Transcription
Hello everyone. I hope that you're all doing well today. I have a slight flu, so my voice will be worse than it normally is today. Today, I will be introducing sequential SMT. So, this is a time-based concept, which obviously you need to know the basics of QT theory because that is the framework of what I will be talking about today.
We'll be going into the more visual aspects of price, of course, and we'll be touching on a few topics which I've talked about before but have not really, you know, went into great detail. So, I believe that this will enhance your perception when it comes to, you know, anticipating price swings and market reversals. So, um, you need to understand that not all of these concepts that you are learning can be used in every single price swing, right? There have, there has to be certain conditions that need to be met for every, for these things to work. For example, for example, for this, you don't really need a higher timeframe PD, but you need QT and Q4. The new concept that I will be sharing with you, right? If you have a higher timeframe PD, which most of you know what that is, and if you don't know what that is, then you should probably go back and, you know, rewatch some of the videos that I did.
So, I'll be asking you guys right now, just take a few, a few seconds and look at price right now, right? So, this is Q4, or this is Q4 of the daily cycle today, and this is Q3, right? So, you're learning sequential SMT divergence. So, right here, this is Q4, this is Q3. So, sequential SMT divergence occurs between different quarters, right? Mostly Q2, Q3, and Q4. So, with this specific one that I am talking about, the aim of this is to anticipate the reversal of Q4, right? The aim of, let me say that again, when you're using this specific time-based concept, you are trying to trade Q4, which is either Thursday, the afternoon session, or the last, the last quarter of the year, for example, right? You know all of that.
So, look at price right now. Where are the fair value gaps? Where are the breakers, the swing lows, the swing highs? Like, look at the specific times at which they occur, right? And now I'll take the lipstick off. So, this is SMT divergence, like with a quarterly theory, you know, this high right here, this higher than this lower high, right? So, when Nasdaq made this high right here, it throughout the day, it continued to trade above it. And listen, this has to happen during Q3, right? Over here, you can see Q3 and Q4, it's the same, same time, right here. Show you. So, this low right here is 1605. Same thing right here, 1605, right? So, these two charts are calibrated on the same time, right now. So, please don't get confused. So, this lower high right here and this higher high formed at the same time during Q3. More specifically, the more specifically New York session, right? So, this lower high and this higher high, they both formed during New York. This is actually fire. I don't think I would share this so early. And this lower high right here, which failed to go above the high which formed in New York, was formed in the afternoon session. This higher high which took out this high was formed in Q4 as well. Maybe I have to turn this on so you guys can completely like see it better, right? So, this is Q4. This is Q4. The blue annotates Q4, right? The afternoon session. This is Q3. So, you want it to be occurring between these two times, right? And of course, it is time is fractal, so you can apply this to any, you know, cycle that you wish to or any that presents this. What that that you should be looking for, right?
So, let me go over that again. You have this higher high forming here, Q3. Price breaks down during Q3, trades up during Q4, fails to break this high, while over here, you have price trading way above the same high which formed at the same time as this. So, you have to have two closely correlated assets, right? So, for example, this could be NQ, this could be ES. This could be ES, this could be Dow Jones. This could be Dow Jones, and this could even be the US dollar, right? This could be the US dollar, and this could be EU. This could be GU, and this could be EU, if you understand. So, the low that formed after this high right here, this would be where you would begin to measure your premium. So, this would become discount, like premium and discount. So, this will become discount and high which forms and actually makes the sequential SMT. So, the high which forms right here, this is where today I said that where I made a post on this exact candle, 12:50, I believe I said, I'll go check back. I said, macro shift, just waiting to happen, right? So, a macro shift occurs after there is this specific sequential SMT, right? And the macro shift is just a simple break of structure. But what makes it a macro shift is the fact that it happens after this, right? So, SMT must happen during specific times. So, if there's a higher high, the higher high is in Q3, the lower high should be in Q4, right? And for the other asset class, if the lower high is in Q3, the higher high should be in Q4. I hope that you're understanding what I'm saying right now, right?
And another thing is this candle right here, the opening of this candle right here is, see, one of the afternoon session. Previously, I told you that the Q, that Q1 of of the of whichever cycle that you're looking at, it can be used as dynamic support or resistance, right? So, you can see price trade up here, right? After the sequential SMT, price traded up here, dipped into this fair value gap, traded above this, which is Q1's open, broke down, traded below the opening of the order block which formed after price traded above this opening and into this fair value gap right here. We have [Music] the true open of the afternoon session. But as you can see, price barely, like, price barely even, like, price was so heavy, which is why I was saying that I'm not bullish here due to the fact that we were, like, I could already see this SMT right here because I was looking at both of these assets. I was looking at NQ and the Dow. So, I could see that the Dow was failing to get above the highest high which formed in Q3, while this was already above it. This was, this was here, consolidated above it, while this was below it, can't push above it. And that is a crucial correlation, right? That is the market tipping its hand to you that it wants to fall. It's not bullish, it wants to change direction, right? And before, before I even told you that the higher, the low of the week, the high probability days which that could be forming on would be either Wednesday or Thursday, right? And as we can see, price formed a beautiful high right here. We got an almost perfect setup, right? I, I tried not to give like a signal this morning or something, but, you know, I ended up still calling, calling price, but I actually wanted you guys to do this yourself, which is why I told you to focus on Wednesday and Thursday. All right, okay. So, anyways, so this high right here, which was the last high that formed in Q3, we can see that we had a three-drive pattern above this high, right? One, two, three. Price went above that. I made a post here. Price shifted market structure. This is a micro shift right here, right? Price traded back up while we're in premium, right? So, this, the low which formed after this lower high right here, in regards to the SMT divergence, this would be the liquidity pool that we'll be aiming for, right? Which I even showed you guys my execution this morning, and a lot of you guys shorted about here. Anyways, so from this low to this high, this is premium. When price is above the 50%, most of you guys know this is where you want to look for sells, right? And you, so you try to short up here after price shifted market structure or committed a macro shift, trade back up into this fair value gap, forms an order block, price trades above Q1 on open right here, uses it as like resistance, right? As though you would use a fair value gap, a breaker. Price moves within this, then an order block forms within the breaker, right? And the opening is where below the open of Q1, be sure to below it, remember. And right here, it barely did it, but it went above the true open of the afternoon session, and we just started to break down. This is something that I think is actually crazy, right?
