Transcription
So I was, um, initially going to do this on Saturday and also on Wednesday, right? But I just decided to just come here right now. Like, I just couldn't, um, go one day, you know, without talking about this art, you know, putting more importance on these things that you already know, right? Because this week was actually a good week. It was actually a good week within the Forex Market. But, right, if you're uninitiated, right, if you don't understand, you know, the things that we talk about here, then you would believe that this was just a, you know, choppy week.
So first thing first, right? I'm going to speak about navigating the weekly range. To navigate a weekly range, you need the weekly cycle, right? And the weekly cycle, right, is actually comprised of five days, right? But, right, with quarterly theories, just Monday, Tuesday, Wednesday, and Thursday, because those are the most, you know, the days that the low on the high of the week are, you know, more prone to form instead of on Friday. So this blank spot right here is Friday's price action. This is Monday's price action, you know, which I already talked about. So here within the US dollar, we had dollar failing to take out Friday's high on Monday. This was sequential SMT right here. We had the Euro taken out Friday's high on Monday, right? So it's not that, you know, you should not trade on Monday. It's that you shouldn't trade on Monday unless there's sequential SMT. So you can trade on a Monday, but this must be present, right? This is what will give you an explosive price run or reversal.
On Wednesday, right, we had sequential SMT as well, whereas within the Euro, price failed to take out Tuesday's high. And within the dollar, we had Tuesday's high being ran out on Wednesday. So the reversals that happened this week, all of them, right? The major price swings, what caused them? Sequential SMTs. What caused all of them? So this is the base of everything, right? And we will go deeper into something else, right? A new correlation after this, after we've gone through explaining the weekly cycle.
So here we had sequential SMT, right? This run here with the expansion run within the dollar index, which sent currencies lower, right? Then the previous high of the week, which is getting tested right now, was formed by sequential SMT again, which sent the dollar lower, and which also sent the Euro higher and the pound higher. We reversed within Q4, which is known for reversals, and there was sequential SMT on the lower time frame. So here we had sequential SMT between the Asian session and the London session. We had no higher time frame sequential SMT here, but this is what caused the reversal. And why did that happen? That's what we're going to be talking about today.
First of all, right, it is important for you to know this right now, which I will just be, you know, introducing. There were a lot of liquidity below this low right here. And why is that? This is due to the fact that, right, there was sequential SMT. And wherever you have highs and lows which are, you know, caused by sequence or SMT, price and price returns to them and either trades below the low or above the high, you will usually have price reverse, right? And you will, you will not at times need a higher time frame sequential SMT, as a lower time frame sequential SMT would be enough. So here we had a weekly sequential SMT, right, which, you know, became sell-side liquidity after price created a high right here. When price fell, fell below here, you just need to look for the lower time frame sequential SMT to the sequential SMT which caused this low, which would be, which would be found within the daily cycle, as how we had it happen here to price run above this high. Sequential SMT happened here, then price fell. Price ran above, above this high, right, which was caused by sequential SMT, which we have zero here, and price fell. Also, there we had the magneto effect in play, right, in the pound right here and the US dollar.
And here is where we will go a bit deeper, right? So this is the current low of the week for the US dollar, and this is the current high of the week for the Euro, and this is the current high of the week for the pound. So I'll go back here, right, and remember what we said Sunday, right? We said that the best days to trade would be Wednesday and Thursday, right? And why was that? Because that's where we had all of the, that's where we had all of the news events, right? The major news events on Wednesday and Thursday. So literally, just by looking at the economic calendar, you can see that we can spot the high or low of the week, right? Just by looking at the economic calendar, which is what we've been doing for a while, right? So we actually got the high of the week, right, for the Euro, right, on Thursday. The high of the week for the pound on Thursday. We got the low of the week for the dollar on Thursday.
So this is the five-minute chart for Dollar Index, Euro USD, and the Great British Pound. So here you guys can see that this was obviously the magneto effect, right? Which is where you will have a sequential SMT, right? This is a sequential SMT, right? SMT which is canceled by another sequential SMT, and price will run towards the previous sequential SMT, as it will act as a magnet. There is also a new week opening gap here, whereas within the dollar, we have the high of the day forming within the new week opening gap. So pay, you know, attention to the closes, right? So, so here we had a dollar closing above this high. Within the pound, we did not close above this high. Within the US dollar, we did not close below this low, right? And this is the Asian session's low. This is the low of the London session. Also, note that the low of the day here is being formed below a new week opening gap within the US dollar, while the high of the day is being formed within a new week opening gap in regards to the Euro dollar.
So due to the fact that we have this high, which is what created the sequential SMT, being formed within a new week opening gap, and we had this low, with which created sequential SMT, forming below a new week opening gap, this is a new form of correlation that you are actually learning right now. So if this was perfect, right, on a, you know, normal day where there is no correlation, this high would be within this new week opening gap, but it's below it. Well, as we had price closing, forming the high of the day within this new week opening gap. So this is more on the advanced side, but, you know, it's good. Also, whenever you have a higher time frame sequential SMT, right, which is, you know, where you should be looking for the lower time frame sequential SMT to follow. If you have a sequential SMT which is in the opposite direction of this, that is a high probability market structure shift.
