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How I Confirm Narrative With Drivers | GxT

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Summary

In this detailed video, Garrett embarks on an intricate exploration of how to confirm narratives with drivers in trading, a fundamental component of his strategy. He guides viewers through understanding the impact of various market factors such as the economic calendar and correlated markets, while emphasizing the significance of identifying manipulation, failure swings, and the role of economic events. Garrett delves into the nuances of protraction vs. expansion phases, driver manipulations within daily continuations, and how to harness this knowledge for trading advantage. The video promises viewers a meticulous breakdown enriched with examples and invites participation for future insights.

Highlights

The video emphasizes how crucial confirming narratives with drivers is to trading success. 📊
Garrett discusses the economic calendar's role and its impact on trading, particularly in forex and indices. 🌍
Manipulation and failure swings are key concepts discussed for understanding price movement and chart analysis. 📈
Learning to identify drivers and their effects helps in anticipating market movements accurately. 📈
Garrett provides tangible examples, making complex concepts accessible for novice and seasoned traders alike. 🎓

Key Takeaways

Garrett emphasizes the importance of confirming narrative with drivers for effective trading strategies. 📈
Key events like the economic calendar are crucial for understanding market movements and making informed decisions. 📅
Understanding correlated markets and the impact of major currency news can provide trading advantages. 💡
Key highlights include the use of manipulation, failure swings, and the role of drivers in confirming market narratives. 🔍
Garrett promises to delve more into related topics if viewer engagement reaches certain milestones. 🚀

Overview

Garrett embarks on a comprehensive tutorial aiming at traders keen on refining their strategies through detailed narrative confirmation with drivers. He introduces the video by emphasizing the economic calendar as a critical tool, key in understanding market impacts, especially in forex and indices trading. Garrett's storytelling is a blend of practical trading advice sprinkled with personal insights, making the learning curve both enjoyable and informative.

Delving into the crucial aspects of manipulation, failure swings, and correlated markets, Garrett presents a pragmatic case for using these elements as pillars for building robust trading strategies. He illustrates how significant economic events and their timings play into the dynamics of trading, offering viewers a lens through which to interpret these movements effectively.

The video further expands into the intricacies of protraction versus expansion phases, exploring how traders can leverage these concepts to their advantage. Garrett backs theories with real-world examples, dissecting his trades to highlight the application of these principles in real scenarios. By encouraging viewer interaction and promising detailed future sessions, Garrett fosters a community-driven learning experience.

Chapters

00:00 - 00:30: Introduction In the introductory chapter, the content creator outlines the focus of the video, which is about using drivers to confirm narratives in trading. The creator emphasizes the importance of this process in their own trading strategy. They also mention the use of slides to present the information and express willingness to utilize a similar format for future videos, pending audience feedback. The chapter sets the stage by indicating that the journey will begin with an examination of the economic calendar.
00:30 - 01:00: Understanding Market Impact This chapter emphasizes the significance of understanding the market dynamics, particularly for traders. It explains how a forex trader should focus on the currency pair they are dealing with, such as GBPUSD, and be aware of relevant news events that may impact the currencies involved.
01:00 - 01:30: Impact of USD on Markets The chapter discusses the influence of the US Dollar (USD) on various markets, including non-forex markets like GJ (GBP/JPY). The speaker notes that significant news related to the USD seems to affect almost all currencies, even those not directly paired with the USD. This suggests a broad impact of USD-related news events across various financial markets. The speaker admits a lack of experience in forex trading but claims a strong understanding of certain markets, especially indices, and suggests personal testing for further insights.
01:30 - 02:00: Indices and Correlated Markets This chapter covers the concept of indices and correlated markets. It emphasizes the idea of viewing indices such as INQs, Y, and the 'triad' as correlated elements within the indices markets. In the context of forex, similar correlations are drawn between DXY, EU, and GU, which are all part of the same asset class, forex. The discussion also touches upon SMT (Smart Money Technique) and references other commodities like gold and silver, highlighting the interconnectedness and correlation within different asset classes.
02:00 - 03:00: Effects of News Events on Markets The chapter discusses the effects of various news events and market openings on different asset classes, specifically focusing on the euro, XAU euro, and oil markets. It emphasizes the importance of understanding what influences these asset classes. The text mentions how the USD RIP folder affects indices and highlights the significance of the 9:30 AM New York Stock Exchange opening, while clarifying that this opening is only relevant to indices and not applicable to gold, oil, or forex markets.
03:00 - 04:00: Filtering the Economic Calendar In this chapter titled 'Filtering the Economic Calendar', a common misunderstanding about the importance of 8:30 AM is addressed. It is noted that 8:30 AM is not inherently significant unless there is a 'red folder' news event scheduled at that time. The focus should be on USD red folder news events when referring to gold, indicating that not all scheduled times hold equal importance unless accompanied by major announcements.
04:00 - 05:00: Caution Protocols for Trading Days The chapter titled 'Caution Protocols for Trading Days' addresses common misunderstandings related to the influence of USD news events on the oil market. It clarifies that oil does not respond to typical USD news but follows its own 'energy calendar.' The transcript emphasizes the importance of focusing solely on significant events marked in red within this calendar, while ignoring less relevant orange, yellow, and white events. It highlights the critical first step of logging onto the economic calendar to effectively filter news that impacts the energy sector.
05:00 - 06:00: Applying the Energy Calendar This chapter explains how to utilize the Energy Calendar on ForexFactory.com. It guides the reader through the process of setting up the calendar based on the specific asset they are trading. The steps include accessing the calendar page, using the green filter icon to select the relevant trading asset like EUR/JPY, and deselecting others. For trading indices, ensuring only USD is selected is recommended.
06:00 - 07:00: Understanding Framework and Price Manipulations This chapter focuses on the importance of understanding frameworks and being cautious of price manipulations in the financial market. It highlights the use of filters to sort through news events as a way to plan your trading strategy for the week. The chapter advises against entering trades before major financial events such as NFP, CPY, or FOMC press conferences, emphasizing a cautious approach to avoid unforeseen market movements.
07:00 - 09:00: Price Expansion and Reversal Signatures The chapter titled 'Price Expansion and Reversal Signatures' discusses trading strategies around major news release days, such as Non-Farm Payroll (NFP) Fridays. It emphasizes the importance of not trading on the same day as the major news release but allows for trading on the day prior. The chapter outlines a specific framework for trading around these events and introduces the concept of an 'energy calendar' to aid in decision-making.
