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Strength Switching | Confirming Expansions With Strength Switch — Transcript

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0:05Okay, I'm recording. So, let's start. So, we're going to have a Q&A after this,
0:10right? Strength switching is not going to make or break your trading. Let me preface this by saying
0:20it's not going to make or break your trading. This is just an extra concept that you can add to your
0:27um that you can add to your trading that will ensure that you have an extra confirmation. Right?
0:33So you need a strength switch when one asset is tweaking, right? Because strength switch allows
0:39assets to expand, right? So I always give this as an analogy, right? If you have two car, let's say
0:46you have two runners in a race and they're trying to run a race and they want to reach the finish
0:51line at the same time, right? And one runner is faster than the other, then the faster runner will
0:58have to slow down while the slower runner will have to run faster so that they will go at the
1:04same pace and reach the finish line at the same time. This is a little bit about this is a little
1:10bit about liquidity dispersal theory which I'm not going to talk about. I decided to omit that
1:15from the lecture. So you have two pages missing. You guys are going to see 42 pages, but there's
1:19only 40 pages inside of this. So um I don't want to be called a fraud. I just omitted because AI's
1:26already talked about it, right? So uh it's a little bit about liquidity dispersal theory,
1:34right? Where liquidity is injected differently inside the market. So sometimes NQ gets more
1:39liquidity, YM gets more liquidity, right? Or if NQ and YM both want to go to the same high and
1:46NQ is tweaking. It's just consolidating while YM is expanding, right? Actually,
1:52let's let's start the lecture by going into an example or something, I guess. Uh well,
1:57let's say NQ and YM want to reach the same high, right? This is N. This is why uh this is NQ. This
2:05is YM. This is NQ. Like say NQ is low-key tweaking like this, right? And YM is up in this range and
2:15NQ is refusing to expand. At some point, you're going to see YM probably make a strength switch,
2:21which like it fills a gap while NQ doesn't fill a gap and that signifies a strength switch and that
2:27allows both of these assets to reach the high at the same time. And so that is basically when you
2:33need a strength switch, right? and it also allows both assets to expand. So, we're going to begin by
2:40um the types of strength switching that you're going to see, right? I marked the red line or
2:46the red um any red confirmation as the strength switch in the examples that I'm going to use. So,
2:52you have the first case which is obviously a using an SMT, right? So, assume that you have a target
3:00here at the lows, right? You have both targets at the lows and you want both targets to reach the
3:08lows, right? And first you have this where asset one sweeps out the high. Asset two doesn't sweep
3:14out a high, right? Asset two doesn't sweep out a high. There's somehow a gap there. Asset two
3:19doesn't sweep out a high. And therefore, this asset on the right is weaker and this asset is
3:25stronger. Now when you want to see assets both expand lower, you need to see a strength switch,
3:32right? Because look at how this asset now this asset that is stronger is getting the
3:38is getting the stronger displacement lower. Therefore, it signifies that the asset that
3:43is previously lagging as stated by it taking this high is now weaker than this. Right?
3:52And now when you're going to refine this in the lower time frame charts, you are expecting this
3:59asset now because now it is the stronger one there. You are expecting this asset to also
4:06expand lower. It's not just this one, right? And this is where APD sequence comes in. So a lot
4:12of people ask me why APD sequence works, right? And I explained this yesterday in my Q&A video.
4:18Say you have an SMT, right? So, say you have both assets that are working like this. So,
4:27you have both assets, right? Like the Yeah, let me let me use this instead
4:34because this is what I used. So, you have an SMT, right? Like this. This is one asset. And then the
4:42other asset will be will look something like this. where it doesn't take out a high and it
4:50goes lower. Now, this is simply an SMT. It is not by any means a spaced out SMT. Right? Now,
4:57why do we demand a spaced out SMT? Well, imagine if the SMT that occurred between two assets,
5:03this is not a strength switch. Assume that the SMT that formed between the two assets is like this.
5:10Now, when you are at the inception of this high or while this high is still being created, right,
5:15it could easily just take out this high. It might as well just take out this high, right?
5:20Simply because it it only takes so little effort for price to take out this high at the same time,
5:26right? Now, that doesn't mean that that we're not going to expand if we don't have an APD sequence.
5:30It just means that there's a higher probability of expansion with an APD sequence because when
5:38you are this close to this high, it could take out this high easily, right? It could probably take
5:42like one more candle to sweep out this high. But if you have a spaced out SMT where it is something
5:49like this. So you see how spaced out this is. You see how much price has to move higher in order to
5:56catch up to this high, right? It's going to take so much more. And usually if it's going to break
6:03if it's going to break this SMT right here, then you might as well have this asset trade into a new
6:10relevant high or low vice versa basically. And so you can't I don't like trading lagging assets as
6:16well when you have an APD sequence simply because as I mentioned as I stated it needs a lot to catch
6:24up to this high, right? And this is where APD sequence comes in, right? If if this asset that
6:28forms the failure swing SMT is somewhere in premium for for longs then you can long this
6:34because it's very close to the high but if it's um below EQ already it's going to take so much right
6:39and so that is why we need APD sequence right so coming back this is the bearish example that I
6:45have so you have the asset that sweeps out the low is the lagging because it is weaker to the upside
6:53and now this asset that doesn't sweep out a low is leading because it is stronger to the upside. And
6:58now you have a strength switch where the asset that doesn't sweep out a low now sweeps out the
7:04same low. And this asset that doesn't sweep out a low, right? And you notice how much of how
7:10much stronger of an expansion we need with this asset because this asset is lagging, right? So the
7:15lagging asset needs strength to compensate for its weakness, right? And so we have the second case
7:23which is a small range and large range SMT. Right? So you have the first SMT. This is for somehow
7:31inverse when I was editing it but it's fine. So you have your first SMT. This right here is the
7:38lagging asset because this is a bearish example. Right? This is somehow the lagging asset because
7:44it is the one that took out the high. As you can see this is the lead. This is the leading asset to
7:49the downside because it is the one that took out the low, right? And so you have this asset right
7:55here. I wish I can draw, bro. You have this asset right here that sweeps the high, right? And now it
8:01is not sweeping out the high. And this asset that doesn't sweep out a high is now sweeping the high.
8:07Okay? And so with this strength switch, you're assuming both assets will expand lower, right?
8:14because you have this strength switch and assuming the framework is put in. We're not going to
8:18pattern trade strength switch in here, right? It is just something that confirms as the title says
8:24strength switching as confirmations. And so you have the large range into small range SMT where
8:31this could be the 4hour right and then you're having like a 15minut SMT to kind of confirm your
8:37bias. And this is the bullish example that we have right there. Right? Is that making sense for you
8:43guys so far? Um, so this asset that is lagging is now temporarily leading, right? This asset is now
8:52temporarily leading, right? Does that make sense? Now, just because you have this strength switch,
8:59this asset, right, and even in this example as well, is is momentarily going to switch to
9:07the stronger asset, right? But that doesn't mean that you are to trade the asset that is stronger.
9:14Now it also doesn't mean that you want to trade this right when in regards to asset selection you
9:19want to trade the asset that is the strongest in regards to the time frame that you are trading in
9:24right and so you see how even though if you want to trade this asset to like say these highs or
9:31this high right then you still want to take this asset right now you want to take this asset still
9:37even though it is the one that made the failure swing SMT right because this strength switch with
9:44the lagging asset is a temporary strength switch that allows this to temporarily gain strength and
9:50become leading. But if you look at the framework here, this leading asset that temporarily switched
9:56as the lagging is still above this low. Right? Assume this asset is above this low. It is still
10:02the strongest in this entire framework. Right? Now if you were trying to kind of trade the lower time
10:10frame like say you're trading in within these two candles then you want to take this asset
10:15because this asset it is a momentary strength switch right so but even though it is momentary
10:21in this situation this is the strongest asset at least up until this high because if you have this
10:27signature some at some point while both assets are expanding lower I mean higher I'm sorry this asset
10:36They're going they're both going to expand higher, right? And so while they're expanding higher,
10:40you're going to see another strength switch and then you're going to see another,
10:43right? But ultimately, the asset that is leading will always be the leading,
10:48right? The strength switch doesn't change the fact that one asset is leading in one time frame,
10:53unless you get a strength switch for that time frame as well. Let's move on.
10:58So this is exa essentially the same example as this first one except this one is with an
11:03SMT fill right you guys are going to see real chart examples of these uh diagrams
11:11and so um this asset is just this is essentially the same thing only that is confirmed with an SMT
11:20fill right and now even though you kind of have this SMT fill this is not necessary If you want
11:28to trade this SMT is not necessary to trade the strength switch, right? But if you see an SMT
11:34fil like this and you kind of zoom out, you're typically going to see this signature anyways,
11:40right? You're you're typically you're typically going to see this signature on the higher. But if
11:44you get this one stage SMT and both assets expand lower, then you you don't necessarily need to
11:49mark out or at the very least require this first stage, right? You can just take this because this
11:55is technically a continuation and you only need a one stage continuation as as long as both assets
12:01V-shaped lower, right? That is the one scenario where you don't need a strength switching. All
12:05assets Vshape and this is the bearish I mean this is a bullish example, right? Basically,
12:15so now this essentially the same thing. This is my favorite model of all time to trade. This is
12:20my favorite model to trade. This personally right here is what printed me the most when it comes to
12:25signatures. In my opinion, this is the highest probability reversal signature. It is when a PSP
12:31confirms the strength switch, right? And so, so notice how this asset sweeps out a high,
12:38but it closes bearish. And so, notice how this asset sweep doesn't sweep out a high,
12:45but closes bullish, right? But since this asset is the one that swept the high, you would expect it
12:52to close bullish. And since this asset doesn't sweep out a high, you would expect it to close
12:56bearish. And so this asset sweeping out a high, closing bearish, showing is showing you that
13:02this asset has momentarily has momentarily switched to the stronger asset and that is
13:08your strength switch, the PSP strength switch, right? We I typically refer to this as SSPS,
13:13which is a strength switch PSP and this is the freest reversal model. If you spot this
13:17on the markets and you have your framework behind you, this will print you money. Okay,
13:23so this asset closed bullish despite it not being able to stay out a high. This is very very free. I
13:28have an example with this later. And again, now um you have this bullish example, right? Essentially
13:35the same thing. I mark this PSP red just to signify that there strength versus the PSP again.
13:43Um now for continuations this is my favorite model right this is my favorite continuation model this
13:48works like this strike rate of this model is so high this prints bro so again you in the
13:56continuation right never mind that we don't have an SMT here you can or cannot have an SMT here
14:02right you you when you have an SMT here at the high right it only allows you to trade the high
14:07but don't get into the habit of okay I cannot h for so Like sorry I'm stuttering. So for example,
14:14say you have price expanding lower, right? Do not get into the habit of thinking that price cannot
14:20expand lower simply because there is no correct correlation at the high because that is a that
14:24is a that is not the correct mindset to have. The market can reverse from wherever however it wants.
14:30Having a two-stage at the reversal only allows you to trade the reversal. But price doesn't
14:36necessarily mean need sorry need a two-stage for the reversal to happen. Right? So this I get a
14:44lot of questions from people saying there was no two stage at the low of day. So how can you say
14:47it's low of day? I cannot. Right? I can probably expect the low of day to be formed there. But the
14:53two-stage at the reversal allows me to trade the reversal. But if there is none present doesn't
14:59mean it doesn't quantify as a reversal. It just means it's not tradable. And again,
15:03even with this, right, if you have a gap and both assets trade into the gap, that doesn't mean that
15:09the gap won't hold. It just means you cannot trade the gap and you have to wait for another
15:13opportunity. And so, here is my favorite model, right? Where one asset has a gap, right? And the
15:21third candle that forms a gap. So, you guys know how a gap is formed. I'm not going to teach you
15:25guys what a fair value gap is. You there's a lot of YouTube videos about that. You have the third
15:30candle that forms the gap is a PSP. So you see how the candle that forms a gap here is a PSP, right?
15:38And so it's again it's similar to this one, right? Because the asset that sweeps out high is bearish,
15:44right? And so now this asset closing bullish now we can quantify this asset as the lagging, right?
15:55Because it is stronger to the upside, is weaker to the downside. confirmed with this bullish
16:00candle. This is a bearish candle. You see how much stronger this asset is to the downside. This is
16:03the leading asset to the downside, but we get that SMT fill strength switch. Right now, the asset
16:11that is closing bullish doesn't take out the gap, but the asset that is closing bearish is taking
16:16out the gap. This is the freest model you're going to see in the markets. You can actually make a
16:23living off trading this. You don't even need to trade reversals. Just if you find something like
16:27this, trade something like this, you get like five setups a week, you're banging, bro. So,
16:31in regards to this, because this asset closed bullish, you would expect it to you would expect
16:35it. You would expect this asset to be the one to take out this high. And because this asset closed
16:40bearish, you don't expect this asset to take out the high, but the inverse happens, which means we
16:45get the strength switch, right? And so, this is the bullish example. So, now we're going to move
16:52on to the lower time frame strength switching. Now this is a bit more if you don't get the strength
16:57switch at the actual cracks in correlation then you look for the strength switch on the lower
17:02time frames. Now this is a bit of a stretch right you don't necessarily need this. This is something
17:06that confirms your bias right you don't go into the lower time frames and look for strength
17:10switching on the lower time frames to confirm your direction. Right? Rather when you see this this
17:17essentially confirms the crack correlation that you get with here. So you see how it's actually
17:23in two slides because I couldn't fit both in one slide, right? Try this some water. So again,
17:32so notice how with this sequence, right, the asset that is making the SMT is closing as a PSP, but
17:39there is not a strength switch here. So let's go back to here, right? Um, so here you see the asset
17:46that is sweeping out the low is closing bullish. This is a strength switch PSP because it swept out
17:52the low but it closed bullish, right? But in this scenario, it doesn't sweep out a low compared to
17:57this. It it doesn't sweep out low but it closed bearish. But in this scenario, it doesn't sweep
18:01out at all, but it closed bullish, right? So you quantify this asset versus this asset. This asset
18:08is clearly leading, right? But there was never any strength switch PSP, right? because this
18:14asset closing a PSP still makes it the leading asset, right? There is no strength switch PSP just
18:20like this one to tell you that there is a strength switch. Now, let's let's move our eyes now to the
18:25lower time frame, right? Cuz if you see here, the asset that took out the low is also bearish. So,
18:29there's never any strength switch with the actual cracks and correlation at the reversal.
18:36But you can kind of see this here, right? So you see how the asset that is clearly
18:41leading is having a slower CISD. So I want you to confirm this lower time frame uh this lower
18:47time frame price action to this. So you see how immediately after on the lagging asset immediately
18:56CSDs higher, right? And this asset that is leading doesn't CSD higher in the same candle that this
19:03asset CSD higher. So with the slower time frame you can confirm the strength switch. Now this is
19:08why I say you don't necessarily need to view it from the lens of strength switching but rather I
19:14want you to view it as in this scenario all assets are V-shaping higher and therefore this is a very
19:19tradable setup. Right. Let's move on to the next case. This is the same thing as this one. This is
19:27the leading asset quantified by it's making the fair swing SMT and it's making the PSP compared
19:33to this one. There is no strength switches at the actual two stage. So you see how um
19:39this asset is um consolidating right this asset is consolidating. Actually, yeah. Let me get water.
19:55Essentially the same, right? It's essentially the same as this one,
20:00right? And this you got the lagging asset expansion, right? And so now for the next case,
20:06uh for the next case, you have the gap size, right? The lower time frame gap size. I would
20:13never use a higher time frame gap size as a strength switch confirmation simply because
20:20uh I only use it to I only use gap sizing to measure strength when I am trading the lower
20:27time frame. So I only use it in the lower time frame. Right? I'm sorry. So now you see that
20:34this asset that is making the failure swing again there is no strength switch at the two-stage but
20:39you see how this gap compared to this gap right this asset is clearly lagging right but you see
20:47how much stronger the lower time frame is compared to this one again we need the lower time we need
20:53some sort of compensation for the lagging asset right and in this case this asset is
20:59clearly lagging right you could have had the PSP as a strength switch but it ever did. Therefore,
21:04now it needs some compensation, right? Because if you want all assets to trade higher,
21:09this asset has more ground to cover higher, right? It has to expand more because it went
21:14lower here. It went below this low. Therefore, it has to move more in order for it to reach
21:20the same draw that this asset is going to reach. And therefore, we get that compensation by this
21:26lower time frame price action. Right? You see how this asset sees these immediately and we have huge
21:31gaps while this asset is having it still has a gap but it has this small gap and it's kind of
21:37having this lethargic PA which is fine as long as both assets Vshape higher. Now, why do I need both
21:43assets to Vshape higher regardless of strength switching or not? Right? Because it and it goes
21:49down. It's it's like this, right? I'm sorry. That was my law book. Uh, so it goes like this, right?
22:00Let's move Let's move a bit higher here.
22:05Um, it kind of goes like this. Wait, let me get some water. Dude, my mouth is drying.
22:29We're coming back.
22:34So again, here you see this kind of lethargic PA, right? Now, why do I need both assets to Vshape,
22:41right? So, let let me give you guys a scenario on NQ and YM here. So, you have NQ and YM,
22:50right? Here is one thing that cannot happen, right? If NQ cannot expand higher, say we're very,
22:59say we're bullish, right? And we're trying to start at this high, just inverse this for a
23:03bearish scenario, right? And both are trading to this high. If NQ cannot expand higher,
23:10if NQ cannot expand higher, YM also cannot expand higher. Right? And sometimes in the
23:15coupled markets, NQ will expand lower while YM will expand higher. And that is completely
23:20fine. You just cannot trade it. Right? So the the highest quality trades with the highest
23:26quality delivery and framework is produced when both assets can expand at the same time. Right?
23:32So essentially if N and Q like say you have a gap fill right say you have a gap on both assets here
23:44and say you have YM tapping into the gap and trading higher. You have NQ not tapping into
23:49the gap. So essentially you kind of have that one stage gap fill continuation. You have that
23:54universal sequence right? So say you have that universal sequence right there. If NQ or YM is
24:01just consolidating, right? If it cannot expand higher, if it first of all, if it's consolidating,
24:06we probably want a re sweep, right? And if we want if this asset cannot expand higher,
24:11this asset cannot expand higher. Think of it as a decoupled market, right? You want to approach the
24:18decoupled market and think of it as like NQM is playing tugofwar, right? And if your goal is for
24:26both assets to move in the same direction if they are moving in opposite directions, then they're
24:32going to pull each other to the one, right? And so when you have a decoupled market like this where
24:37NQ is trading higher, right, and YM is trading lower, they're basically playing tugof-war, right?
