like this, utilizing the knowledge that
6:261,800 is going to act as some sort of
6:29key level of resistance for a large
6:31wick, delayed protraction candle. So,
6:34your study for this chart here is large
6:37wick, delayed protraction, small body.
6:40Let's get into the next candle here. So,
6:43this next day is quite interesting. As
6:45you can see, we have a C2 candle formed
6:49from a key level, the previous day's
6:51high. We're reversing and we're
6:53expanding all throughout the session.
6:56Now, what do you notice? We have a small
6:58wick that sustains this large expansion
7:01candle body into the draws on liquidity,
7:04which is the daily failure swings to the
7:06left. This is a classic protraction
7:10candle, and this would be a delayed
7:12protraction candle. Notice the
7:14relationship between the wick size and
7:16the body once again. Okay, we'll do a
7:19few more just so that you can get your
7:21head around it. Again, what do you
7:23notice? Large wick forming from a key
7:26level and then we form this small body.
7:30All right, so that wraps up what we're
7:32going to talk about for uh the you know
7:34trading view portion of this first
7:36chapter. Let's get into the next chapter
7:38and start to build some more nuance to
7:40this logic. So, let's get into chapter
7:42two. In this chapter, you're going to
7:44learn how to fractalize price. Not only
7:46understanding the protraction and
7:48expansion phases of a candle, but also
7:50understanding how this relates to swing
7:52formations. We're going to use various
7:54time frames to help you understand where
7:56those lows and highs are made and how we
7:58can actually trade away from them. So,
8:00let's take a look at defining this daily
8:03candle via a market maker model. You
8:05might be familiar with the schematic as
8:07it's from my masterclass series.
8:09However, in this schematic, what we want
8:11to focus on is the candle 2 and candle 3
8:14logic of a expansion candle. As you can
8:18see, when we superimpose this classic
8:21protraction bullish candle to the left,
8:24you can see that a part of this candle
8:26is made from a reversal candle from a
8:29key level. And then a part of this
8:31candle, namely the expansion phase of
8:33this candle is made from a continuation
8:36candle, a C3. When we look at this in
8:39the form of a market maker model, we can
8:41see our classic reversal redistribution
8:45areas eventually targeting opposing
8:48sides of the range. So this is very
8:50important because not only is this
8:52introducing swing point logic into our
8:55protraction profiling, but it's also now
8:58defining conditions for the reversal and
9:01for the continuation. As you guys know
9:03from my master class series, which I'll
9:05link below if you haven't seen before,
9:08we need a two-stage reversal to frame a
9:10swing point. And this can be fractalized
9:13down to a lower time frame swing point.
9:15And then we need a one-stage uh Kraken
9:18correlation to frame any sort of
9:20continuations. Right? So if we look at
9:22this in terms of a market maker model
9:24schematic, that's really when the logic
9:27of the daily candle and this market
9:29maker model pair together. Well, we have
9:32a C2 formed with some sort of two-stage
9:35cracking correlation, i.e. an SMT plus a
9:38PSP or a two-stage PSP or SMT variant.
9:42And then we have continuation formed
9:45within a continuation candle on this
9:48fractal, which we're going to use the
9:504hour for the daily profiles as we get
9:52into later formed from a gap or some
9:55sort of internal range of liquidity like
9:57an order paired range. So, let's go one
10:01step further and really look at what
10:03that looks like. Here is your classic
10:06expansion candle or a protraction
10:08candle. And then you see we have two
10:11phases of price of this candle, but also
10:13a C2 and C3 definition on the 4hour
10:17fractal to show you where the low is
10:20being made from, i.e. the manipulation
10:23the reversal candle C2 and then where
10:25that body or the expansion is being made
10:28from i.e. the C3 continuation. As we
10:32know, for true reversals, if this is our
10:344hour fractal, we're going to want a
10:36two-stage cracking correlation. This is
10:38going to be the SMR of our MMXM, right?
10:40And you can go to my first lecture on
10:43timing expansions and learn all about
10:45how we denote true reversals in the
10:48market with two-stage cracks. Then once
10:50we get expansion away from that low, we
10:53can then trade continuation in our
10:55candle three, maybe a 4hour candle in
10:59this daily candles range from a gap or
11:02some sort of order paired range where
11:04we're then going to require a one-stage
11:06cracking correlation. And if you don't
11:08understand that, that is actually part
11:10two of my master class. So this entire
11:13slide here is really just recounting
11:15parts one and two of my master class
11:17series. So, please go back in and watch
11:19that after this if you're having any
11:21difficulties combining protraction
11:23profiles with expansion models and
11:26reversals and continuations. So, where
11:29do daily reversal wicks form from? This
11:31is important. If we're going to consider
11:34this universal fractal here, and this
11:36would be a daily chart, you can see that
11:38we have this C2 reversal candle. And if
11:41this is going to be a true reversal,
11:43it's going to form from a range low. as
11:46you can see in this example of erl to
11:49erl and it's going to be formed with
11:52that wick that closes back in the range
11:55for the body before we expand higher. So
11:58the relevant level for a daily reversal
12:00candle when we consider something like a
12:03protraction profile is going to be
12:05either a range low or a daily or weekly
12:10for example fair value gap which we've
12:12taken a look at in previous lectures how
12:15we can form swings from higher time
12:17frame gaps as well. That would be the
12:19IRL to erl variant of a universal model.
12:23So this is kind of how it looks like
12:25with that classic expansion candle here
12:28shown or classic protraction candle
12:30right for C2. Now what are invalid key
12:34levels for framework? Here we have an
12:36example of this continuation candle C3
12:39which prints this small wick into the
12:42opposing candles range upper half.
12:45However, we want to point out that we do
12:47not want to trade uh any sort of wick
12:50formation, right, or protraction phase
12:53uh as being defined as a true
12:55manipulation from failure swings. We
12:57always want to be looking for relevant
12:59swings. So, what is the difference
13:01between a failure swing and a relevant
13:02swing? How do we know that this wick has
13:05truly formed its protraction phase of
13:08this daily candle and is now set to
13:10expand? We're going to use proximity.
13:13Predominantly we want to see uh
13:16sufficient spacing between swing points
13:18to define them as relevant. If we do not
13:21have that sufficient spacing i.e. in the
13:24case you can see here on the left then
13:27we're going to say that that is not a
13:29relevant low to form the protraction
13:32phase of that daily candle. I.e. we
13:35don't want to see the low of a candle as
13:38you can see in this wick made from a
13:40failure swing like this. We want to see
13:43it like in the middle case, right? Or in
13:46the right hand side case where we have a
13:48protected swing formed from a relevant
13:51sweep based on proximity. Okay, that's
13:54very important. So let's recap
13:56everything before we move into the
13:58charts themselves just so that we have a
14:01fair understanding of what we're working
14:02with. We are now looking at daily
14:06candles, right? open, low, high, close,
14:09open, high, low, close as a function of
14:124hour fractals C2 and C3. We will say
14:17that we can form daily wicks in
14:20continuation from either order paired
14:23ranges like you see here on the time
14:25frame greater than the 1 hour chart. So
14:27that is when the previous day candle 2
14:30expands and then consolidates. Then the
14:34candle three for the protraction phase
14:36of that candle on the daily sweeps out
14:39an order paired low before expanding in
14:42its expansion phase. Okay? Or we can see
14:45the typical variant which is going to
14:47form a continuation inside of a 4hour
14:50gap in the previous day range. If you
14:53understand these two types of
14:56continuation wicks, you now have a
14:58complete framework to profile where the
15:01low of these daily candles, these C3
15:04candles are going to form. You also now
15:07have a profile to define where the low
15:10of these daily C2 candles is going to be
15:13made from. So now we can move into
15:15fractalizing price on our charts looking
15:18at these 4hour profiles that we're going
15:21to define moving forward. So let's get
15:23into the chart and show some examples of
15:25that before we get into chapter 3. All
15:27right guys, so let's go into the chart
15:29now utilizing that same week we
15:31previously used but now zooming in a bit
15:34more and defining 4hour fractals for
15:37these protraction candles. Okay, so
15:39either delayed or classic protraction.