09:00 - 10:00: Using SMT in Trading This chapter discusses the use of SMT (Smart Money Techniques) in trading, with a focus on using an energy calendar. It provides step-by-step instructions on configuring the calendar by toggling the filter icon, unchecking all boxes, and applying the filter to create an energy roadmap. Additionally, the chapter emphasizes the importance of understanding the trading framework in order to effectively anticipate or apply drivers to it. This understanding is considered essential before engaging with the energy calendar for trading activities.
10:00 - 12:00: Signatures of Price and Expansion The chapter titled 'Signatures of Price and Expansion' discusses trading strategies focusing on identifying and reacting to different market swings. It explains the concept of 'failure swings,' which occur when there is close proximity between highs and lows, indicating potential trading opportunities. The importance of mapping out relevant swings, which are highs and lows that are properly spaced out, is also emphasized. The chapter distinguishes between trading away from manipulative patterns towards failure swings or other objectives, highlighting strategic approaches to trading based on swing analysis.
12:00 - 14:00: Confirming Driver Continuations The chapter 'Confirming Driver Continuations' explores the concept of 'failure swings' in trading, which are apparent when multiple market highs are closely situated. These swings highlight low resistance liquidity in the market. The chapter explains how the space between two significant market swings contributes to the formation of notable highs and lows, providing opportunities for detecting price reversals. The manipulation of these key market swings is fundamental in establishing what are termed 'protected swings'.
14:00 - 16:00: Profile Invalidation and Importance of Driver Reversal The chapter explores the concept of profile invalidation in the context of trading, particularly focusing on the importance of driver reversal. It explains the reasoning behind why a failure swing doesn't necessarily mandate a return to a lower level unless all relevant lows within the area have been manipulated. This manipulation verification ensures that there is no reason to revisit the lower levels, allowing the price to expand away from the area.
16:00 - 18:00: Retraction and Expansion Phases in Daily Candles This chapter explores how to combine manipulation techniques with SMT (Smart Money Techniques) during trading. A key highlight is the focus on applying SMT at relevant swing points in the market, rather than at failure swings, for optimal results. The author emphasizes the importance of viewing certain market movements as manipulation events that indicate relative strength when a correlated asset takes a particular low, enhancing protective swings on both assets involved.
18:00 - 21:00: Ideal Scenarios for Driver Confirmation The chapter "Ideal Scenarios for Driver Confirmation" discusses the importance of understanding price action and reversal signatures in trading. It highlights the significance of recognizing relevant swings and the conditions needed for a reversal. The text emphasizes that if one fails to manipulate a relevant swing, the price may continue to move to the next swing. It is crucial to observe a swing formation and ideally, an expansion into the level to confirm the reversal.
21:00 - 25:00: Target Setting and Driver Impact The chapter discusses the concept of expansion and reversal signatures in trading, focusing on mouth expansion and the V-shape reversal signature as ideal indicators of market reversals. It emphasizes the significance of confirming a reversal signature with a CST. Additionally, it introduces two types of reversal signatures - the first one involves trading into a relevant swing and observing an SMT followed by price expanding away, confirmed by a CSD. The second type involves trading into a relevant level and consolidation on a lower time frame, suggesting a different kind of reversal indication.
30:00 - 48:00: Case Studies The chapter titled 'Case Studies' discusses the concepts of AMD reversal and AMD continuation in financial markets. The focus is on price manipulation at specific levels to achieve certain outcomes. The discussion further elaborates on the need to avoid simple expansion through levels without manipulation, emphasizing the significance of engaging with consolidation highs. The concept is demonstrated using an example involving swing points and candle patterns, which illustrate the process of expansion and manipulation necessary for achieving the desired market signature.
48:00 - 49:00: Wrap-Up and Future Content Offers The speaker discusses their focus on intraday trading and the importance of candle three expansion and key levels. They emphasize paying attention to small details, such as the formation of the daily range, to form a trading bias. They aim to observe meticulously how key levels are associated with established low days. This approach sets them apart in their detailed intraday trading strategy.

How I Confirm Narrative With Drivers | GxT Transcription

00:00 - 00:30 What's up, guys? So, in this video, I'm going to be showing you guys how to confirm narrative with drivers. This is uh very important in my trading. Uh so, let's go ahead and get into it. Now, I have a bunch of slides created here. It's going to be a long video for sure. If you guys like these slides and like the way this video is presented, I can do the same thing in my future videos. Just let me know what you what y'all think. Um now, let's go ahead and start. So the first thing is uh we must start with the economic calendar right and
00:30 - 01:00 it's very important that you understand uh you know the market that you're trading and what's actually affects that market. So if you're a forex trader you're going to look within the currency pair obviously a currency pair is just two currencies right made up of two currencies valued against each other. So, for example, if you're trading GBPUSD, you're only concerned with, you know, GBP and USD folder news events. Now, if you're going to trade G, you
01:00 - 01:30 know, GJ or something, GBP, JPY, you'd be looking at GBP, JPY, redolder, right? Um now one thing I will say um I don't trade forex but I have noticed that USD right the the large news events I feel like they affect almost all the currencies I feel like uh like I've even seen it affect like GJ it's pretty weird so you're going to have to do some testing on your own there but I am pretty well verssed in these three markets especially indices so you know
01:30 - 02:00 with within the indices markets um I'm referring to you know INQs Y as the triad here, right? If I was trading, you know, forex, I would be trading I would be looking at DXY, EU, and GU, right? These are three correlated markets in the same asset class. So, here's the same asset class, three correlated markets in there. So, this is what I'm referring to with an SMT, right? In gold, I'm referring to gold, silver, uh,
02:00 - 02:30 euro or XAU euro as the three correlated markets in this assay class. And then this is for oil, right? So it's pretty important to understand what you know affects that asset class. So obviously USD RIP folder affects indices and the 930 New York Stock Exchange open every single day. Um now this 9:30 open is only specific to indices only. I see a lot of people use it on gold or oil or even forex. It's absolutely irrelevant.