24:43And the actual real true direction is going to be decided by which asset has the stronger pull,
24:50right? And how do we quantify which asset has the stronger pull? Let's say YM. Okay, let me
24:56bring back the labels. This is NQ. This is YM. Now in a decoupled market where NQ is trading higher,
25:04YM is trading lower. Right? So they both so right now they're playing tugof- warar and they both
25:11have equal pull. Now how do you know which asset is going to fall and follow the other? And that is
25:18why you need a manipulation. Actually, those are in the slides. I was just kind of I just thought
25:21about it. So, we're just we'll still do the diagram. Now, you can quantify this by waiting for
25:29one asset to get a new phase of price. And what creates a new phase of price, a relevant level,
25:36right? And so, if both assets are expanding, they are expanding to what? A relevant level. And that
25:43is why in a decoupled market, you want to wait until one asset hits a relevant level. So say YM
25:50reaches a relevant level. Right? After it reaches this relevant level, it cannot expand anymore. It
25:58cannot expand anymore. And therefore, YM's pull to the downside is nonexistent anymore. Unless
26:05this asset fails to manipulate, then it's going to expand lower. Then NQ probably is
26:10going to continue, right? But once it reaches a relevant level, the pull that YM has lower,
26:17right? I want you guys to just inverse this. If there's a different bias, sometimes YM is higher,
26:21sometimes NQ is lower, right? This is not a fixed scenario. I just want to illustrate this. Just
26:26flip it for different scenarios. But if YM hits a relevant level again, then it no longer has the
26:34pull lower, right? And so this is going to get a new phase of price, right? Yes, it is. Yes,
26:40it is recording. Um, so now with YM, it may consolidate, it may reverse, but either way,
26:48right, YM is probably not going to expand lower anymore. And that allows NQ to trade higher
26:55because if YM has hit a key level, say YM is bearish, NQ is bullish, right? Say YM is at a key
27:02level at the lows, right? YM has no more reason to trade lower, but NQ still has this open draw,
27:09right? And so therefore in this scenario NQ still has the pull upwards right and so in this scenario
27:16they're b they're playing tug of war right higher lower higher lower but since YM already met its
27:22objectives at the lows right and and NQ still has objective at the highs then you have a scenario
27:28where NQ can still expand higher right well but YM cannot expand lower anymore does that make sense
27:36right and therefore because this asset still has a pull higher It's probably going to pull YM higher
27:42as well. And this is probably going to trade into this asset as well. And you have both objectives
27:48that are met. And you can trade this reversal with a strength switch. I have slides for that.
27:53I just wanted to illustrate that for you guys. I hope that made sense. I hope I really hope that
27:57made sense. I tried to explain in the simplest way possible. Right? So, let's move on. Uh so,
28:04let's move on to the key levels for framework. Right? This is the key levels that I want you
28:08guys to look for SMTs in, right? Because there's a hierarchy when it comes to key levels, right?
28:14I see a lot of you guys just blindly trading two-stage SMTs, PSPs, as long as there's a draw.
28:18No, it doesn't work like that. I I see a lot of people trading um asking me why their trade failed
28:24when there was a two-stage and it's a pattern traded two-stage. I want you guys to remember that
28:28there's a hierarchy when it comes to looking for trades, right? The two-stage Kraken correlation
28:34and even the strength switch should come at the very last of your priorities. The first one should
28:40be the draw. The second one should be does the profile and the wick side support the draw. Right?
28:46And the the last one should be do you have the cracks and correlation necessary to support your
28:53trade. And so when it comes to the key levels or framework, this is the first thing that you should
28:58be looking at, right? These are the relevant levels that I use. I do not look for a two-stage
29:04unless there is a key level. I set my alerts at keys. So, first you have swings highs or lows.
29:09This is a relevant level that if price hits this, sorry, sorry, sorry, I have too much water. So,
29:16if price hits this level, right, then this is where you could probably look for a two-stage
29:22because this is technically a reversal, right? So, let's say you have um like a two-stage PSP. Now,
29:29you could trade this if it's a one stage. if it's a fair value gap. Now, this is just the bearish
29:33example. Now, this is when you can trade it as a one stage only. If it is a lower time frame,
29:40if it is a fair value gap, and I explained this yesterday as well in my Q&A, right, where when you
29:47can trade this, but I will I'll touch up more on that later, but for now, we're going to focus on
29:53this one specifically, right? We're going to focus on this one specifically. So say um because the
30:00second one is a gap right but the gap but a higher time frame gap is at the same time also a lower
30:06time frame swing point. So I illustrated this here for you guys. So you see how the higher time
30:11frame is a gap but the lower time frame is a swing point. I want you guys to study this in your own
30:16time in your own journals. Look for a higher time frame gap and you see how the high of the gap and
30:21the low of the gap is formed from lower time frame swing points. Right? This is basically this just
30:26inversed. So this gap right here, the low of it is a swing point and price is this is basically just
30:32a raided the swing point. And when you trade this, you can just look for a two-stage or something
30:37like that. And this is uh just a little diagram that I made. I already showed you guys this a
30:42long time ago. So you see how you're fractalizing price, right? You have a gap and like say this is
30:50the higher time frame like the like the weekly or the daily, right? This is the 4 hour or the
30:541 hour. This is the 15-inut or the 5 minute. So you see how on the higher time frame we have a
30:58gap that is a swing low on the intermediate time frame and in that expansion higher like say you
31:06miss this reversal. You can look for a universal sequence with this. Right? So you see how price is
31:11fractals. Really amazing stuff guys. So now we're going to I'm going to show you guys some a couple
31:16of examples when it comes to application which is swing highs and swing lows. So again, swing
31:24highs and swing lows. So you see how you have this two-stage, which is it's basically just this uh
31:30where is it? It's basically just this, right? The asset that takes out the low. You already
31:35know. So I'm just basically applying it here. So you see here, the asset that is taking the low is
31:42closing bullish. And so now this is your strength switch and you're expecting the next candles to
31:48expand higher into this draw or a draw beyond it. And um this is basically uh that with refinement,
31:56right? So you have this two- stage with this strength switch, right? And you see this is the
32:01lower time frame. You need to wait for a CSD now to kind of trade this higher. And after the CSD,
32:07you're just expecting the next candles to trade higher as well, right? Again, swing
32:11highs or lows. You have the refinement right here. Okay, here it's the this is the sauce. Now, asset
32:19synchronization protocol with strength switch. Now, this is what I said. This is what I said
32:23earlier. This is what I already discussed earlier. This is when assets are decoupled, right? And so,
32:28the most common form of decoupling here is the 9:30 open on indices, right? But you I rarely see
32:35decoupling when it comes to gold and silver and the oil triad where uh I don't see them decoupled
32:43to the extremes where one asset expanding in one direction the other is not. I typically only see
32:49one asset expanding and the other consolidating but they are never almost never decoupled. So for
32:53this for this lecture we're going to assume that the decoupling here is on indices 930 open but
33:00this can happen with any pair no problem. So there more water in my mouth is dry.
33:11This is kind of the framework that we're going to be using, right? So you have asset one, right? So
33:18for this purpose, we're going to use NQ and YM here because ES is typically never the lagging
33:24or the leading, right? ES is a byproduct of how NQ and YM move. So if NQ and YM are decoupled,
33:31ES is going to be fighting for its life. It's just going to keep on consolidating. It's not going
33:35to do anything. Okay? So assume at 9:30 open, right? Assume as soon as 9:30 open, you get that
33:45decoupling. So you see how asset one opens up at 9:30 and trades higher. Asset two opens up at 9:30
33:52and it trades lower. And this is what I mentioned before. If both assets open and they trade in
33:58opposite directions, they're essentially playing tugof-war with each other, right? So, you see how
34:03this asset it's it's pulling it's pulling to the upside and this asset is pulling to the downside.
34:10Now, when can you quantify that this asset can no longer pull to the upside, right? So, you know,
34:18when you're playing tug-of-war and your opponent is stronger than you, then naturally you're going
34:23to be pulled in their direction, right? So, let me cook. Let me explain further on this. This
34:29asset stops expanding higher when it manipulates a key level. So, you see how I wrote here below,
34:35wait for either asset to manipulate a key level and then you have a strength switch confirmation.
34:39There is no strength switch here yet. This is just the bare framework for the next slides
34:44that I'm going to be showing you guys. Like right there. Okay. So, what happens, right,
34:51what happens when in tugof-war, right, say you're pulling against your opponent. What happens when
34:56you suddenly decide to stop pulling? What's going to happen to you? You're going to be flung to your
35:02opponent's direction, right? And this is basically exactly the same thing that happens here. This
35:07asset trades and expands higher into a key level. Right? Now, what stops this asset expansion? This
35:14is the key level that we're using, this swing high. Because it hits this key level at the highs,
35:20we get a new phase of price and therefore it's going to stop pulling to the upside, right? And
35:26because it stops pulling to the upside, similar to the tugof-war, what happens when you stop pulling
35:31in your own direction, you get flung to the opposite direction that your opponent is pulling
35:35you in. And so now, see what happens here? Yeah. Yeah. Exactly. You get yanked, right? and see what
35:41happens here. Because this asset doesn't have the strength to expand higher anymore and this asset
35:46hasn't hit a key level yet. Notice how this asset hasn't hit a key level yet. So this asset hitting
35:51this key level cannot expand higher anymore. But this asset is not hitting a key level yet. So it
35:58has to expand lower still. It can still expand lower. And so this asset is pulling this asset
36:04into this direction. Right now it's a different story when this asset fails to manipulate.
36:09Because if this asset fails to manipulate, then you have to wait for another relevant level,
36:13right? Or you need a strength switch. Okay, I hope that made sense to you guys because that
36:18is the simplest way I can explain strength switching to you guys. Okay, so again, let
36:23me recap. This asset is sweeping out the high and therefore we get a new phase of price, mind you,
36:28irrelevant high. So we get a new phase of price and if that new phase of price is consolidation
36:33or reversal because this asset is expanding lower it's pulling this asset and therefore we're going
36:39to have this huge expansion lower as well and assets can reync right because when assets are
36:44decoupled right either asset is just waiting for a key level to manipulate. So in this case asset
36:50one is trading higher they're decoupled right either asset is just looking for a key level
36:55to manipulate. So, say this is a different scenario where asset 2 manipulates this key
36:59level instead while this asset is consolidating. Then you're going to have the different story,
37:04right? You're basically just going to have this asset expand higher because this asset that hasn't
37:09hit this high, right? This asset hasn't hit this high. So, therefore, it can still expand higher,
37:13but this asset hits this low has hit this low. Sorry, I'm speaking too fast. But this asset
37:20is hitting this low. So therefore, if we get a new phase of price, this asset can still expand
37:26higher. So this asset is going to get yanked to this high, right? So it's just the inverse
37:32example right here. This is this is bearish. This is uh bullish. So let's move to case one, right?
37:45You see how this asset is manipulating this relevant. Oh, why did I say like that?
37:50manipulating this relevant high, right? Manipulating this relevant high while
37:55this asset opens and consolidates. Now, in this scenario, there is no pull lower,
38:02right? But we are bearish in this scenario. You guys have remember we're bearish in this scenario.
38:06Assume that all framework is already here, right? Assume all framework is there and you're bearish.
38:11You have the asset the open that is expanding higher right now because it expanded higher.
38:18This is the leading asset to the upside. Now we get that strength switch. This candle SMT,
38:24right? You guys are going to see this a lot, right? I think um a fee was streaming when
38:28this happened. Actually, let's go find that in the charts. Uh I I think it was this one
38:36and I believe uh it's this one. Hold on. There's actually I'm already showing examples. My bad.
38:45Okay. So, I believe it's this one. And we expand it higher. All right. No, it's not that one. But
38:51the fees was extremely enjoyed that time. And we kind of missed the longs because of that.
39:05Yeah. Always pay attention to the asset that sweeps. It has to reverse as well.
39:11Dude, where is it? Uh, it's probably All right. But this is why this is why I wanted to
39:16pre-prepare. But don't worry, the other examples are pre-prepared. We'll get to that. We'll get to
39:20that in a moment. If you guys know the date, just tell me so we can go to it. Actually,
39:27so let's just move on. We'll find we'll find the case later. We'll find a case later. Uh between
39:32there like two NQ and YM. No, no, no. Um I noticed that sometimes RB is the middle asset typically,
39:38but sometimes RB can lead also. So I'm not I'm not too sure about that. But yeah,
39:44CL and HO are the ones that are decoupled most times, but sometimes RB also leads.
39:52So again, this is just a bullish example where the asset that sweeps a relevant level, we get
39:58that candle SMT, right? This asset that doesn't sweep, right? We don't get that candle SMT,
40:05right? So you see that I do I I really want to find that example dude actually
40:11so I can show you guys in the charts it was like three longs dude where is it?
40:22Oh yeah yeah yeah we found it. We found it. It's this one. This okay there we
40:25go. We finally found it. So pay attention to let's move to the 50-minut. Pay attention to
40:30the 15 minute time frame. Uh oh, why do I have both YMs pulled up low key? There we
40:36go. Pay attention to this 15-minut time frame. Let's move. Let's say this uh 30 minute. So,
40:43you see 9:30 opens up right now. In this scenario, assume we're bullish right now. Even though we
40:49have swept both sides, we're still bullish. So, we're only focusing if you're bullish, you
40:53ignore any uh you ignore any what's it called? You ignore any bearish cracks in correlation
40:59because similar to PDAs, if you're bullish, you expect bearish PDAs to fail. If you're bullish,
41:06you also expect bearish crack and correlations to fail. And this is how you identify fake SMC simply
41:12with just the framework. Right? So you see how 930 opens up and um we get this move lower, right? So
41:23at first you do kind of have this. There is no SMT with this low, but this this is where you get it
41:29with this two-stage right here. So, you see how this asset is sweeping the low and this asset is
41:38uh this asset is sweeping low. This asset is not sweeping the low and we get that two- stage right
41:43there. It is not a strength switch, right? But we get that with the lower time frame instead. So,
41:49let's have a look at this lower time frame. Let me show you guys this lower time frame.
41:56was even this this wasn't even the example that I wanted that uh where a was lowkey streaming
42:01go. We'll find it later. We'll find it later. But this is just one example that I know of. Okay. Oh,
42:08it was next day for him. Thank you for finding it. But we'll look at this example for now.
42:17Yeah. There we go. Okay. So you you see how um you see how this asset is clearly weaker compare
42:26um given by the fact that this asset is sweeping the low and it is closing bearish and this is this
42:32asset is not sweeping the low but it's closing bullish but look at where we do get that strength
42:39switch right you see how this asset that is weaker quantified by the sweep in the PSP is getting this
42:47faster CSD higher Right. While this asset, this take note of the time it CSD here in the lagging
42:5510:33. While at the leading, look at where 10:33 is. It's right there. You see how the leading
43:01asset hasn't CSD yet, but the lagging asset already has. So look at let's look at March 10.
43:19Uh right here. Right here. March 10. March 10. March 10. Okay. Yeah. Exactly. Exactly.
43:26It's basically the exact same. Uh what the hell? It's basically the exact same scenario.
43:39I found it. Hold on, guys. Give me a sec.
43:45March 10. It was right here. Longs were absolutely free during this day.
43:56Yeah. Yeah. Got it. Got it. Got it. Got it. So, here's the SMTs that we have.
44:04I'm just going to mark them out. This is exact. Okay. Yeah. Yeah. This is the
44:10um what I wanted to show you guys. The exact the exact scenario that I wanted to show you guys.
44:15This is the strength switch. It's exactly that that example right there. Okay. I got it. Got
44:22it. Got it. So, it's exactly this example right here. Yeah. It's exactly this example where you
44:27have one asset that sweeps and then we get that strength switch with the SMT. It is basically this
44:34um this small this large range and small range SMT. It's basically that right it's basically that
44:43here except it is for decoupled sequences right here. So you see how first of all the framework
44:50here the framework here there is no other relevant level if we are to trade higher we have to reverse
44:56at this low I have a friend that um basically just souping these types of lows but we're not going to
45:01talk about that. So you see how this asset this asset is consider considerably stronger given by
45:08the fact that look at how much farther away from this low is compared to this asset that actually
45:14swept the lows. Right? So if we are to continue higher, we have to do it here and we get that
45:20strength switch. But notice how as I mentioned before, this strength switch is temporary,
45:25right? This asset is still is still uh what's it called? This asset is still the lagging. This I
45:32mean the leading in the higher time frame. This asset is still the lagging, but you could trade
45:36any one as long as both expand. Right? It also helps by noting that look at how NQ already
45:45swept this high, right? And so it is considerably uh stronger than YM because if you look at YM,
45:52YM is the one asset that is not swept this high yet. This high right here is this high on NQ. So
46:01you see how this asset is clearly stronger and we get that strength switch right there allowing
46:06both assets to expand and we get that follow through with this CSD higher, right? Or trade
46:13both. Yeah. Yeah. So again, I hope that makes sense with you guys. You get that strength switch,
46:18right? So this bullish example right here. Now we have case two with the APD sequence, right?
46:28And so, uh, you have this 930 open that trades higher and this 9:30 open that trades lower,
46:36right? This asset creates a gap while this asset is sweeping out the high, right? So,
46:43you see how 930 open immediately sweeps out the high, right? But look at how we reacted after we
46:49swept out the high, right? So, first off, we swept out the high and then we get this SMT right here.
46:56Right? Now before 9:30 open, we already have this asset expanding lower and therefore it is stronger
47:03lower. We already kind of quantified that before the actual open, right? And so now you do have
47:10this sequence APD sequence where this asset is above a high. This asset is in an SMT. As I said
47:15before uh with my illustration, look at how far this asset is to the same high that this asset
47:21took, right? It needs a lot of effort. Needs to inverse a gap. It needs to expand so much higher.
47:27for price to catch up to this high, right? Because it is so spaced out. And now notice
47:34how 9:30 opens and we sweep out the high and 9:30 opens here and we get that um we form a gap there
47:42and the strength switch is a gap fill. So you notice how this asset is not sweeping out the
47:47high. It's the same example as this one, right? But this time this asset is in a gap, right? And
47:54this asset is not taking it. So this asset is lagging. This asset is leaving. It has a gap.
47:59But this asset takes out a gap. Fills a gap. But the gap high is this high on this asset. So this,
48:07notice how I both marked them 9:30 open. So So you can classify them as which candle is which.