15:42So, let's start with this Friday. As you
15:44notice, we're going to have to now use
15:47multiple assets, right, in a triad to
15:49actually gain perspective of where these
15:51cracks and correlations and swing points
15:53are forming. So, you see I have both the
15:55NASDAQ and the YM up. And you'll also
15:58maybe see me pull up the ES if we need
16:00to. So, on this Friday, let's take a
16:02look at this daily candle here on Dow.
16:05We clearly have a delayed protraction
16:09profile. This is a reversal candle that
16:12forms a large opposing wick, meaning it
16:15is unlikely to expand through its open.
16:18So, let's define where this high is made
16:22from utilizing our 4hour um logic, our
16:25two-stage cracking correlation logic
16:28alongside this candle's development. So,
16:31you can see this delayed protraction
16:33candle opens high into the key level,
16:35which is the previous day's high. Now
16:38our first stage of SMT you can see forms
16:40with this range high on NASDAQ. So
16:44NASDAQ which formed a high up here is
16:47actually right forming this rather
16:49sneaky SMT with the Dow which takes out
16:52that same swing point. So that is the
16:54first stage of SMT. As we know we need
16:58to qualify the high with more than just
17:00a one-stage SMT. So, we're going to drop
17:02down into the lower timeframe fractals
17:05starting with the 4 hour to define that
17:07swing formation's high. I teach you guys
17:09how to do this in my YouTube video
17:11titled um I believe it's called
17:14profiling reversals. Don't quote me, but
17:16I'm almost certain that's what it's
17:17called. So, you can go back and check
17:19that as well.
17:21So you can see in here once we form this
17:24SMT with that previous week's high on
17:27the NASDAQ and the Dow, we want to
17:30confirm this swing point with a
17:32two-stage cracking correlation to
17:34confirm the high. As you can see on the
17:364 hour, there's nothing offered. So we
17:38can now drop down to the 1 hour. As we
17:40talked about in that profiling reversals
17:42lecture, nothing on the 1 hour. Let's
17:44try the 30 minute. Okay, here we go. We
17:48now can see we have this two-stage PSP
17:51that forms the high of this 4hour candle
17:55that is the reversal candle. So, as you
17:58can see, we're now using that idea of
18:00the 4hour C2 right in here at 10:00 a.m.
18:04being defined with that lower time frame
18:06swing formation of this two-stage
18:08cracking correlation before we expand
18:11away. Right? And as you can see, the
18:14daily open based on the wick size of
18:16this candle becomes a high probability
18:20draw on liquidity. And we don't
18:21necessarily want to trade towards the
18:23lows based on that wick size. So now
18:25we're combining our two-stage crack and
18:28correlation reversal logic with that
18:30daily candle profile being delayed
18:33protraction. So as you can see, our
18:36two-stage forms the reversal. And how
18:38could we get on side with this trade
18:40idea back to the daily open? Well, we'd
18:42want to see continuation. So, as you
18:44guys know, we now look for gaps away
18:47from the true reversal. So, this is our
18:50smart money reversal as we saw in our
18:52schematic earlier up in here. And I can
18:55mark it out on both assets. And now, we
18:57want to wait for some sort of gap fill
18:59sequence. As you can see, there's
19:01nothing too clear in terms of a gap fill
19:04sequence on the 15-minute chart near the
19:06reversal here. Maybe if we pan over to
19:08ES, we'll see something. Nope. There's
19:10no real clear gap fill sequence on this
19:13day. So realistically, if we don't trade
19:15the reversal here, right? If we don't
19:17involve ourselves in this 4hour candle
19:20at the reversal, then we're not going to
19:22be trading this day. But it is still
19:23interesting to see that despite a clean
19:26continuation signature not being
19:27offered, [snorts] we have a clean 4hour
19:30reversal framework, right? The high of
19:33this daily candle, like we talked about,
19:36is made from a two-stage Kraken
19:38correlation at the external range high.
19:41Two-stage Kraken correlation, right, at
19:43the external range high. This is
19:45actually an advanced premium and
19:47discount sequence. If you've seen that
19:49video of mine, so we're blending
19:50together multiple concepts. And the
19:524hour profile here shows 10:00 a.m. is a
19:55C2 and then we get this reversal into
19:58expansion candle, right? and the day
20:00closes back, you know, near its open as
20:02it should with that delayed protraction
20:04profile. So, let's get into the next day
20:08and let's play this out and then profile
20:10this candle. So, as you can see for this
20:12next day, we'll play out the entire
20:14candle.
20:16Let's play out the entire candle.
20:22Okay, it looks like this. Let's take a
20:24look at how these profiles form. So as
20:28you can see immediately we have some
20:30decoupling in this market. So let's take
20:33a look at each of these profiles
20:34independently.
20:36On the YM you can see we have a
20:39flatbodied open at 18800. So very small
20:41wick which supports a large body. And on
20:44NASDAQ you can see we have this delayed
20:47protraction type of candle. So this is
20:49where you'll see one asset in this case
20:52the NASDAQ offering a classic
20:54protraction and or sorry a delayed
20:57protraction my apologies and then YM
21:00offering a classic protraction. This is
21:02also decoupled. This is a downlo candle
21:04which closes a PSP. This an up close
21:07candle but you'll see how the profiles
21:09still form from our 4hour fractals of
21:12key levels that we've talked about. So
21:14you can see for 1,800 at the high of
21:16day, what do we form this from? Well, we
21:19have a gap
21:21on the NASDAQ right here.
21:24And let's take a look at how this first
21:26leg of expansion, right, presents itself
21:29from this 4hour gap here on the NASDAQ.
21:32What are we looking for? We're looking
21:34for some sort of two-stage SMT, right?
21:37So, we don't have an SMT fill or
21:39anything with this asset. We can check
21:41the S&P. Ah, there we go. right inside
21:45of our 4hour gap. We're forming the high
21:48of day with in fact a two-stage PSP. So
21:52that's a two-stage in of itself. We
21:55don't need to go any time frame lower.
21:57You could look, for example, for an
21:59entry on this CSD or gap all the way
22:02down to the range low. In fact, that
22:04would be a fantastic trade you could
22:06take to these failure swings, right?
22:08Given that profile. Now our job on this
22:11you know part of the lecture is not to
22:13go through entry techniques. We'll do
22:14that in a bit. But you can see here that
22:16is how the high of day is made from this
22:19previous day's range as a gap inside of
22:22it near EQ right in the upper or the
22:25lower half of the previous days range.
22:27You can see we have this gap and we're
22:28actually going to use from here to the
22:31wick because if we use all of this range
22:34it's unrealistic that we come all the
22:35way up here. We want to use the opening
22:36price to the low. You can see this 4hour
22:38gap is situated right near that
22:40equilibrium. That forms our two-stage
22:43divergence and then we expand lower. Now
22:46let's take a look at how NASDAQ actually
22:47forms its low then. So this is going to
22:50be a delayed protraction profile. Look,
22:52we trade back into the lows. We trade
22:55into the lows.
22:57Take a look at 1800. Okay, we're trading
22:59into the lows here. We have SMT
23:01established potentially with the Dow
23:03Jones.
23:06Yes. Right. We have SMT established at
23:08these lows down here with the Dow Jones
23:11as a failure swing. SMT and now NASDAQ
23:14is trading back into the range. Okay, so
23:16we're trading back into the range. What
23:18would we target? Well, based on this
23:20daily wick size, we know it's unlikely
23:23to support expansion through its open.
23:26So, in this case, we have a 4hour candle
23:28in here. Do we have a two-stage cracking
23:32correlation?
23:33Yes, we do. We get that right in here.
23:36As you can see,
23:39the 10 a.m. opens with a two-stage SMT,
23:44just like in the slides I showed you.
23:46This is going to be a strength switch
23:48where the asset that made the lower low
23:51then switches strengths, right, to make
23:54the higher low, forming SMT divergence.
23:57So, this is a two-stage strength switch
24:00SMT. And now we can look to trade back
24:02in towards this open, right? And again,
24:05the entry technique would simply be
24:07aligning yourself with a change in the
24:09state of delivery off of that two-stage
24:11SMT
24:12like this, right? Covering the lows and
24:16targeting the daily open as your draw on
24:19liquidity. As you know, you don't want
24:21to be targeting much beyond that simply
24:24because we have a large wick candle. So,
24:27we play this out. You can see price
24:28trades into the open and [snorts] notice
24:30how we fail to create a new high of day.