So, for example, here, right? This is, this would be sequential SMT, right? A lower time frame cycle, as you guys can see. So here we failed to break above this high, but price fell here, right? Within this fair value gap, and rallied anyways. Here, price did break below this low, right? And I'll use the closer so you can see that it's the same, it's the same, right? So price broke below this low, failed to break above this swing high, and this was a cracking correlation, but it's not the cracking correlation that, you know, is sequential SMT, right? Whereas you would just long here. No, due to the fact that the higher time frame cycle, right, the higher time frame cycle was bearish in the Euro, we shifted market structure here, but we didn't shift market structure here. That's a correlation in correlation, right? That is a confirmation tool, right? And it's totally based on, on time, right? These lows were formed within the same time. So this low within the dollar, right, was formed the same, within the same quarter, within the 90-minute cycles that this high was formed, if I can, I believe that.
So here we go. You just look at that right now so you don't get confused. So here, as you guys can see, this is Q2 of this particular 90-minute cycle, right? We had the dollar shift market structure, whereas we did not have a shift of market structure within the US dollar. Whenever you have a lower time frame cycle sequential SMT opposing a higher time frame cycle sequential SMT, that is a market structure shift. That's a real market structure shift. Also, we had sequential SMT right here, right before we had this sequential SMT. So when we had price failed to break above this high while price traded below this low, returned to this gap, then we would want to see price just fall below these lows right here, which is what the magneto effect is. We had a new week opening gap here as well. So we had sequential SMT occurring within a new week opening gap within a correlated class where we had sequential SMT occurring below a new week opening gap, which is within the US dollar, right?
So if the correlation which happened between the new week opening gaps was cracked between Euro and the Great British Pound, which it actually is, right? Because if I turn on the open gaps here, you'll see that this gap is actually here. It's here. So this is really overbought, right? If it was perfect, there would literally, this would be touching it. New week open gap, and this would be touching its new week open gap as well. So the reason why you would not need a higher time frame cycle sequential SMT here is due to the fact that we have a cracking correlation between the times that each asset class met its new week opening gap, right? So Euro was the last to meet it, which is why the sequential SMT occurred here. This was already overbought. This was way over. This fell a bit below its new week opening gap, but the Euro dollar just met its new week opening gap, and coincidentally, there was sequential SMT, right? This was the Asian session's high. This was the London session's high. We're about to open, right? Price fell, shifted market structure. This was a real market structure shift, right? We broke below, right? And to make it even better, I'll add this on for you guys before I leave. Look at the candle that broke, right? Look how it closed. This candle closed down, and this candle closed down as well. So that's a precision swing point. So there, there are different ways to use the precision swing point. There's not just one way that you can use it, right? So we had price trade below this low, price failed to trade above this high right here, fell within this fair value gap, you'd put your stop here, and then price, price rallied.
So this is what I wanted to share with you guys tonight to give you something to, you know, study over the weekend. Um, I believe that next week, well, next week should be good, right? Let me check my economic calendar. And next week should be good. We have news on Tuesday, Thursday, and we have news on Friday. So next week, right, we'll be monitoring more than likely. We'll mostly be monitoring the Forex pairs, right? Due to the fact that we are near all-time highs now. So far, the high of the week for the index futures, the ES and NQ, is Thursday, right? Which is kind of what we wanted to see, but not this messy, right? It's pretty messy, but, you know, that's fine. You know, next week we'll come back again. So we'll be focusing on Tuesday, Thursday, and Friday next week, unless we have sequential SMT between Monday and Friday's price action. And Friday's price action hasn't even printed yet. So yeah, and that's it for tonight. And I hope that you guys, you know, found something useful from this. The main takeaway is to, you know, to understand the weekly cycle, right? That's the main, that's the main thing, right? You need to be reflecting upon the previous day high whenever you're trading, right? So, for example, here, right? During Tuesday, there was no trade. Why? There was no sequential SMT. We had sequential SMT on Monday, right? And then we had sequential SMT on Wednesday. Usually, you know, a sequential SMT will not form in two consecutive quarters, right? It will be like here, right? Monday, then Wednesday, and so on. Or Tuesday, then Thursday, and so on. It's not, it's not going to be like Wednesday, then Thursday. No, no. Or Monday, then Tuesday. It's not usually like that. So if you, if you're trading and you see SMT happen on a, for example, a Monday, then Tuesday, you're not going to be looking for that, right? You're, you're probably just going to get an expansion leg, but more than likely, you won't get a reversal.
And then the next thing after that, right? Whenever you see a swing high form, there's a breakdown in price, right? You take your high to the true open of the day, which would be 12:00 p.m., 12:00 a.m., my bad, 12:00 a.m. midnight. Price trades above that, right? And if there's sequential SMT, it takes out Tuesday's low, and then you have a lower time SMT, and if you have a news event there as well, it's over, right? Very good price action model, right? And this, these are just some of the few things, right? Some of the few models that we'll be, you know, discussing. But hopefully next week, you know, we can catch some in action. It's really in action, right? So we'll be focusing on ES and NQ, the Dow, and the Forex pairs, which are on the screen right now, which is the US, EU, and GU. So like this will, you know, be mostly what we're focusing on. We only look at Bitcoin and Ethereum if there is a higher time frame move on the way, right? We need, and we need to see a cracking correlation before we can do anything, right? That's the rule. I might not need to see a cracking correlation, but, you know, you need to see a correlation, right? And yes, that's all for tonight. I hope that you guys have a wonderful night and a wonderful weekend. Talk with you guys on Sunday. If I'm not here on Saturday, I'll probably be here Saturday. Sometimes I can't keep myself away. But yeah, have a nice night.
[Music]
All you want to me is a B. OB session. I am theing tent on burning the stream. How many times can I ask you? How many days can I go without you? Be show.
[Music]
The distance is a killer.
[Music]
Feel many I go without.
[Music]
Show.
[Music]