48:16So in this case, this high, this high right here is the gap high. So we're getting that gap fill.
48:23while this asset is not sweeping the high where the gap is on the other asset. And so with this,
48:28as long as both um as long as in the lower time frame you get that CSD, then you can expect both
48:34assets to trade lower into these lows. So same example, but for the bullish example right here.
48:43So now this is basically the exact same as this,
48:45but this is like the freest model of all time, but this time it is a PSP,
48:49right? It's the same. It's the same one as this. Uh where is it? It's the same one as this where
48:55the asset that forms a gap is a PSP, right? It's one of the freest models of all time.
49:04So here it's basically the same thing, right? You have this asset sweeping. Now we do have
49:10that two-stage essentially. Technically, we do have that two-stage from this high and
49:14this asset that forms the high is already at two stage, right? you can just expect this asset to
49:20expand lower. But it's even better because you have another gap fill SMT and that is
49:25your strength switch. So see how you have two red marks here. The PSP here is your strength switch,
49:31right? So in this asset, you're getting this asset that is uh yeah, it is free money. Every
49:38model is free money if you know how to trade it. But I this one is my personal favorite. So again,
49:45notice notice this sequence, right? The asset that takes out a high is closing bearish. Now,
49:51this asset that is not taking out a high is closing bullish. We just took this one step
49:56further and we added a gap. We have this sweep inside of a gap, right? Sweep inside of a gap
50:03and then we get this uh sequence. Now, as long as both assets CSD here as well and you kind of have
50:11uh follow through following this kind of signature, then you can expect both
50:17assets to trade the word. Now, this exact same example, but this is um bullish.
50:27I want you to note that these examples that I gave you guys right here when it in regards to in
50:37regards to lagging assets. No, no, not lagging. Sorry. In regards to strength switching, this
50:41is how you trade the reversal with the strength switch as your confirmation. Right. So this all of
50:46these are reversal trades. If you can if you can see all of these are reversal trades. Now we're
50:52going into the lagging asset. Now a lagging asset in a term is a continuation signature,
50:59right? So the the lagging asset is technically a continuation, right? Because you have this already
51:07put in reversal. And now with this lagging asset, you're expecting this asset to also hit the same
51:13high that the other asset took, that the leading asset took. And so trading the lagging asset,
51:19very straightforward. You wait for one asset to hit a high. You wait for asset one asset to hit
51:24a high and then you need a strength switch. So you need the asset that hit a high to sweep a
51:29low if that makes sense. You and then you need the asset that doesn't hit the same high to not
51:35sweep a low. And in this case the low is a fair value gap. Now this is very straightforward. This
51:39is how you trade a lagging asset. So you see how this asset sweeps out this key level and it is
51:46filling this gap. So again we have discussed earlier that a gap fill can be a form of a
51:53strength switch. Now in this case it is a strength switch because it already hit the high. So because
51:59it hit the high you can quantify this asset as the leading but now the leading asset is making
52:05the gap fill while this asset that hasn't hit the high yet which is obviously weaker is not getting
52:10the gap fill. Right? So now it is stronger in this price signature. And now you can expect this asset
52:17to trade into the same high that this asset took. Same exact example but um bearish. Now even be an
52:27even better an even better example again this my favorite model is if the third candle that
52:33forms the gap is a PSP. Now this is the exact same example as this only the asset that hit
52:40the high is the one that is creating a PSP. It's basically the same thing. PSP into an SMT fill as
52:49you can see. Same example right here. And then the last the last example is the lagging asset
52:57with an SMT. Right? So you have this sweeping out a low but closes bearish. Now this is the exact
53:04same example as um this one where the asset that sweeps out a high, right? And the asset
53:12that sweeps out a high is closing bearish. Now we just added context to this. Okay. So uh the asset
53:21that takes out a high again we have quantified this asset as the leading because it already
53:26hit the key level. But now we're getting this strength switch where the asset that is leading
53:31is sweeping a low and creating a PSP. Well, this asset that hasn't hit the high yet is not sweeping
53:38a low and creating a PSP. Now in this scenario even though it is just a two- stage with no if
53:43you look at if you look at just this scenario without looking at the framework this is simply
53:48a two-stage there is no strength switch in here you have this strength switch because you identify
53:54the asset as the leading via the asset hits a key level and so now you have this and you're
54:00expecting this asset to also catch up to the same asset. Okay, now we just added context to it.
54:09same example but bearish. So now we can get to the examples.
54:17I'll get to your guys questions later.
54:21Now um after this I'm going to stitch a lot of examples. We're going to go through examples but
54:27after this we're going to st I'm going to stitch a lot of examples as well uh before I upload it
54:32to YouTube. So you guys have a lot to study about. It's just that um I have to edit it and I have to
54:39stitch them together, but it should be up within the within a day or two. So again, here as it
54:45sweeps out a high and trades lower, right now you actually have context to trade this lower. So now
54:52we can finally get into some more examples. You have one example right here on NQNYM.
55:03Now I took this all of these examples are trades that I took. So first you
55:10have this SMT fill. This is how I long this asset.
55:18Now this is not a strength switch. And again this is a situation where you do not need to require a
55:25strength switch because if you look here all assets are expanding higher. So you see both
55:30assets V-shaped right both assets V-shaped dude now you can dude my throat is bugging now I want
55:45you to kind of notice here YM is considerably weaker in the range right so if you see if you
55:53see these lows right look at the lows in the daily and NQ Right. Look at these lows. The August lows.
56:04Actually, yeah, they're farther away, but look at them. Actually, I shouldn't have brought that up.
56:09I was thinking of a different example. Sorry. So, you see how much deeper we are to the daily wick
56:15with YM? Yeah. Why are they inverted? You see how much deeper we're digging into the wick, right?
56:23So, you see how YM is clearly below EQ of this wick. Now this is just for measuring purposes. You
56:30do not need to measure it like this. But I want you guys to see um how it works. Right? So you
56:36see how YM is considerably weaker in the range. NQ is considerably stronger in the weekly range.
56:42Right? So we have quantified that NQ is stronger to the upside. Right? But have you look at this
56:49NQ that is stronger is now making this gap fill and that is strength switch in a way. But there
56:55is no actual strength switch right the strength switch here right is this gap fill but you need to
57:01know the framework to know that this is a strength switch you could have traded this without knowing
57:05that because it is simply a universal model now you have the gap fill you have the follow through
57:11or both assets are CSDing higher now I would I wouldn't take this CSD this 530 CSD because
57:18if you look we have a 4 the 4 hour was still huge at the time where the hell did the candle
57:25So, look at that. It is It is the 2 AM candle 4 hour. See how large this wick is,
57:31right? You can never Yo, what's up, Seth? Uh, you can never trade an asset with a large wick,
57:37right? You cannot fade this. You can fade this, but you need to have your stop at around below
57:43EQ. Now, you don't want to take that. It's simply easier to wait for six simply because
57:47we're also just kind of consolidating here. So, I waited for six before I took this trade. So,
57:52as you can see, 6 a.m. opens. We trade higher. And I took NQ here. Now,
57:58why did I take NQ even though NQ is the one that filled the gap?
58:04Now, I mentioned this before, right? You do not want to just blatantly take the asset
58:09that is taking the low or what? You don't want to just blatantly trade the asset that is weaker
58:14or stronger with the strength switch, right? Yeah. Because it's leading. Exactly. So again,
58:19you you see how ENQ is much stronger in the weekly range, right? You see how ENQ is much stronger
58:24here, right? You see how ENQ is barely just below that while YM is already expanding below it. You
58:32could have at one point expected YM to kind of trade through this. I actually think Sunday we
58:36just gap up below here, but anyway, let's focus on ENQ. So NQ is still stronger. Now I took NQ
58:44here because I am trading in the framework of the intraday and intraday NQ is stronger. Now
58:52if I were to trade this and my target would only be something like these highs or maybe even like
58:58something like this high, this high, this high, I would take YM because YM is the stronger asset,
59:03right? And so I took this uh I think I took the fiveminute close actually. Yeah. Yeah. Yeah. I
59:10took a 5minute close at right at six. It was some somewhere around here. Stop below here.
59:16And I TPD at this high. Was it that high or I'd say TP at the 1 hour high somewhere
59:26right there? And I held some runners to this high. Yep. So that is your example. Now um
59:36on oils here. Okay. Yeah. Yeah.
59:42Where is this trade? Okay. Yeah. So, here as you can see, right? So, the framework
59:48behind this trade is that if you look at I I already gave my recap to ladies on this. So,
59:53you see how we're just expanding higher, right? And there's no other key level. Now,
59:58here's where sequential SMT comes in. If there's no other relevant level, you can use a 4hour high,
1:00:05a 90-minut high, and a 6h hour high. I you can use the 1 hour, but I personally don't. When it comes
1:00:11to candlestick SMT at a at an area where there's no other relevant high. So, you see how in this
1:00:16area it's just a dead zone. There's no relevant high they could trade into. I don't care about
1:00:19this gap. I don't look at a gap like that. I don't use random gaps. So, um the only time I would use
1:00:26a 1 hour high for a reweant level is if the 1 hour trades like this and then we consolidate. This is
1:00:35when I would use the 1 hour high as kind of that sweep. But now since there is no relevant level
1:00:41here, you could use the 90 minute, you can use the 4 hour, and you can use the 6 hour. In this case,
1:00:46I use the 6 hour. So notice how Ajo. Yeah. Yeah. Yeah. So now we have I want to trade this back
1:00:54into the retracement because we have consecutive candles of expansion. And so in this case again,
1:01:00I mentioned that this high is now my relevant high. So, we have a sweep of the relevant high
1:01:06between CL and HO. So, you have that SMT. Now, let me pull up double charts for you guys. Hold on.
1:01:17Yeah. Now, the strength switch here is
1:01:21in the 50-minute the exact same framework that I gave you guys.
1:01:34Right.
1:01:37So it is this framework right here. Where is it? Is this framework right here. So you see how the
1:01:46asset that sweeps out no this. The asset that sweeps out a high closes bearish doesn't sweep
1:01:51out a high closes bullish. That's your strength switch. So you get that exact scenario here.
1:01:56HO sweeps the high but it closes bearish right and CL doesn't sweep out a high but close bullish.
1:02:04That is your strength switch. When you see this you this is so free. Now ideally you take the
1:02:11CL here. I was watching this in real time. I wanted to wait for this candle to close and I
1:02:16would take any CSD. I don't even care if it closes somewhere in here. I would have taken it but it
1:02:19just flew. I could have taken the one minute but I didn't think to look at the one minute
1:02:23here. Right. This is kind of your only entry. Yo, where did I go? What the hell? All right,
1:02:30there we go. This is your This is your only entry, right? Uh so you couldn't take this CSD. Now,
1:02:38here's uh here's the thing. If you want to short, you want to short in premium of the current range
1:02:43you're trading in. If you want to long, you want to long in discount of the current range
1:02:47you're trading in, unless you're trading a continuation range, right? But even then,
1:02:52you want to you want to long in discount. You want to you want to short in premium, right? And so,
1:02:58I'm not shorting after this 3-hour candle closed because my my TP was like this low. And so,
1:03:03it's probably not even going to give me 2 R to that low or something. See, and also,
1:03:10if you look at this range that I am trading in, um, this 15-minut range or whatever range,
1:03:18right, it's already crossed EQ, right? You want to you want to short up here, not down here.
1:03:24Right? Because when we get down here, and this is something for you guys to study, right? Look
1:03:28at the range that we're trading in. Right? Right. Look at the range that we're trading in. Say you
1:03:32want to short. Now, in a bearish scenario, when we cross EQ, that is when you get deeper tracements.
1:03:40Before EQ, you're not going to get deeper tracements. You're going to get breakaway gaps.
1:03:44But as soon as you cross EQ, you're going to see gaps get filled, overfilled even, like it's going
1:03:49to shoot up by a bit more. You might even inverse some gaps. You might overshoot a bit by gaps. You
1:03:54might get some deep retracements. But the lower you are in the range for bearishness, the be
1:04:01the higher probability that there will be a deeper tracement. And so I couldn't take CL,
1:04:07right? And I couldn't take RB because RB was also way too far gone. See how
1:04:12low that is? like compared to this range, we're basically already near
1:04:15the target when this kind of happened, right? And so, yo, Preston, dude. Um,
1:04:26so the only asset that I can take here is a Joe. This three this three minute CSD.
1:04:33Now, I can take this because again, I want to short in premium. Now, my stop was here. So,
1:04:40I can get two R. So, I want to short in premium. So, I'm I'm I'm still in premium
1:04:44of the current range I'm trading in. This asset is the only one that is still in premium. Now,
1:04:48I can short this because all assets V-shaped. So, notice uh the 1 a.m. 3minut candle. Ho V-shaped,
1:04:57RB Vshaped, and CLVshaped. Now, because every asset V-shaped, you can trade this. Now,
1:05:03if because technically this is a lagging asset, it's going to have a low probability of hitting
1:05:07this low. So, I would TP when CL hits this low right now. Luckily, CL didn't hit the low until
1:05:14uh like Ajo hit the low. So, I'm fine with that. Now, I actually got like pump faked here. So,
1:05:19my stop was around like 400 points. I saw this go like 500 600, no 500,
1:05:24550, but it never stopped me. So, got kind of lucky in that one. God blessed. So, you see how
1:05:31even though is lagging asset, we still get that draw, right? So, moving on to the next example.
1:05:39Now I made ladders do a case study with this. I hope you guys are still remember this case.
1:05:51Now this is a two-stage, right? But the strength switch here is the actual trade. It's
1:05:58the framework is telling you that you needed this strength switch, right? So let's go on the daily
1:06:04first. So, you notice how YM is basically trading at equal highs, right? YM is trading at equal
1:06:13highs. I mean, no, no, no, equal highs. I'm sorry. All-time highs. YM is trading at all-time highs.
1:06:19So, it is clearly on the daily, it is clearly the strongest asset. So, you see how NQ is still is
1:06:26like way below this. And this is what I'm saying. Even though there is an SMT right there, I'm not
1:06:32expecting NQ to trade back into this simply because look at how much farther it is. It's
1:06:36going to take you like a week or two if you want to get if you want to reach to that high, right?
1:06:44Sorry. So, we have established that ENQ is the lagging asset to the lows on the daily time frame,
1:06:52right? So, ENQ is consider considerably more bearish than YM. So now if you look at the hourly
1:06:58we get that two- stage right now YM the asset that is strongest we get this two- stage right here now
1:07:11this isn't even that this isn't even that yet. So you see how we get this huge expansion right this
1:07:18is your first signs of strength switching this asset that is the strongest to the upside that is
1:07:24the most bullish we get this huge expansion lower right that started at around 8 at uh Tuesday but
1:07:32look at what kind of expansion we get here we get this lethargic non-existent expansion lower so YM
1:07:40the asset that is basically trading at all-time highs we're getting this very energetic reaction
1:07:45while this asset is not expanding lower at all. Now why? Because if all assets want to trade
1:07:51lower because this asset is clearly stronger, it needs compensation in order to reach the same low,
1:08:00right? And this is what I'm saying earlier, right? So you have a mar like say you have two runners,
1:08:05right? And one runner, runner one is far far ahead, right? Like say you're the the race is
1:08:13500 m. Say runner one is already at 300 and runner two is only at 100, right? If you go by that pace,
1:08:22then runner one is obviously going to hit the finish line. But we want both to reach
1:08:25the finish line at almost the exact same time. And so what is the runner that is 200 that is
1:08:30in 300 m do? Either either the first runner has to slow down or the other runner has to speed up.
1:08:39Does that make sense? And in this case, we get both because we're trading to the
1:08:45downside. Downside is the goal. NQ is slowing down while YM is speeding up to the to the downside.
1:08:53So you see how NQ is waiting for YM to trade lower because they both want the lows, right?
1:09:00And so in this scenario, even though we kind of get this lethargic move on NQ, see how
1:09:05much farther we get below this low compared to YM because then again NQ is still the weaker asset,
1:09:13right? And so after that lethargic expansion, we get this two-stage, which is fine even though
1:09:19there is no reversal. But look at the lower time frame on this one. This is what's fascinating,
1:09:24dude. Everything's just so fractal. It's kind of crazy. So you see how the asset that is weaker
1:09:32is obviously CSDing, right? But look at this. I think it's in the five minute chart I believe.
1:09:44Uh give me a sec. Yeah. Yeah. So see how this asset is considerably weaker. Now look at the
1:09:52lower time frame signature in this one. So you see how we're both V-shaping lower end.
1:09:58We have that CSD, but like look at this. ENQ is now retracing deep into this order block,
1:10:04right? Well, look at where that is on YM. It's this on YM. So, basically in ENQ's language,
1:10:11YM is just did something like this. And it didn't do that. Now,
1:10:15this asset is considerably stronger on the intraday, but it was weaker here,
1:10:20and now it's weaker again on the lower time frame. It allows both assets to expand lower,
1:10:25right? And now, why is this asset retracing while this asset is expanding lower? Now,
1:10:32I want you to point out, I want you to look, set your eyes at 450. This kind of right here. See
1:10:37how we're already below the range? As I said before, if you're in premium, you get higher
1:10:43chances of the retracements. And that is why we kind of got this retracement up here. But
1:10:48look at YM. the current range that we are trading in YM is still high here in the range and that is
1:10:57why look at how clear the delivery we get right because we are still in premium of the range right
1:11:03so I want you guys to appreciate that it's just something that I notice on the charts and this is
1:11:07what confirms when I my bias when I'm in a trade I made a video about this on YouTube that you
1:11:12guys can watch right it's about high time frame low time frame um strength switching signatures
1:11:20I need more water. Hold on.
1:11:30Now,
1:11:36now look at here, right? So the framework here, we're sweeping this relevant high,
1:11:42right? We're sweeping this relevant high and we get this two-stage. Now,
1:11:46ideally, what I wanted to see when I was looking at this in the chart was that we
1:11:51get this second stage. Now, instead of this, I wanted YM to make this sweep.
1:12:00What did I just do? Yeah, I want YM to make the sweep, but instead it didn't
1:12:03do that. I just did this instead. Now, look at NQ. It's basically doing this.
1:12:12It's basically doing this, right? And now because it's doing that there is never any strength
1:12:16switch. Now what did I say? We need compensation with a lagging asset. So you see how YM is not
1:12:22filling this gap and it's not making that SMT either while ENQ is considerably stronger. But I
1:12:28want you to know look at how far ENQ is retracing. This is a very very very deep retracement for ENQ.
