Transcription
Hello everyone. I hope that you guys have had a wonderful week so far, right? As you guys realize, since lately we have been, you know, pinpoint, you know, accurate with our analysis, right? Which is the main thing that we are trying to do, right? That's the main thing, you know. Okay? A good analysis leads to good trades. Good analysis leads to easy trades. Right.
So yes, so as I said previously, we'll be doing a short Q&A right now. First question is, hello there. Two questions. I have noticed a creeping correlation when two assets of a triad make a new high or low of the cycle and one doesn't. Also, if one makes a new high or low and two fail, even though there's in sequential SMT, there seems to be a strong reaction. Is this something to watch? Is this something to watch out for or just coincidence?
It is something to watch out for, right? SMT cracking correlations, right? It breeds reversals, right? So even when there is no sequential SMT but there is SMT, you will have a reaction, but that reaction will not usually, you know, encourage price to react for a long period of time. It will usually just be a pullback, right? But, you know, if you're looking at the higher time frame cycles and you have a pullback, for example, on the four-hour time frame, or the daily time frame, then that would be something, you know, that you should consider because you're not trying to just, you know, trade on hold forever, right? You're trying to get in, get peace. You're a piece of the cake, you're a piece of the pie, and just get out. It's as simple as that, right?
You all have the tools that you need. Of course, you know, just as how we talked about something new the last time, the week before that, right? Those things, right, are just for, you know, the people that haven't found their models yet. Right? If you have found your models yet, if you have found your model already, which we all know what the easiest model is, right? Right. Sequential SMT plus a precision swing point, right? And this is something that you should pay attention to. I'm going to say right now, when you have this form, for example, across the four-hour time frame when you're focusing on the monthly cycle, which is comprised of weeks. I'm pretty sure that you know that, right? It will be around, I'll say 87% accurate. Right there, it's just insane to see. And there are times you don't even need a precision swing point, right? You just go in, and that's the time that you go in and you look at your lower time frame to one over the 15-minute time frame, and then you just look for an entry point, right? Whenever that happens, you see the sequential across, you know, the four-hour time frame while looking at the monthly cycle, what do you do? You go, you go in. You have two, you know, chances per se. The first one, if it fails, you can go again. If you fail again, you just stop and you wait for the next sequence of SMT. You're managing your risk, you'll be okay, right?
The reason why I mentioned using the monthly cycle is if you're using the monthly cycle and then you have a lower time frame sequential MT form within that higher time frame sequential MT, you've, you know, you've struck gold, right? And this goes for the same thing, the lower time frames, right? It goes for a lower time frame. But this specific Ken correlation, you know, linked with that specific time and that specific cycle is basically, you know, what moves the markets around, you know, most of the times. And it's, you know, in my opinion, the best thing to look at, right? If you're a person that likes, you know, intraday trades or, you know, swing trades, the million-dollar setup, my friend, right? We've talked about it many, many times, but, you know, most people don't pay attention to it.
The other questions. I've noticed if a precision swing point is in a fair value gap, there is usually a good reaction. Do you use this? This is a very good question. Do you use this for further confluence when you trade? Yes. Right. Whenever you see that happen, a precision swing point, right? First of all, if it was just even a swing point alone that forms within a fair value gap, that alone would give you a reason to take a trade. But once you have a precision swing point that forms within a fair value gap, it's over. It's done. But you have to understand these things are algorithmic, which is why it just keeps happening over and over and over again, right? It just keeps repeating itself. It's always there. Do you realize that it's always there? It may seem easy to you right now, but do you remember five months ago? Do you remember seven months ago? It's hard to see, right? You couldn't see it unless I showed it to you. But now you can. You can see it. It's there. You know what price is going to do. Most of the times, you do, right? Most of the times, you do, for sure, right? And you know, you need to always take these things into consideration, right? Everything that we're talking about, 170, precision point, precision candles, right? Mirror premium discount, right? And the way how you apply T2 and T3, you know, the way you apply T1 and T2 to that is you need to have the cracking correlation land on the projection or the standard deviation, right? That's how you do it. So yes.
And now we have. Okay, that's not that has nothing to do with trading. So we're going to skip that one. What, what do you have in store for next year? Well, you know, most of you will be here next year because, you know, it'll be lifetime. So, you will see there's a lot, right? Next year will be like, you can see right now that, you know, we are accurate, right? But next year will be another level because this year was, in fact, difficult, right? And it was programmed to be difficult. It was supposed to be difficult, which it is. But next year will be easy, right?