02:30 - 03:00 And another misconception misconception is that 8:30 is some relevant time every single day. It's not 8:30 is absolutely irrelevant. Um if there is no 8:30 red should folder news event. Okay. So you don't need to be marking out 8:30 if there is no 8:30 you know uh news events. So u when you refer to gold the only um thing you need to be concerned with is USD red folder news events. And for
03:00 - 03:30 energy, another misconception I see is that, you know, people try to pair USD folder news events with oil. It doesn't affect oil. Um, oil has its own, you know, um, economic calendar. It's the energy calendar, and we're only referring to red folder news events uh, within that calendar. So, some pretty simple stuff, but we need to understand how to filter the economic calendar. you're going to have, you know, these orange, yellow, and white news events that are absolutely irrelevant. So, the first thing you're going to do is log on
03:30 - 04:00 to forexfactor.com, right? You're this page going to be pulled up um when you go to calendars and you're going to click this little you're going to toggle this little uh green filter icon. When you press that, this is going to pop up. And now whatever asset you're trading, if you're trading euro JPY, then you're going to click Euro JPY and uncclick everything else. Right? If you're trading indices, the only thing you should have checked is USD. And then for any market that you're trading, uncclick
04:00 - 04:30 all of these, uncclick orange, yellow, and white. It's absolutely irrelevant. Apply the filter. And you should have something like this, right? Where it's going to show all the news events laid out for the week. And this is going to be your road map, right? Um now a caution protocol is you never really want to be entering uh you know before NFP CPY or FOMC press conference. Now this is before you know the driver within the same day. I don't have a a caution protocol for entering um you
04:30 - 05:00 know before you know the day uh the news release day. So like let's say NFP is on a Friday always. Uh I I will still trade Thursday for example but I won't trade it prior to NFP within the same day. Okay. Um, now it's very specific when I do. Um, and it requires specific framework which you're going to see a little bit of that here. Um, so let's move on. So now how to apply the energy calendar because a lot of people don't know this. So same thing Forex factory.
05:00 - 05:30 Um, but you're going to click the energy calendar here and you're going to do the same thing. You're going to toggle this uh filter icon and uncclick every uh checked box and apply the filter and grab something like this. So there's your energy road map. Now one thing that we must go over briefly um is some framework because you need to have a a decent understanding of framework um to actually anticipate or apply you know drivers to framework. Right? So some pretty basic things. What
05:30 - 06:00 do we trade away from is some sort of manipulation. and we trade towards failure swings, right? Or we trade away from these uh dis manipulation, right? And trade towards these failure swings or any, you know, objective, right? So mapping out relevant swings, this is pretty important. So relevant swings are just spaced out highs and lows, right? So this low is not a relevant swing because it's not spaced out, right? So this becomes a failure swing, right? Failure swing is just close proximity highs and lows. So see
06:00 - 06:30 all these highs are in close proximity right those are failure swings right like low resistance liquidity see the space between this relevant swing and this relevant swing that's what creates right uh important highs and lows in a sense right so when we engage with these levels this is where we want to see you know that phase of price a reversal so right when we engage with a relevant swing when we manipulate it this is what creates a protected swing right when we manipulate a failure swing
06:30 - 07:00 we're not referring to that has some sort of relevant level because if you manipulate a failure swing, then there's still a reason to return back to this area, right? Because this is still a fair swing to this low, right? So this when you have a failure swing like this, you want to manipulate all relevant uh lows within that area. So there is no reason to return back to this low, right? Because if you manipulate everything within the area, there's no reason to return. And this is where price will actually expand away.
07:00 - 07:30 Now another thing we can combine a manipulation with is with SMT. So when you you know manipulate a relevant low and we see an SMT there, this is the ideal scenario, right? We don't care about SMT with failure swings. Even if there's an SMT here, I don't care, right? Doesn't matter. We use SMT at relevant swings, right? And this is would also create a protective swing on both assets, right? You have to view this as a manipulation over here. Uh because this is showing relative strength, right? where the correlated asset did take this low
07:30 - 08:00 up. Now when we engage with this these relevant swings, we need to understand you know signatures of price. We need to understand what a reversal signature looks like right because if you fail to manipulate a relevant swing and we continue right or we just failed to manipulate they're probably going to continue right and go to the next relevant swing. So when we engage with that level, ideally we see this is really the first step is a swing formation right but within that swing formation I want to see this signature ideally right expansion into the level
08:00 - 08:30 and expansion away confirmed by a CST. So it's expansion, mouth expansion or that Vshape. I'm sure you guys have heard this a lot, but this is the reversal signature that you ideally want to see, right? Um, so this is what it look like. If this is a relevant swing here and you trade into it, have an SMT and price expands away from that confirmed by a CSD, that is a reversal signature I'm looking for. But there's two types of reversal signatures, right? What if we trade into a relevant level and we consolidate on like the lower time frame or something? Then this is
08:30 - 09:00 where I would like to see an AMD reversal. All right, there's two types of AMDs. There's AMD continuation and AMD reversal, right? So price has to manipulate this level. Other if it doesn't manipulate here, we're just obviously not, you know, we're just expanding through it. We don't want to see that. So we engage with this, you know, consolidation high, you're going to see the same thing, right? Expansion meth expansion. And that's the signature that we want to see, right? And like I said, this would be made up from a swing point. So you can imagine this is candle one, candle two manipulation and then
09:00 - 09:30 candle three expansion, right? So when you engage with a protected swing, when you think about key levels, um like I said, I specifically am intraday trader really that's really what I get a lot of my bias from is intraday development and I focus a lot of the a lot of small details with how the daily range is forming, right? Um I'm much more detailed in my approach than most people in that sense. So the key levels that I'm referring to are right when there's an established low day put in like a
09:30 - 10:00 relevant swing that puts in the low day. These are the key levels that I want to be trading away from that level. This is when I you know use order blocks or fair value gaps. Um it's away from a protected swing towards a draw liquidity rate because we should expand away from manipulation right we shouldn't return back to this protected swing. What supports expansion order blocks and fair value gaps. So these are the ones that become crucial and these are really your invalidation levels for continuation, right? Because if you fail to um displace away from this order block, if
10:00 - 10:30 you fail to find support here, this protective swing is not likely going to hold, right? Because of a couple reasons, right? When we think about expansion signatures, right, we don't we don't make these super deep retracements. So I don't even want to see that, right? But that's a topic for another video. Yeah, put to put it simply, I want to use order blocks and fair value gaps on the 30 minute 1 hour to support intraday continuation away from the low day. Now, when we engage with the protected swing or sorry, a relevant swing or any key