1:12:34We're digging really deep into this gap. I think at some point we overshot the gap even. Right? And
1:12:41so in this scenario, what I need is a strength switch because if we both want these lows,
1:12:46look at how far NQ is to the low compared to YM. Look at how close YM is to the low,
1:12:52right? And so we need a strength switch here if I want to trade this. Now, this is when I would
1:12:57demand a strength switch because this is tweaking. It's like so high up in the range. I want all
1:13:02assets to trade lower. And we do get that strength switch with this 15-minute SMT fill. So you see
1:13:07how the asset that is making failure swings is now sweeping this gap and this asset that
1:13:14is sweeping is now making that strength switch right see that and we also do get that 90minut
1:13:24strength switch as well here. So you see how this asset that is making the filler swing is sweeping
1:13:29this high. I mean tapping into the gap and this asset that is very very very uh deep retracement
1:13:37is now getting this strength switch. This is NQ's compensation for its weakness because it
1:13:43is much weaker. It needs more room to move lower. I mean it needs compensation to move lower and we
1:13:49get that compensation with the strength switch. And then after that I took I I took YM actually
1:13:55here. I took the CSD lower. I took this on a fivem minute low key. Yeah, I took this.
1:14:05And there you go. Targeting the low. This was a more of a risky trade, but I I think I took
1:14:12some partials here. But anyway, let's move on to the last example that I have for you guys.
1:14:24Now, this is a lagging asset trade, right? So, RB already hit this high. I want you to
1:14:30pay attention to when RB hit the high. RB hit the high at 11. Now, look at where AO and and
1:14:36CL is. Where was that? Yeah, look at where AO and CL is at 11. They're they're right here.
1:14:45Age has a long way to go to this high, but it's close enough that you can still expect a lagging
1:14:49asset. Look at where 11 is here in CL to be close at the high of day. It's kind of crazy.
1:14:57Okay, anyway, let's not get distracted. So, RB hits the high. So, now we know
1:15:02that RB is the strongest asset. Now, we kind of get this uh two- stage, right?
1:15:11This SMT fill, this asset is 12:00 is closing bearish on HO and CL 12:00 is closing bullish. So
1:15:20now we get that strength switch with that PSP and this sweep as well. This gap fill I believe it's a
1:15:2690-minute gap fill I think. Okay, well it's not. But the point is we're getting this gap this gap
1:15:31fill and we're getting this PSP. Now we know that this asset is leading. Now it is switching to the
1:15:37lagging asset. So these two can catch up. So what I said earlier, what I said earlier about a race,
1:15:43right? RB already hit the finish line, but Ho and C, RB, Ho and CL also need to hit the
1:15:48finish line. So what does RB do? It slows down. Well, CL and AO speeds up. Now, how do we know
1:15:56that RBA is slowing down? It's consolidating. It's making these cracks in correlations while
1:16:02CL and AO are not. So you know now that CL and AO are speeding up while RB is slowing down and
1:16:10potentially even stopping. And so with that SMT fill strength switch, right, we get this signature
1:16:18and I took the three minute here. It was like somewhere around here. I took this three minute
1:16:26CSD. I actually took this on live yesterday. No, I didn't take it on live, but I took it like 10
1:16:31minutes before my live and I started my live early so we can watch this hit. And we hit that. Maybe I
1:16:38could have held low key, but I don't really care. I can't anticipate that. It's already high. Okay,
1:16:43but now notice notice this. Notice this, notice this. Right, let me pull up some second charts.
1:16:49Now, I'm already done with the example, but I'm giving you guys something to appreciate.
1:16:53This is something that I appreciate and I love talking about this strength switching thing.
1:16:59Note how I have both hos pulled up. Hold on.
1:17:06So, I want you to note starting from this point on in time, just a little detail that I want to
1:17:15Sorry, dude. My throat is tweaking. A little detail that I want to point out for you guys.
1:17:29Now this is never a two-stage I would use. It's just a random two-stage. But look at how
1:17:34right this asset is previously stronger and it is expanding but now it is consolidating. Now what
1:17:41do you want to wait after consolidation? You want to wait for an AMD reversal. So now we get that re
1:17:46sweep right here. But look at how strong Ajo is right now. Again in this scenario this high that
1:17:53is marked with a line is our target for both CL and HO. Let me mark that here. That is the target
1:18:02there. So look at how HO gets this immediate expansion higher and we are like ticks away
1:18:09from the high basically. So look at uh 115. 115 is here. Look at how close we are and look at CL. Now
1:18:17CL still still needs to reach this high. Now, this is the race that I want you guys to visualize. CL,
1:18:24I mean, AO is already almost at the finish line, but we want both assets to reach the finish line
1:18:29at the same time. So, what does Ajo do? It slows down while CL speeds up. So, because this asset
1:18:34is already almost there, it slows down. This is a slowdown while let look at how um 115 moves. This
1:18:46asset is speeding up. So right. So look at the shaded boxes. Look at compare the price action
1:18:54between the two. This asset is almost there. But now it is slowing down. So CL can catch up,
1:19:01right? So in this scenario, this is slowing down. This is going starting to run faster to the highs.
1:19:06And so what result do we get? You get both assets hitting the highs. So you see how that is just
1:19:12[ __ ] amazing, dude. Like just blowing my mind. Like I was watching this in real time. I was like,
1:19:16"Dude, there's no way." Right? Cuz look at how amazing this is. Like the delivery here is just
1:19:22so clean. Everything is so aligned, right? This asset is waiting. This ad is waiting while this
1:19:28asset is running and both are reaching the high. Dude, it's amazing. Something you can appreciate,
1:19:32right? And so we're going to move I'm going to add more examples, right,
1:19:37before I post this on YouTube. But for now, that is going to be the lecture. So in this example,
1:19:43we have YM and then Q, right? You have YM sweeping all-time highs. This is the daily. We are trading
1:19:51at all-time highs on the YM. And we have swept all-time highs and immediately we see rejection
1:19:57lower after sweeping all-time highs. And for NQ, we also see a candle 2 closure on the previous
1:20:04day on the highs. Now, we can disregard these highs because we have SMT between them, right?
1:20:10And uh we are showing clear expansion away from the SMT that is to follow. Now technically this
1:20:18isn't an SMT but if you look here this is the high right now that is the SMT that you have and then
1:20:25we have a candle to closure below and all assets are expanding away. So our reasonable target for
1:20:32the daily is that we are going to be targeting these lows down here, these lows down here.
1:20:38And so I have pulled up the current uh this is a current replay. Now this is the hourly chart which
1:20:44we are going to be focusing on right for today. And so you see how on the daily obviously YM is
1:20:53stronger right and you see how NQ is the weaker in the daily because YM is above these highs. These
1:20:59highs right here are these highs on YM like it is this high on YM. and see how NQ is massively
1:21:05below these highs and YM is trading at all-time highs. So on the daily chart, we have NQ and YM,
1:21:12right? NQ is the weaker, YM is the stronger. And so if we want both assets to expand lower,
1:21:18YM needs to be weaker intraday. And we actually see that here, right here in this January 13
1:21:24candle. You see how this closed as a huge bulky expansion candle while this didn't have that much
1:21:30of an energetic move. And that is price allowing the intraday on YM to catch up with NQ. Right?
1:21:39So this is YM. Actually have them flip. My bad. But this is YM. This is ENQ. Right? You see how
1:21:46YM is significantly weaker to the downside. Actually, I'm going to go uh flip them. Yeah,
1:21:53there we go. So you see how YM is weaker to the downside compared to NQ while NQ is
1:22:00weaker on the intraday. So NQ is weaker on the intraday. Right? NQ was stronger to the downside
1:22:06on the intraday but now it is weaker on the in on the uh intraday. My bad. My bad. NQ was
1:22:14uh stronger to the downside on the daily on the higher time frame but in the intraday it is weaker
1:22:20to the downside. And so we have that, right? We already have that kind of strength switch
1:22:26going on between YM and NQ. And now we are opening up. This is 1,800. We're going to mark out 1,800.
1:22:40Now that is 1,800 open. Now we have 1,800 open on all assets. You see how we're all just trading
1:22:46below and we have this relevant swing as our ultimate target on both assets, right? So both
1:22:54assets are expanding lower. We're creating gaps. But notice how we have already established that
1:22:59YM is the weaker intraday, right? But now we are framing an intraday target. And so now the
1:23:06weaker asset and this I mean the leading asset to the downside should go to this low. However,
1:23:12look at where how far away NQ is and how lethargic NQ's expansion lower is. So now what do we need if
1:23:19we want to NQ to also reach these lows? We need a strength switch between the both of
1:23:23them. So we have intraday stronger on YM right intraday YM is leading to the upside right but
1:23:33now it is leading to the downside just because it needs the compensation because it is so strong on
1:23:38the intraday. And now, as you can see, we open up the day and immediately on the intraday, YM is the
1:23:44leading asset to the downside. But notice how we sweep this relevant high and we form a two- stage,
1:23:53right? We form a two-stage right here, right? Yeah, we form a two-stage. So, as you can see,
1:24:00uh, YM is sweeping this high and it is forming this PSP, right? It is not a PSP strength switch,
1:24:09but we don't need a PSP strength switch because this is already weaker on the
1:24:15intraday. And now if you want the intraday to also expand in the same direction,
1:24:19you need the weakest asset to give way for the lagging asset. I mean, you need the leading asset
1:24:26to give way to the lagging asset to take this low as well. I'm just saying weaker.
1:24:33Sometimes I say weaker as in to the downside. Sometimes they say stronger to the upside,
1:24:37but just to avoid confusion, I'm just going to use leading and lagging. You see this? Now,
1:24:42this is the lagging asset to the downside. This is the leading asset to the downside as very
1:24:47obviously stated in this lethargic move. But now we have a strength switch two-stage PSP where we
1:24:54have that SMT confirmed with the PSP, right? And look at this NQ, right? It's not sweeping that
1:25:00high and it's closing bearish. And that allows for both assets to expand lower. So let's play
1:25:05the lower time frame price right here. As you can see, YM gets this kind of closed below,
1:25:12right? NQ is already expanding lower already or the V-shaping lower. So now now that we
1:25:18have framing this from the intraday to the lower time frame now, similarly to how we did on the
1:25:24lower time frame, we're I mean similar to how we did on the daily to the intraday, right? So the
1:25:30daily before the leading asset to the downside was NQ on the daily but on the intraday now NQ is the
1:25:37lagging asset. Now we're going to do the similar thing here where as you can see NQ is now the
1:25:44leading asset to the downside right to these lows and YM now in this particular move is the lagging
1:25:52asset. So what do we need? We need an strength switch on the lower time frame. So, I want to
1:25:57see YM here trade lower and make a faster CISD CSD lower in order for us to take these lows. So,
1:26:06we're going to play price and you can see clearly from here both assets are expanding lower,
1:26:13right? And you can enter off of this and this is your uh kind of strength switch, right? It's
1:26:21you see these little details where you see how NQ is coming up and retesting this order block
1:26:30right and you see YM is not coming up and retesting this order block. So exactly what
1:26:36I said before you want to see YM the intraday lagging asset to the downside. You want to see
1:26:42it become weaker on this smaller CSD lower and that is exactly what we get. And we also get
1:26:48this kind of sweep above, right? And while YM is not. And so I when I took this in real time,
1:26:54I saw this CSD lower and I entered there. I have my stop above here. And then I was targeting these
1:27:00lows for a 4.7R. And now all assets are expanding lower. All assets should hit the draw. So as you
1:27:07can see, play price and it delivers beautifully. Now this example is pretty much controversial
1:27:16because I saw that a lot of people were asking why I was so fine to short this. Now a lot of people
1:27:22shorted this right a lot of people that you know your mentors right we all shorted this and you
1:27:28guys are I got a lot of questions after I posted my trade in which why didn't you need to see a
1:27:34strength switch in order to trade this to the lows because if you look where 1,800 is 1,800 is way up
1:27:41here right we have an unestablished high of day and then opening of the day we're basically just
1:27:48trading lower right we're trading lower and there was never any retracement. And at some point,
1:27:52a lot of people wanted to see this maybe this low or uh this relevant low be used
1:27:59as a manipulation where YM takes this low and then we get a resync to trade back higher. Especially
1:28:05since when you look at the daily time frame, it also does support expansion higher. I mean
1:28:10the weekly sorry the weekly profile, it does support price opening up, manipulating here
1:28:16and then coming back into the range because we are trading in a range protocol, right?
1:28:22So this is a bit con this is was what got people a bit concerned when it comes to
1:28:27this type of example. So I want to show you guys. So let's look at what 9:30 did
1:28:33here first. Okay you see we're opening up 9:30 right here. This is 9:30 open.
1:28:45Let me tell you what invalidates a bias. Right. So just a little diagram here. When you have a bias
1:28:52here, say you have equal highs and then you're trading into those highs, what invalidates you
1:28:56from looking at those intraday highs in the first place and makes you think that this is no longer a
1:29:02viable target for this type of move. This is when you expand lower and you create gaps, right? And
1:29:08you get a continuation SMT fill with those gaps, right? So you never should marry your bias when
1:29:14you see that the market is telling you that it does not want to go to a certain level. Then you
1:29:19have to listen to what the market is saying. And so here we open up at 9:30 and we did manipulate
1:29:24this high. Although it was a bit ugly, right? I do admit that this this was a bit ugly because
1:29:30I wanted to see this high get ran out and then would have been a much better shorts. And yes,
1:29:37we do get that expansion lower and we get a gap. We get gaps as an expansion lower after we took
1:29:45out this high, right? And then we get what? We get a continuation universal sequence inside of those
1:29:52gaps. In this case, there was no SMT with the gap. As you can see, right, both assets hit the gap,
1:29:59but you have SMT inside of the actual gap, right? And now there was no PSP confirming
1:30:04this. But when you want to trade into a somewhat of a farther target on the intraday, you want to
1:30:12see a higher time frame swing point. And that is exactly what we get here. So here we open up we
1:30:17kind of consolidate for a bit and now we get this two-stage sequence on the 90 minute here
1:30:26right so we kind of have this two-stage sequence in the 90 minute and this is a PSP the PSP is the
1:30:31third candle of the gap and we kind of have this and also as well as we are failing to manipulate
1:30:37this low so look at the lower time frame price action around this low uh let me show you you
1:30:44see how we're just trading through through it and we're coming back in here and we're fitting a gap
1:30:50and then we're trading lower again. And so when you fail to manipulate a certain relevant level,
1:30:57then your next focus should be the relevant level that is beyond that, right? And so here it also
1:31:04adds that this is a 90-minut um sequential SMT as well, which is way stronger than an actual
1:31:10SMT. And so when we fail to manipulate this level, then we're going to this level because
1:31:15there is no other relevant level than here. After we get a failure to manipulate here,
1:31:21then that eliminates the chances of price consolidating and reversing. Right? If we need
1:31:27to reverse from this from this point of price action, then you're going to need a strength
1:31:33switch where YM probably makes a failure swing SMT or something like this. Like YM goes lower, right?
1:31:39And then the next candle we have this failure swing SMT and you have ENQ just making this SMT
1:31:44preferably a two-stage just to show the actual relative strength between the two. But we never
1:31:49really got that. The question that people were kind of debating on this trade was that are we can
1:31:55we make it do we have enough liquidity in the day to make it down here to the draw? Right? Because
1:32:00the daily range is pretty much exhausted. However, it was possible because if you look at the highs,
1:32:05it has a small wick. So we can expand lower. If you look at the weekly time frame on this,
1:32:12it's going to spoil the weekly candle, but whatever. You have somewhat of a decent wick
1:32:17to work through. Right now, it's not the smallest wick in the world. I do admit that. But if you
1:32:23look at the weekly, the h the longer the wick is, the the shorter the body can be. And this is not
1:32:28a large enough wick to quantify that we cannot expand lower. It just means we're not going to
1:32:32expand lower as much. And so we get that 90minut swing point here. And this is when you don't
1:32:39need a strength switch because all assets are V-shaping lower in the lower time frame as well.
1:32:46So let's move to 3 minute. And um you could have taken the 5m minute here but I was a bit
1:32:53late but this was the trade I would have taken. This is also matters right? Okay hold on. This
1:32:59also matters that this trade was viable because if you want to trade like say you're trading at
1:33:06high of day, right? You never want to long here. You want to wait until it retraces and we probably
1:33:12get a an SMT fill a universal sequence, right? That is preferable. But what needs to happen is
1:33:19that you need to get at least two R or you need to be very very comfortable with going break
1:33:25even at the retracement high or low. So inverse this for bearish say you're trading lower right
1:33:32you're trading lower like this you never want to short here because this is low of day if this is
1:33:37low of day but you want to wait for a retracement maybe some cracking correlation here no yeah yeah
1:33:41mandatory cracking correlation right here right and then if you want to trade this you need to
1:33:47be comfortable with going break even partially or taking profit at the very least 2 hour to
1:33:54the retracement lows that is essential that is what you need to have okay you need to be able
1:34:00to manage your trade at this because if you're entering here then you're not going to be able to
1:34:04manage your trade here or if you're entering here right you what this is why you don't want to enter
1:34:09at low or high of day because you can be prone to retracements price can take you out and still
1:34:15go in your direction and so that is what exactly what we get here you also never want to short in
1:34:22um in discount you want to short in premium and so this was arguably be in premium or around EQ
1:34:29of the range. We tap tap the premium of the range. We barely crossed EQ and we get this closure right
1:34:39here. I was comfortable with going break even as soon as my trade as soon as we hit this low. I
1:34:44got a bit of a late entry because I was late to the charts. Now, I took this gap instead. I had
1:34:51a bit of a more conservative stop. Now, I made up for this by immediately going break even. Once we
1:34:58hit this low, I'm break even there. Once we get this CSD lower, right, I think my stop was like
1:35:03right around here at this gap. But I was really conservative with my stop. I wanted to get three
1:35:07R to the lows. This three R, I think it's it. Yeah, it's around here. Once we close below here,
1:35:12I'm immediately managing my managing my trade to this as I don't want to see it go back higher. But
1:35:18notice how NQ is behaving as well. Right after that two-stage ENQ is also showing expansion
1:35:24signatures lower right there. See NQ is also showing that it wants to trade lower as well.
1:35:33We were forming gaps on the lower time frame. On the 5m minute we're forming gaps. We're getting
1:35:38an expansion. The hourly is a small wick. You have a small wick on the hourly. You have a small
1:35:45wick on the 4 hour. 4 hour is an expansion candle already. And so everything is aligned for shorts
1:35:50right there. And that is why this is one of those cases where you don't need to observe a string
1:35:55switch. Now for this next example that we have, we have the most textbook, the most free setup
1:36:02of all time that you could have taken. This is literally textbook how strength switching works.