Have you tracked the average length of time for each type of sequence to form, fill, to form SMT, fill targets, etc., etc.? Yes, I have. If we can anticipate higher probability days based on this on the economic calendar and considering that time is fractal, how can we identify higher probability quarters on both lower and higher time frames? So yes, time is fractal, and this is a very deep question. This is not something that you can just, you know, answer here with a few words, right? Just as how you have certain, you know, assets or, you know, certain news events for a certain asset class, for example, the USD, right? You have, for example, you have a specific news event, the second quarter of each month, which is CPI, right? That same news event that you have there, right? It's just a smokescreen, of course, right? But just due to the fact that it's very, it's easy to see and it would be easy to recognize that, okay, we have this happening over and over, right? If there was no news, it would be like, why, you know, it would be easy to pick up on that. Why is this happening, right? That's what it would be. Same thing happens, you know, London session, right? At the specific time, that would be, you know, translated down to the lower time frame cycles, and that's something that we will eventually talk about. But right now, we cannot give all of that information, right? Just by answering these questions. But you're correct. But if you're smart, you can still, you know, go in and dig and find what you're looking for.
The sequencer, sequencer simply have an expiration like taking out the previous Q's high or low. It only expires when you have another creeping correlation with the opposite direction of, you know, that the order flow has been placed in by the sequence MT that you're referring to. Can you please explain a bit more in depth in which condition we can skip a cycle when looking for a sequence of symmetry? Right? You just want to skip, you know, times when there is no cracking correlation. Right? Whenever there is, safe, it's there for a reason. Price will react, right? And what causes price to react more is when you have a spec, a news event that is that follows within the quarter that the sequence SMT, you know, was instigated or created or, you know, just brought to life by price itself.
You use sequence SMT plus precision swing point. What's the precision point going to be on the same time frame or it when it's on the same time frame, right? It's more reactive. When it's on the same time frame, it's higher probability, but it does not need to be on the same time frame. It could be on at least two time frames lower. Now, you already know how we measure our time frames, right? We it is the 1 minute, then the five, then the 15, then the 1 hour, then the 4 hour, then the daily time frame, in that way. Now you see me use the 6 hour time frame or the 8 hour time frame, it's for a reason outside of that, right? So I believe that, you know, that's enough information for now. That's enough questions that have been covered and we'll just go into the lecture.
So yes, everyone, you can see that first of all, this week has been a, you know, amazing week thus far. The high end of the week, right, from most asset classes was caused by sequential MT as usual. It's, it's actually insane, right? It just happens over and over, right? The only way that you cannot understand this, my friends, is just that if you don't believe, right? And if you believe it and you see this thing happening over and over, it's not even that you just believe it. You just know that it works because it just keeps happening, right? When you have people talking about this and that, right? You have to have this time frame gap and this time frame low and this specific gap and this propulsion block or, you know, whatever it is, whatever new period that's being brought out there, that just doesn't make any sense. Just doesn't make any sense. You can't use that without having a, you know, proper idea of where price will go. Peter rays are, you know, nonsense, right? When price cracks, that's when it turns around, and that's all that there is to it. It's not difficult to understand. You, you know the, the bones already, right? You know everything about price, like how, how you know every entry point, all of that stuff. No, all you need to be focusing on is how do I know when price is ready to turn around? You already know. It's just that sometimes it will work, sometimes it won't. And then the time that it doesn't work, you probably over-risk and then or you just don't, you just don't use a stop loss. Then you end up just losing the trade, right? So that's just going to be a you problem until you fix that, right? You're almost there if you haven't, you know, struck gold as yet.
So yes, the economic calendar, I'm pretty sure that you guys are, you know, pretty familiar with this. Tomorrow, right, which is Friday, we have NFP, so we can expect some volatility. And, you know, next week, as you guys already know, is the week that we've been waiting for for this entire year. A little bit. I've been waiting for this week since like, like 2021, to be honest, right? So, yeah, we have next week, which is what I'm looking at right now, right? November 5th, we have the presidential elections. I strongly suggest that, for example, Monday, you know, you do nothing, right? And you can see that we have daylight savings time shift right before daylight saving time shift right before. It's just so random, isn't it? That this specific thing just happens right before the presidential elections the same week. It's amazing, man. Look, it's amazing, man, that everything is controlled by this thing. This, you know, some may call an algorithm. Some may say it's just the nature of price. Some say some even blame it on the psychology of us. Some people blame it on the moon. Not me, though, but some people, right? But it's just that, you know, there's always these coincidences that just pop up. But anyways, yes, on November 5th, that's the day that we'll be looking for. We will not be trading on November 5th. We will not have a live Monday. We will not have a live Tuesday either, right? We will have a live when? Wednesday and Friday of next week. So, we're talking about that from now, right? So, no one gets crushed, right? So no one gets tricked into taking a trade. There will be trades, but the fact is that if you're trading these types of news events with live funds, the spread will just open and you'll just get stopped out or just liquidated or your stop just will not work, right? So, it's always a smart idea to just do nothing, you know, during this time. So Monday, nothing. Tuesday, nothing. Wednesday, look at what happened, and then you know you have the other, the next three years of clean price action to trade.