10:30 - 11:00 level, right? We're going to refer to a um swing formation rate, the fractal model on the 1 hour and 30 minutes time frame. All right, this can be forming the low of day. This can be for intraday continuation. This stays the same. It's the hourly or 30-minute fractal. Now, how to confirm a driver um continuation versus reversal. So, this is when we already hit a key level, right? Um we want a pair with continuation. So, let's say we already have a reversal put in, right, with
11:00 - 11:30 shown by a CSD, right? Confirmed by a CSD. When the driver opens up and trades away from that CSD, this is how you confirm narrative, right? Now, this can look a couple different ways where the driver will open, you know, away from the high of the day, right? Trade towards that CSD or that reversal creating an opposing candle and we close through that. That's what confirms it, right? That's what um confirms the driver being in continuation phase. Now, what if there is no high and low they
11:30 - 12:00 establish or no key level traded into? This is when we want to see the driver trade into that key level. And then we want the driver to create that CSD, right? This would be pairing it with a reversal. Now, driver pairing continuation burst reversal. Now, this is something that you're going to see that's very very very consistent in the market and something you see almost every single day. So, if this is the instead scenarios, right? So, if a reversal has been put in price driver, then we want to see a driver continuation, right? Because if we put
12:00 - 12:30 in a reversal, we expand away from that reversal. So when the driver start to expand away from that um shown by these continuation signatures right right here that confirms narrative for us right if a reversal has not been put in prior to driver we want the driver to go create that reversal right if a driver has failed to reverse then that is invalidation right so let's say there is no established high and low of the day um like in this scenario and the driver trades into it but fails to reverse
12:30 - 13:00 that's invalidation to the whole profile because If the driver doesn't reverse, then I'm not expecting 12 pm, 1 pm to reverse. Those are irrelevant times of day. I want to pair my manipulation or reversals with a driver for higher probability. Right? You're going to find a lot of times if the driver fails to do that, then we're just going to chop for the rest of day. Well, you're just wrong about your bias, right? So, if 8:30 manipulates, right, then 9:30 should continue, right? So, this is specific to indices. If you have a two-stage driver um where if you have red fold the news
13:00 - 13:30 event prior to 9:30 that's always a two-stage driver. So if 9:30 manipulates then 9:30 should continue right when you think about 4hour profiling uh within the 6 6 a.m. candle if that reverses then 10 a.m. should continue right when I think about New York reversal I want the 6 a.m. to reverse I don't want the 10 a.m. to reverse it's a little specific when I when I can trade the 10 a.m. or view 10 a.m. reversal is high probability. That's when the driver is trading to a reversal point, right? It's it's very different if if 8:30, 9:30
13:30 - 14:00 trade into reversal point fail to reverse versus if they just trade into a level uh and then maybe get there late late, you know, in the 6 a.m. candle, maybe like 9:50 or something and then 10 a.m. reverse. It's a lot different. Um, now same thing here, 9:30 manipulation, then expect 10 a.m. continuation. So this is really the whole logic behind my six my 4hour profiling right you see a lot of people use it um but this is the real reason why right when you see 10 a.m. continuation a lot of times is
14:00 - 14:30 because the you know you have the previous two sessions prior to 10 a.m. you have the drivers prior to 10 a.m. majority of the time so there's going to be some established higher low of the day before 10 a.m. So 10 a.m. a lot of times is just continuation, right? So now let's get into um continuation or driver continuation. So this is when prior to the driver we hit a key level. This is an example of we create a protected swing right prior to the driver right confirmed by that swing
14:30 - 15:00 point. Right? So it's either driver opens up within that swing point expands away you can confirm it with a you know CSD or whatever or maybe there is no swing point that's fine as well as long as we have some sort of continuation signature that would be shown right here right so here's the five minute three minute confirmation of the driver trading away from this this low right and that would you know confirm that this is a true reversal right over here is another example of continuation so these are both examples of continuation
15:00 - 15:30 but this is you know, away from manipulation. This is an example of those key levels that we talked about like fair value gaps, order blocks away from some sort of manipulation, right? So maybe prior to driver, we've already started to expand away. Um, and we hit a key level prior to driver. So like a fair value gap, an order block, then I want the driver to expand away from that, right? Because I want these to support price higher, right? So that's an example of maybe have a swing point already formed before the driver. Well, I want price to expand away from that swing point, right? because the markets
15:30 - 16:00 cannot reverse without a swing point. So if you already have a swing point from a key level, we should expand away, right? When's the perfect time to expand away around those drivers. So it's an example of um prior to the driver, we don't have a established higher low of the day or maybe you're just in a consolidation. Well, I want the driver to go trade into that relevant level, that relevant swing, and manipulate it, right? So I can pair a reversal with the driver. So that's what that look like. whichever opens up into these feather swings uh you know creates that candle 2 closure
16:00 - 16:30 or swing formation uh and prints that reversal signature maybe has that five minute cd three minute CST whatever you require uh and then expands away right so now you're pairing a reversal with a driver which is higher probability obviously so this is an example of driver manipulation but within daily continuation so pretend the low of day is in we've expanded away and the driver just opens up within expansion this is when you're going to get a lot of times some sort of retracement, right? And what do we want
16:30 - 17:00 to trade continuation from? Fair value gaps order blocks, right? So, this is when I want the driver to go trade into one of those levels, right? And then reverse. So, here's an example of, you know, we're opening up an expansion. I want the driver to, you know, retrace into this level, create that swing point, and expand away. Um, here's an example of driver invalidation. All right. So again, we we're opening up within we can't trade away from anything essentially, right? When we open the drivers. So I want the
17:00 - 17:30 driver to go create something um to where I can trade away from, right? So here's failure swings. If if the driver fails to reverse from these these failure swings and fails to manipulate it, well then that's invalidation to the whole profile, right? Because then it's just going to go to this relevant swing. Um so every time you open the charts, there's always going to be an invalidation level every single every single time essentially, right? you're either opening up near some key level or around failure swings etc. So this is an invalidation for
17:30 - 18:00 continuation, right? This is an invalidation for manipulation low of day. This is an invalidation for daily continuation. Maybe you have a low of day, you know, put in and the driver fails to, you know, expand away from that the low of day, right? That's an validation that this is probably not the low of day, right? Or this fair value gap is not going to support price high, right? So I want the driver to go trade into this fair value gap and put in some sort of reversal. Now, if it fails to do that, this is going to fail and like we're just probably chopping around, right? This is an example of maybe you