1:36:06Let's navigate on the daily first. Right coming into the day right here, we're opening up Monday.
1:36:12I'm pretty sure this is when uh news dropped like weekend. So, we got this huge new week opening gap
1:36:18and we trade back higher and we're closing this and this as an expansion day. And so,
1:36:22following this on the daily, your draw should be very very obvious, right? We're drawing to this
1:36:30this previous day's high is the lowhanging fruit and you have this high as well. But ultimately,
1:36:37this high is the draw, right? And now looking at YM, obviously this gap is the draw and this
1:36:44high right here is the lowhanging fruit. And so with the continuation sequence, right? And with
1:36:53this protocol, of course, what you want to do is you want to look at the previous candle. You want
1:36:58to mark out EQ of the range of this previous candle, and you want to look for PDAs up here
1:37:04when you want to trade this higher. Now, if this were bearish, you want to just look for PDAs at
1:37:10uh down, right? So, like say you want to trade this candalor, you want to take your fib anchor
1:37:16here and then you want to take PDAs down here. And so, now refining that, let me keep this here. Let
1:37:22me keep this fib here so you guys can visualize. Now, dropping into the 4 hour, right? There is
1:37:30really nothing that you could take right here. And so if there is no PDR, the market will create
1:37:38one. So we're probably going to engineer some liquidity. And so we have this 4hour open, right?
1:37:46We have this 4hour open. And after the first 4hour open of the day, we already have created
1:37:51this PDA that we can trade away from. This 4hour gap is in um is in the upper half of the previous
1:38:00days range. We also have that same gap right here on YM as you can see. And now what we want to see
1:38:08is we want to see one asset trade lower into this gap and then we want to trade it back higher with
1:38:14this high as your ultimate draw. And then you're probably looking to target this high as well.
1:38:19Before this trade, I only targeted this high as a low hanging fruit. And this is what I always say,
1:38:24right? If your target is way past is way past or way back way higher then the lowh hanging fruit
1:38:30is going to be very high probability. I always say this let me draw a diagram for you guys.
1:38:33So say you're trading lower and you get that uh reversal right say you have all of the framework
1:38:40you have the practical correlation necessary to quantify the reversal. If the if the draw ultimate
1:38:46draw for price is this high then this high is going to be very high probability. Now imagine
1:38:51if this asset wasn't like down here before like let me draw that again. Exactly it right. So if
1:38:58you get that reversal catch a reversal here and your ultimate draw is this high like say this is
1:39:02the weekly range and you're ultimately drawing to this high or this high or even this high then the
1:39:07first high before the rest of the highs are going to be very low probability. This is what's called
1:39:13a lowhanging fruit. Right? This high is very high probable to be hit. So now imagine this. Let me
1:39:19visualize it for you. Right? Say you're running a marathon. Just say you're running a marathon and
1:39:26the marathon is uh 30 kilometers and you yourself, you know, you are capable of running like say 25
1:39:34km and you want to challenge yourself to running 30 km, right? What is the probability like with
1:39:40your capability of running 25 km, what is the probability that you can run 5 kilometers and
1:39:47finish it? Very very high, right? Okay, it's almost like a 100% chance and you're going to
1:39:53run that 5 km very very quickly. You're not going to stop for breaks. You're probably not going to
1:39:59stop for you're probably not going to stop for a water break. You're probably just going to you can
1:40:03probably sprint that through. Well, not sprint. You could probably jog that through. You could
1:40:07probably run that through fairly fair fairly fairly quickly because you know the ultimate
1:40:11target is 25 to 30 and you know you can you're capable of running much more than that. And so
1:40:16that is why I hope the illustration makes sense. So like like this, right? If you know that your
1:40:23capability is up here, then the probability of you getting up here is very high probable. And we're
1:40:29probably going to get to this high without any retracements or any uh deep pullbacks
1:40:35or we're going to leave unfilled gaps on the way there. And so now we already have this 4hour gap
1:40:40formed. This was in London. And we do get this cracking correlation, right? It is a two-stage
1:40:48as well. Now, there is no strength switch within this two-stage. However, as I mentioned before,
1:40:54you could trade a two-stage without a strength switch as long as both assets Vshape away. Now,
1:41:02I waited for the for midnight open here, and this is going to be on another one of my lectures where
1:41:08you want to time your entries with candle body openings. I'm going to be working in that lecture.
1:41:12But for now, I wanted I waited for midnight open here. And this is midnight open. We just mark it
1:41:20out. Do orange. So this is midnight open. Now I wanted price to re- sweep this. This is a human
1:41:27error. I didn't need price to re- sweep this because we're Vshaping anyway. So I didn't
1:41:31take that trade because I wanted a re- sweep. I shouldn't have demanded a re sweep. I'm going
1:41:35to be very transparent about that. I didn't take that trade. So I waited. If you're unable to catch
1:41:40the reversal, you want to trade the continuation instead. And so that continuation is exactly what
1:41:46we got here. We got this two-stage. But again, now there is no strength switch within this two-stage,
1:41:54but this is a strength switch two-stage because of the framework. So this is when you typically
1:41:59zoom out. Notice which asset didn't sweep out this low. It is NQ. NQ is the one asset that
1:42:05is not sweeping this low. YM is the asset that is sweeping this low. Right? And now look what
1:42:12asset is closing bearish and then taking the gap. NQ the asset that is leading which was previously
1:42:21identified by which asset didn't take the the low. So now NQ the asset that is not sweeping
1:42:27the low is now the asset that is sweeping the low. And that is your strength switch right? That is
1:42:32your temporary strength switch that allows us to trade this higher. This increased the probability
1:42:38of this and as I mentioned before if your draw is up here then this draw is going to be very high
1:42:42probable. So you see how it just expanded to that draw without any without much retracement. And so
1:42:49I took this trade I took this 3minut CSD as soon as we get that strength switch SM two-stage SMT
1:42:55fil beautiful textbook stuff. I took this close right here and my stop right here and then ITP
1:43:04at this high for a 6R. Very very textbook, right? Very textbook longs, dude. Like really free. If
1:43:12you guys understand how the strength switch stuff works, it's going to print you so much
1:43:15money. If you understand when to demand it, if you understand how to navigate with the strength
1:43:19switch, then you're going to print money. So again, to recap, this asset is the one sweeping
1:43:25the low. So we have identified this asset as the lagging asset or as the asset that is weaker to
1:43:30the upside and now this asset that is weaker is now getting that strength that compensation
1:43:36that you need with this strength switch two-stage SMT fill and after that you get the most textbook
1:43:43longs of all time. Beautiful, beautiful stuff. So here in this next example we have oil, right?
1:43:50We have oil RB and CL. So I want you to first notice irrelevant of how the day opens, right?
1:43:57Just notice how we are trading right now, right? So look at the daily. We're going to navigate this
1:44:03from the perspective of the triad. Obviously, we are already trading at all-time highs,
1:44:07but note that we do have a large I mean, I'm sorry, we do have a small wick down here, right?
1:44:15And that allows us to expand, right? And again, the protocol here is that if you you do not need
1:44:21to catch a low of day if you're unsure of if price will actually expand higher. But again, look at
1:44:27how the intraday is behaving. Look at how we are already expanding away from the low date and we're
1:44:33creating gaps, right? But this is the easiest way to trade, right? Lagging as is one of the easiest
1:44:39ways to trade. And this is because you do not need to guess the direction anymore. You already know
1:44:44the direction it's going to go. You just need to wait to see if it confirms that it's going to go
1:44:49there. Right? So, if you have a lagging asset, in this case, CL and HO already took the high. Now,
1:44:55you want to see if you already know where RB is going. You already know RB is going to the same
1:44:59high. You just need to wait for a strength switch, but you don't necessarily need it if the leading
1:45:04asset expands and it has another draw. But in this case, if you see CL, it doesn't have another draw.
1:45:11So coming into the day, note how when note when CL took the that high. It's 4:00 right now. Look at
1:45:19when Ajo took that high. A I mean look at when RB took the high. RB took that high at 4:30.
1:45:25So after a Joe, I mean CL takes the high right here. RB followed soon after, right? But look at
1:45:33where Ajo is at 430. We're still somewhat far from that high. And so look at how CL is behaving after
1:45:42taking that high. We don't get a reversal after the high. We expand through it. We open up another
1:45:48candle. We even expand through it. And so if CL is way above this high and it is still expanding,
1:45:54then it's very very obvious for you to demand that RB I mean HO sorry is also going to take
1:46:00the same high. So in this case, ARO is the lagging asset. CL is the leading asset. And RB
1:46:07is somewhat in the middle because it just took out the high. I clicked RB. It doesn't want to change.
1:46:16It's kind of lagging. Sorry. And so as soon as RB takes this high, we form this gap,
1:46:22right? We form this gap. But look at how even though we get this down move right there,
1:46:27right? We don't really get gaps, right? We don't we can't really trade the reversal. Well, for one,
1:46:32if you look at the 4our chart, I mean the 4 hour candle, it's really huge. You can't expect it
1:46:37to trade lower. You want to wait for six to trade this lower, right? And so, basically,
1:46:43after we take out the high, we get this gap formed and we get a strength switch right there. You
1:46:51get the gap fill, but look at a we did close that gap, but we got that strength switch right there.
1:46:57And so after that, I was 100% sure that price is going to take the high. And so I entered off
1:47:05of this one minute fill, I mean one minute uh CSD right up here to the high for a around a 2.5 hour.
1:47:15And then I added more when price retraced down here, right? I think I added more of this uh one
1:47:24minute retest or something. Yeah. Yeah. I entered more. I pyramided more off of this CSD right there
1:47:33in the 3 minute. I wanted the retest. I got it and I held my second position for a bit farther
1:47:39than 2 R. Now, if you look at my Twitter post, you can see that my fill is down here. It's similar to
1:47:44what happened to me the other day, right? where it basically price basically filled me like down here
1:47:50like down here which I don't know why it did that but it did that. So, so notice how even
1:47:56though CL is the leading asset, CL never filled this gap. So, CL never waited around for a Joe,
1:48:07right? A Joe just simply took this high as well. But RB is the one that got the strength switch,
1:48:12right? But it doesn't really matter because CL is still expanding higher. Now, you cannot long this
1:48:16asset because you don't have a draw. You also can't long this asset because it doesn't have
1:48:20a draw. you want to trade the asset with a draw because CL even though it is expanding higher, you
1:48:25cannot anticipate where the expansion will stop. So you don't have a determined draw that price is
1:48:32going to draw into. And so this is why you take a in this in this scenario as a I mean yeah in
1:48:38this scenario to catch up to the same high and CL even though CL never got that gap fill we get that
1:48:45with RB and all assets also V-shaped higher. So look at how RB is behaving here. RB is Vshaping
1:48:51higher. CL, even though it says all-time highs, it's also V-shaping higher. A jo V-shaping higher.
1:48:58You get everything you need for a lagging asset. Very, very textbook lagging asset trade. And so
1:49:04that's that for this trade. Now, for the example, we have a very, very straightforward approach of a
1:49:11strike switch between CL and HO. If you look at the daily here, right, coming into the day, we
1:49:17have price opening up on Monday and trading lower immediately. Now, we do have with this close on CL
1:49:25and this close on HO, we can kind of identify CL as sort of a lagging asset on the weekly, right?
1:49:31And also, AJO took Tuesday's high by Wednesday. And you can see here, Wednesday never swept that
1:49:38high, but we are opening up the day up here. There is no reason to be bearish this day. Despite there
1:49:45being three up close candles, we still have an objective at the high. So, if I were to be
1:49:49bearish this day, I would want to see these highs get ran out before we trade lower. This is very,
1:49:55very simple, right? We're opening up the day. This is 1,800. Let me mark out 1,800. This is 1,800.
1:50:08Uh is this 1,800 right here? So you see we have a delayed daily protraction open with this profile,
1:50:15right? Where we open high first and then we trade lower and then now we're trading back
1:50:20higher again, right? And so this is basically qualified just a a simple very very simple SMT
1:50:28strength switch where this asset is taking out this low as you can see. Now compare that to
1:50:32this low. This is the low on age, right? And so we get this, we get that strength
1:50:40switch with this two-stage 90minut. Now, why am I fine with taking this without a gap,
1:50:45right? If you're using a sequential SMT, I never need a gap. I can use consecutive candle SMT if it
1:50:51is a sequential SMT. You have this strength switch right there with a two-stage. Now,
1:50:56this is a PSP as well. Let me clean this up a bit. We also have this sequence of the 30
1:51:02minute right in the 30 minute CL in a for a moment did somewhat align um did somewhat
1:51:10realign as the weakest asset like down here but we get that strength switch over here
1:51:18right with this low it this asset also closed as a PSP right and we CSD higher we CSD higher
1:51:26right here on CL Yeah. Now the problem with this trade is I can't anticipate and this is
1:51:35why I wanted to point out this example. I can't anticipate HO trading lower after this CSD higher,
1:51:41right? I can't anticipate that. It's not something I can take. This is what I took by the way to that
1:51:46high for a around a 2.75 R. Now notice even though a also CSD higher, it started expanding
1:51:54lower at 9:00 a.m. open, right? And notice how as I mentioned before in decoupled markets you have
1:52:01a kind of a tugof-war, right? And so now with CL expanding higher and AO expanding lower, you're
1:52:06basically have you basically have AO pulling CL lower and you have CL pulling AO higher. So
1:52:11they're pulling each other in separate directions. So let's see what RB is doing during this time.
1:52:16This time RB was kind of the middle asset, but it also was being pulled by CL higher, right?
1:52:23But notice how as soon as 9009 hits, right, we kind of have this bullish candle and that is when
1:52:30we get that expansion higher, right? Even though this asset would was expanding lower, CL was also
1:52:37expanding higher. Sorry, sorry. Uh the recording cut off. So this is something to note here that
1:52:42in HO right in HO we never got the manipulation here to reync higher. And so I was able to kind
1:52:52of quantify this as still a valid trade simply because I was already in the trade. Right? If you
1:52:58have this decoupling sequence and you see this, I would never enter this trade. Right? I would never
1:53:03enter this trade to trade it higher. I would never do that because it's low probability. Because if I
1:53:08want to trade, I want all assets to be in sync. I want all assets to expand in the same direction.
1:53:12Now, this is not something I can anticipate. So what did I do when I saw this signature lower?
1:53:19I simply went break even, right? Because at any moment CL can also retrace lower even though it
1:53:25has this high simply because AHO is expanding lower. Now, if I wasn't in this trade and I saw
1:53:30this, I would never enter it. Now because I saw that kind of decoupling sequence, I simply went
1:53:36break even on this trade because I didn't want to take any chances because it this as soon as this
1:53:42becomes like that this expense lower it becomes low probability but we still TPD here at the highs
1:53:49and notice what happens as soon as this asset starts expanding we get another expansion higher
1:53:54CL but that is not something I can anticipate because we don't have anything to target at the
1:53:58highs. So for this example we have NQ and YM right and so I have mentioned in one of my examples that
1:54:06when you want to trade a continuation day that you measure 50% of the previous candle but if
1:54:11the previous candle is a reversal candle with a large wick then you want to typic you want to
1:54:17measure the wick size instead of the body and so now you want to look for Pays. It's basically the
1:54:23same thing. Now you want to look for Pyrays in the upper half of this wick as we are opening up the
1:54:28day, right? And so the only thing that you have coming into the day was this 4hour gap, right? Let
1:54:34me clean this up a bit. You have this 4hour gap to trade away from now. Now noting I want you guys to
1:54:41know here that there is no no asset actually made an SMT with a gap. So both assets hit the gap. You
1:54:49see NQ also kind of disrespected the gap which was a bit funky for me and there was no cracking
1:54:55correlation here right there was one right here on YM. Now I didn't mind this but this is when you
1:55:03would require a strength switch right you would require a strength switch when one asset is having
1:55:09a deep retracement. Right? As I mentioned before, if this higher is the draw up here, right, and you
1:55:16have a deep retracement with price, right, the more time it spends protracting lower here, the
1:55:22less time it has to trade higher. And so, what do we need when one asset makes a deep retracement,
1:55:28right? This is when we need a strength switch. And that is why we actually I actually didn't
1:55:32trade this. Although it is high probability, I wanted to be a bit more careful because this was
1:55:37still a bit sus for me. I wanted to wait for the reversal. Right. And I wasn't expecting price to
1:55:43trade lower here simply because there's nothing more to the left. I don't think we're going to
1:55:47get here in the same day. Right. The weekly does support expansion higher. As you see the profile,
1:55:54we also closed this as a reversal candle. And so I can't trust this reversal. Right? But we do have
1:56:00this sort of two-stage right here, right? Where this is a gap. I think it was in the 90 minute as
1:56:07well. Yeah, it's a 90-minute gap. Kind of have that SMT and this is a PSP on the 1 hour. Now,
1:56:15I can't trust this just because the reversal was a bit bad. Although, you could have traded it. I
1:56:21was looking at trading this. I just decided not to and wait for the continuation. Again,
1:56:25if you don't trust the reversal, you can trade a continuation, right? This continuation was it
1:56:29was pretty valid. It's just that I don't like the deep retracement. And so I would have preferred a
1:56:35strength switch to trade this higher but we never got that. But look at where NQ is right. So in
1:56:42this scenario NQ is arguably no not arguably our NQ is already identified as the leading asset. I
1:56:48mean the lagging asset. I'm sorry I'm mixing up my words. So we have already identified NQ here
1:56:53as the lagging asset because it is the one that is going inside of this gap. Right? Inside of this
1:57:00gap and YM is the leading asset. But here is where we get the strength switch. So notice how after
1:57:06this deep retracement on NQ. Look at the 2 AM open. We basically just expand higher. Now look at
1:57:12the 2 AM open here. We expand higher. Look what we did after 3:00 a.m. We started to consolidate. Now
1:57:18look at the lower time frame here. It's basically just consolidation after the 2 a.m. expansion. But
1:57:23look at what NQ is doing. NQ is expanding. Right? So what's essentially happening here is that YM is
1:57:30consolidating in this range while it is waiting for NQ to catch up to the same range that YM is
1:57:38in. Right? And so you want NQ. So you see if you want to measure where it is in terms of this 4hour
1:57:44gap, the same 4-hour gap in YM. You see where YM basically waited for NQ to be in the same level
1:57:52around the gap while this consolidated. This is already still in the gap. This is way way below
1:57:58the gap. So it this consolidation right here is YM waiting for ENQ to trade back higher so they
1:58:05could both expand higher at the same level. Right? And we got this two- stage. Well, not a two-stage,
1:58:11we got this SMT fill strength switch. Now again in terms of the actual Kraken correlation, there is
1:58:17no strength switch here. But with the framework, this is a strength switch where NQ is weaker.