24:34So this would be your buy side liquidity
24:35or the current high of day. It struggles
24:38right to create that new high of day
24:41because as you can see it's a large wick
24:45candle. Okay. So this is very
24:47interesting with delayed protraction
24:49profiles and we'll later get into how to
24:51trade these. But this is a good
24:53observation you should be making about
24:55these types of large wick candles. They
24:58struggle to trade past their daily open.
25:00Okay. So that's a textbook example right
25:03there of how we're utilizing two-stage
25:05cracks and correlation to frame lows and
25:08highs of days using the wick as the
25:12manipulation area, the open high or the
25:14open low. And then the body is being
25:16created from these expansion candles,
25:18these C3s. Okay, so that's exactly what
25:21we talked about in the notes. And let's
25:22go into chapter three now. Okay, so now
25:26we're going to blend together the first
25:27two components of what you've learned.
25:29You're going to now be blending together
25:31the protraction profile with the 4hour
25:33key levels where highs and lows are made
25:35from. And we're going to be introducing
25:37sessions into this Asia, London, and New
25:40York. So let's hop right into it. First
25:43of all, let's first recap what classic
25:45protraction is. As you now know, a
25:48classic protraction candle is nothing
25:50more than a small wick manipulation
25:53phase candle with a large body. As we
25:56now saw, we have a fractal of this
26:00protraction profile. Classic protraction
26:02that looks like trading away from a
26:05defined swing point towards the other
26:07side of the range forming this expansion
26:10candle. And here you can see what the
26:1215minut, 30 minute or 1 hour might look
26:15like. You previously saw what those
26:174-hour candles look like. So now let's
26:20blend this logic into specific timing of
26:23reversals to better understand session
26:26dynamics i.e. which session is reversing
26:29and how can we trade that and then which
26:31sessions are continuation away from
26:33those reversals. So the first profile I
26:36want to introduce to you is Asia
26:38reversals. These are overnight reversals
26:41wherein we see the protraction phase of
26:44the daily candle i.e. the low of the day
26:47in a bullish protraction candle be
26:50created in the 4hour 1000 p.m. candle.
26:54It can also be created in the 4hour 6
26:57p.m. candle as a C2 closure. Here is a
27:00typical schematic of what that would
27:02look like. And then here is your lower
27:05time frame market maker model. As you
27:07can see, Asia reverses, London may
27:11consolidate or expand, and then New York
27:14continues the trend. So, this is going
27:16to be profile A1, Asia reversals. Here's
27:20what that might look like with the 4hour
27:22profile you previously learned in
27:24chapter 2. We might see the high of day
27:26formed from a range high with a
27:29two-stage Kraken correlation where you
27:31can see one asset and a correlated
27:33asset. For example, NASDAQ and the YM or
27:37gold and silver forming this two-stage
27:40reversal sequence inside of that 1,800
27:44candle or that 2200 candle. Either one
27:47of those on the 4hour can be considered
27:49your Asia reversals. This would be the
27:52case of an Asia reversal into expansion,
27:56which again, we're looking at that
27:58symmetry between the wick size and the
28:01body size. Notice that when we have a
28:03large wick reversal candle, such in the
28:05case of this Asia reversal, the next
28:08candle 2200 here expands. If we have a
28:12small wick that forms that two-stage
28:14cracking correlation at the high of day
28:16of the daily candle, then we can also
28:18anticipate that it itself might expand
28:21towards the draw on liquidity. Now,
28:24let's take a look at Asia continuations.
28:27These are seen when the 1400, the 2pm
28:31candle in the previous day reverses.
28:34This is what your general schematic
28:36would look like. We see a PM session
28:39reversal. So that is the protraction
28:42phase of the current daily candle
28:45occurring in the previous day's close.
28:49So when400 reverses 1,800 can expand
28:54which is the daily open. We typically
28:56see this with the uh FOMC driver on
29:00Wednesdays every once a month. You know
29:02the first or second uh Wednesday of the
29:04month I forget when FOMC is. And that is
29:06when the driver creates maybe the
29:07extreme and we see Asia open up as a C3.
29:11The general logic remains the same. Once
29:14that candle 2 formation with that Kraken
29:16correlation sequence has been
29:18established, we can trade continuations
29:20with our defined invalidations away from
29:24that lower high of day. So this is what
29:26it look like in a market maker model. We
29:28see the previous day reverse and then
29:301,800 expands. London consolidates for
29:34example and then New York expands. Okay,
29:36so this would be that Asia continuation
29:39profile. Here's what it looked like with
29:41your 4hour profiles that we've
29:43introduced. Now we see here we have 1400
29:46forming that two-stage PSP with a
29:48correlated asset, right? Forming that
29:50daily reversal and then the next day
29:53opening up as a C3 and expanding towards
29:57the opposing side of the range or the
29:58draw in liquidity. This is frequently
30:00seen with those FOMC days or those 2 PM
30:04manipulation drivers. Now, let's get
30:06into London profiles. The first is going
30:09to be a London reversal. And this is
30:12where typically you'll be able to frame
30:14swing trades for the daily range. That
30:16is when the protraction phase of the
30:19daily candle is defined by the 2 a.m.
30:234hour candle forming our reversal and
30:26then New York expanding away from that.
30:29If you look here with this AMD sequence
30:32or market maker model sequence, we have
30:34accumulation in Asia, manipulation of
30:36the Asian range and reversal inside of
30:39London and then expansion away from that
30:41low. As you know, there will be a
30:44two-stage cracking correlation on this
30:46extreme wick to establish the
30:48protraction phase has ended and then
30:50there will be expansion in these
30:52subsequent 4hour candles. This is what
30:55it's going to look like on your 4hour
30:56profiles, which you've learned. 2 am
30:59forming that two-stage SMT from a key
31:01level. Now, this can be on the 4 hour or
31:05in the case here, you can see this is
31:07not a two-stage SMT on the 4 hour. We
31:09can go into this candle and profile this
31:12reversal with a 30 minute, 1 hour, or
31:16even 15minut swing formation. If it is a
31:18strength switch, if that's confusing, go
31:20watch my previous masterclass videos. We
31:22get deep into the idea of profiling
31:24reversals as well. Here would be your
31:27London reversal into expansion. Similar
31:30phenomenon with wick size. If a we have
31:32a small wick reversal in London, that 2
31:34am candle itself can be an expansion
31:37candle. Whereas if we have a larger wick
31:39expans reversal candle, then we look for
31:41the subsequent 4hour session to expand,
31:44i.e. New York, right? 6:00 p.m. 10 or 6
31:48a.m. 10 a.m. So this just depends on the
31:50wick size as well. Finally, let's get
31:53into New York reversals. These are
31:55really driver paired reversals where we
31:58use things like red folder news, CPI,
32:01NFP, as well as the equities open at
32:049:30 to form that low or high of day
32:07from the 4hour swing either at 6:00 a.m.
32:10or 10:00 a.m. So here you can see this
32:12can be the 6 a.m. candle. It could also
32:14be the 10 a.m. candle. And again, that
32:16is when that daily protraction phase is
32:19formed in this 6 a.m. candle or 10 a.m.
32:22candle. We have Asia maybe consolidate
32:25London consolidate and then New York
32:27forms the swing and expands away. I.e.
32:30it can reverse into expansion or it can
32:33reverse and then expand in the next
32:35candle. Here's what those 4-hour
32:37profiles look like. Right? Two-stage PSP
32:39on the 4hour at 6 a.m. 10 a.m.
32:42expansion. Right? Or we have that 6 a.m.