18:00 - 18:30 put in a um you know some sort of protected low within the continuation, right? So here's a protected swing. Price trades away from the protected swing and then we form another relevant swing, right? Look at the space between these lows. We manipulate it prior to driver with CSD prior to driver maybe on the 30-minute hourly. Then I want the driver to expand away from that rate. But if it doesn't do that, this is clearly not a protective swing. um and probably maybe even this is not going to be low of day rate. So ideally we really want the drivers to expand away from
18:30 - 19:00 these relevant levels. Now one thing we must understand is protraction versus expansion phases. So within a daily candle like I said you're going to have a retraction phase and an expansion phase. The protraction phase is just the open low of the candle right forming the wick of the candle. So under the daily open, right? This is ideally where we want to see a protected swing form. is to form the low of the day, right? Because if the wick is formed from a protective swing, then we can assume that price will expand away from that and create the body of the
19:00 - 19:30 candle, right? Now, within continuation, right? You know, within expansion at least, we want to be trading near these close proximity key levels or protected swings, right? So, within expansion, you can also form protected swings to trade away from. And this is always ideal, right? It's when you have a protected swing within daily expansion. So now let's talk about um protraction phase versus expansion phase. Right? So this is manipulation. This is the most ideal scenario when pairing a driver
19:30 - 20:00 with continuation. Right? It's going to be within the protraction phase where the daily candle has yet to expand, right? You see how it's still within its wick, right? This is when the daily opens low, creates a low of day from that relevant swing and we manipulate prior to the driver. So when you manipulate prior to driver what's the if then scenario right driver should expand away. Now this is specific when you are going to get a one-sided expansion, right? When the daily candle hasn't expanded, we also haven't expanded away
20:00 - 20:30 from this key level, right? Because there's only one thing to do now. It's only expand, right? Because if you manipulate, we don't retrace, we don't consolidate, we should expand, right? So when you have a one-sided narrative like this and the daily range hasn't even expanded, what's the most relevant time where we would expect the daily to actually start to form that body of the candle, that expansion phase, it's around these drivers. So um this is when you're going to get that once expansion, no retracement, basically just expand. So if you guys saw my trade on Monday
20:30 - 21:00 and Friday, NFP and then Monday, I believe it was Monday, I traded before the driver. It's because of stuff like this. or there's a little bit more to it with the SMT and stuff, but it's this is the main reason, right? We haven't yet expanded away from that that key level. We're still in the protraction phase of the candle. So, this is the most ideal scenario right here. So, now we're going to get into, you know, what if there is no low of day, high of day established. So, we can imagine this is Asia lows or London lows
21:00 - 21:30 in the protraction phase, right? This is exactly where we want to reverse from, right? We compare that with the driver which would form the wick of the daily candle. Right? Now this is the expansion phase. So what if you know we form an established low day. You want to trade away from that low day. Right? But price is just you know prior to the the driver we expand. So if you expand prior to the driver then um you know you can't trade away from anything right because we haven't hit a key level. So this is that example where we can expect some sort of
21:30 - 22:00 retracement if we expanded price driver. Where do I want price to trace to? Some sort of key level, right? So, here's a fair value gap. I want the driver to trade into that. Put in some sort of reversal. So, I can pair that, you know, that driver with reversal and trade the continuation, right? As long as there's still a draw in liquidity, that's pretty important. So, here's an example of prior to the driver, we reverse, right? Or or we manipulate, sorry, we trade into some relevant level. So, to form a
22:00 - 22:30 low day. So this can be a couple different things. This can be a low. This can be like a low like a relevant low. It could be an order block or a fair value for price to form the low of day from. But the thing is it hasn't yet reversed right from that key level. So maybe it just hit it right before the news. Well, this is where we should just expand away from that key level, right? So this is when I want the driver to just expand away, right? um because if we don't expand away from that key level around this key time then that key level is not you know some sort of relevant
22:30 - 23:00 level right so this example of you know we just hit a relevant level or maybe price is just within a fair value gap or you know whatever I want the driver to expand away pretty simple so this example when prior to driver right we retraced into some level now this is within continuation um but it's also some sort of reversal right within the continuation So we're retracing into a fair value gap here right prior and we haven't yet reversed. This is the same thing as this
23:00 - 23:30 but it's within continuation of the daily candle not reversal not the protraction phase right so this is when we retrace prior you know prior to driver retrace and hit a key level we should just expand away right um there's no reason to go lower there's no reason to consolidate retrace more we should just expand right because after retracement we're in a key level then we should just expand right so this is when I wanted to see some sort of CSD you can use a swing point sometimes some people don't use swing points maybe you don't have to use a swing Maybe you just need
23:30 - 24:00 a CSD and that can uh you know you can pair that with uh the driver, right? So this an example of within continuation there's nothing to trade away from. So maybe we do hit a fair value gap or whatever but we don't expand away from that swing point. So that's viewed as consolidation rate. So if you open up near, you know, some relevant swing, right? This is a relevant swing. Look at the space between these lows. I want the drivers to go and manipulate that to create a protected swing intra intraday, right? within that, you know, expansion phase of the daily
24:00 - 24:30 candle, right? So, what if we already did that? What if we already trade into some some uh relevant swing or protective swing within the expansion phase, right? We should just continue away from that, right? Now, this is when um I would just wait for like a fivem minute CSD, right, to confirm that driver expanding away from here. And um that's how you pair a driver. This scenario, this is when perhaps a driver you manipulate, right? But it's not forming the low of day. Like I said, it's when within the continuation phase or the expansion phase, right? So, let's
24:30 - 25:00 talk about a little bit about positional entries. Um, I spelled this wrong. Great. Conf confrontations, whatever. Um, this is confirmations. I can't spell, but this is when prior to driver, we hit a key level and we already have that swing point, right? And now markets can't reverse without a swing point. So, if the markets trade into a level, right, we should expand away, right? But if we haven't expanded from the swing point, this is the ideal scenario. Right now, to take a positional entry, you
25:00 - 25:30 have to be in close proximity. The driver, the driver's open, has to be in close proximity to some very like um obvious or bulky opposing candles, right? You need like a large range so you don't get wicked out. Does that make sense? And you also, it's very key that we haven't yet expanded away from that key level, right? Because this is like when I mentioned earlier is the most ideal scenario is when we hit a key level or form a low of day or whatnot. We haven't yet expanded, right? This is
25:30 - 26:00 when the driver will just have that one-sided expansion. Um so that's another very key thing. But you need to be opening up within a clear set of opposing candles, right? So so the driver can trade into that or at least find support here and expand. Right? Now, here's like the same thing, but you're going to be waiting for a or you're just going to have that higher time frame confirmation, right? So, let's say the low of day is put in. We have an hourly CSD prior to news event. The the news event or driver is opening
