Transcription
Hello. So today, I will be going over one of the sequential SMT divergences that I have introduced. As you guys know, well, as far as you know, sequential SMT occurs between Q3 and Q4, but yes, there are others. There's a good number of them, right? So far, I've been seeing you guys using this to, you know, capitulate on moves, catching reversals, high of the week, high of the day, low of the day with this.
So, due to the fact that the purpose of Q4 is to reverse, right? The only time it will reverse is when we have sequential SMT. If there's no sequential SMT, the chances of it reversing are very, very slim, right? So, this is the low of the week, which formed, I believe it was last week, when we expected it to form, right? On the days which we expected it to form as well. So, right here, we have this blue box which delineates Thursday's price action. It would be better if I use this thing, right? So you can see it represented on all of the charts at the same time.
So, this low right here failed to break below this one during Thursday's price action, right? This low was formed on Wednesday, which was the, which I believe was the low of the week. Yes, it was before Thursday occurred for Dow Jones, right? So, we had Dow take out this low while Nasdaq couldn't do that, or the S&P 500, right? So, this was a sequential SMT, right? This was the market saying, "I'm ready to reverse." Right? It's already Thursday, right? I told you guys that I expected price to fall during the week and then we should expect what we expected here, Thursday, right?
So, now I'm going to put a bit of lips on the chart so we can see right here the SMT and right here we can see Dow run below this low. Today, I posted a trade that I took using what I'm going to talk about after I go through this, right? And how I got my stop wasn't due to the fact of, you know, any P or anything at all. It was, I used this swing high and another swing high, right? So, the swing high before price ran below this low right here, which was this, right? The wick right here, I would disregard, right? I'm more focused on the body candles, right? So, this swing low, no, this swing high and this swing low, you draw your fibs and where you get one standard deviation is where I place my stop loss, as I'll explain to you guys in a few minutes, right? If you're cheeky enough, you can use 0.5, right? If you really want a tight stop loss. But for you to be able to use this, there must be SMT, right?
And right here, where you see this line, this line right here, this is called a revolving true open. You've never heard of this before. This is called a revolving true open, right? This is the beginning of Q4, the opening price of Q4, right? You understand? You're with me? The opening price of Q4. But there is a catch, right? Usually, the market that is the weakest, which would be Dow, due to the fact that it took out the low while these couldn't, these are stronger, right? These were stronger due to the fact that this took out the low and this couldn't, which showed that this had more buying, I would say more buying pressure, which there's no buying pressure, right? Person algorithm, but I'm just saying that for, you know, those that are new to understand more buying pressure within, right, this asset and this one. So, usually, price will treat one or two of these assets as it would treat the revolving true open as a regular true open, and the other ones would function as how an order block would function.
So, right here, you can see price failed to break below this low while using this as support. Same thing here goes here, couldn't go below. Goes here, couldn't go below. Then right here, you can see price goes here, couldn't go below, but forms a swing high here. This, I, this week, I just act like I don't see it, right? And then when price broke below this revolving true open while breaking below the low, price ran afterwards, right? And this isn't all that's there. Also, you need to see a new week opening gap below this low right here. This is the one-hour timeframe, right? So, at least one of these should have should be reacting to a new week opening gap, which this is. The indicator, you can look it up and apply it to your chart, fix it how you want to fix it, right?
So, when you have SMT at a new week opening gap on the one-hour timeframe, sequential SMT at that price, trading below the true open, as well as the revolving true open, right? That's when price is going to make the low of the week, more times than not. And this is applicable to many, many cycles, right? Going forward, we, this will be like a, you know, quick SMT, I'll say, crash course because I want to get into the good stuff. So, this week, I remember saying that I would like to see the S&P 500 break below this low, as well as Nasdaq, right? So, I expected price to, you know, at least trade to the 50% of this order block right here. But if it broke below, then I'd be extremely bearish, which I am still not bullish on the stock market, right?