32:45driver itself offer a small wick
32:47typically at the equities open into
32:50expansion itself. In this case here,
32:52this schematic, you can see the 4hour
32:55itself is a two-stage, right? We have
32:57PSP confirming an SMT. So, we can trade
33:00candle 3 here. In this case here, where
33:02we have this reversal to expansion, we
33:05would need to profile this low with a
33:08second stage cracking correlation to
33:10confirm it. You guys already are
33:12comfortable with doing that because I've
33:13shown you in previous lectures. So, this
33:15is going to capture all of chapter 3's
33:18lecture component. Let's hop into the
33:20chart and actually see how some of these
33:22profiles are forming and see how we
33:23could trade them. Okay, so let's start
33:26off by looking at the Asia continuation
33:29profile. This is where we see a PM
33:32session reversal as defined by this 2
33:35p.m. candle forming that C2 closure and
33:39then we see that 6 PM opens in
33:42continuation of the previous day's
33:44manipulation and expands towards our
33:46drawn liquidity. So in this case, as you
33:49look at the two daily candles, which I
33:52actually have right here, you look at
33:54these two daily candles, we actually
33:56don't form a swing point in this
33:59continuation C3 candle from a 4hour gap
34:03or a 1 hour order paired range. And that
34:06is because like we showed in the
34:08schematic, 1,800 is opening up after the
34:12reversal is confirmed. Okay. So, we have
34:15this 2pm reversal right in here. And
34:18then 1,800 is opening up as a C3 itself
34:22because it is confirming the two-stage,
34:24which you're going to see is with the
34:25correlated asset here in the Dow Jones
34:29right here. Okay. We're actually able to
34:31trade this as an expansion higher,
34:33right? Right off of that open. This is
34:36where we typically see those one-sided
34:38to Asian sessions, right? Look at this
34:40one-sided a bit of accumulation. And
34:42then of course we're going to be offered
34:44gaps for entries, right? So maybe we
34:47have an expansion away. We're waiting
34:49for a fair value gap of some sort. We're
34:51going to use some sort of SMT sequence.
34:53So now we have our reversal confirmed.
34:55Let's use an hourly gap right at the
34:57equities open right here. Here we go.
35:00The market offers you a nice little
35:01reaccumulation in here with an SMT of
35:04the range low like we've talked about in
35:07previous lectures, right? We have this
35:09SMT, okay? and then price expands
35:12towards the high. Now, we're not going
35:13to be focusing on entries in this
35:15lecture just because we don't want it to
35:16be too long, but this is a very classic
35:18and really textbook example really of a
35:21Asia continuation and that is when the
35:23previous days PM session reverses. So,
35:26now let's look at a New York reversal
35:29potentially. Okay, so we're moving from
35:31an Asia continuation into a New York
35:35reversal. We're going to do it in kind
35:36of a mixed order so you guys can take
35:38some notes. So for the New York
35:40reversal, you can see this is largely
35:42going to be driver paired. We're marking
35:44out an SMT formation that forms right
35:48here with this current low of day. Not
35:52only is this an SMT, we can also go into
35:54a lower time frame, right? And we can
35:57define some sort of sequence. Okay, so
35:59we have an SMT and an advanced premium
36:02and discount sequence formed from a gap.
36:05As you can see right here at 9:30, this
36:07is that gap continuation sequence away
36:10from the low of day. We need a one-stage
36:12divergence. It looks like this. And then
36:15we can take an entry towards this drawn
36:17liquidity. So that would be an example
36:19of your New York reversal. Typically
36:22driver paired as well. Asia and London
36:25consolidate that equities open in that 6
36:28a.m. 4hour candle forms the low of the
36:31day. Let's take a look at an Asia
36:33reversal next. Okay, so this is your
36:36classic high of day made from the 1,800,
36:406pm, or 2200 candles. So, in this Asia
36:43reversal here, we have quite a bit going
36:45on, but you can see we have a sell model
36:48in play, right? We have this swing point
36:51created up in here. We have price
36:53expanding into this low, failing to
36:57manipulate it. And how do we know it's
36:58failing to manipulate it? Well, we go
37:00down to the lower time frame and we
37:01observe this consolidation signature.
37:04Therefore, we know that we're likely to
37:06make a new low. Now, we're going to pair
37:08this. I've already marked up the chart,
37:10but we're going to pair this high of day
37:11right here with this two-stage PSP that
37:15forms. Okay? Looks like this where YM
37:20forms this two-stage SMT that is also a
37:24two-stage PSP. It looks like this on the
37:26NASDAQ. Right? I've already made the
37:27liberty of marking this out for us. And
37:29this is forming the high of the 4hour
37:32candle at 6 PM and then 10 p.m.
37:34continues lower. Right? So how can we
37:37get on side with this 4hour candle?
37:39Well, we'd look for a gap sequence.
37:41Right? So you have this two-stage
37:44forming the high of day. Now you can
37:45choose to trade at the reversal. This
37:48will be uh a fee master class part one.
37:52Or you can choose to engage in the
37:54continuation which is part two. So now
37:57we're combining profiles and our
37:58reversal and continuation sequences. As
38:01you can see, price has this sellside
38:03liquidity. We also have these failure
38:06swings in the market that look like
38:07this.
38:09So we want to be targeting these lows.
38:11This is the previous daily low and then
38:13of course that sellside liquidity. Now
38:15how do we get involved? Well, we wait
38:17for this candle to close C2. Remember,
38:21this candle's extreme is made from our
38:24two-stage Kraken correlation, and then
38:27we have expansion away. So, how are we
38:30going to refine that level? Well, we're
38:31going to look for a gap in the upper
38:33half of this candle's range. Okay? So,
38:36we're looking at this. As you can see,
38:38we or the lower half, sorry. We have a
38:40fair value gap that exists here on the
38:43Dow Jones, and that is where we get this
38:46SMT fill sequence. As you can see right
38:49in here, there we go. We have a refined
38:52key level. Now, we simply need a
38:54one-stage Kraken correlation paired with
38:57a CISD. We get that right here. And our
39:01CISD is a nice V-shaped signature and we
39:05can target the low. And I actually took
39:07this trade live um in my community a
39:09couple weeks ago. This was at the end of
39:11August, right? We took this in London
39:12session or at least we called it out in
39:14London session. A very, very nice
39:16framework to get down to that low. Okay.
39:18So, that right there is your Asia
39:21reversal. So, now we've gone through the
39:23Asia reversal. We've gone through an
39:25Asia continuation, right? Where we open
39:27up and we trade away from 2 PM's low.
39:29We've done a New York reversal, which is
39:32driver paired typically. Right now,
39:35let's talk about the last profile which
39:37I introduced to you, which is going to
39:38be a London reversal. So, I've annotated
39:41my chart for you here. You can see we
39:43have everything nicely laid out on the
39:45daily chart. You can see we are forming
39:49this swing right in here. Okay, from an
39:52order paired range, we have a
39:53consolidation. We have the high. We have
39:55daily SMT. Now, how are we confirming
39:58the high of that daily candle? Well,
40:00we're going to zoom down. We're going to
40:02use our two-stage crack and correlation
40:04aligned with a 4hour profile right here
40:06at 2 a.m. So, London offers us the
40:09reversal candle. Then, we have the
40:11subsequent session expanding, which is a
40:14New York continuation, right? All right.
40:16So if you look at this, there's various
40:18ways to engage market here. Okay?
40:20Whether you want to trade at the
40:21reversal or you want to trade in
40:23continuation. Both are offered two-stage
40:25at the reversal. So this is your master
40:28class series one again. Masterass part
40:30one reversal and then this is your
40:33continuation sequence which forms the
40:36next day. Okay. So that's how we trade
40:38continuation. So let's look at how that
40:40next day forms inside of this Asia
40:43reversal the next day. case you could
40:44trade the New York continuation inside
40:46the 6 a.m. candle obviously and that can
40:48be maybe your homework going in and
40:49annotating how you would get on side
40:51with the reversal, how you would get on
40:53side with the continuation. Refer back
40:55to the previous lectures I've given you.