26:00 - 26:30 near these opposing candles. It should find support here, right? So, you can set an entry here. This is another type of uh you know, positional entries. It can be within continuation. Maybe we, you know, created a low of day, expanded away, and then we're creating a propulsion block, right, off of key levels that should hold. If this is going to be the true low of day, right? So, when you get that confirmation that CSDM opening near that, then you could, you know, set a positional entry here. Now, uh now with you know, time frames,
26:30 - 27:00 this is something you have to test. Um, but obviously, if it's going to form the low of day, you probably want a higher time frame CSD. If it's going to be within continuation, I would pick either the 15-minute or 30 minute. Doesn't really matter to me. They're damn near the same thing. Um, this is pretty much the same thing here, but this is just a protected swing within the continuation rate, and we're opening near this these opposing candles. Um, and you set a limit at that, or you can just market execute or set a limit at these opposing candles, anticipating that price will
27:00 - 27:30 continue that expansion. Now, this is more of what I would do. It's the same thing as here. We're opening up near some higher time frame opposing candles, right? But I would wait for the driver to trade away from these opposing candles or trade into them and on the lower time frame give me some sort of lower time frame continuation signature, right? So here's the opposing candles, right? Which would create the wick of this candle here into these opposing candles. You know, this opposing run here, right? Which is, you
27:30 - 28:00 know, trading away from the draw liquidity is creating opposing candles, right? Right? When it closes through that, right, that's what confirms the driver expanding away from whatever reversal this is or these opposing candles, right? And obviously, we have that lower time from CST, right? This can also be within a swing point as well. So, you have this swing point that creates a CSD simultaneously in your train candle 4, right? So, either or. Um, we're just opening near these higher temp posing candles, which is always ideal. Right?
28:00 - 28:30 Now, one thing that's extremely important, especially if you're going to take a positional entry, because positional entries are automatically lower probability, right? Because you're anticipating, right? You're not confirming necessarily. So, you're kind of just anticipating that price will expand away. Now, this is going to give you higher probability when you have these targets still left open for price to expand into. This is something that's extremely important to my trading. I always have to have some sort of target open for me to trade into. This is an example of price manipulating prior to
28:30 - 29:00 the driver. So maybe forming the high of day and there we haven't yet expanded away from this high, right? We still have open objectives like failure swings, right? Low resistance liquidity is something that drivers will knife. They'll cut through whatever is opposing to that, right? And go straight to that draw liquidity, right? It won't care about this swing low. It won't care about this fair value. It'll knife through that to low resistance, right? especially if there's already some sort of reversal put in prior to that, right?
29:00 - 29:30 Another drawn liquidity that's always good to have is previous highs and lows. Now, this is really important to driver like these drivers like uh CPI NFP. If you have a previous high and low put in, it's always going to hit that level because price is not going to inside bar, right? Inside bar is a a form of consolidation. When we think about consolidation, they're not going to happen around these these drivers where there's a bunch of volume. We're generally going to expand, right? So, we're not going to inside bar. So, we're always going to take out the previous
29:30 - 30:00 high and low. So, that's like almost like a guaranteed target to be honest. Another thing that's really good to see is the opening low of a candle. So, like a New York reversal where you're pairing with the driver here. So, here you see the New York reversal, the open low. We're putting in maybe we're pairing the driver with the low of day here, right? This is a reversal point. uh whenever you look in the opposing side of the you know of your range or whatnot the opposing side of the reversal that's a better way to word it if there is
30:00 - 30:30 session high still available right so unestablished high of the day that's why we care about opening low first right when you think about expansion candles they open low first right at least a bullish candle does now when it opens low first and leaves session highs behind this is always a great signature to see right because there's you know the high of is just in the form of lower resistance liquidity at the time and again we will knife right through that right and create a new high of day. Um so this is something that's really good to see. So either either one of these um
30:30 - 31:00 is really good to have you know if you're entering prior to a driver you want these these to be intact so the driver will expand straight to them. Um so that's all we have for this presentation here. Now let's get into some examples. I have five examples. Let's go ahead and get through these pretty quickly. So here we are on RB. So again, I'm referring to oil. I'm referring to these three assets. So what you're going to see here is RB takes out this low, right? Which is a relevant swing when I go like the 4hour time
31:00 - 31:30 frame. Look at the space between this low and these lows. This is the next relevant level, right? I don't care about this low here. This is a failure swing. So price ideally manipulates this low. Um, now this is specific when we have kind of like a range here and there's really is no relevant low within that range. You see how there's no relevant level within this range. These are kind of just small uh I don't really care about these smaller pullbacks. You know, when there is
31:30 - 32:00 nothing there, then we're going to create one. So, see how we retrace into EQ and it creates a relevant level and we manipulate it. That's how we're going to leave this this range essentially, right? So, what are we going to pair it with this manipulation with an SMT and a driver? So, if you look prior to 9:30, so we have uh 9:30 oil news. It's not 9:30 equity open. This is 9:30 energy calendar, right? When referring to the energy calendar. So, here you see 9:30, you know, prior to this driver. Have we
32:00 - 32:30 hit any key level? No. Right? We haven't hit this relevant level. So, we want the driver to go and trade into it in reverse. So, what's the reversal signature? Right? A swing formation. So here's 9:30 swing formation or candle 2 closure and then that V-shaped signature right expansion mouth expansion right then what do we wait for a CSD right and then you can get on side with this move what we have the opposing side lower resistance liquidity and this is when you will get a very sharp or
32:30 - 33:00 expansion expansive signature to your draw liquidity right and this is for our profiling Okay, 6 a.m. manipulation, 10 a.m. continuation. So, another misconception with the 4hour profiling, which I will make a video on. If you haven't seen it, you can watch my TTX video, but I may go a little bit more in depth. Um, one other thing is a lot of people think you need a candle to closure. Not the case whatsoever. Okay, that's actually absolutely irrelevant. Um, so here you
33:00 - 33:30 see a 6M trades into the level, but we trade into the level very late in the 6M candle, so it can't form a candle two reversal there's not enough time it also doesn't support expansion away from this level right so this is when 10 a.m. will just straight up expand, right? Um that's what we see here. So, let's go on to our next example. So, here we are on YM. This is something that I actually traded. Um now, let's go over something a little bit um interesting here. So, if you look at the previous days close, we have
33:30 - 34:00 Tuesday um closing more of a bearish close. Over here, we have ES kind of like a reversal day in a sense. We're closing back within this candle's range. And over here, we have a full-on candle 2 reversal. So we can already gauge strength this way right where we have Tuesday over here on ENQ is showing strength right it's closing back within this candle's range Y is not so all assets have this fair value gap so what can we assume which asset would trade into this gap right probably