So, right here, we had price trade here, leave this low intact. S&P 500, same thing happened for the Nasdaq, right? And then we had the Dow take out Friday's low with Monday's price action. That is also sequential SMT, right? And then we had price just play around then. Right here, where you see me have these, what are these? I don't even, these marks, these red marks on the chart, you can see that this candle traded down, this one traded down, but this one exploded up and shifted structure, market structure, right? When this happened, this is telling you that the market is low probability, right? After this, we had all this drop, and then we had price attack these highs and these highs while forming SMT, right? So, this failed to go above this high. So, right now, we have SMT, right now, between the Dow, Nasdaq, and the S&P 500, right? Even right here, we had SMT, these lows, these lows right here, right? Very close, but you can see it.
So, before we go to the next chart, which is something you've never, you know, seen before, you must understand that SMT is needed for the market to turn around in your favor, right? You need to have SMT. And if you go into your charts, like even at these highs, we had SMT before we had price go down, which was a trade. But, you know, this, we want to see the market cleaner than this, which, you know, I'm hoping will happen after tomorrow's price action, right? Of course, we have high impact news tomorrow, so that's something to look forward to. So, you, I'm hoping that you understand this. So, where you see these red marks, remember, sell, go down, down, up. These are core, these are, these should be moving like lockstep, like they should be following each other, right? So, whenever you see something like this candle moving in the opposite direction of the other one, or one making a low, a lower low, the other one making a higher low, you got to take note of that. That's very important, right? That's you seeing through the charts, that's X-ray vision, right? If you're buying and then you, you see SMT, what do you do? You take profits, put your stop at break even, or you just cut the trade, simple as that.
This works with any asset class. So, if you're trading Bitcoin, you use Ethereum to track Bitcoin. If you're trading Forex, EU, you use GU and you use the US dollar. If you're trading Canadian dollar, then you use the US dollar. If you're trading gold, you can use silver or the US dollar, right? So, now we'll go to the magic. So, this morning, um, I posted this after in the group, I posted SMT, right? You guys remember, which was, you know, me saying that there might be some type of selling entering the market, right? I'm just trying to like say it very simply, very simple, as simple as I can, right? So, right here, we have Q4 and right here we have Q1. We have SMT forming between Q4 and Q1, right? So, right here, when we had price take out this high, the S&P 500 was failing to do this. It could not do this, right? This is a micro cycle, right? This is not a 90-minute cycle. This is smaller than that. This is the one-minute chart. This is the trade that I executed today, right? Literally on this candle right here, right? On this close right here, my stop was here, right?
So, where we have, remember I said this when we just started, like back here, right? See it right here? Remember, I'm going to say it again. I'm going to show you again, this time on a lower timeframe. So, we have a swing low here, we have a swing high here, right? This swing low is the candle in the middle, which is lower than the candle to the left and the candle to the right. This is a swing high, which is the candle in the middle, which is higher than the candle to the right and the candle to the left, right? So, this swing low, this swing high, you use your fibs, put them on like you're doing this. I use my eyes, I don't have to do this, but you're doing this before price runs above this high, you're trying to get your stop, right? Remember, and the, the deciding factor, the thing that pulls us is the SMT, the sequential SMT of that. This is sequential SMT, SMT between Q4 and Q1. Wow, amazing, right? So, this functions the same way as how the SMT between Q3 and Q4 would or should.
So, when price pushed above here, there's even more things, right? In regards to time, first of all, this close would be the true open of this micro cycle, right? And which means that the opening of this true micro cycle, right? True micro cycle open, sorry to say, I changed the name, is above the revolving true open, right? Here, remember the revolving true open, okay? So, that's, that's literally the opening price of this micro cycle right here, right? And what else can you see on the higher timeframe cycle? As you can see right here, this is a 90-minute cycle. What else do we have? We have this being Q3, which is the New York session, and this being Q4, which is the afternoon session. So, we have two sequential SMTs colliding. Did you hear what I just said, right? So, the purpose of these moves, that this fell a bit further, like probably gave like seven or six or eight hours or so, but then it came back up afterwards and started to consolidate, right? The market, like all-time highs right now. So, we, we're not even using P, we're just using time, right? There's no P, no how your timeframe for your value or anything, it's just time.