40:56Now the next day you can see price opens
40:59up and this is where if we show two
41:01candles here we are continuing off the
41:03previous day's range. So we have a
41:05refined key level. We can really use the
41:07opening price here and let's extend that
41:10out. Okay, so here is that fair value
41:12gap in the lower half of the previous
41:14day's range to form its wick. So this is
41:18the protraction phase
41:21like we talked about just like this here
41:23is the protraction phase like we talked
41:25about. Okay, which corresponds to a
41:27London reversal and this is going to be
41:29an Asia reversal. And as you can see,
41:32Asia opens up into a 4hour fair value
41:35gap. Remember we talked about what key
41:37levels really form highs and lows. In
41:39this case, it's a greater than 1 hour
41:43order paired range, right? In fact, it's
41:46the previous day high. So that's a
41:48external range high being paired. In
41:50this case, we have a continuation from
41:52an H4 gap inside the previous day's
41:56range. Okay, so these are two types of
41:59continuations. This is a reversal and
42:03this is going to be a type one
42:04continuation
42:06from a gap. Okay. So, very very textbook
42:09example here. We form the high with a
42:12precision swing point in the gap. Right?
42:15Now, what we can go down to a lower time
42:16frame and do is profile that reversal.
42:19We have a one stage, right? On the
42:22hourly, 30 minute or 15-inut time frame.
42:25We may find we have a two-stage. In this
42:27case, I do not see any sort of two-stage
42:29on the hourly.
42:32I do not see any sort of two-stage on
42:34the 30 minute actually. So in this case,
42:36I would avoid trading the reversal,
42:38right? The only minimum time frame I
42:40could use is a 15minute if there was a
42:42strength switch of some sort. But I
42:44don't see any sort of SMT sequence. So
42:46we simply avoid trading this 4hour
42:50reversal candle, the Asia reversal.
42:52Instead, we position oursel inside of
42:54the expansions that follow. And we're
42:57going to be framing these from gaps,
42:58right? So look at the next day. We have
43:00SMT break of this low, right? We see
43:03that the YM comes in and has tagged this
43:06low already
43:08and has tagged out the range low which
43:10is the same corresponding low all the
43:12way up here. And we look for a
43:13continuation sequence. You can see this
43:15forms in this new 4hour candle at six.
43:19Right? So 2 a.m. retraces into a gap,
43:23right? Then we expand away. Now we're
43:26looking to see if the equities open
43:27gives us an entry. As you'll notice,
43:30right, we have a gap sequence in here.
43:34Now, let's see if the S&P also hits this
43:36gap or we have an SMT fill because this
43:39would be a great location for us to look
43:41for that entry in continuation, right?
43:43So, ES or YM and NASDAQ both taggy. What
43:46about the S&P?
43:48As you can see, we get our gap sequence
43:50here with the SM with the SMT with the
43:52ES. So, now we can look to align
43:55ourselves for entry, right? Which is
43:57very nice. This is a strength switch. If
43:59you guys have seen my strength switching
44:01universal frameworks, you see the ES
44:03comes into this low right here or sorry,
44:07the the YM comes into this low down
44:10here. Okay, all assets leave the failure
44:13swing. YM has this range and then you
44:14can see NASDAQ and the ES are using this
44:17gap to get down to break the low. Right,
44:19there is that five minute CSD or
44:21whatever you want to use to follow this.
44:22We would actually want to get involved a
44:24little bit higher in this range, right?
44:26to break this SMT.
44:29Okay, so once this sequence kind of
44:31forms like this, right, we can get
44:33involved somewhere in here. Again, the
44:35lower time frame entries are not the
44:37most important thing. What we're really
44:38truly focused on, guys, is getting
44:40involved, right, with where high of day
44:43is, understanding and and being able to
44:45anticipate continuations away from those
44:48highs of days and lows of days. So this
44:50is a great example here of a London
44:51reversal in the previous day, New York
44:53continuation, Asia reversal, New York
44:55continuation, London consolidation. So
44:58let's get into the fourth chapter of
45:00this lecture which is going to be
45:01talking about delayed protraction. Okay,
45:04let's get into the final chapter of this
45:05lecture which is going to be a bit more
45:07complex and on the topic of delayed
45:09protraction. So what we're going to be
45:11doing is looking at these larger wick
45:13session profiles. And what I implore you
45:15to do is look beyond the patterns and
45:17seek the logic that I'm trying to teach
45:19you. There's a very big difference
45:21between being able to recognize a
45:23certain type of candle and then actively
45:25being able to trade that candle as it
45:27develops. That is why I spend a lot of
45:29time with my own students in Lis
45:31emphasizing the logic and the sequences
45:34that go behind these profiles so that we
45:36can see them in real time and trade them
45:38in real time. So let's take a look at
45:40what these look like. As you now
45:42understand, there is a difference
45:44between the expansion expectation for a
45:47candle with the small wick and the
45:48expansion expectation for a candle with
45:51a larger wick. What we want to do,
45:55my apologies, when trading delayed
45:57protraction is recognize that moves
46:00beyond the opening price or deviations
46:03above and below the opening price are
46:06going to look extremely specific with
46:08this profile. And there's actually three
46:10ways we can trade this candle knowing
46:13that it will not support expansion. I'm
46:16going to show you frameworks for each of
46:18these three types of trades you can take
46:21with a delayed protraction profile. As
46:23you'll notice, they all correlate to a
46:26phase of price intracandle. That is to
46:29say, you can trade reversals to the
46:33opening price of large wick candles. You
46:35can trade retracements away from the
46:38opening price of large wick candles back
46:41into the wick. And finally, you can
46:44trade these large wick candles as
46:46consolidation specifically when it comes
46:49to seek and destroy profiles. So, what
46:51we're going to do is we're going to look
46:52at some framework for approaching these
46:54large wick candles in each of these
46:57phases of intraday price. The first
47:00thing we need to do though is establish
47:02what an extreme is and if we can trust
47:06it. We're going to do this through a
47:08very simple logic. When you see this red
47:11line that denotes an established
47:14extreme, that means it is formed from a
47:17two-stage Kraken correlation with an
47:19associated lower timeframe swing. We've
47:23used 4hour charts in our examples today
47:25and for our analysis. So when we talk
47:28about established extremes, i.e. the low
47:31or high of these delayed protraction
47:33candles, we really mean is there a
47:36two-stage cracking correlation on a C2
47:38or C3 fractal that we have defined that
47:41form the low or the high of this range.
47:44Okay? And we're going to be trading away
47:46from the uh unestablished ranges towards
47:49uh or sorry, we're going to be trading
47:50away from the established ranges towards
47:52the unestablished range. Okay? So how
47:55does this look? Let's look at the first
47:57case where we're trading an intraday
47:59reversal back to 1,800. This might
48:02happen when we see price open form a low
48:05of day that is unestablished, meaning
48:08there is no two-stage crack in
48:09correlation or associated swing
48:11formation there. Then trade away from
48:15the opening price towards a draw on
48:17liquidity. Trade into that draw in
48:19liquidity and then form this very large
48:21wick. This blue box you're noting here
48:24is the opportunity for us to trade. We
48:27have an established high that forms with
48:29a two-stage SMT, and we want to be
48:31trading back as a reversal to the
48:33opening price, potentially even to the
48:36unestablished current low of the day.
48:40What we don't want to do, however, is
48:42trade this as an expansion candle.
48:44Meaning, we don't want to trade this
48:46candle flipping through its open,
48:48expanding deeper into the range lower.
48:51We are filtering out a large body via
48:54this wick and therefore we trade
48:57reversal from the established high or
49:00low in the case of a bearish candle back
49:02to the open. These are when you'll see
49:04SMTs typically form with the current low
49:07of day and that's going to bring us into
49:09the second case which is trading a
49:12retracement back into the range once
49:15we've established you know the high and
49:17low. So take for example that first
49:19case. We have an established high that
49:21we form right in here and then we
49:23reverse back into the current low of day
49:26forming SMT with a correlated asset.
49:29Well then because we know that price is
49:32unlikely to expand through its open
49:35based on that large wick, we can now
49:37look to trade a retracement back into
49:40the range. The universal model here is
49:42going to be external range liquidity to
49:45internal range liquidity. i.e. a
49:48retracement.
49:50For the first case, the universal model
49:52is going to be external range liquidity
49:54to external range liquidity or to the
49:56open which is a reversal phase of price.
50:00Finally, we can take a look at when we
50:02have established highs and lows or
50:05unestablished highs and lows rather in
50:07the case of a seek and destroy profile.