So, there will, there would be days where you would be, you will see SMT. There will be some times and you will see SMT between Wednesday and Thursday, right? So, you, you'll see Nasdaq make the low of the week on Wednesday, and then you'll see, for example, the S&P 500 or Dow Jones make a low of the week on Thursday. You can literally just expect a reversal or a continuation of the trend which is in place on Thursday to continue on Friday, which is something we will eventually touch upon in more detail, right? So, this lecture is to introduce this concept to you, which is very powerful. You can see today I called price beforehand, executed all of that. People got a good bias from this as well, even, you know, while other people were, okay, I don't want to talk about other people, but, you know, some people could not find their way in the market, right? And we were able to do so. We talked about how Monday would be low probability, how Tuesday would be low probability, and how the days to trade would be Wednesday and Thursday. And so far, so good, right? Tomorrow, there will also be a setup, right? I told you guys to focus between 9 and 10:30. I literally told you guys that. And what happened between 9 and 10:30? Between 9:00 and 10:30, this is what happened. Wow. Even this feels so much. I was, I mostly trade NQ, so I wasn't really focused on this. We had SMT divergence between NQ and ES this morning, as you can see. This made a lower, this made a lower low here, lower low here. Do you, in the time that I told you to focus on? Remember, everything that I talk about, you can, you put them together to make your own models, right? You can take at least three concepts and make something that works. So, we had SMT during the time that I told you to focus on. Price coincidence. So, and then we got a buy from here. Then I told you guys about the short, and the reason why I told you guys about this short was so I could introduce this today because I saw it and I saw the opportunity. So, I will probably, well, I will be here back with another lecture, right? I need you guys to go through your charts and try to understand this. Remember Q3, Q4. You need SMT between these. You need SMT between these two quarters. And for those that don't understand this yet, I'll try to make it a little bit easier. So, this is Q3 because it looks simple, and it is simple, but it's amazing. And I need you guys to, you know, show me examples when you do your executions, when you do your trades, or whatever, right? So, we have Q3 and we have Q4. What you're looking for is, if you're bearish, and say, for example, this is NQ and this is the Dow. No, say for, what you're looking for is SMT. I don't, I don't even have to say that. So, for example, if you're bearish, if you're bearish, it is better for you to trade the asset which makes the, the higher high. Gives you more confidence. And there, there will usually be a break, well, there will be a breaker here to boost your confidence because some people, they need that visual, you know, something to that's actually something that they can see. I literally did not want to, you know, talk about this so early, but you got more sauce. So, so say, for example, this is NQ in Q3, you want to see this happen with the Dow. You need to see the Dow make a lower high, just like this. So, if, can you guys understand this now? So, here we have a liquidity pool being taken out here. Dow in Q2, no, Dow in Q3 and Q4. And here we have the other asset class failing to make that high during this time. So, this is the basics of sequential SMT. There's more, of course, but this one is specific. I specifically, you know, when I was, I was just searching for something that would aid me in, you know, finding out where NQ4 will reverse, right? And this is something that I found, which is amazing. And you guys will see. You can look in your charts. You can look at the low and the high of the week. The low of the week last week, you'll see it. The week before, you know, usually happens whenever the low of the week is Wednesday and Thursday, you usually see this happen, right? So, this is very powerful. Um, you probably shouldn't share this. Like, this is actually powerful. You, you can leave the group now with just this alone. This is good. You can just trade when you can just trade one day per week. Catch a low, the high, low, the high, the week, which does not usually form on Tuesday, like it does not. ICT usually forms on Tuesday, but I, no, last week, when did it form? The week before that, when did it form? That's crazy. The low of the high of the week usually forms on either Wednesday or Thursday, right? Because first, first of all, Thursday is reversal, which is where sequential SMT is the strongest. Do you guys like see how this is crazy? Like, I don't go in your charts, look like, try to prove me wrong. Try to prove me wrong that I'm talking. Try to not find this working, right? Completely time-based. You've never heard about this. And what else? What, what else? This would not be possible without quarterly theory. Would not be possible. It wouldn't exist. And with that being said, I hope that you guys found this insightful. I think it's great how I can, you know, come here and give you guys something straight, you know, like without going around corners, you know, and making it, you know, easy to understand. I think that's great. But anyways, um, yeah, so I'll talk to you guys later this week, either Friday or Saturday, right? It will be recorded. Also, you already know, Sunday and Wednesday, we'll be here dropping gems, of course, as usual, every week. Topics we've never heard about before, new stuff, no rehash, no. And, yeah, I'll talk to you guys over the course of this week. Have a wonderful evening.