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Hello everyone. Hope that you had a wonderful weekend and hope that you, you know, rested today as today is a bank holiday, right? So there isn't much, you know, to do. Well, there isn't anything at all to do, but technically you could find something to do, but it would be low probability, right?

So today we'll be going some sequences, you know, whereas you have where you will see where we have precision swing points formed after which, you know, you will have a lower time frame for your value gap forming within that precision swing point, you know, whenever that happens and, you know, you'll just see. I don't want to just talk without showing you.

Anyways, so as you guys can see, today is a US bank holiday, right? So currently the S&P 500, the NASDAQ, right? There's no trading going on right now, right? So the markets are actually closed, right? Tomorrow and Tuesday, right? We can see some volatility at 10:00 a.m., right? So Tuesday is tradable tomorrow. Wednesday will be tradable as well, and Thursday we will have, you know, some a lot of high impact news events during the New York session, and the same for Friday, right? And Friday we have NFP, right, on payroll. So this week's, this week already looks, you know, a bit exciting, right?

So if you guys can recall, right, at the formation of this position swing point. Well, whenever when this occurred, right? And then after this one happened right here, right? We were, you know, you know, on the bias of expecting price to continue higher, right? So here we had a precision swing point. This is the 4-hour time frame. And of course, wherever you see we have these, you know, eyes, you know, placed, that's the drawn liquidity. So here for the S&P 500 and here for the Dow, right? You can see that there's no eyes right here, right? Which means that we could expect some, you know, a cracking correlation due to the fact that, you know, this high, you know, is all the way here, right? Whereas we have, you know, price literally right just a few points below this high for the S&P 500. But for the NASDAQ, this high, this one is, you know, very far away.

So here, right, you can see that we have this fair value gap right here, right? Which occurred after we had this position swing point, which occurred after we had sequential SMT, right? So we had sequential SMT, then this position swing point, then we dropped lower, right? And the reason why we dropped lower, right, was due to the fact that we had a lower time frame, you know, SMT right here and a precision swing point as well. So the fact that this SMT was of a, you know, lower cycle than this one right here, the only thing that this would do was just cause a retracement while we will still see the higher time frame sequential SMT continue to push price higher, right? So here we had price trade within this fair value gap. We had SMT here as well and a lower time frame precision swing point here, which we will look at, you know, next.

Here as well, you can see for the NASDAQ, this is a precision swing point which occurred when after we had a sequential SMT, you know, in regards to the monthly cycle, right? And keep in mind that this is the first week of the month. So again, here you can see that we had a lower high, lower high. Well, this is a lower high and then a failure swing. You know, price failed to take this low out. And here as well, here you can see that we had price just pushing higher and higher, right? Due to the fact that this was sequential, which is bullish.

Now here we have the 1-hour time frame and, you know, here things can get a bit tricky, but, you know, it's not at all, and you'll see that. So here, right, if you guys remember from the previous, you know, chart that we were looking at, which was just a higher time frame of, you know, these two right here, including the Dow, but, you know, now we're just focused on the S&P 500, the NASDAQ, right? Just for, you know, just to compare, right? Don't want to be having too much, you know, charts on the screen and lines and such. So this candle right here, right? You can see that this is a, this is the 1-hour time frame. Here we had a 4-hour precision swing point, right? Whenever you have, you know, a down candle like this, which occurred after sequential SMT, right? And after a higher time frame position swing point, you know, its formation, this candle immediately becomes the order block. This is a real order block, right? This is what it is, and it has everything to do with time, right? It's not or trade it into a higher time frame for your value gap. Even though, of course, you can use that as well, right? But you can use time and trade, or you can use price and trade, or you can mix that, right? It just depends on you.

So here we have this right here, right? If you look over here, you can see that we have an inverse fair value gap right here. This is a high probability inverse gap. And why is that? That's due to the fact that it was formed right within this 4-hour wick right here, right? So anyways, even if you, you know, you don't want to use that, you know, frame of thought or, you know, what I just said to you, you can just look at it as a regular inverse gap. So here we had price drop, rejected, then it dropped again. Now, why right here, and we did expect price to go high. Why did we expect price to go higher or why did price go higher? Here we have what? That's a precision swing point, right? So it doesn't matter, right? How small of a difference it is, right? As long as this candle is up closed and this candle is down closed and they occurred at the same time, right? And they are different, it's a precision swing point, right? And, you know, to be honest, whenever it wicks like this, you know, and leaves, you know, this tiny amount of movement that is visible that, you know, shows that this was buying was taking place here and selling was taking place here. This actually makes it more probable. Why? Because remember that wicks are gaps. So price is going to find a gap that should be here on the lower time frame.

Right here you can see that this is the 15-minute time frame. This was the 1-hour time frame. So we're looking right here where we have this precision swing point, which is right here, right? So this candle right here, you know, the precision swing point was from this candle to this candle, which left what? A gap, a fair value gap. So once we have price drop down in this fair value gap and then even then, you can see that we still had a cracking correlation right here between these wicks, right? So whenever you're this low, right? Wherever you whenever you have, for example, the higher time frame agreeing with everything, so for example, this is taking place within a precision swing point, you know, of a higher time frame. So we're on the 15-minute time frame, this is taking place within a 1-hour precision swing point. You know, what do you look for? The gap. So price drops in the gap on whenever we're on the 15-minute time frame and you're keeping in mind that, you know, there's a 1-hour position swing point and there was a higher time frame sequence SMT, then you can expect this type of price action. Okay. Does this always happen? No. But is it better than everything else that's out there? Yes. Will you win every single trade? No. And that's why you need to practice risk management. Even if you're 90% accurate, even if you're 80% accurate, it doesn't matter because you have to lose, right? Whether it's due to the fact that you're having, you know, a problem with your spouse, you know, your cat just jumps, you know, on your back while you're trading, your baby starts crying, you know, startles you, something could happen, something could just fall off, you know, your table, break on the floor, light, you know, the power could go out, you know, things just happen, right? And you just need to be practicing risk management because you have this wonderful, you know, way to repress action to most of you guys, you know, that have been here for a while. It seems simple to you, but if you go out right now and try to explain to someone else, it won't be right.