So yes, here we see that we have this credit correlation right here already, right? Don't close candle dollar index. Don't close candle Great British Pound. Right? These are signs of low probability conditions to come, right? And also the fact that the Euro fell more than the British Pound, you know, price has to do something to, you know, recalibrate these assets to be similar in terms of the length of the fall, right? Obviously, here liquidity, very obvious looking at the Euro, loss of liquidity right here as well. We have the sequential CMT here, right? So our mind does not change in, you know, in regards to the direction of that we expect these assets to go into, right?
Here you can see that we had SMT here, right here. Here SMT here. We had the, and we talked about this, right? We had the S&P 500 fail to break above this high, and even though it failed to break above this high here, that was just a regular SMT that was not sequential. The sequential SMT occurred here, right? This was the sequential SMT between here and here, which we'll look at in the other, you know, chart on the other chart. We talked about expecting correlation, right? Which occurred here. It was beautiful. Draw these lows and, you know, right here. The main thing, what happened? First of all, we had the first correlation was this candle right here, right? So this was a, this was a precision candle. Then this candle was a precision candle again. So we had two precision candles right here, right? And whenever you see these things happen, the only thing left to happen after that is what? Sequential SMT, right? We have, we got that sequence SMT. Then we had price just fall. Here you can see a clear depiction of what happened. And, you know, this totally follows, you know, what we usually look for, right? Which is what we usually expect Q4 to reverse, and this is what happened, right? So here, sequential SMT, very obvious to see, right?
So here we have price failed to break above. I think would actually be here, but it doesn't really matter, right? Price failed to break above the high of Q3, right? And remember that there was a persistent candle right here on the higher time frame, but the main thing right here is that, you know, there's sequence MT, right? And listen, it's this simple, right? And I don't know if ICT knows this. I don't know if he knows about this. I don't know if he hides it, but you cannot, my friends. You, you, you can't just, you know, put away the fact that, okay, he talked about this before it happened. We, we do it multiple times. Multiple times, right? And it just keeps happening. You have this information. I expect you to use it, become better than me, more successful, whatever it is. Do whatever you need to do to, you know, if you haven't started to make money yet, you need to find a way to just milk money using the skill, right?
So yes, here, failure swing S&P 500, NASDAQ, again, which is usually the cleanest asset, right? And here we have the NASDAQ being the cleanest asset. The cleanest asset for the FX strat will usually be the Euro, right? So here, NASDAQ traded above this high, right? Then correlation occurred. Listen, there is nothing here. There's no level here that is there to cause price to reverse. The only thing here that causes price to reverse is time. And listen, we've been doing this when price goes to all-time highs all the time. All the time. Every time it happens, there is nothing there. So imagine when price actually falls, like which we expect it to do. It's contained within a higher time frame range, and you have your, you know, your monthly time frame sequential MT, monthly cycle sequential MT, weekly sequence MT, you have clean price action, obvious breakers, obvious value gaps, because here, you know, most, it's not, it's not obvious, example, exact, for example, here, S&P 500, there's no obvious gaps here for price to return to. You just have to go off of the sequential MT, right? So, here we have price being drawn to the lows that we talked about. Same thing for the NASDAQ. And here we have the Dow just doing what it feels to do, right? No problem with that. These are the assets that we focus on. And how much points, look how much points just dropped. This as well. Come on, man. Like, to be honest, it's not, not to be copy or anything like there. There's nothing that's better. There's nothing that works better than this. Like ICT, like doesn't have anything in his YouTube channel that you can just plug into price just like this and then it's like, oh, it's just this easy. I don't have to study it for five years. I don't have to study for four years. I don't need three years. It's just this easy. It's common sense. You, once I tell you what to look for, you go into price, you look for it, you understand quarterly the base, you understand that time is fractal, you understand SMT, you plug it into quarterly theory. Okay, now then what do you do? You have, you add a precision swing point. It's done. You can just be trading like right at the candle right after the precision swing point like that. Literally, right?
And here again, right, looking at Bitcoin, we can see that there hasn't been much movement, but there we had sequential empty here, which is why we had price just, you know, pull back within the range a bit, right? Obviously, we expect more movement to the downside, right? But, you know, I would expect price to take this high first and, you know, just not take this one out, which would create, you already know, sequence is empty. So although you found this useful. We will be back next week, the day after the 5th, which is the presidential elections. Don't overtrade, right? There will be come, there will be times coming that will be so easy that you just can't miss it, right? Easier than, you know, the beginning of the middle of the year was way easier than that. With that being said, I hope that you have a wonderful week. Ciao.