Using PSP to Confirm Swing Points (TTFM) — Transcript

Full transcript

1. 0:11How's it going everyone and welcome back
2. 0:12to another video. In this video, we are
3. 0:14going to talk about PSP. I have received
4. 0:17a lot of requests for this video
5. 0:18following the update of my indicator, so
6. 0:20let's get into the video. As we've
7. 0:22talked about before in my SMT video,
8. 0:24correlated markets should have the same
9. 0:26structure. So you can see here with some
10. 0:28higher time frame candles, this candle
11. 0:30took out the previous candle's high and
12. 0:32closed back inside forming a candle two
13. 0:34closure. This candle took out the
14. 0:36previous high and closed back inside
15. 0:38also forming a candle two closure. We
16. 0:40know SMT is when there is a divergence
17. 0:42between these assets, so one asset would
18. 0:45not take out the high while the other
19. 0:46would. So what is a PSP? A PSP is when
20. 0:51we still have that same structure, but
21. 0:52one candle is closing a different color.
22. 0:55Simply put, this is just like a little
23. 0:58SMT clue or a little divergence between
24. 1:00the closures of these candles. So when
25. 1:03you see correlated assets with different
26. 1:05candle closures, that is what a PSP is.
27. 1:09Now where do I actually look for a PSP?
28. 1:11I'm only going to look for a PSP within
29. 1:14a valid fractal model. So either with a
30. 1:17candle two or a candle three closure, I
31. 1:20will be looking for one. I'm simply
32. 1:21going to use the PSP as a confirmation
33. 1:25adding more confluence to an existing
34. 1:27model, not trying to use it to form a
35. 1:29model. So there are two types of PSP
36. 1:32that I look for, that will be a candle
37. 1:34one PSP and a candle two PSP. A candle
38. 1:37one PSP is within an existing model. So
39. 1:40here you can see we have a candle two
40. 1:42closure, candle one closes a different
41. 1:45color than its correlated asset. So
42. 1:47right here, this is a down close candle,
43. 1:49the correlated market or correlated
44. 1:51asset has a bullish green candle. Those
45. 1:54are different, so that would be a candle
46. 1:56one PSP.
47. 1:58A candle two PSP is when the correlated
48. 2:01market closes a different color on
49. 2:03candle two. So, here in candle one, you
50. 2:06can see they are both up closed candles,
51. 2:08but in candle two here, we have a
52. 2:10bearish candle paired with a bullish
53. 2:12candle. So, that is what a PSP is.
54. 2:16Now, you can also combine this with SMT.
55. 2:18So, here you can see we have that same
56. 2:20structure of a candle two PSP, and then
57. 2:23we have the SMT. Once again, these are
58. 2:26all just confluences to be used within
59. 2:28an existing model. I'm not trying to use
60. 2:30these concepts alone to frame a trade.
61. 2:33I'm only using it within an existing
62. 2:36fractal model as extra confluence
63. 2:38between correlated assets. So, now that
64. 2:41you understand what it looks like, let's
65. 2:43go hop into TradingView and go over a
66. 2:44few examples of this.
67. 2:46So, here we are in our first example,
68. 2:48and we have ES and NQ here. Now, with
69. 2:52correlated assets, I can use for Nasdaq,
70. 2:55the S&P or the Dow Jones. I use all
71. 2:58three personally, but what do we notice
72. 2:59here? Right, we have a candle two
73. 3:01closure
74. 3:02right, on either asset here, and then we
75. 3:04are forming another candle two closure
76. 3:06here. Right, so we have in a model
77. 3:08forming a valid fractal model. What do
78. 3:11we notice about candle one here? This is
79. 3:14a green candle, and this is a black
80. 3:17candle, right? So, there is a difference
81. 3:18in the closures between these. So, this
82. 3:21is a candle one PSP cuz within this
83. 3:24fractal model this candle two closure,
84. 3:26there is a difference in candle closures
85. 3:28here. This is bearish, this is bullish.
86. 3:31Now, if we check YM here, we can also
87. 3:34notice that we have a candle two PSP as
88. 3:37this is a bullish candle, this is a
89. 3:39bearish candle. So, let's go into NQ
90. 3:42here. We'll go ahead and put on my
91. 3:44indicator and go down to the aligned
92. 3:46time frame. And after we let this print,
93. 3:48what do we get? We have a candle two
94. 3:50closure, and you can see we have a PSP
95. 3:53on candle one and on candle two. So, it
96. 3:56gets displayed that way. I can hover
97. 3:58over it, see that this with ES and YM
98. 4:00here, and just with YM here.