34:00 - 34:30 the strongest one right so we can assume that INQ would trade into this gap right which we want a divergence to form here right do you see how far this asset is away from this fair I want in Q to trade into this gap in YM to not and create an SMT here. So these are things you can start to anticipate with some experience. Now this day has CPI. So prior to CPI, what do we not do? We didn't trade into a level, right? So I want CPI to go engage with this this high here or this high and create that
34:30 - 35:00 SMT. So that's what we see here, right? Right. If CPI manipulates, then 930 should do what? It should expand away, right? So here, what are we opening 9:30 within this 30 minute CSD, right? So what can we expect 9:30 to just straight up expand? Now, what else can we look at here prior to this 9:30 driver? What have we not done? We haven't yet expanded away from this manipulation. We
35:00 - 35:30 haven't yet created the body of this candle, right? We're still in that protraction phase. So what are you going to get? You're going to get a one-sided expansion. So this is why I took a positional entry here, right? So look what 930 is opening within. It's opening within a lower time frame swing formation. So here's that swing formation and it's opening within a clear set of opposing candles. Right? You need this clear set of opposing candles or more so bulky opposing candles so you don't get wicked out. Right? So this is my entry right here.
35:30 - 36:00 This is all posted. I took this trade. Right? Assuming that we will just straight up expand, right? Because what do we have? lower resistance liquidity and the previous days low. Right? So here's that expansion and that was my trade on YM here. Right? So now let's move on to the next trade here. This is another trade that I took. Right? Where we see um if I go to daily chart here, we see um Monday opening high first. We put in some sort of reversal, right? We have this this
36:00 - 36:30 here, this uh CSD here. Now, a lot of people would think that this SMT here, if I go to silver, this is relevant, right? But this is what we'll probably go over in a future video about relevant SMTs and whatnot. So, and how to tell an asset is lagging versus not lagging. Uh, I think this is my drawing over here. Yeah. So, how do we know that this asset, this SMT is fake, right? Because a lot of people see this, they see a fair value gap, an SMT, a candle closure, and they'll pattern trade this.
36:30 - 37:00 But one thing we know about phase of the price, right? We clearly have some sort of reversal and expansion away from that, right? We have a confirmation. Now, what do we need to see away from a reversal? We need to see continuation signatures, right? So, here we consolidate. So, expansion, consolidation. So, what is that? That's a continuation signature, which is going to tell you that this is likely a false SMT, right? Because if the strongest asset is failing to reverse, right? What does that tell you? that you know it's going to catch up to
37:00 - 37:30 these lows, right? So that's just one thing about SMTs. There's a lot of things we can talk about with SMTs, but what's the ideal way to reverse from a consolidation? It's manipulation, right? When we engage with the key level, we're always looking for SMT, so we have an SMT there as well. Now, what do we see here? Prior to this driver, we have a reversal, right? We've already engaged this prior to the driver. So, what should we do? What should price do if this is going to be the true reversal? Driver should do what? Expand away. Exactly what we see here, right? Look at the five minute or
37:30 - 38:00 the three minute. We have the reversal signature even on the stronger asset. Okay, this is very key. And the 830 driver is right here. And you see it confirms this. These opposing candles on the five minutes. We have yet to trade into anything relevant even on this intraday hourly low. This is how you know we're just going to expand right into these failure swings and then beyond to these daily low resistance lows right so this is another trade that I took as well all
38:00 - 38:30 these are posted and you this is when you see you know true expansion right now let's go on to our next example this is an example that I also took so let's just go over the the daily logic here so here you have Thursday manipulation Friday expansion away and Friday has yet to reach this daily high, right? The swing point high, right? If you manipulate one side of the range, you're going to expand into the opposing side. And Friday actually creates this
38:30 - 39:00 opposing candle on the daily time frame for Monday to open low into use as support and target the previous high and this high as well. Now, we got the 4hour chart here. You're going to see price opens low first, right? Creates a relevant swing. Look at the space between this low and maybe this low or this low. This is where we want to see manipulator, right? Because this manipulation is around the daily open, right? If you fail to manipulate this low, what are we going to do? Create too large of a wick, which doesn't support expansion, right? We're also opening low first, right?
39:00 - 39:30 We're pairing this manipulation with an SMT. So, if we have a manipulation prior to driver, what should the driver do? It should expand, right? We already have the hourly CSD. So, as you see, prior to this driver, if I play it right here, not this candle, the next one. What did we already do prior to this chart? We already retraced, right? And if I show you the the uh the hourly chart here, if I show you the actually the daily candle, what have we also yet what have
39:30 - 40:00 we yet have done? Right? We haven't yet expanded away from the low of day. We haven't yet created the body of the candle. This is when you get going to get what expansion, right? Because you haven't taken out the previous high or this high over here. So, this is a trade that I took. You're going to see here, like I said, I'm anticipating purely expansion, right? Because there's a couple reasons. So, we're in the new week opening gap here. So, if I show you um I don't know why it's not showing here. Maybe like over
40:00 - 40:30 here. Yeah. So, here is the new weak opening gap. We have PDA alignment, but also like I said, we retrace prior and we hit a key level prior. So, what does that mean? If we get trace prior to driver, we're already in a key level. The driver should just expand away. So that's what I'm anticipating here. This is when you see this expansion on the lower time frame. We manipulate this low. Again, this is being weird, but you're going to see on this asset, we do indeed take out this low confirmed by a lower time frame
40:30 - 41:00 CSD. This is what I took here, right? And now later on I took YM, but I'm I'm still going to show you over here because this is more so SMT stuff that why I took YM and whatnot. We're going to see that this high got left open, right? This high got left open. Uh so you're going to see that price comes all the way back here. So I took a partial win here because I'm not expecting price to come back here. So I go break even. I'm not expecting price to come all the way back here. So I go
41:00 - 41:30 break even on this position. We have some sort of strength switching here with YM which is a form of you know a confirmation of a lagging asset. So YM was a lagging asset switches strength to catch up to NQ. So I took this 930 entry on YM here but I'm just going to show you over here because generally the same thing because prior to 930 what did we do? We retraced into a key level right we already have the strength switch and SMT. So I'm going to show you this SMT
41:30 - 42:00 here with YM. or you have this SMT where we see that this asset hasn't taken at the previous high, but now we're seeing strength switch. What does it tell you? This asset's catching up to the um you know the stronger asset. It's momentarily switching to the bullish stronger one to catch up. So that's how you know this is going to hold as well. Um so you can really take either or but I took YM so I took like a half win and then a full win. And you're going to see that 930 should do what? It should expand away because we still have these you know these highs available, right?