1:58:24Now it is the stronger asset, right? And this is what I was saying earlier. If one asset has a deep
1:58:30retracement and the other asset doesn't have a deep retracement and this is the deep retracement,
1:58:35right? So this is basically the move. We're moving higher and we're getting this deep
1:58:39retracement here. So you see how we're going past EQ basically and we're even closing below it. Now
1:58:46I would I wouldn't go bullish here simply because this move lower had no gaps and so this wasn't
1:58:52the most convincing move lower to trade this lower. If we had been displacing here with gaps,
1:58:56I would have traded this lower. But I was basically expecting price to go up here because
1:59:00of these highs that have been untaken. This was swept by one tick. But now that these are just
1:59:06still smooth highs that we want to take, right? This is the ultimate draw. And as I said before,
1:59:13if this is the ultimate draw, drawing into this high is very, very high probability
1:59:18because this is the lowhanging fruit. And after we failed to manipulate from this high, you see
1:59:23how fast we're just going higher. Let me play this a bit. See, after we failed to manipulate,
1:59:27we just went higher fast. And so after that uh SMT fill strength switch, I took this on NQ.
1:59:37I took uh this CSD and NQ. Hold on. Yeah, I took this CSD on ENQ
1:59:49up there for around a 3.6R I believe. And yeah, so just see how fast price is just going. Now,
1:59:56the only lesson that I want to point, no, not the only one, but the main lesson that I want to point
2:00:01out for you guys here is mainly the fact that NQ was weaker and it needed compensation if we were
2:00:08to trade higher, right? it needed to be faster and needed to go at the same level that YM is in.
2:00:13So what did YM do? YM is consolidating, waiting around for NQ to expand to get in the same level.
2:00:20And once the assets are in sync again because we got this deep retracement, right? But we did get
2:00:25that compensation for that deep retracement. We did get that I'm sorry I'm talking too fast. We're
2:00:30going we're getting that compensation for that deep retracement because NQ is now expanding while
2:00:37this is consolidating. So even though this asset did expand lower a bit more than I would like to,
2:00:45it retraced lower, right? Get that deep retracement, we also got the expansion higher
2:00:49while this is consolidating to compensate for it. And now once we're in here, once we got that SMT
2:00:55fill right here, assets are in sync again and now they can expand again. So that is why I took that
2:01:01trade. And so this is very good example that I want you guys to study. And for this example,
2:01:07we have very very textbook lagging asset longs in a faded daily candle. Right? So we're fading the
2:01:13daily candle here. So look at where NQ and YM is currently, right? Look at look at YM,
2:01:19right? It's already expanded lower. We have a huge wick, right? And look at this was the day where we
2:01:25had like I don't know, I think it was like 13 just hourly candles just straight up ripping lower,
2:01:31right? And so at some point markets can the markets cannot expand forever. you would need to
2:01:36have a retracement lower. And so you don't want to be in trades like this where it's low probability.
2:01:41You can't short this either simply because look at how the previous daily candle closed. I would
2:01:46expect price to kind of just follow through with this and you don't want to be in expansion lower
2:01:51from this point because basically then you're longing without a protected swing. There was
2:01:55never any SMT fill unless you want to take this one which didn't have narrative behind it. And
2:02:02now if you want to look here, you want to wait for a range to form and from then on you can basically
2:02:06just take it after that. And so uh the markets cannot expand forever. The idea here is that
2:02:13we're taking it to this high only to this high, right? Because we're trading the retracement,
2:02:19right? Because I'm not expecting price to kind of consolidate and continue lower after this huge
2:02:24range, right? And also we have hit a daily draw right here, right? There's nothing lower more
2:02:31for to draw for YM to draw. I don't really mind this this low because if you look at the weekly,
2:02:39it's not really a relevant low. I'm more focused on this low. Right? So now there is no more lower
2:02:45objectives. Now even though even if you were to consider this low again, what did I say? You can
2:02:51you can disregard lows and highs that have been left if you have gaps forming between them. Now,
2:02:57I'm not saying that we're not going to draw into this low sooner or later. I'm just saying once
2:03:02we form 15-minute gaps away from it, right? Once we form 15-minute gaps away from it,
2:03:09price is more likely. Let me draw, let me mark out that low actually so I can illustrate this. So,
2:03:16see this low we have been expand. So, let me state the facts again. We have been expanding heavily
2:03:23overnight, right? And now look at where we're playing out. Okay, so you see how we have this
2:03:30low and we expand higher with gaps. This doesn't mean that this is the low of the market. It's just
2:03:37going to expand higher. No, that doesn't mean that. It just means because we have this high,
2:03:42this relevant high over here. Once we expand away from it, I can't trade this
2:03:47reversal obviously because there is no it didn't sweep out this low. If it swept out this low,
2:03:51I probably would have traded this reversal as long as there was a two-stage. If something were to
2:03:56happen to it like this or like that then probably I would have considered trading the reversal. But
2:04:03once we form these 15-minute gaps away from that low the probability that we are going to this low
2:04:12is significantly has significantly decreased. Now once we form this 15-minute gap now price is more
2:04:20probable to draw into this high than draw back into this low. Right? There's a very very high
2:04:26probability that we're going to hit this high. And it was simply with this SMT fill is why we
2:04:32took it. Right. This SMT fill right here on um in QYM. Where is it? Yeah, this SMT fill. It's
2:04:41a it's a one-stage SMT fill. Right now, note there is again no strength switch here, right? There is
2:04:49no strength strength switch here. It is more of a lagging asset continuation. It's not it's not a
2:04:55lagging asset yet because we haven't hit this high yet. But look at where we are here on YM. Right?
2:05:01This is why this SMT film made sense. Notice how we're very very deep lower here. And look at NQ,
2:05:08right? NQ is basically barely below this low. NQ is basically barely below this low while YM is
2:05:15significantly below this low. And this is what you're seeing. This is how it's playing out,
2:05:20right? You look at the 15-inute chart, we get this SMT fill where now ENQ is weaker. Now YM is
2:05:26stronger. Also, look at how much more YM expanded at the open. Even without that as your strength
2:05:35switch, just looking at this fractal, right? This little fractal of price is enough to tell
2:05:40you that this one stage continuation is very, very high probable. I took this one minute CSD higher.
2:05:52and AMATB here for about a 2.5R. Now again the strength switch here was irrelevant in my opinion
2:06:01right because you didn't need a strength switch here for one all assets are expanding higher but I
2:06:05want to point out the significance of this because we got that strength switch on YM which was the
2:06:12weaker asset as identified by the weekly range and the expansion lower. You see how now we are
2:06:20able to expand higher. Look at how much more YM is expanding after that fact, right? So YM actually
2:06:28went higher, a lot more than ENQ did. Now why? If you guys know this piece of price action, if I
2:06:35want to play it, this was actually a predetermined reversal, right? And we went higher in the
2:06:40markets, right? And look at what happens here off of this move higher. Basically, what happened is
2:06:46YM because of this strength switch, it allowed YM to move higher. And this is the same example as my
2:06:53example here, right? What's happening here is that NQ is consolidating while YM is expanding. Now,
2:07:00why is that? NQ is considerably stronger on the on the weekly time frame and in the daily time
2:07:07frame and the weekly profile, right? And this consolidation while this expansion is basically
2:07:12allowing YM to catch up to the same level as where NQ is because NQ is already here high in the range
2:07:20while YM is deep below this range. Right? And so you see that you see how this expanding higher
2:07:29YM expanding higher here allows it to have this shallow retracement, right? And this um this kind
2:07:40of jagged move higher on ENQ allowed it to have that deep retracement. Now ENQ is getting that
2:07:46deep retracement. Again, I mentioned this another example. ENQ is having this deep retracement
2:07:51because NQ and YM in regards to the strength, right? In relative strength, YM is stronger to
2:07:58the downside. And now that move, that 50-minute move allowed YM to move a lot higher and therefore
2:08:05retrace a lot more shallow and therefore expand with the same magnitude as how NQ is expanding. So
2:08:13some amazing stuff that I want you guys to just know with this example. But yeah, that is the
2:08:17continuation trade that I took very very textbook longs. So we're moving on to the next example now.
2:08:23So for this example, we have market decoupling at 9:30 open. So first off, let me go and mark out
2:08:329:30 open. I already marked out the 1,800 open for you guys up there, right? So this is 9:30 open.
2:08:45So look at what 9:30 did, right? So first off, I want you guys to
2:08:48kind of note how we open up the day. So we open up the day. This is just 1,800. So,
2:08:53we don't really necessarily have an established high of day, which doesn't really concern me,
2:08:57but we open up the day and we just expand lower, right? And then at 9:30, we manipulate this low,
2:09:04which is a relevant low. There's no other low over here that the market can manipulate. And then we
2:09:11know that we have a bullish bias because as soon as 9:30 expands, NQ just trades higher. Now,
2:09:17I want you guys to note that you cannot trade as soon as 9:30 opened because they are decoupled,
2:09:21right? So let let's drop down to the 5m minute. I'll show you guys what the market did. So we open
2:09:26up and immediately we trade lower, right? And this trades higher. So that is your decoupling
2:09:31sequence. Now as I mentioned before, what is YM doing in here? Because it decoupled. The remember
2:09:38the market decouples so that it can manipulate. And so if if market is decoupled, one asset is
2:09:46going to manipulate something before the other can reync and trade in the same direction. Now in this
2:09:52scenario, did NQ manipulate anything? No, it is expanding higher. Now did ya manipulate anything?
2:09:58Yes, we have this relevant low that was formed at six. And what do we get right after we manipulate,
2:10:05right? We get a new phase of price at this low. So this asset doesn't pull and Q down anymore. YM is
2:10:12not pulling NQ lower anymore because it already reach a relevant level and we get a new phase
2:10:17of price. In this case, the new phase of price is a reversal. So we reverse at this slope and
2:10:23because now assets are in sync, you can now trade the assets, right? And this is where we get that
2:10:28strength switch. This 30 minute, I want you to look at the 30 minute. So see how NQ is trading
2:10:37into a gap right here and YM is not trading into a gap. So this is your SMT. Let me remove this
2:10:4493 line indicator so it's cleaner. So this is your strength switch, right? So you see how NQ
2:10:50is filling this gap while YM is not. Right? So you see NQ is now sweeping this 10 a.m. low 10
2:10:59a.m. 30 minute low. Now it's sweeping this. But this is the leading asset. Remember, this is the
2:11:04asset that failed to sweep this low and now it is the asset that's sweeping and tapping into the
2:11:09gap. So, if you look at 10 a.m. low, right, YM is refusing to sweep this low. Very, very clean move,
2:11:17very high probability. And once you get that signature, you can either long NQ or YM. Now
2:11:22I took why I'm here personally not because um even though it was the weakest asset because number one
2:11:28if all assets are expanding then you can take any asset right the only difference here is that you
2:11:35have to TP when the lagging asset is the draw. So I TP as soon as NQ hit the high which is around
2:11:4011:15 but I took partials here but so we got this um one minute CISD. This is what I took here.
2:11:50Now this high is a very very high probable target. Now what did I say again about lowhanging fruit
2:11:57right? If our draw is ultimately to this high then this high is very very high probable. So see how
2:12:06we just ran higher without any real retracement. If you were targeting this and you can get towards
2:12:11to this high fantastic you have a very very nice trade. But I tpd right around as NQ took this
2:12:17high. But on one account, I fully TPD at this high because I believe I got a much better position.
2:12:24But I tped right around there for a 2.5 to 3R. Very very very very textbook decoupling and then
2:12:31reync. So let me recap this trade again in a let me just summarize this trade again. Market opens,
2:12:38we manipulate, right? This manipulation is the decouple is the decoupling of the market. So
2:12:43essentially YM is decoupling from NQ. It is deviating from the bullish approach so that
2:12:49from the bullish move so that we could manipulate this low and now after we manipulate this low you
2:12:54can trade it again because now market is reyncing so we can expand. So notice how while YM was
2:13:02manipulating and reversing right here. Notice how while YM is reversing like if you pay attention
2:13:08to this while YM is reversing and it is setting up for a bullish move NQ is consolidating. So again,
2:13:15what do we say about this? NQ is waiting up for YM to catch up, right? NQ is waiting, stalling for YM
2:13:22to catch up. It's like that. It's like the first runner is waiting for the runner that is lagging
2:13:27to catch up to him. And so that is what NQ is doing with this consolidation. So you see how NQ
2:13:32is consolidating while YM is just uh expanding. And we can confirm that mechanically with this
2:13:38strength switch at the lows, right? See this asset trades into a gap. This asset doesn't. You can
2:13:43just take this as a simple one-stage universal sequence. But when you have this framework
2:13:47behind it and the strength switch behind it, it becomes much much much better. Very very textbook,
2:13:53very clean move higher from here. And yeah, so for this next example, I have a pre-market shorts
2:14:01that I took. Don't mind the daily candle because the replay button on indices kind of spoils the
2:14:06daily candle. But this I was bearish at one point just because we got this huge expansion, right?
2:14:12We got this huge expansion in previous day on Monday. So I was expecting price to hit at the
2:14:17very least previous day low off of operating off of the assumption that as I mentioned before if
2:14:23you want to be short here you want to make sure that you get 50% of the range and you find a PDA
2:14:29for price to trade into. And so I was coming on the day bearish and I already had marked
2:14:33out the two-stage here. Look at the 90 minute. First off, I want to take your guys attention to
2:14:40um this high right here. This this high. So, notice how NQ is already trading above it, right?
2:14:48NQ was already trading above that high, trading above this high. So, you could probably even
2:14:53just mark it out like this. But the point is we're way below this this high on YM. So, and the daily
2:15:00close as well. Look at how much we're expanding lower. Look at how much we're expanding right
2:15:04here. here and look at how deep NQ is retracing. So what did I say earlier? When you have a deep
2:15:10retracement, right? You require a strength switch as compensation because NQ here is retracing deep
2:15:18back into the range. We need NQ to be weaker now. We need this asset to be weaker to compensate for
2:15:25the fact that it is very very high up in the range. And so you're probably going to get a
2:15:30sequence where NQ is going to be trading lower and expanding while YM is consolidating because it is
2:15:36waiting around for NQ. And so we have that first stage SMT confirmed by this second stage. This
2:15:42strength switch at the reversal is is basically just telling you that this reversal is very
2:15:48very high probability. Right? You have this sweep right here. It's a 90minut sequential SMT as well.
2:15:54And what do we get immediately after that that sequence? Let me move this around here for now.
2:16:07Now what do we get after the sequence? Immediately we get a follow through. What happened? Yeah,
2:16:16we get a follow through. It's not moving. Hold on. Let me
2:16:24Yeah. Yeah. Okay. It did skip an hour. Now, we did reverse here. Don't mind the reversal for now. But
2:16:29we do get this follow through, right? We do get this follow through right here. All assets CSDing,
2:16:35right? I was expecting all assets to hit the low. Don't mind the reversal for now. I'll talk about
2:16:40the reversal in a bit. And then I entered this right here. And I stopped like right around there.
2:16:47And then I had my TP at 3 R around 3R. So, I got out somewhere on this area and I also got out. So,
2:16:53I got out for a couple reasons. I wasn't holding it to this low. So, for number one,
2:16:57if you look at ES, somehow ES already hit the low, right? Look at that. Look at this. Yeah,
2:17:05ES already hit the low. Now, I never like it when ES is the leading asset. So, in this case,
2:17:10ES hit the low. NQ and YM did not. Now, I don't like it when ES is leading. And I always say
2:17:16this because ES is the byproduct of how NQ and YM move. So ES should always be the middle asset. If
2:17:22NQ is leading, ES is the middle asset and YM is the lagging asset. And inversely if YM is
2:17:28the leading asset, ES is the middle asset and NQ is the lagging asset. And so when ES is leading,
2:17:34then you have a problem with decoupling, right? And you should always stay away. Well, you can
2:17:39you can technically still trade it mechanically. I just don't like it because it is very it for me
2:17:44my experience is very low probability and it's better to just um stay away rather than stay in
2:17:49the trade. I also exited because I saw this huge up move on YM and when I saw this close I think I
2:17:56got out right around the closure of this because when I saw YM close up here I was like the market
2:18:02is decoupled right even though we manipulated this high again I need we don't have the follow
2:18:08through yet. So I'm basically if I stay in this trade and then Q then I'm just praying that YM
2:18:15gives that follow through to the lows right rather than just being getting on being safe.
2:18:19So I actually kind of sniped the bottom here. You guys can just look at the executions on my Twitter
2:18:25and also because ES hit the low and I got her out there now for this reversal that we have higher.
2:18:30I can't anticipate this. Even though, as I said before, even though we have SMT down here with ES
2:18:39first of all, I don't want to be bullish on this. I'm not bullish on this, right? I'm not bullish on
2:18:45this day. And second, I would never you I don't use NQ and ES SMT. You can mechanically you can.
2:18:51This is a personal preference. This is purely personal preference. you don't have to follow
2:18:54it. But in my experience, NQ and ES SMT or YM and ES SMT is never just a single SMT between the two.
2:19:03Normally, if you have SMT with ES then YM or NQ will have that same SMT. So, if you have ES and
2:19:09NQ SMT, typically um NQ and YM will also have that same SMT. So, there's no point. This is why when
2:19:17I'm live streaming, you don't um have me looking at ES for SMTS because simply this is again this
2:19:23is purely personal preference. I don't use ES as an SMT, right? I believe ES is the byproduct
2:19:29of ENQ and YM's moving. So there's no point in looking because if there's SMT with ES,
2:19:34there's SMT with the other asset. So I don't exit off of the fact that ES took this low. Although
2:19:39it is a nice confluence, I exited because YM was expanding higher and so I can't really catch this
2:19:45re this reversal higher. So you could have traded the continuation here. But yeah, moving on to the
2:19:50next example. So for this next example, we have gold and silver. Now looking at this daily chart,
2:19:58this is the day that we're going to study this February 5. Now look at how did the the previous
2:20:02day close, right? We're trading into this huge gap, right? and we're sweeping this high,
2:20:09right? We have a reversal. Now, take note, there is no other high for price to manipulate. So,
2:20:14when we close this as a reversal candle, you already have your bias for the next day. It's
2:20:18very, very straightforward. Now, as I mentioned before, you mark out 50% of this wick and you
2:20:24want to look for PDAs below the 50% of the previous wick that caused the reversal. So,
2:20:30it's the same for this. As you can see now, we just refine this and see how we're opening up
2:20:351,800. We're opening up 1,800 basically. Let me clean this up for now. So, this is 1,800, right?