99. 4:03And what would we then look for, or how
100. 4:05do I actually use that? It's just an
101. 4:07additional confluence to a model. It can
102. 4:09help give me confidence in trading away
103. 4:11from these levels. So, what would we
104. 4:13look for? Just like in my previous video
105. 4:15or the intra candle change in the state
106. 4:17delivery, price opens, forms a high,
107. 4:20now forms a new protected swing, so that
108. 4:22is our intra candle change in the state
109. 4:24delivery. That gives us a stop loss, and
110. 4:26then we could look to get on side with
111. 4:28this move lower for the expansion candle
112. 4:30in candle three, right?
113. 4:33And as we continue lower, let's let this
114. 4:35candle finish.
115. 4:37And there we go. We get a nice expansion
116. 4:40lower with new protected swings. A PSP
117. 4:43is very simple. It is just a difference
118. 4:45in closures between assets. So, here on
119. 4:48Nasdaq, if this is a bearish candle and
120. 4:51it has a PSP, that means YM here closed
121. 4:54bullish, right? So, if we take a look at
122. 4:56this candle, it is bullish there.
123. 4:58And if we go back to NQ, if this is
124. 5:00bullish here, it shows PSP, that means
125. 5:03that these assets here closed bearish.
126. 5:06It's just a difference in the closures
127. 5:08between assets. So, here we are in
128. 5:11another example of what PSP is. You can
129. 5:14see we are on the daily and hourly
130. 5:15chart. We have Nasdaq here on the left
131. 5:18and the Dow on the right. Now, we're
132. 5:20always going to focus on these higher
133. 5:21time frame candles, right? We're not
134. 5:23trying to really look for PSP just in
135. 5:25all these random little candles. We want
136. 5:27it to be aligned with a fractal model
137. 5:29using these higher time frame candles.
138. 5:31So, what do we notice? We have a candle
139. 5:32two closure. We have a change in the
140. 5:34state of delivery. Everything is valid
141. 5:36for a fractal model here. That is when
142. 5:39we can then look for a PSP. So, what do
143. 5:41I have on this candle two? When you look
144. 5:43at the same candle two on this
145. 5:45correlated asset, it is closing bullish
146. 5:48while this one is closing bearish. So,
147. 5:50that is a PSP.
148. 5:52Now, you notice I also have a PSP here
149. 5:54on candle one. What does that mean? It
150. 5:56means here on YM, there will be a
151. 5:59bullish closure. You can see on that
152. 6:01candle one, that same time frame candle,
153. 6:03we have a bullish closure while this one
154. 6:06is bearish. So, what could that give us?
155. 6:09We don't have SMT up here at the
156. 6:11reversal, but that can give us an extra
157. 6:13confluence of a reversal using PSP. So,
158. 6:16as we let this continue ahead, you can
159. 6:17see we form a new protected swing.
160. 6:24And you can see YM is now taking out
161. 6:26this previous high on candle two. So, we
162. 6:29get that continuation SMT that is
163. 6:30printing. We have a new protected swing
164. 6:33and we trend lower. So, you can see this
165. 6:36fractal model, we need everything to be
166. 6:38valid, that CISD, everything has to
167. 6:41form, then we look for PSP. I'm not
168. 6:44going to randomly look for PSP unless it
169. 6:46is in an existing model. So, here we are
170. 6:49in our final example. I know this is a
171. 6:51short video, but there isn't really too
172. 6:52much to talk about. It's a fairly simple
173. 6:54concept once you learn it, and so we
174. 6:56don't need a super long video explaining
175. 6:58this. So, it is fractal though. So, here
176. 7:01we are on the daily and monthly model,
177. 7:03and you can see we have a PSP here on
178. 7:06candle two. Why is that? Well, by taking
179. 7:09a look at this same time frame candle,
180. 7:11what do I mean? The June candle right
181. 7:13here closed bearish. If we look at the
182. 7:15June candle on YM here, it closed
183. 7:18bullish. Right? And you can see that by
184. 7:19hovering over it. So, we have a candle
185. 7:22two closure, right? It's not very great
186. 7:25price action in here. So, this SMT and
187. 7:27the PSP really help with the confluence,
188. 7:30and then a new protected swing where we
189. 7:32get this breakout lower into the
190. 7:34previous monthly lows. So, this is a
191. 7:36very simple example, but I wanted to
192. 7:38show you that it is fractal, and you can
193. 7:40use it on any time frames as long as
194. 7:42there is a valid existing fractal model.
195. 7:45With that, I hope you enjoyed this
196. 7:46video. I'll see you guys in the next
197. 7:48one. Have a good one.