50:09So this will happen very similar to the
50:11first case where we open, we do not
50:14create an established low, then we trade
50:17into a failure swing high to the draw on
50:20liquidity. We form an established low
50:23and then we draw into that high. What
50:26you're going to notice this looks like,
50:27you can even see it on this is we open
50:30high leaving an objective, then we trade
50:32back into the low creating that
50:35broadening formation or that seek and
50:38destroy formation. and then we trade to
50:40that high. This is going to be an
50:43example of a seek and destroy profile
50:45and a consolidation
50:47phase of price. So, what I want you to
50:49pay attention to is not just the large
50:52wick, but also the phase of price
50:55associated with each of these specific
50:59trading frameworks. For framework one,
51:02we are trading a reversal away from a
51:05high that would form that large wick
51:07towards the opening price of the daily
51:09candle. For case two, we are trading a
51:12retracement back into the range once
51:16we've established both a high and a low
51:19for this large wick candle. Essentially,
51:21we're trading the body closure of this
51:25large weight candle. Finally, we have a
51:28more seek and destroy and consolidation
51:30profile where we are targeting an
51:32unestablished level from an established
51:35level. However, we are ranging. We are
51:37not anticipating price to expand beyond
51:40the highs or expand beyond the lows
51:42based on the wick size and the profile,
51:45right? Open high, failure swings, then
51:48trade into lows, creating a new low, and
51:51then create a new high. You'll see when
51:53we get into the charts how this is a
51:54very characteristic seek and destroy
51:56behavior. Okay. So, now that we've
51:59understood kind of the delayed
52:00protraction profiles that we can trade,
52:03let's take a look at how we're going to
52:04use quarterly theory to time delayed
52:07protraction. And you've seen me do this
52:09in some of my trades, and I really want
52:11to make this crystal clear for you guys.
52:13So, let me know if you have any
52:14questions below in the comments, and
52:16I'll try my best to answer them as fast
52:17as possible. In using quarterly theory
52:20to time delayed protraction, we are
52:22actually taking advantage of the fact
52:25that this large wick on the 4hour chart
52:30is formed through the body of a new
52:336-hour open. I'm going to say this
52:35again. When we use quarterly theory,
52:38i.e. the 6-hour and the 90minute charts
52:42is when there is a delayed protraction
52:45of a 4hour candle. So, if I am bullish
52:49and 6 a.m. forms a New York reversal,
52:53well, then we're based on our profiles,
52:55we're expecting 10 a.m. to expand,
52:57right? This is a New York reversal. If
52:5910 a.m. opens low, however, with a large
53:02wick, we know that this candle itself is
53:05a delayed protraction candle, meaning
53:08it's not likely to expand through its
53:09open. So, what do we instead do? We wait
53:13for this 6 a.m. candle to close right
53:16off of its high, which is you're seeing
53:18this 10 a.m. large wick. This 6-hour
53:21wick here is that 10 a.m. large wick
53:23here. The new 6-hour open at 12:00 p.m.
53:27is going to encapsulate the the wick
53:29that you're seeing being formed on the 4
53:31hour and give you expansion, okay, from
53:3412:00 p.m. to 6 p.m. into that new 4hour
53:37open. So you might ask yourself, well if
53:40why wouldn't I just wait for the new
53:424hour to open? And this comes down to
53:45where the reversal forms and the range.
53:48If the reversal, as you can see on the
53:50right hand side here, forms at 6 a.m.
53:52You want to be involved early on in this
53:56range. You want to be involved in
53:57discount of this range. You don't want
53:59to long all the way up here in deep,
54:01deep premium when 2 p.m. opens. So,
54:04you're taking advantage of the fact that
54:0610:00 a.m. is offering a deep
54:08retracement. You're saying, "Where can I
54:12deep retracement ending?" That is going
54:14to be when the new 6-h hour opens at 12
54:17p.m. at Q4, where then you can take
54:19advantage of positioning yourself inside
54:23of this 4hour wick and then allowing
54:25yourself to be involved in the expansion
54:27of this 6-hour candle. It's a very
54:30powerful concept. We're going to get
54:31into it with some chart examples in just
54:33a few minutes. This is the example of a
54:35bearish case. The same thing, right? If
54:37we form our high of day with a New York
54:40reversal potentially at 6:00 a.m. and
54:42then 10 opens high with this large wick,
54:45we're going to be using that Q4 12 p.m.
54:48to get back on side with the expansion
54:51of price inside of this larger body. A
54:54very powerful concept I don't think has
54:56been taught very well so far. So, how do
54:58we use this with the 90minute? Well, for
55:0110:30 distributions, we use the exact
55:04same logic, but with the 1 hour and
55:0690minut chart. So, if 9:00 a.m. forms
55:09that reversal, and then we see 10:00
55:12a.m. open low with a very large wick.
55:15Typically speaking, we can use 10:30 to
55:18realign price and get on side. So,
55:20what's the difference between using
55:22waiting for 12:00 p.m. and waiting for
55:2410:30? It really comes down to the size
55:27of this 10:00 a.m. wick and when it
55:30reverses. So, in the case of waiting for
55:3312 p.m., what we're going to see is that
55:35this exaggerated move lower might take,
55:38you know, several hours to protract
55:41lower and then 12 p.m. opens up in a
55:43swing formation and we expand. Whereas,
55:45in the case where we're using the
55:4790-minute chart, we may only manipulate,
55:49you know, from 10 to 10:30, right? 10
55:52a.m. opens with a large wick, but it
55:54happens very quickly where 10:30 then is
55:56expanding already. That's when we don't
55:58want to wait for 12. We want to get
56:00involved before, you know, the 10 a.m.
56:02candle flips its open. So, when you wait
56:04for 10:30 versus 12 largely depends on
56:08the key levels associated with this
56:10protraction phase and also when we are
56:13reversing, right? If we're reversing
56:14early in that 10 a.m. candle or if we're
56:17reversing later in that 10 a.m. candle,
56:19we'll prefer noon. Okay? and we'll look
56:21at some examples so you'll get some more
56:23insights into how that works. Finally,
56:25let's take a look at this on the bearish
56:27case, right? If we are bearish, we form
56:29a reversal and then 10 a.m. opens with
56:32that large wick. We can often get on
56:34side at 10:30, right? And you're going
56:36to see on the side here, we have that
56:38CSD sequence at 10:30, which confirms
56:41the swing formation to get on side to
56:43our draw, right? As this 10:30 90m
56:45minute candle is expanding and we had a
56:47large hourly wick. Now, coincidentally,
56:50as you can tell here, we can probably do
56:52the same for the inverse. So, everything
56:54I've taught you right now about 4hour
56:56and 6-hour candles can be reversed. If
56:59we have a large 6-hour wick, we can use
57:02a new 4hour open to get on side. If we
57:04have a large
57:0690minut wick, we can use a new 1 hour to
57:09get on side. These things are
57:11interchangeable, and it's simply about
57:13timing these large wicks. So before we
57:16go any further into this kind of logic,
57:18if you have any questions, put them in
57:20the description below or in the in the I
57:23guess chat below and I'm going to try
57:24and answer them. But let's get into the
57:26chart now and finally round out this
57:28analysis with some examples. Okay, so
57:31this first example, we're going to be
57:33profiling a delayed protraction candle.
57:37As you can see here, this candle opens
57:40low engaging a key level in the market,
57:44sellside liquidity. Now, we also want to
57:46say where do reversal candles form? Do
57:49they form from failure swings or
57:51relevant swings? Well, if we looked at
57:53the spacing to the next low, we can say
57:56that this low is sufficiently spaced out
57:59enough from this low that we could form
58:01that large wick reversal candle here. So
58:04now we're zooming inside of this candle
58:06with the expectation that it will not
58:08expand through its open. That's what
58:10delayed protraction gives us as a tool.
58:13So when we go down to this candle, you
58:15can see what we have is a 2 a.m.