So, when we have this happening, we can expect price to break down. This is how you decide your stop loss, right? Fibs here, anchor your fib, this low, this high, which are swing highs and swing lows, one standard deviation, that's your stop loss. Price is above here, you look to short this. Right here is the opening price of, no, this is the true open of this microcycle, right? This is the true open. What happened? Price traded, barely traded above it. Why? Because we're above this revolving true open. Why? Because this revolving true open right here is literally the candle that played a part in the SMT, which means that this candle was ran through by this one. So, we have time and time, revolving true open, ran through by true open. This candle, which was the true open, price barely, it did trade above it. You should show about the true open, right? It traded above it, then just collapsed. It didn't even leave a fair value gap. It, I mean, it didn't even return to the fair. I did leave one. Right when price is here, and you have sequential SMTs colliding like this, right? And you have the higher timeframe cycle being reversal, this will usually happen, right? So, this is specifically tailored for trading during Q1 or the end of Q1, right? Because sometimes when you're trading, you'll see in Q2, price just barely goes above it and falls, and you're wondering why does that happen? This is why, right? Go in your charts, look, and you'll see. Try to prove me wrong, right?
So, we had price trade above here, made SMT. Where do you put your stop? Right here. So, this is literally the true open of this microcycle, right? And this is the revolving true open. What else do you see? It's literally two revolving true opens, right? You have a higher timeframe one here too. What makes it a revolving true open? The SMT. Without the SMT, then you don't pay attention to it, right? SMT is the deciding factor in 95% of the things that you will do with a chart. You don't trade without it because why would you? When you're so good. So, we had price run above here, SMT. You remember, you could use 0.5 if you're cheeky. I said that the first, in the first example that I showed, remember guys, I recorded this today, I traded it, and I come and I show it to you, right? Then we had price breakdown. This is a market maker sell model as well, as you can see. Right here, you can see the accumulation stage one buy, price into this fair value gap, then it runs above here, makes SMT, then it falls. Do you see that? So, we have stage one buy here, which is where, you know, you would look to take your first profits, right?
Here. So, this is not just for the one-minute timeframe, right? Or the micro cycles. You can use it in the 90 for the 90-minute cycles. You can use it for the daily cycle, the weekly cycle, the monthly cycle. It's universal, right? And basically, everything right here, other than the high that's ran through, it's just time. There's nothing else here that's not time, right? It's just time, time, time, time. I don't talk about a fair value gap or an order block. It's just time, time, time, time. What time should this happen? What happens when price opens above this open? You usually get explosive price action in the opposite direction when you have, for example, a true open above this revolving true open, right? And remember, you need this for a stop. And this was a market maker sell model as well, as you can see.
So, I hope that you guys took something from this today. It's a lot. You probably have to watch it over and over again, but please, you know, go through your charts, apply the and just study, right? Study your charts, study your ass off, right? You, to be honest, you know, just want to like help some of you guys to really grasp this and, you know, I want, I want to see how you change your family's life or you change your life, like, oh, I changed my life and my family's life with these same concepts, right? I don't post cars or, you know, homes or, you know, I could, but like, that's just not me, right? I'd rather to make the charts talk for me, if you understand what I mean, which is like the same thing that I said in my, um, interview that I had with Riz, which should be coming out this month, I believe. Yeah, right? Don't post my watches or stuff like that. I believe you asked me about something about money, and then I just like, don't play it. I'm like, I don't like talking about money, right? I'd rather talk about the charts. So, um, yeah, anyways, I will speak to you guys. Okay. I don't know if I'll speak before Sunday, but maybe, right? Maybe now I'm working on transferring you guys to another group because I don't know if someone stuck a bug in our group, right? That just makes it, you know, the lives act weird and stuff like that. I don't know, like, I don't even understand fully, but yeah, I'll speak to you guys soon. Have a wonderful evening or night if it's night for you.