Transcription
Hello everyone. I hope that you guys had a wonderful trading week thus far. Today, we will be going over this week's price action and introducing a few new concepts. So, um, today was not a bad day, right? But Tuesday was when we actually expected, you know, the most of the range for the week to form, right? So Tuesday is when we expected the higher of the week to form for most asset classes. And whenever you have one asset class form the high of the week on Monday, which here is Q1, as you guys can see for Euro USD, and you have SMT between Monday and Tuesday, this is also sequential SMT, as I'm sure that you already know. I believe that I mentioned this before, right?
So whenever you have the high of the week forming on Monday or Tuesday, it's not going to be forming on the same day for closely related asset classes, right? So, for example, if you have the high of the week forming on Tuesday for NQ, then you'll probably have the high of the week forming on Monday or Wednesday for another asset class, right? So sequential SMT usually shifts between Q2, Q3, and Q4. Right here, we can see that price ran above Monday's high, took liquidity. And if we place our fibs here, right, and remember that we, if we're even looking for a short, you know, blindly, we could put our stop loss at one standard deviation, right? Or if you enter at 0.5 deviation, you can put your stop loss here as well.
Also, you guys can see over here for Euro USD, we had, while this SMT sequence was underway, we had price respecting this order block right here, which is this beefy up closed candle, right? So price traded up into this order block, respected it, while GBP USD was trading above Monday's high. So the high of the day for Monday was an order block, right? As you guys can see, this makes this a high probability order block. You should probably write this down. So we had price trading up into this order block, which was the high of the day from Monday, while price was breaking above this high and causing sequential SMT, right? It's not a regular SMT, this is sequential SMT, right? This is between two closely related quarters, right? So we had price trading up into this candle, then what happened afterwards? We broke down into, called the sell side liquidity here. Also, we have sequential SMT between Q2 and Q3 right here, right? So right here on GBP USD, we had price break below this low, while with EU, price could not break below this low. Also, you know, turning on my new week opening gap indicator, we can see that price formed the sequential SMT here while trading into the new week opening gap over here. I do the same thing, and you see that this happens here as well. Above here, you can see price trade above, well, week above the new week opening gap, but you can see that the bodies, the bodies stay within the new week opening gap, right? And using this indicator, you guys can see high probability breakers, right? So wherever you have a new week opening gap being a breaker at the same time, which is what's happening right here, there, there will be a lot of, you know, stuff to unpack in this one. So this swing low right here, right, this is a breaker. Traditional ICT students, they would be focusing on this down close candle, which is the bearish one out of all of these, which nothing is wrong with that. We still had price trading up into it right here, but this right here is a breaker, this swing low. So price traded into this, which was overlapped with the new week opening gap, which you guys can easily see with the indicator. If you guys need the settings, you can just look at this right here. Just pause it whenever you're rewatching it.
And now we'll introduce a new concept, right? This is the hidden sequential SMT, right? By just looking at this raw chart, you guys can see that we had sequential SMT between these lows here. Now we had SMT between these lows here, right? And these lows here in regards to the Dow. So looking at this, you know, with everything that you know now, you don't see SMT, right? You just see price running below this low and price running below this low right here, and this looks like, you know, it just looks like, you know, a normal price run, looks like a symmetrical market, right? And please be aware that whenever you are looking or using the monthly cycle, you need to be on the four-hour time frame, right? Because the closes matter, right? You guys can see for NQ, we had price run below this low, but it did not close above this close right here, which is the lowest close in Q1, which was the first week of the month. This close in the second week of the month, which is this month, was above this close. This close was below this close, which was the first week of the month, the lowest close in the first week of the month. Are you following? Then we had this close in the second week of the month closing below this one, while this one did not close below this one. To make it easier to understand, get some lipstick on the charts. So we had price breaking below this low right here, you can see that, right? Price breaking below this low right here during where we would look for sequential SMT. And right here, you can see price doing the same thing. So the wicks are symmetrical, right? Price breaks below this low, and in the Dow, price breaks below this low. So hidden sequential SMT is where we just focus on the wick. So I'll just now where we just focus on the body is my badge. So I just hit the wicks off the chart, and then you'll be able to see it much clearly clearer. So right here, you can see price failing to close below this close, which was the lowest close in Q1, right? But here we had price trade below it and close below this one. So whenever price does this, especially on the four-hour time frame, when you know trading during the monthly cycle, price is getting ready to turn, right? So we don't really, you know, you can focus on the wicks, but you sometimes whenever we have the hidden sequential SMT, we'll have price react more, more, you know, powerfully, pump more or drop more. I'll turn the crosses on so you guys can see. So this is the low, lowest close in Q2 in regards to the monthly cycle, which just compared of four weeks. And this is the lowest close in Q1. So we had price trade below this close, close, and then we had price rally. So now I'll just turn back the wicks on so you guys can see, right? To, you know, someone that uses, you know, traditional SMT, they won't see this. They can't see this. First of all, to understand this, you need to understand sequential SMT. To understand that, you need to understand quarterly theory, right? And this is dependent, dependent upon two quarters which are side to side and the closes, right? This, you know, this is probably quite difficult for some of you to understand, but, you know, over time, I will, you know, explain it again and over and over. And this is just an introduction, right? And there are concepts which will come after this, whereas, you know, we need this as a, you know, a stepping stone to understand. So again, this is the hidden sequential SMT.