58:18reversal here, right? Or and or sorry a
58:216 a.m. reversal that trades back into
58:23the opening price. Now once we trade
58:25back into the opening price, we know
58:28that these candles are unlikely to
58:31expand. We know that these large wick
58:35reversal candles like you're seeing here
58:36on the daily is not going to flip its
58:38open and expand. So we can now trade
58:42this delayed protraction idea by either
58:45a trading like we talked about
58:47previously case two where we trade from
58:50the open back into the range. We can
58:53also therefore trade any deviations back
58:56into the range towards the open because
58:58this is more or less a consolidation
59:00candle with a large wick. So take a look
59:02at what happens here. We have an example
59:04of both types of trade ideas forming. No
59:06matter what type of trader you are, if
59:07you want to trade the retracement right
59:10back into the range or you want to trade
59:12towards the open again, both exist for
59:14you. So if we play out this next 4hour
59:17candle. So if you see, you can trade
59:20this phase of price back into the range
59:22understanding that we've now made a low.
59:25We've traded back into the open and
59:27we're unlikely to expand. So there is a
59:29body that will come as a retracement
59:30into here. Or in the case of me, what I
59:33traded this day was actually trading
59:34back towards 1,800. So when we formed
59:37this very large wick candle at 10:00
59:39a.m., I know that this is a delayed
59:42protraction of this candle as well. How
59:45do I get on side with that? A new 6-hour
59:48expansion candle. So look at this is
59:50very cool. And this was a trade I
59:52actually took live as well. So if you
59:54guys remember uh in my server, if you
59:55took this with me, it's a fantastic
59:57trade, right? So, we see that the phase
59:59of price from 6:00 a.m. to 12 where this
1:00:03candle closes was exactly like case 2,
1:00:06which we showed you in the slides. Go
1:00:07back to the slides if you're curious. We
1:00:10have this retracement off the daily open
1:00:12back into the range. Now, once we form
1:00:15this retracement, you can see we have a
1:00:18two-stage reversal forming at the lows
1:00:22at a key level, right? The sellside
1:00:23liquidity. So, we can now trade this
1:00:25candle after this reversal sequence
1:00:28forms following this asset retracing
1:00:30this asset forming a reversal, right? 12
1:00:33p.m. open back into the range. So, now
1:00:35I'm trading this candle to its open once
1:00:38again. Look at how 12 p.m. is giving me
1:00:41this realignment of the large 4hour
1:00:45wick. I'm getting a new 6-hour open. I
1:00:48have a reversal sequence. So, what am I
1:00:50looking for in here? If you guys know uh
1:00:52from master class series 2, we're
1:00:54looking for a gap sequence in
1:00:56continuation with a one-stage crack and
1:00:58correlation, right? Because this is our
1:01:01true reversal. And then the profile is
1:01:05delayed protraction.
1:01:08So we want to target the open. So we
1:01:11have everything we need to take this
1:01:13trade. Okay. Now, what we're going to
1:01:15look for is a gap sequence in
1:01:17continuation from retracement into
1:01:19expansion right back to the open. Let's
1:01:22go down time frame here and let's
1:01:24actually look at the 90minute candles
1:01:26because we have a pretty nice key level
1:01:28here on our 90-minute chart. So, on the
1:01:3190-minute chart, if you see, we actually
1:01:33form this reversal where we can target
1:01:36back to the open with this very nice
1:01:39spaced out SMT. And again, you guys have
1:01:41studied my content. This is an advanced
1:01:43premium and discount concept. The low of
1:01:46this candle in continuation is being
1:01:49made from an SMT with the range low in a
1:01:52gap. Perfect. That is our continuation
1:01:54sequence that we want to see. Now look
1:01:56at how 12 p.m. recynchronizes the time
1:02:00of expansion. Look, the large 4hour wick
1:02:03that we are observing on this 4hour
1:02:06chart is very well timed by that 6-hour
1:02:09open. So, this large wick, when does
1:02:11this wick get created? It's with that
1:02:146-hour open right at 12. And we're
1:02:16seeing that here with our universal
1:02:18sequence of continuation. All we need to
1:02:20do is involve ourselves with a change in
1:02:23the state of delivery. Look at this.
1:02:25Boom. We get a very nice CISD. We put
1:02:28our stop loss at the low. And what can
1:02:30we target? Well, as you know, we want to
1:02:32target the open. And in this case,
1:02:35because we have this failure swing
1:02:37signature right at the open. Look how
1:02:40these highs are a failure to the open,
1:02:42we can actually target the current high
1:02:45of day or buy side liquidity. Or if you
1:02:47want to be very very conservative, you
1:02:49can simply target the opening price.
1:02:52There you go. We've expansion towards
1:02:54that high. Now, say you missed that 12
1:02:57p.m. RI uh continuation. Well, as you
1:03:00know, we are now on side with the
1:03:02profile. So, we know that this six-hour
1:03:04candle is likely to be an expansion
1:03:06candle, right, towards the high. So,
1:03:08what we want to do is we want to look to
1:03:10see if there's any sort of gap
1:03:12continuations inside of this candle. And
1:03:15as you can see, we have another
1:03:17opportunity to get involved with this
1:03:19SMT fill. Okay. So if you see if this is
1:03:22the draw on liquidity right here, the
1:03:24open or maybe the buy side, we actually
1:03:27have this SMT fill sequence right here
1:03:30on the Dow Jones and NASDAQ right near
1:03:33EQ of this range and we can get involved
1:03:36with a one minute CISD pattern. Right?
1:03:39This is your entry signature. You can
1:03:42take a long here, put your stop loss at
1:03:45the SMT fill and again target the open.
1:03:47And if you want to be aggressive, you
1:03:49can target that buyside liquidity. Both
1:03:51are phenomenal trades. So that is a very
1:03:54good example of utilizing both the
1:03:56delayed protraction of a daily candle,
1:03:59which looks like this,
1:04:01with the delayed protraction of a 4hour
1:04:04candle. Getting on side with that 6-hour
1:04:07distribution. So you're combining a
1:04:08couple of unique concepts there. This is
1:04:10a really good case study for your notes.
1:04:12Um, so keep this one in your back
1:04:14pocket. Now let's get into a case of
1:04:17some seek and destroy. So this is going
1:04:18to be that case three. As we know from
1:04:22this daily candle, right? Let's look at
1:04:24the phase of price. We are reversing off
1:04:27of a low. Look at the range low that
1:04:30we're reversing off of. Here we have
1:04:32this SMT, this C2 candle
1:04:36right here
1:04:38is formed. Okay. So we have a
1:04:40continuation candle and the phase of
1:04:42price that we are observing on our
1:04:44NASDAQ is consolidation. So because cons
1:04:48and this is again that consolidation
1:04:50profile that we're talking about because
1:04:52we are trading that seek and destroy. We
1:04:54know that's a continuation pattern and
1:04:56what we can actually end up observing is
1:04:59that we have a failure swing here. So
1:05:01when this candle opens up, what do we
1:05:03immediately notice it does? it opens and
1:05:06doesn't create a swing point to expand
1:05:09from. Right? There's no 4hour swing. So,
1:05:11this is an unestablished
1:05:14low of the day. Notice how it's
1:05:16unestablished. Look at the S&P.
1:05:19We are unestablished. We have no swing
1:05:21formation here. That's immediately
1:05:23tipping us off that this move higher
1:05:24might be delayed protraction. We're
1:05:27opening high to maybe reverse off that
1:05:29SMT break. Then we come back in the
1:05:32range.
1:05:34Let's play out these candles a little
1:05:36bit faster.
1:05:38Let's play it out to the New York
1:05:39session when we open.
1:05:41So, as you can see, 10 p.m. comes back
1:05:44into the range. Now, we're asking
1:05:45ourselves, are we going to continue to
1:05:47trade higher to eventually, you know,
1:05:49hit that draw on liquidity? I'm going to
1:05:50have to use my replay function once
1:05:52again because my computer, I think, is
1:05:54lagging out a little bit. Okay, perfect.
1:05:57So, we're going to ask ourselves here,
1:05:58are we going to be trading, you know,
1:06:00towards this high? But look, we open
1:06:02high. We have no established low or
1:06:04high. We put in failure swings at the
1:06:07highs. Failure swings.
1:06:11That's not what I want to do. My
1:06:13apologies, guys. I'm trying to back test
1:06:14actively with you guys. I'm doing this
1:06:16example for the first time. So, we put
1:06:18in failure swings here.
1:06:21Okay. To the high. And you can see we
1:06:23don't have an established low of day.
1:06:25This is unestablished low of day.