2:20:47So, we're opening up 1,800 inside of this gap. Now, this is an SMT fill in of itself. So,
2:20:56this already should be enough for you to trade this lower. But I have
2:21:01um there's a strength switch here actually.
2:21:07Yeah. Yeah. This. So you see the asset that tapped into the gap was 1,800 itself. So
2:21:131,800 opens up and taps the gap itself. 1,800. Note that in gold 1,800 is the
2:21:19highest point of this candle, right? 1,800 is the highest here. But on silver it is,
2:21:261900. So we have this second stage SMT strength switch right here. Um
2:21:35right there you have your strength switch right
2:21:37there. Now again the context behind this strength switch.
2:21:46You want to see strength switch so both assets can expand lower in this scenario. Right? As you
2:21:52can see now look how much more deeper gold is inside of this gap inside of this kind of move
2:22:00compared to silver right and now after this you have silver which is considerably weaker
2:22:06right considerably weaker getting that strength switch where now silver is becoming temporarily
2:22:12stronger and you also have this candle to closure as well and so from that move alone
2:22:17you could have shorted this on either gold or silver. You could have taken either CSD. Now,
2:22:24I didn't take this because I wasn't awake for it yet, but you could have taken something like this
2:22:29with your stop at this high and then targeting the lows. Again, very very high probable sequence.
2:22:38But this isn't even the this isn't the trade that I took. The trade that I took was with a
2:22:42another yet again another strength switch. So, take a look at how the gaps form here. Let's
2:22:48let's jump to the 30 minute. Yeah, wait. No, no, no. It's a 50-minut. My bad. My bad. Sorry. So,
2:22:53see how in gold the asset that is having this one stage sweep here, just consider this sweep for
2:23:02now. Ignore the other sweep, right? I'm going to show you guys. I'm going to clean this up a bit.
2:23:11So, we get this first sweep. Now, just viewing it from the perspective of this leg. You have
2:23:15this silver which is sweeping higher. Now again we're getting strength switch here,
2:23:20right? So you see how gold is basically tapping into the gap and getting a re- sweep compared
2:23:25to silver which is not getting the gap and not getting the re- sweep. Again, in this single move,
2:23:31gold is weaker, right? See, gold is not is the one that is not sweeping this high and silver
2:23:36is the one that is sweeping this high. Now, gold, the one that is making the failure swing, SMT, is
2:23:41the one that is getting the gap fill and getting the re- sweep, while silver is the one that's not,
2:23:46right? And so, I this is the one that I traded. I took this on gold, this CSD lower and my stop
2:23:55somewhere around 50% of this wick. And then I was targeting this again, I was I only wanted
2:24:01to scalp this, right? But then again, as I said before, if this low is your ultimate target,
2:24:07then this draw is very, very, very high probable, right? Because you're expecting price to get to
2:24:12this low. This low is nothing. It's a lowhanging fruit. And again, this isn't even the final the
2:24:18final one. We get another strength switch here as a lagging asset. So, see how there's two
2:24:23opportunities in one. Again, let me show you here. Silver takes this low already. Silver
2:24:30takes this low at 2100. This 2100 candle. Now look at where 2100 candle is right here. This is the
2:24:382100 candle right at February 4 2100 candle. See how much farther that is. Again, because gold is
2:24:47farther from this low and silver already took the low, we need compensation, right? We need gold to
2:24:54wait around while G while GC or gold catches up to this low. So what do we get? We get this
2:25:01strength switch SMT field. This lagging asset, right? See, you just see how fascinating this
2:25:07thing is. Like very very textbook lagging asset trade. Silver takes out the low and we're getting
2:25:14this SMT fill and the gold that has not taken the low yet is getting this failure swing SMT fill,
2:25:21right? And this is telling you that gold is going to catch up. And so from this I took I believe I
2:25:26took the one minute here. Yeah, I took this one minute right here. I'm a stop like right around
2:25:34there and I TP at this low. Very very textbook, right? So you see just really fascinating stuff,
2:25:41right? You see how in this move first you have this this two stage right here. This is your first
2:25:48strength switch. And then you get another strength switch here. And then you get another strength
2:25:54switch here. So you see how assets are basically just strength switching to allow the assets to
2:25:59move. If one asset is moving way too quickly for the other, the one that is moving or leaving or
2:26:06moving way too quickly is going to wait around for the lagging asset. Right? And when you see these
2:26:11signatures, then that is basically confirming that price is going to expand. And that is exactly what
2:26:18we get here. Right? So in this scenario, silver reached this low. Silver reached this low way too
2:26:24quickly. And so what does it have to do? It has to wait around for YM. I mean uh gold. Sorry. I'm
2:26:29sorry. I'm getting things mixed up. It's waiting around for gold to reach and sweep this same level
2:26:35as well. So what does it do? We get that strength switch between gold and silver. So we can get that
2:26:40lagging asset. You see how very quick, very clean these moves are, right? Okay. And again in this
2:26:46scenario, in this first SMT fill, right, silver is having that deep retracement. Gold is just
2:26:53retracing into a gap. And so what does it do? We get that strength switch. While in this scenario,
2:27:00gold is waiting around for silver to expand to the same level, right? And then but then again, silver
2:27:07got too quickly to trade to the downside. So what does it do? It waits around for silver for gold to
2:27:13catch up. very very textbook lagging asset trade. Really good study here, right? If you guys watch
2:27:19this video, I recommend you guys study a bit more on how the Asian session into London session moved
2:27:25during this day, February 4, on medals. Very, very textbook guys. Very very textbook. You guys need
2:27:31to study this. It will just fascinating stuff, dude. This stuff still amazes me to this day,
2:27:36man. Like it's just really amazing how the markets move. So moving on. So for this example, So for
2:27:44this example, we have a traditional continuation model where if you look at the daily first, right?
2:27:50We're just kind of consolidating, right? Let me clean this up a bit for now. We're just clearly
2:27:56consolidating, right? So I was more bullish here because we're opening up and we're trading lower,
2:28:03right? And also because pre-market or before we have this sequence, we have gaps trading higher.
2:28:10when we have these highs that haven't been taken yet, right? So, silver already took those highs,
2:28:17right? And now what are we getting? This is not a strength switch, right? So, typically what you
2:28:24want to see here is that the asset that took the high is making the failure swing. I mean,
2:28:29yeah. Yeah. Making the SMT and the asset that hasn't taken the high is making the
2:28:32failure swing SMT. So, there's no strength switch here yet. Okay. There's no strength
2:28:36switch to this move yet. Right. There is also no SMT. But if you look at the 90 minute,
2:28:46we are getting this sequence right here where this is technically an SMT fill because silver never
2:28:52took this first gap and gold is digging deep within this gap. But this is where we get the
2:28:59strength switch PSP. Let me mark it out. This is where you get your strength rich PSP right here,
2:29:08right? Where you see this asset is closing bullish and this asset is closing bearish. Now, this
2:29:13is when you know that gold will catch up to the same highs that silver took, right? You have the
2:29:19strength switch PSP that allows gold to catch up to silver, right? So, we have this 15minut as well
2:29:27that is also a PSP, right? We have this PSP here, this strength switch, and as well as we have a
2:29:33small wick, and we're kind of opening up the next hourly candle with a reversal already put in. And
2:29:39so, I simply took this CSD right here, right? And I held it for around 6R, I believe. I held it way
2:29:49past this high. I was holding it. I was expecting price to kind of take this high as well, but I
2:29:54closed around 6R, I believe. Yeah, I closed around 6R. I could have held it for more. Honestly,
2:30:00I think I held it to like the body of the previous candle. I can't really remember, but I know I got
2:30:076R in this trade. So, if I held it to this high, I probably had a wider stop, but it was probably
2:30:13around 6R when what I took. So, I took it to this high. Now, you're getting this strength switch
2:30:18PSP right on the 90 minute and the 15 minute as well. Now, take note, right? The 90 minute PSP
2:30:25is confirmed with the 90-minute closes. So the 90-minut closes at 7:30, right? And so where is
2:30:317:30 on this chart? 7:30 is right here, right? So if you want to wait for the 90-minute PSP, that is
2:30:38completely fine. But so we're opening up 7:30. We're opening up into a gap. And this is your
2:30:45continuation, right? But you don't if you don't want to wait for the 90-minute close, you already
2:30:50have this 15inut strength switch PSP that kind of confirms we're trading higher. So, you could have
2:30:55caught any one of these trades, which is fine. It's decent if you took the first. It's decent if
2:30:59you took the second, right? You have this first CSD, right? And you also have this second CSD
2:31:05right here for your continuation, which is fine as long as you get two R to the high. Now, it you
2:31:10don't really get too R to the high with this. So, you have to be comfortable with moving your trade
2:31:14break even as soon as we hit this high, which we we hit two R anyway on the next candle, which is
2:31:20fine. And so, yeah. So the next examples that I'm going to give are two of the YouTube videos that I
2:31:27already have posted. Okay. So I'm adding them to this video forformational purposes only. So you
2:31:34guys don't have to switch out because technically they are lectures about string switching as well.
2:31:39So I am going to add them to this video as well. But they are still posted as their standalone
2:31:44lectures. Okay. So, I'm just going to stitch those two videos to this video as well, just so
2:31:50you guys can have all of it in one place, in one video, so you guys don't have to switch because
2:31:56those two are also strength switch lectures that I would like to add. So, we're moving on to the
2:32:03All right. What's up, guys? I took two trades today. One in Q and um I basically longed after
2:32:13uh London open like an hour after London open and I longed after 9:30. And there's a lot of
2:32:18lessons to be picked up here, right? There's a lot of there's a lot of strength switching that
2:32:23went on with this move higher as well. Excuse my voice just because I'm I'm really sick and my head
2:32:27hurts. But I want to I want to put out this video for you guys to study about strength switching
2:32:32and I want you guys to kind of denote how we delivered and how we're strength switching as
2:32:37we deliver higher into this uh ultimate draw. So let's start with the daily. It is being recorded.
2:32:47Uh start with the daily.
2:32:53So, first off, I don't really mind these failure swings, right? It it is a concern
2:33:00just because it is not really like a very far sequence as you would say, right? It's not
2:33:07it's not like a really far sequence that you could take right here. And so, I did
2:33:13um I was skeptical at first trading away from these failure swings on ENQ, but we formed a gap
2:33:20away from it. We formed this 4hour gap. We're expanding away, right? We have expansion away
2:33:25from it and we have YM SMTs at the low right here. Though I would have liked it if YM took this low,
2:33:32but we're just probably leaving those equal lows as a target for like next month or something. So,
2:33:39starting today, we're opening up after a candle to closure right here.
2:33:47And so I'm expecting NQ to run Monday highs, although it's a bit sus just because the weekly
2:33:53wick is kind of small. I mean, it's kind of it's not the smallest wick of all time. But that's why
2:34:00I was kind of concerned. And the other thing I was concerned about is this deep retracement on NQ,
2:34:04right? This deep retracement. I didn't like that. But YM didn't have a deep retracement
2:34:08at all. It stayed in the gap, which is fine. It's acceptable. But you see how you see how
2:34:13NQ is having this deep retracement right here. And you see how YM stays in the gap.
2:34:19Now in this scenario, YM is stronger. But notice how NQ actually delivered
2:34:23to the high while YM is a bit is a bit far from the high if that makes sense.
2:34:31And so coming into the day here, this is 1,800. We don't have an an established high of day, right?
2:34:40You just have this swing high. All you have is the swing high as the high of the day. And we tap into
2:34:47the gap right here, 2200, but we fail to reverse. And so what do you get? What signature do you get
2:34:53when you fail to reverse? You get an AMD reversal, right? So you have uh accumulation manipulation,
2:34:59then we distribute higher. When we fail to reverse from a key level and we consolidate
2:35:03and you have high conviction that we're still going to reverse, then we need to re- sweep
2:35:08the consolidation low or consolidation high before we reverse the other way around. And so,
2:35:16um, we do have this. It's only a single PSP right here. YM closed bullish and Q closed bearish,
2:35:24right? But if you want to consider like this SMT right here, it's a small gap. Technically,
2:35:32it's an SMT, but I don't like using SMTs like this. SMT fills like this. I like using them
2:35:37when there's only one gap, right? And so, you technically do have that SMT, but there is
2:35:42also no strength switch. But if you're looking at this, and this is supposed to be the high of day,
2:35:47you could have taken this, you could have taken this CSD higher, but it's just a bit sus for me.
2:35:52I don't like this deep retracement. I don't like these signatures that are being printed and that
2:35:56is why I didn't exactly take this uh CSD to trade higher. But we do have this strength switch here.
2:36:05Right? So you see how you see how NQ is trading deeper. NNQ is the one that is closing bearish.
2:36:12Right now you have an SMT fill where it's the other way around. And this is actually you know
2:36:17um coming back to one of my lectures earlier. First off, we did have a Let me pull up both
2:36:23charts. First off, we do have this 15-minute gap, right? This 15-minute gap right here. And the
2:36:3115-minute gap failed to deliver. As you can see, there's no SMT. Now, we have a Now, after that,
2:36:37we move on to the 30-minut gap. And we have this kind of 30 minute uh sequence right here where as
2:36:44you can see YM traded below this low and there's no gap right and as you can see NQ is not trading
2:36:55into that gap. Now this is concerning me for some reason uh for a couple reasons just because if you
2:37:01look here this is a deep retracement on YM. So, I was expecting this to kind of just consolidate,
2:37:07but what I do know here is that it cannot sweep this low anymore because this is a protected
2:37:12swing. This is you already know this is low of day, right? And so, what what you could have maybe
2:37:16gotten was uh NQ reweeping this gap. This was I was kind of concerned. I didn't like the deep
2:37:21retracement on YM, but we did get that signature off of the 30 minute SMT fill, which is this.
2:37:28Ideally, yeah, you could have taken this as well, this CSD higher with your stop here. I would have
2:37:35set my stop here at the body, but and it would have been stopped. I'm not going to lie to you.
2:37:39But I didn't like it just because this is all just consolidation. And then if you look at the time,
2:37:46actually, it's 3:42. It's the last 15 minutes of the candle. If it has to go, it's going to go.
2:37:52Otherwise, it's going to close as an hourly gap. and uh it's going to close as an hourly gap and
2:37:57it's just going to deliver from there. I'll get to your guys' questions after the recap. And also,
2:38:02I wanted to see kind of uh a stronger CSD on a Q right here. I wanted to see a close above this.
2:38:10That's why I didn't take it. And so, we got that hourly SMT fill. Now, if if this hourly wouldn't
2:38:16have delivered, I would have waited for the 90 minute. But after when you look at the 90-minut,
2:38:19there's actually no gap. And so, we're delivering. We failed to deliver from the 50-minute gap. So
2:38:24now we wait for the 30-minut gap. The 30-minut gap did give a bit of a setup, but it was just
2:38:30consolidation. It was a bit lower probability and it could have swept you at any time. And so now
2:38:35we wait for the hourly gap, right? Now we wait for an hourly gap. And so after that hourly gap,
2:38:44you see this SMT fill. This is a strength switch as you can see where NQ is trading very deep into
2:38:51the range. NQ is the one that closed bearish and now NQ is the one that's not filling the gap and
2:38:56now you see YM the stronger asset is the one that is filling the gap right here right you see 4 a.m.
2:39:04low didn't sweep that and that is a strength switch right because NQ have this has this
2:39:11deep retracement lower right if we want to expand higher on both on all three assets with the same
2:39:18um with the same energy and the same volatility this asset that is previously stronger with a
2:39:24deep retracement needs to have a strength switch right this needs to have a strength switch here
2:39:31you need the NQ to be stronger than YM because YM is already very high here in the range without
2:39:37this deep retracement and so it doesn't need that strength switch. It's going to go high
2:39:41up either way. But ENQ here, it needs a strength switch to trade higher. So after that SMT fill,
2:39:49I took the three minute CSD. What the hell? I will close that for now. I took this three
2:39:54minute CSD and I have my stop here. I have my stop below 50% of the wick.
2:40:04It was either there or I refrain. I can't really remember. I don't think it matters a lot,
2:40:09but I took it to this high. Wait, it was supposed to be a five R. So, yeah,
2:40:13I think I did set it at the body. Yeah, it was a five R and so I held it to this
2:40:21high. I took one I was in I was in this with like three contracts if I remember correctly.
2:40:28Uh I took one off at this high and then I took the rest at this high. And so that was my first
2:40:35trade and uh we're profiling the daily profile with an open. So first we open right here. We
2:40:44formed the low the protraction phase of the day. Although this one I didn't like just because I
2:40:49had a deep retracement. But as soon as we get that strength switch, I was fine with the deep
2:40:53retracement. And I was very sure, I had a lot of conviction that we're going to go to these
2:40:57highs. And so now after this open, we have open low. That's projection of the daily. And now
2:41:03we should just expand higher. And so my next trade is just basically a continuation higher.
2:41:10So coming in here from 9:30, right? This is asset asset synchronization where this and
2:41:18also an advanced premium discount sequence where you can see NQ is perfectly at EQ of this range
2:41:25while YM is below EQ of this range. Now this is the exact same logic that I had earlier with NQ
2:41:32and YM simply because now YM is having this deep retracement with this sweep of the lows,
2:41:39right? And so now you need a strength switch. So YM can reync and trade higher
2:41:45as well. If that makes sense. So because because YM had this deep retracement,
2:41:50it's the exact same as NQ. NQ had this deep retracement. So you need a strength
2:41:55switch. You need NQ or the asset that had the deep retracement to have a strength switch.
2:42:01And this is exactly what we get. We get that strength switch with the asset to retrace deep.
2:42:05And now that is that just played out exactly like the YM trade. So now YM is the one that
2:42:11is retracing deep and taking this low. And now we need the strength switch. And that is exactly what
2:42:19we get right here. As you can see, YM didn't sweep this low. That is your strength switch,
2:42:26but NQ swept the low. And so after this, I took NQ. Obviously, you take NQ here because it is the
2:42:34strongest asset. I was a bit late to this. Ideally, you take this CSD, but I took this
2:42:40uh this gap instead and I have my stop at the body. I was targeting this high for a 4R. Now,
2:42:53we have denoted that you need a strength switch for the asset to reync, but I want
2:42:58you guys to study this whenever you're in a trade. So, you want to see here how you get
2:43:03that strength switching, right? I want to just point this uh small detail out there.