And here you can see on the screen, right? We have, you know, the criteria, you know, for what I expect all of you to try to, you know, find on a weekly basis as of now. So just for this entire month, right? You need to be trying to find this exact pattern. You know, these, it's not even a pattern, you need because you have to fit the pattern, you know, within these specific parameters of time, right? So here you can see that we have a high impact news event, you know, that must be taking place right here, right? Price must, of course, be above a true open, right? So if price is not above above a true open, then you don't want to pay attention to it, you know, if you are, you know, looking for SMT. So even if you have SMT or sequential SMT, but it's not above true open, then, you know, it's not valid. Everything must go together. Would that work some of the times? Yes. But you want something that always repeats. You want something that, you know, you can fit on the back of a, you know, a card. You can fit it on a calling card. You can, you know, you can just write it down. Put it, put on the wall beside you so you know what to look for all the time. It fails, that's okay. You go again. You win. Okay. You stop trading now.

So here we have sequential SMT, you know, occurring above the true open, right? Then we have a precision swing point that must form and be above, you know, well, it must be above the true open, of course. And here you must have all of this occur where you have the SMT, the precision swing point, price above the true open. Everything must take place within this specific time where you have the high impact news event. Could the SMT be intermarket sequential SMT? Yes, it could be. It could be that as well. As long as you have sequential SMT, right? Not just regular SMT. It must be sequential, right?

And over here, right, we have the sequence in which we look for gaps, right? So, if you're using the monthly cycle, which if you're using the monthly cycle, that means that you're trying to swing trade, right? Swing trades are found using the monthly cycle, right? This is as simple as we can make it. Swing trades are used, well, swing trades are found on the monthly cycle, right? What do you use? You know, you obviously you're going to have your entry form within a 4-hour precision swing point, right? And within that entry, what, what, what will you be looking for? Either an order block, right? An obviously up close candle if you're bearish, or just a fair value gap, or a down close candle if you're bullish, or a fair value gap.

If you're using the weekly cycle to trade, that means that you're just an intraweek trader, right? So you will be using the 1-hour precision swing point, which, you know, occurs after all of this is taking place within the specific area of time, whichever day may be, right? Your entry will be on the 15-minute time frame, right? And it should be, of course, either a fair gap or an order block, right? If, same thing for if you're trading the daily cycle, which most of you guys will do, right? If you have sequential SMT or well, if you have SMT between, for example, the London session and the New York session, that will be sequential SMT, right? Then you have a 15-minute precision swing point, you know, right as, you know, that candle closes, is that 15-minute candle closes. You go on the 5-minute time frame and you just, well, you don't even need to wait for a gap. You could even trade before price forms within the gap, falls within the gap, or trades up into the gap, as long as, you know, you enter within the precision swing point, right? Of course, price should be in, you know, premium if you're bearish and discount if you're bullish, right? Those, you know, those things are, you know, elementary. We don't need to mention things like that, right?

And for the lower time frame cycles, right? If you wish, you know, to go that low, to go that deep, you can, right? So this is something that I need you guys to practice, right? If you get it wrong, you know, tomorrow, for example, you get it wrong tomorrow, it's okay, right? Just try to get it right the next. Okay. Right. If you know, you want you, you can't try to go back back to try to prove, you know, this thing wrong. Every, every move that happens, it happens, you know, because of this. Whenever we have explosive moves, right? There are more models, but this one, you know, you have so much things that must come together that it's, you know, if you follow this, it will be difficult, you know, for you to be wrong. You understand?

When it comes to aiming for, when it comes to aiming, you know, for your, you know, take profit, what do you do for the precision swing point, right? You, you want to get at least, you know, two of, you know, the size of the precision swing point. So, for example, first TP would be here and your second TP would be here. Keep in mind that the precision swing point is of, is of a higher time frame, right? The precision swing point is of a higher time frame. So if you're entering on a lower time frame within the precision swing point, by default, your stop, you know, you will have a, you know, tight stop loss in comparison to your TP.

So I hope that you found this useful, right? And I expect you guys to, you know, take note of all of this. Go into your charts, try to dig deep, you know, just try to follow it. Manage your risk, right? It's impossible for you to fail if you manage your risk. I've never heard of someone blowing their account by managing their risk. You can't blow your account if you manage your risk. I'm not saying that a lot of you are blowing your account. I'm just saying that, you know, you don't want to just be, you know, on a winning streak and just, you know, risking more and more as you go, right? Keep it simple and follow the rules. And with that being said, good luck and good trading. We'll talk Wednesday at 6:00 p.m. Eastern Standard Time, or maybe an hour before, cuz you guys know me. Sometimes I get too excited and I just want to talk now. So yeah, talk to you guys soon.