1:06:28So, what we are actually doing is
1:06:30creating a range. And now what we'll
1:06:32notice we can do
1:06:34once we fast forward a little bit in
1:06:36time.
1:06:38If we fast forward this asset to
1:06:43here, you'll see we end up taking out I
1:06:46don't this is I apologize guys. This
1:06:48example is a bit chopped.
1:06:50I only do them in one take though, so
1:06:52you have to bear with me. So you see we
1:06:53end up creating these failure swings.
1:06:55Then what do we do in this 10 a.m.
1:06:57candle? We actually end up taking out
1:07:00the low first. As you'll see here, we
1:07:03end up taking out our low first,
1:07:05creating an established low of day with
1:07:08a PSP sequence. So, in here, I want you
1:07:13to pay attention to how we get to the
1:07:15SMT break. We come into our low,
1:07:20which is was unestablished, and we form
1:07:22this two-stage precision swing point
1:07:25like this. So now we have a low of day
1:07:30that has become established. Okay. So
1:07:33now we're trading this consolidation
1:07:35profile. Remember large wick daily
1:07:37candle on either side right now. Right?
1:07:39We open high with failure swings and we
1:07:42open low or we come low. We create the
1:07:44un the established low of day and now
1:07:46we're trading the continuation signature
1:07:48higher. Right? That consolidation
1:07:49profile. And you can see here this is
1:07:52how we can trade that as well. We have
1:07:54that two-stage PSP. Also, you're going
1:07:56to notice something interesting about
1:07:57quarterly theory here, right? Look, we
1:07:59have a fairly large 1 hour candle wick
1:08:03at this point in time, right? And look
1:08:06at the 90-minute, a very large 90-minute
1:08:09wick. So, we're getting on side at 10:30
1:08:12with that expansion of this hourly
1:08:13candle, right? And look at how that
1:08:15prints right into right that two-stage
1:08:18PSP forms right in here, guys. Look at
1:08:2010:30's open. That's where we take
1:08:22entry. Boom. Right. We're opening up at
1:08:25the CSD. We're targeting the SMT break.
1:08:28And again, based on the profile, I also
1:08:30took this trade live, which is awesome.
1:08:32But based on the profile of this daily
1:08:34candle, we know we shouldn't anticipate,
1:08:36you know, expansion through the highs or
1:08:38lows. We have this very obvious
1:08:40broadening formation. So, what does
1:08:42price end up doing? It creates this
1:08:45established low. It creates an
1:08:47established high. And then it trades
1:08:49back in the range. Look, creating a new
1:08:52low. Okay, so we are seeing right
1:08:55unestablished lows become two- stage,
1:08:59two- stage, two- stage. So what we're
1:09:01doing is we're creating a broadening
1:09:04formation of price and this is a delayed
1:09:06protraction candle. As you can see on
1:09:07the daily chart where we form that
1:09:09larger wick reversal where the profile
1:09:11itself does not support necessarily
1:09:13large amounts of expansion. So in this
1:09:15case, even though we're bullish on the
1:09:17day, we filter out expansion through the
1:09:20high based on that broadening
1:09:22information. And I actually have a bit
1:09:23more information on my YouTube on how to
1:09:25trade this sequence specifically, but I
1:09:27really want you to take notes on how we
1:09:29can determine a lot about the daily
1:09:32expectation based on how we open at
1:09:341,800. Right? In this case, we do not
1:09:36create the low of day that's established
1:09:38as a 4hour swing. We have failure swings
1:09:41down here and we have failure swings up
1:09:42here. What does price end up doing? it
1:09:44takes out both sides of those failure
1:09:46swings and fails to really expand on
1:09:48either side of the market. Okay, so I
1:09:50hope you found that portion of this uh
1:09:52lecture very helpful and yeah, I'll see
1:09:54you guys in the next video. The last
1:09:57example I want to leave you guys with is
1:09:59combining our profiles with delayed
1:10:02protraction of this 10 a.m. candle again
1:10:05to give you a good insight into how we
1:10:06blend quarterly theory with daily
1:10:08profiles. So, as you can see in this
1:10:10day, we have a very nice example. What
1:10:13we have is a daily continuation candle.
1:10:17We form a reversal at the highs. And I'm
1:10:20going to ask you to do on your own a
1:10:22little understanding check to show me
1:10:24how you know this is a reversal. Look at
1:10:26both correlated assets, YM and NASDAQ
1:10:30and tell me why this is a reversal at
1:10:32the highs. Then what you see is price
1:10:34expanding away towards sellside
1:10:37liquidity. This is going to be the
1:10:39previous monthly candles low. So, we're
1:10:42trading back into this inefficiency. As
1:10:45you can see, we now have a refined key
1:10:47level. It's going to be in the upper
1:10:48half of the previous day's range. Like
1:10:50we said, highs and lows of days are made
1:10:52from these gaps. In London session, we
1:10:55form this small wick two-stage reversal
1:10:59with the NASDAQ right in here. You're
1:11:00going to see that two-stage PSP. Then,
1:11:03we expand away overnight. Look at this
1:11:06large expansion from this London
1:11:08reversal. We have yet to hit the draw in
1:11:10liquidity. So, we are expecting, right,
1:11:12a new phase of price before we hit this
1:11:16low. So, 10:00 a.m. is a New York
1:11:19continuation, but we have a very large
1:11:22wick here. Okay, we have this delayed
1:11:25protraction of this candle with the
1:11:28large wick. How are we going to get on
1:11:30side with this 4hour large wick from
1:11:33this key level? Because we don't want to
1:11:35frame a reversal away from the failure
1:11:37swings. We're going to wait for a
1:11:38six-hour open. Now, look, the new 6-hour
1:11:41open here at 12:00 p.m. is the expansion
1:11:46phase of that 4hour large wick being
1:11:50formed. That's how we get on side. What
1:11:52we want to now do is drop down into the
1:11:56lower time frame. You can see we have
1:11:57our reversal formed from the 4hour gap.
1:12:00Then we have our continuation sequence
1:12:03here at 12 formed from a two-stage SMT
1:12:07in the fair value gap. So again,
1:12:09masterclass part one. This is our master
1:12:12class part two continuation sequence
1:12:16timing this large 4hour wick. So you got
1:12:19to remember the 4-hour candle looks like
1:12:20this with a large wick. And now we're
1:12:23forming that body towards the draw. The
1:12:266-hour looks like this small wick. Very
1:12:30nice large body into the low. This is
1:12:32the 6h hour and that is the 4 hour.
1:12:36Right? So, we're taking advantage of
1:12:38this small wick candle that's forming
1:12:40this phase of price in the 4 hour,
1:12:43right? That expansion phase in that
1:12:44wick. As you can see, we get that
1:12:46sequence we need. We drop down to our
1:12:49aligned time frame. We get a change in
1:12:50the state delivery and boom, we have a
1:12:53very nice trade. I also took this trade
1:12:55last week. I believe this is actually on
1:12:58this week on Tuesday. Um, this is one of
1:13:00my larger trades of the month so far.
1:13:02All the way down to the lows here on the
1:13:04YM. And this was an A+ example of how
1:13:07we're going to be using quarterly theory
1:13:09to time these larger wicks in
1:13:11conjunction with our daily protraction
1:13:14profiles, right? London reversal, New
1:13:16York continuation. So this example
1:13:18really puts everything together. So that
1:13:20concludes today's lecture on profiling.
1:13:22I hope you learned something and I want
1:13:24to leave you with one final message.
1:13:26Understanding profiling or any of these
1:13:28concepts in theory and being able to
1:13:30recognize and execute on these things
1:13:33while a candlestick is actually forming
1:13:35are two very different skills. The
1:13:37second skill requires repetition,
1:13:40structured feedback, and real chart
1:13:42time. What I want you to do for me
1:13:44moving forward is build on what you've
1:13:46learned here today. If you need more
1:13:48information, I have several links below
1:13:49that link you to more education that can
1:13:52fill in some of the gaps. And if you're
1:13:53interested in working with me more
1:13:55closely or directly, I'm going to leave
1:13:57a link to my private mentorship below as
1:13:59well. Let me know what questions you
1:14:00have in the comments. Thank you for
1:14:02showing up and I'll see you in the next

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