Now we will take a look at sequential SMT which happens between Q2 and Q3, right? So all of this is fractal, right? So anything that works on the daily time frame works on the daily cycle, works on the weekly cycle, and if it works there, it works on the monthly cycle, and so on. 90-minute cycles, the micro cycles, right? So this is Q2 of the 90-minute cycle, this is Q3 of the 90-minute cycle during the afternoon session. So this was actually the low of the week, which was on Tuesday, where we expected the low of the week to form, you know, if you go back to the commentary, the market commentary that I uploaded on Sunday, you will see, you will hear me talk about this before the fact. So the low of the week or the high of the week, vice versa, right? They, they always have SMT. SMT establishes turning points in the marketplace. SMT, you know, verifies stop hunts. SMT, you know, validates fair value gaps. SMT validates breakers. SMT validates order blocks. So right here, we have this low right here being higher than this one, right? So price ran, you know, below this low, then rallied. The S&P 500, we had price run below this low, then rally. But in regard to the Dow Jones, US30, we had price try to break below this low but failed to do so, right? In between Q2 and Q3. So the cycle, the time frame doesn't really matter, right? If this was the last week of the month, which is the shaded blue area here, right? If this was the last week of the month, and this was Wednesday, and this was Tuesday, then the same thing could happen, right? So this is just, you know, an addition to what you already know about sequential SMT. And all of these things, you don't need all of them to trade. You don't need all of them to know, you know, whenever price will reverse. You know, you need to pick what works for you. You need to choose, you know, the tools that draw to you the most, right? That's what you need to focus on. The time zone that you prefer. If you prefer New York, then you look for sequential SMT there. If you prefer, you know, to trade one or two times during the week, then you're probably going to just be, you know, trading on the 15-minute time frame or the one-hour time frame or so, right? So I can't give all of you one thing. I have to be, you know, giving you different things to use because some of, some of you all you need is the sequential SMT between Q4 and Q3, and then you're good. You don't need anything else. You can just use that, right? And then you'll be set.
And here is where, you know, we incorporate Q3 through opens and, you know, SMT. So with this one in particular, sequential SMT would strengthen it, but you don't need sequential SMT for this to work. And whenever this, what I'm going to talk about right now happens, then we usually have explosive price action. So right here, we have price, you know, just trading down close to the true day open. And the time frames are specific, right? When you're looking at the daily cycle, which you want to know is comprised of the Asian session, the London session, the New York session, and the afternoon session, you'll be using the 15-minute time frame. So yes, we had price trading close to this true open, but it didn't get there before it rallied. And SMT, same thing happened here. But in the Dow, in Dow, we had price trade below the Asian session and below the true day open. So whenever you have this, right, one of the, whichever amount of closely related assets you're looking at trading below the true open and taking liquidity, creating SMT, this engineers explosive price action, as you guys, as you guys can see, we price traded here, then it exploded upwards, right? And reversing after trading into Tuesday, which we expected to form the low of the week. Right here, we had price trade, fail to break below the true open. So there are times when price will just rally, right, without giving you a chance to buy below the true day open or, you know, a true session open or a true week open. And this is the case. There are times when you see that and you're like, why didn't it go below? It just went close to it. I missed the trade. Why did it happen? This is why, right? So we had the sell stops be beneath the Asian session taken, and the liquidity was used to move price upwards, right? Due to the fact that ES failed to break below the Asian session and the Nasdaq failed to break below the Asian session as well. This meant that these assets were stronger, as I've said, you know, countless times.
So, um, hope that you, you know, you're like writing notes, right? And just so you understand, you don't need all of these things. You know, you could just be using, you know, what we talked about last week or the week before. But yes, um, you've never seen this before. First of all, you could never see it before because, you know, we have to incorporate quarterly theory, you know, for this to even work. There has to be a true open, right? You can't just be looking at, you know, just random SMTs for this to work. This is just an introduction to this, right? And I hope that you guys are, you know, you took something from today. And I apologize for yesterday. I literally have a flu right now, so and a sore throat, so it's, you know, kind of difficult to be speaking right now. But yeah, we will be back here Saturday and then Sunday again. All right, so Saturday, we'll be probably doing some backtesting, some live backtesting, you know, showing you guys how to backtest and so on for those that, you know, are having issues or are not sure that they are doing it the right way. So yeah, with that being said, I'll speak to you guys Saturday at around 8:00 PM Eastern Standard Time and then again Sunday 6:00 PM Eastern Standard Time. Um, this, you know, everything in this video is, you know, very powerful, right? And I need you guys to, you know, get a hand of these things because everything that I talk about, even this right here, right? This is, this is a model in itself. It's so simple, right? Because price is fractal, right? Time is fractal. So wherever you have a true open on whichever time, you know, cycle you're using, and this happens, it, that's an entry right there, literally, right? But, you know, we'll be going into specifics next week, so, you know, you'll be, you know, handed, you know, a proper model, you know, so you can begin to implement that. It will, you know, be based on the sequential SMT of Q3 and Q4 because, you know, I think that's the most popular one here, that's where I've seen most of you guys get fun, are most of you guys catching moves or so on. And yeah, I speak to you guys tomorrow. So I hope that you, you know, have a wonderful night, wonderful day, and that's it. Good night.