2:43:09I want you guys to notice and appreciate when you're trying to enter trades. So,
2:43:12you see how inside of this range YM was uh YM here was sorry, excuse me. YM here is the one that is
2:43:24re sweeping and filling the gap. As you can see, NQ creates a gap. Where am I? NQ creates a gap.
2:43:30doesn't trade to the gap. You see how YM is weaker here. Now, let's take a look at the
2:43:34lower time frame signatures, right? Uh let me get to that point in price. So,
2:43:40you see how right here where all both assets are expanding higher. But I want you to look at this
2:43:45right where is it? Where is it? You get strength switch signatures even as price is trading higher.
2:43:55So you can see here between NQ and YM you see how we're getting Wait, where is it? Yeah. So exactly.
2:44:04So you see here right where right at this phase of price I want you guys to focus on this particular
2:44:12uh not phase area of price right? So we're going to circle that right now. I want you guys to know
2:44:18that this is above EQ of the range on NQ. So you see how we're overextended like we're in
2:44:26deep premium of the range while in here in that particular phase of price which is at 5 5 a.m. So
2:44:40NQ was indeed premium but if you look at YM it is still below EQ right? So what do we get with the
2:44:48asset that is in premium it needs to be weaker. So the asset that is in discount can catch up and
2:44:55they can both go to the same draw at the same time. So you see here is a just a small detail
2:45:00that is is really [ __ ] amazing. I just wanted to point out here just because when you start
2:45:07to notice the these signatures in price as I was in the trade I was noticing these signatures and
2:45:12that is what gave me confidence that we are going to trade higher. So when you're in an expansion
2:45:18uh when you're in an expansion trade and you see price strength switching like this, this
2:45:23is basically confirmation that you're going to uh expand to the draw just because both of these
2:45:31assets are giving way for each other. Right? There one asset this asset that is very very strong that
2:45:37is in deep premium is switching temporarily is the weaker asset right and you see here the asset
2:45:44that is still in discount with the same draw is now switching to the stronger asset. So you see
2:45:50how immediately after that string switch we expanded higher right we expanded higher and
2:45:58uh even here right even here on this 9:30 trade if you look at the trade that I took on 9:30 we're
2:46:04going to drop down to the one minute just to be just so we could be a bit more specific with this
2:46:09right so you see how sorry you see how YM is the one that is obviously weaker here right YM
2:46:17is obviously the weaker asset NQ is obviously the stronger asset, but you look at look at how these
2:46:23candles kind of move, right? So, you see how after as we're opening 10, we're expanding higher. Now,
2:46:29look at this 959 candle. Like, look at how look at how small it is compared to this one. And 959
2:46:37with this YM 959 candle. You have it closing above closing above this high. While in NQ,
2:46:45it's not closing above this high. But that doesn't mean that NQ is the one is going to switch as the
2:46:50weaker asset. It just means that ENQ is allowing YM to move higher as well. And you kind of have
2:46:58this advanced premium and discount sequence right after the trade where NQ reweeps this
2:47:03low and YM stays above that low, but YM was the weaker asset overall. So what's happening
2:47:09here is that NQ is temporarily switching to the switching switching to the weaker asset while YM
2:47:17is temporarily switching to the stronger asset so that they can be in sync so that they could both
2:47:23expand higher. And that is something that I want you guys to appreciate in price when you actually
2:47:29dive very deep into strength switching and you guys start to notice notice these little things
2:47:35that are happening as we expand. These things give me confidence in price as I am inside the
2:47:41trade and these things are basically what confirm expansion for me. That's a little bit just a sneak
2:47:46peek into the strength switch lecture that I am going to deliver. Now I want you guys to study
2:47:50this. Whenever you guys are in a trade, you look at the lower time frame signatures and look at the
2:47:55signatures between the weakest and the strongest asset. And you guys will notice that even in the
2:48:00lower time frame, they switch strength to allow for each other to catch up. And this is what I
2:48:06mean when I say you get the strength switch on the lower time frame sometimes. That is something I
2:48:11want you guys to appreciate for uh when trading expansions like this. And so yeah, that's going
2:48:19to be my recap for today. I hope you guys picked something up from this. Yeah. Hey, what's up guys?
2:48:29I'm going to be recapping everything on oil today. Uh coming I took four trades. I took a loss which
2:48:35was I know it my loss was lowkey invalid and uh I should have taken that but I'll tell you guys why
2:48:42I lost the first one anyways. So coming into the day first off you have three days of consecutive
2:48:47expansion higher and we have this huge gap on oil and so I wanted to look for shorts but we open up
2:48:55here and immediately we trade higher. Where's open? This is open. Immediately we trade higher
2:49:01and there was no established low of day. So, I wanted to look for shorts to low of day. Although,
2:49:05if you long to this, I don't think it's such a bad long. It's just that I don't see the
2:49:10narrative behind it just because uh I wanted to short instead. Maybe we're just using this high
2:49:15to deliver lower. And uh there was no two-stage at the hourly, but if you look at the 30 minute,
2:49:21there's a two-stage, right? Well, there wasn't really a strength switch, but all assets expanded
2:49:25lower. So, in my opinion, that is fine. And so if you look at the midnight open 30-inut candle
2:49:33that is the highest candle here in HR but if you look here it is not the highest on RB and on CL
2:49:40as well. And so you get some sort of sequence like this where this is a PSP although there
2:49:49was no strength switch if you want to consider the fact that uh as you can see HO here is kind of the
2:49:56middle asset in terms of strength to the upside. And so if you look CL swept this high but it was
2:50:03just a minor sweep right and if you look HO is a bit above this high right given that we are
2:50:11trading higher but RB is like miles above this high. So RB is the strongest AO is the middle
2:50:19CL is the uh weakest. This is an SMT break in a way. However, there is no SMT at the high, but uh
2:50:26we broke this SMT here and we swept that and that is kind of what triggered the expansion lower. And
2:50:33then after that, here is where the strength switch occurred on the 1 minute. Let me clear this up so
2:50:38it's clean. We got this strength switch right here between RB and H. Oh, yeah. Actually, I took RB,
2:50:45not HO. So, we got the strength switch right here. So you see how RB is the strongest asset
2:50:50being like miles above this high right while HO is the middle. RB already established that and then
2:50:56you have this strength switch SMT fill here. So you can see where RB the strongest asset is not
2:51:04filling this. Ideally I should have taken CL here but I just took RB. I was walking right to pick
2:51:10uh I was no I was on my way to pick my brother up here. So I wasn't really looking at charts.
2:51:13I was just staring at it through my phone. And so my first idea was that I wanted to short,
2:51:20but I'll show you this winning trade first. Uh actually, no, I'll show the loss first. So the
2:51:26first loss was an HO. We had this kind of SMT fill right here. Uh where is it? Where is it?
2:51:35Um I think Yeah. Yeah, we got this SMT fill right here. Let me take you guys back to that.
2:51:44Uh, I don't think you hit the hear the fan. I want you to hear the fan.
2:51:51So, as you can see, first ho here, we got a 50minute SMT fill, right? It was there was a
2:51:57gap on both assets, so that's fine. Although, there was no strength switch, right? Because
2:52:03this is still the weakest asset and it is not the one that's filling the SMT. I would rather have
2:52:08preferred this one filling the SMT and CL and RB not filling the SMT. Or at the very least,
2:52:13I want this one to be the one that fills the SMT, not the one that's failing to make the
2:52:18SMT. And then I entered here, which was fine. Uh, which was fine. So, I took this GSD lower. I took
2:52:29this wick retest and I had my stop above here. I was targeting the 1,800 open or the low of day,
2:52:38the current low of day. That's what I was targeting. uh and then I got stopped out
2:52:42immediately after that. Now the problem why I lost this trade was that given that CL and
2:52:49RB are the ones that fill the gap. So given that they are stronger or else weaker to the downside,
2:52:56right? So HO here is the leading asset to the downside. These are the lagging assets. Ideally,
2:53:01you want them to CSD faster. If you don't get the strength switch with the SMT fill,
2:53:06if you don't get the strength switch at the higher time frames, you need to look for a strength
2:53:09switch on the lower time frames. And that is what you don't get. Ideally, as a last resort, CL and
2:53:15CL here is the one that CSDs with more energy than than HO and ideally here as well. RB also
2:53:23CSDs. You could have taken this as well as long as all three assets uh CSD as a last resort. And so,
2:53:29we didn't even get that CSD. We got the 5m minute, but we already kind of talked about how you want
2:53:34to get the bulkier CSD if you don't have the most conviction. You can only take this if you have
2:53:39like the most conviction of price. So, if there was a strength switch, I would have taken this,
2:53:42which was I'm sorry, excuse me, which was fine, right? But ideally, you want CL here to CSD as
2:53:49well, given that CL is the lagging asset. Ideally, CL makes a more energetic CSD than HO to the lows
2:53:57or at the very least CSD as well. But given that this failed to CSD, I should have waited
2:54:02for that as well. And that was my mistake. That was why I got stopped out immediately here. And
2:54:07so after that, we did get that SMT fill which was right here. Uh right here. So this got this 1 hour
2:54:17SMT fill. Now here we don't actually reverse immediately from the SMT fill, which is what I
2:54:23wanted to uh talk to you guys about. It's a really good lecture. See, see how we're getting this kind
2:54:28of deep retracement on CL and HRO. H, but we still don't have that SMT fill. So, as you can see, when
2:54:36uh the 300 p.m. candle swept the hourly, we got that, right? We got that SMT fill right there. We
2:54:45already got that. And ideally, you could have entered this. There was no problem with that.
2:54:49It's just that uh we're trading higher and we're consolidating, right? I wanted this to kind of
2:54:55CSD lower as well given that we're just trading higher. So, I was expecting RB to break this SMT,
2:55:01but I just set an alert at this CSD and it got triggered and it was fine for me to take this
2:55:06trade because since we failed to reverse off of the gap, what we have is an S, we have an
2:55:12AM reversal, right? And you don't need to wait for the 90-minut to close here because well, for one,
2:55:18uh the 90-minut doesn't even make a gap, but we do have that sequential SMD still in play. In fact,
2:55:24it is actually a two-stage right here that kind of played out and that was what I was waiting
2:55:28for. And once we got that uh SMT fill broke and so we're just waiting for this 90minute sequential
2:55:36SMT. At the same time, it is also an AMD reversal, right? where price refuses to reverse from this 1
2:55:44hour gap. This 1 hour gap, price refuses to reverse from this 1 hour gap. So therefore,
2:55:50we wait for either a key level above it or wait for an AMD reversal. So technically, this is an
2:55:55AMD reversal. And so once I saw this huge down move and all assets CSDing and a strength switch
2:56:02where HO the strongest assets the one that's not filling the gap and making the two-stage and the
2:56:06sequential SMD and all assets CSD is lower. This is a very high probability trade. So I just took
2:56:12this. I didn't even need a retest stop at the high and I was targeting this low but ideally I should
2:56:17have taken CL here. It was the most ideal setup, right? It would have given me more R as well to
2:56:23the lows, right? It would have given like a 2.4 4 hour, but I tped when CL hit the lows anyway. So,
2:56:28I enter there. I tpd when CL hit the lows. I tpd when 410 hits, right? 410 hits and I tpd right
2:56:37there. And so, that was my trade. And so, my next trade was I believe it was, let me find it. Uh, I
2:56:46believe my second trade was actually a long Yeah. Yeah. my second trade, my third trade after the
2:56:54loss and my second win was a CL long. So I longed CL to these highs. Now take note, I don't really
2:57:01like longing to the highs to the intraday highs. I don't think it's a high probability target,
2:57:07but given that we are showing signatures, but essentially it's just this, right? First off,
2:57:12I can't short this because I don't like shorting when there's a wick like this. I would rather wait
2:57:17for it to be an old wick. And we got that uh C2 reversal textbook. Now 6 a.m. should just deliver
2:57:24higher. And after that we do have this sort of two- stage where as you can see CL here is
2:57:31sweeping the low of day, right? CL is sweeping the low of day and CL is not making the sequential SMT
2:57:38higher. So, as you can see, uh the the asset that doesn't make the low pay is actually the one that
2:57:45is sweeping this low, right? As you can see that, ignore the background noise. I'm sorry. I'm on
2:57:49call with my best friend right now. Uh so, after that, we got that two-stage uh strength switch,
2:57:57right? And when I saw this, ideally, I don't want to long this, but when I saw this C2 in the
2:58:024 hour, I was like, we're going to continue the trend to trade higher. And so simply what I did
2:58:07was that I just wanted a strength switch because strength switch does confirm reversal. So you have
2:58:13this first CSD here and then we got we get some sort of strength switching where as you can see
2:58:19uh we also have this sequence right here where this is your strength switch. Uh yeah you can see
2:58:28this got swept and then this got swept as well. uh this got swept as well and then we had another
2:58:33sweep to the lows given the fact that this is the strongest asset. This is the asset that fa had the
2:58:39failure swing to the intraday failure swing SMT while CL the asset that is sweeping this relevant
2:58:45low is the one that is not uh that is stronger on this move given that it's making the 90-minute
2:58:50sequential SMT. We have the two stage we have the strength switch and all assets are CSDing higher.
2:58:57It should all be aligned. I took this CSD higher but this was too high for me. I'm sorry. So,
2:59:04I waited for a retest on this wick and so I took that my stop below this breaker which I
2:59:12almost got stopped out by the way. I I had my stop like somewhere around this area. I can't
2:59:16really remember but I tpd at the highest. It was a 2.5R. Oh, yeah. I had it here because it was a
2:59:212 around the 2.5 R. So, I had this but around 50% of this wick. Yeah, exactly. 2.5R. I enter that.
2:59:29Now I want you guys to notice here right that when you look at hro keep that after that signature we
2:59:36actually did drop lower. So let's compare this. So first you have CL where is it? So you have CL
2:59:44here or you have CL. So you see how we're kind of decoupled on this move lower but as soon as
2:59:54uh HO every time HO makes a move higher this also moves higher right the fact that we are
3:00:03getting this slow lethargic grind higher is because HO was expanding lower think of it as
3:00:10because HO is expanding lower this asset is being pulled so essentially they're in a tug
3:00:16of war. So CL and HO were in a tugofwar during this move where HO is tugging CL lower while CL is
3:00:25pulling its own weight higher. It just depends on which one is stronger. So either HO is stronger to
3:00:30the downside or CL is stronger to the upside. And that is why I just kind of set it better. That is
3:00:37why I kind of just set it set my stop break even as soon as I saw this moving lower because at any
3:00:43point in my trade. Ho could have had the stronger pull lower and that means CL will probably just
3:00:50follow lower as well and then we'll get the long signatures after CL takes this low. But luckily
3:00:56I didn't get break even and price just hit my TP straight away. And you see how they're just in a
3:01:02tugof-war and during all this look at how RB was moving, right? it was consolidating because RB is
3:01:09in this scenario RB is the middle asset and so HO and CL were basically just having a tugof-war but
3:01:15CL won the tugof-war. So CL was stronger to the upside than HO was to the downside if that makes
3:01:21sense. So in this scenario Ho was weaker to the downside than CL was to the upside and and you see
3:01:28why you need asset synchronization. You need both assets to have the same upside move rather than in
3:01:35this scenario. Aho was pulling CL lower and that's why we got the lethargic move but it could have
3:01:40stopped me break even at any time. Uh and finally we have my last trade CL and HO. Uh it's basically
3:01:50this. So HO got this 15minute SMT fill first. Right? If you look at let's go back to looking at
3:01:58the triad. First off, you have CL above this high and we have this strength switch between I'm sorry
3:02:05for the background noise. We have this strength switch between the two. Actually, it's a two-stage
3:02:09SMT fill. But if you look at the hourly here, we had a large wick. So, I wanted to wait for 11 to
3:02:17present me something. I want this to load. I wanted to wait for 11 to give me something.
3:02:27It's not loading. So, you see how we have this uh fat wick on uh 10:00 a.m., right? And this is
3:02:34just basically expanding higher and also um I just wanted to wait for 11. And at 11, we did get that
3:02:42sequence where we got the SMT fill again. And I know I took the asset that also swept the low, but
3:02:49ideally we still got that lagging asset, right? Where HO the lagging asset. So you see how Ajo
3:02:56here is the second strongest and RB is just in the is the weakest in this scenario. So they switch
3:03:01strength again where you see how close 11 a.m. is opening up to the high while RB the 11 a.m.
3:03:08open is a bit farther from the high. So HO is the strongest asset here. So even though RB swept this
3:03:1430-minut low, it's fine because HO the the lagging asset still didn't take this. And if you look at
3:03:22the 3minut signature here, right? You see how RB CSD first. So we CSD here at 11:03 while RB didn't
3:03:33CSD at 11:03. So that is your lower time frame strength switch, right? That is your lower time
3:03:38frame strength switch where AJO the asset that is closer to the high is not CSDing yet. And RB the
3:03:49asset that is farther from the high is making this faster CSD. And that is one of the criteria for
3:03:54strength switch. If you guys watch a fee strength switch video uh a fees lecture he had it in one of
3:04:00them. A faster CSD is a form of strength switch. So we did get that strength switch between RB and
3:04:06HO. And I entered off of this. I have my stop at the body here. But even though uh I tpd when HO
3:04:14took the high simply because of the proximity to the highs, we still have this kind of far
3:04:20uh farther draw to the highs. I didn't expect this asset to get to the highs as well. And so that is
3:04:26why I tpd as soon as HO hit the high just because it's an SMT break. So CL is taking the high but
3:04:34it's not reversing. So we may reverse when HO finally takes the high given that we have three
3:04:40consecutive days of higher uh expansion candles. So I can't really expect RB to kind of take the
3:04:48high here as well. And so I just DPD when RB hit the high. And so yeah, those are all the
3:04:53trades I took. In my opinion, indices are kind of trash right now. There's really nothing to take.
3:04:58And so yeah, I hope you guys learned something more about how strength switching works in the
3:05:02lower time frames and asset how assets strength switch to give each other room to move and as
3:05:08well as asset synchronization. So if you guys have questions, just add me in the chat. And I
3:05:14want you guys to study today's price action on oil as it is a very interesting case study for today.

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