42:00 - 42:30 price is not going to reverse from these failure swings, especially with that strength switch. So, you can also take this as well. Right now, let's go over the last example of today's video. Let's mark this one up together. So, if we go into the the week, we can really uh I could really make a video a lot on framework, but you know, what is the week opening near this relevant swing like right look at the space between these lows, right? These are failure swings to this low. So the space between these lows right create a
42:30 - 43:00 failure swing now or sorry create irrelevant swing. So price opens low first into this relevant swing and then manipulates it then what does that tell you right when you think about a bullish candle what does it do it opens low first right and if we put any reversal signature I show you here this expansion expansion then what does that tell you right we are likely going to be have some bullish week right if you're going to manipulate one side of the range the weekly is already supporting that that idea right so you have a
43:00 - 43:30 higher time frame candle supporting a lower time frame model. So higher time frames is opening low first supporting bullishness creating the low of the week early on in the week. So on a Monday we can have expansion into the failure swings, right? So if I go on ES here, it's a little bit easier to see. But prior to the um Tuesday's open, we have some sort of lower time from signature. This is when I say like low key like higher time from
43:30 - 44:00 candle closes don't actually matter. Like that's actually kind of irrelevant. What actually matters is phase of price, right? Because here people will not see this as a manipulation, right? But there's only one reason why this didn't close a candle too. It's because we engage with this this low, this key level in the day. So there's not enough time in the candle to reverse. This is when we roll over that idea of um you know phases of price that we should expand away from
44:00 - 44:30 this low. So as you see like here's the daily open. We hit this low like at what 1300 like I said there's not enough time to go create a candle too. Doesn't mean it's reversal. What confirms a reversal is if we continue the expansion away from this the next day right so that's what we see here. And a lot of times if you manipulate late in the day, the previous day and if you're not going to take at that previous day's low, this is when early on in the day, we're going to just expand away because like I said, if you manipulate, right, uh, and you have
44:30 - 45:00 yet to expand, when you're going to expand, right? Probably early on in the day, right? Because you don't really want to consolidate after a manipulation. We want to expand away. So if you haven't yet expanded, early on a day, we'll expand. Um, that's what we see here. 1,800 is the low of day. Now within the continuation phase of the daily candle. What do we see prior to this driver? We see some sort of internal manipulation. Right? What do I mean by internal manipulation? Here's the current low of day. Let me delete all this stuff. Here's the current low of day.
45:00 - 45:30 Here's the current high of day. Right? Our overall draw is this high of the week. This is the current high of the week. Right? So, when I say the open low of a candle creates low resistance liquidity, right? When it just straight up opens low, this is what I mean, right? There's no established high of the week. It's just 1,800, right? You can fractalize this. Um, so that's what we see here. This is our overall draw, right, for the day because we know the price is not going to go like all the way up here. So, this is a good target, right? Um, we're also in the protraction phase, that weekly candle. But what I
45:30 - 46:00 mean by intraday or whatever is within the current low of day and high of day, we have a manipulation, right? It's not a manipulation, you know, protected swing within the protraction phase. It's in the expansion phase. So, here's a relevant swing, right? Here's a relevant swing. Here's a relevant swing. And then here's obviously a relevant swing as well, right? We can always mechanically define this. Um, and
46:00 - 46:30 my students know that we can mechanically define even this like anticipating a reversal here, etc. Right? So, you see that we manipulate a relevant level prior to the driver, right? All right. And we haven't expanded away from this into this draw or this draw up here. So what are we also doing? We're opening up that 930 driver within these opposing candles here as you see. So you can set a limit here or we could do what right? We could wait for the driver to do something like this on a lower time frame. So it's exactly what happens. Now I took this on in Q. I took this on two accounts. So I
46:30 - 47:00 to I took this on like prior to the driver, right? Because you had this as well. There's a couple reasons why, but uh this I took on top step and another one I took on Apex. Now, if you see here prior to the driver, we're in on the lower time frame. We kind of have this expansion on the lower time frame. So, you see these these smaller body opposing candles, you can't anticipate the driver to expand away from these,
47:00 - 47:30 right? It's a very shallow retracement, right? We want that larger bulky opposing candle. So, you have to wait for the driver, right? And what do we want to wait for that continuation signature rate? We sweep out this low which is even a lower time frame relevant low. Look at the space between these lows. Right? So this is the most safest and ideal scenario right here is the driver is expanding away from this internal manipulation to get to these draws on liquidity. Right? Whenever you have a draw liquidity, you always want
47:30 - 48:00 to be trading away from a protective swing to get towards that draw liquidity. That's really all trading is is having a target hitting a key level. You want that key level to be protected from a swing point. You expand away, right? So, here is the entry that I took. We can write it all the way up here, right, to our relevant level, which is the current high of the week, right, which is unestablished high of the week, right? Because this is 1,800. Um, so that's another trade that I took. Uh, and I'm going to wrap the video up here, guys. I hope you enjoyed.
48:00 - 48:30 Um, leave a comment if you guys like this presentation style. Um, if you guys really want if you guys get me to 10K subscribers, I know y'all can do it. I will create a whole boot camp on pretty much covering everything, right? And I think that would help a ton of people. I'm going to give a lot of free information for free to help you guys out. Yeah, drop me a follow, drop me a like, etc. And hope you guys enjoyed and have a good