Transcription
So, none of this right here that you see, you know, being highlighted, is random. Even, you know, the earnings which, you know, happened yesterday for NVIDIA, we predicted. We predicted that it would be positive, right? That's what we predicted. We predicted that NVIDIA would go higher, right? That's exactly what we expected to happen, which is what happened, right? This is exactly what happened here.
What did we expect? We expected price, right, to take this low right here, right? And now we're looking at the S&P 500 take this low right here and go higher. Under which case would we expect this to continue lower? The only reason why we would expect this to go lower is if the, the sequential SMT did not happen, right? That's the only reason why you would expect price to go higher.
Here, you can see that we had SMT, right? So here, right? And I'll highlight, try to highlight that for you, right? Right here. Let me make this bold and I use blue, right? So here, we had price make, what is this? A lower high. Here, what did we have? We had price make a higher high. So, to someone that is not, not, you know, fluent in the things that we talk about here, they believe that this is SMT, but it's not, right?
This is, you know, why we expected price to go higher. Why is that? Because this is not sequential SMT. SMT like this, which is, you know, not governed by your higher timeframe cycle, sequential SMT will not cause a reversal, right? Right. So this right here, when did, when did this happen? This happened before we had FOMC, right? So this is what caused a stop hunt, but this is not what causes a reversal. Do you understand that? This will cause a run of liquidity or a failure swing. This type of SMT, which is not sequential, but it will not cause a full-on reversal, right? It will either be a means of liquidity for price to go above, then, you know, drop below, which is exactly what we expected.
So, nothing here, and it's not me beating my chest or anything. Nothing here is random. If you listen to the last, the last, you know, two streams that we had, the stream that we had on Monday in the evening and the one that we had yesterday, everything here was mapped out beforehand. Everything. Go back and just listen. We talked about Wednesday that we're going to expect for it. We talked about expecting this type of, you know, crappy price action on Monday and Tuesday, right? That's what we expected. That's exactly what we expected.
Why is this not sequential SMT? This is not sequential SMT. It's not. This high to here is not sequential. It is not, right? And right, even if you have sequential SMT, right? If you have sequential SMT here, and it was, you know, just within the daily cycle or within the weekly cycle, which is comprised of days, right? As long as you have a higher timeframe sequential SMT, it will cancel this out. So it doesn't matter if this is SMT. It doesn't matter if this is sequential SMT. Once you have a sequential SMT which covers a larger range of candles, this will be canceled out.
This is, and this is also the Magneto effect, you know, going into action, right? What's the Magneto effect? What is the Magneto effect? H. Yes, this is the daily cycle. Caused this. Caused price to, right, run below this low. The weekly cycle is comprised of these, which is, you know, delineated by these boxes right here. The mid-size boxes in the middle, that's the weekly cycle. The weekly cycle, which is Wednesday here, took Tuesday's low. We ran higher. Then what happened here again? Here we had sequential SMT between Thursday and Wednesday, right? Thursday and Wednesday weekly cycle. A model, which is what I shared yesterday, which is what sent price higher here, which is what we expected.
Remember, price was trading below around here, and what did I say? We need to see a precision swing point or sequential SMT. What did we see? A 50-minute precision swing point, which goes with the weekly cycle, which is important. Here, within this one-hour candle, is a 15-minute precision swing, which is the exact high of the week. Precision swing point is, is the exact high of the week. Is that random? No, it's not. It keeps happening over and over and over. It's not, right?
So here, what is this? This is sequential SMT. We had Thursday take on Wednesday's side. What is this? Thursday reversal. Is this about the two-week open? Yes, it is. Was this about the true day open? Yes, it was. So, yes, a 50-minute precision swing point goes along with the weekly cycle like this. This is, you know, very amazing. If I were, I was in the spot that you guys are in right now, when I was just starting out, I'd be really happy to know about these things because you will have people, right, come and they will pretend as if they understand what they're talking about, but they can't show you what will or what should happen before the fact. They can't show you before. They just can show you afterwards. Here's a screenshot, you made some money here. They don't even make money. Can't even make money. Can't even predict where price will go, right? They, they have no idea, right? They have no idea.
We expected this. We knew which, which and which days would have the volatility. We knew which day to expect the high of the week to form. We knew what would cause that. Remember, and I always told, tell you guys, what Thursday is the best day to trade. You can make a model alone just by trading Thursday. You'll just probably be trading a few days a week. Well, not a week, a month, sorry about that, right? So literally, look at this. This is Wednesday, Thursday. How many times have you seen this? Multiple times. You've seen Thursday being explosive like this. Thursday, when Thursday is explosive, it's the most explosive day of the entire week and month, right?
So literally here, let's, and let's look at a 15-minute chart right now, right? And I'll turn the curve on so you guys can see that we're not making anything up here, right? Here, what is this candle looking at the S&P 500? What's that? That's a precision swing point. Look at the Dow. We had, right? This is one of our fair value gaps. We had this precision swing point forming within the Dow. The high of the week. Isn't this the high of the week? Then this trade, this. So we had price trade above here, which was the two-day open, right? Right here. The precision swing point formed where? Listen here. In looking at the S&P 500 and the NASDAQ, there was no level here for you to talk about. No high timeframe Peter. No new week opening gap. Nothing is here. The only thing that you can use here is time. There's nothing else. The only thing you can use here is time, right? Nothing here, just time. Swing point, that's time and a cracking correlation. The sequential SMT, that's time. When a cracking correlation, then what do we have afterwards? We have, we had price just dropping rapidly as we expected, right?
So everything that I say, and, and everything that I say is important. So you won't hear me just emphasizing on one thing. I'm emphasizing everything, right? If I had just been emphasizing that price would, we want to see lower prices, what would you do? But around here, you'd just be looking for shorts. If I just said that we wanted to see higher prices, that's what we had, right here in this leg of price action, looking at the S&P 500, you would just be looking for higher prices, higher prices, higher prices, and you wouldn't be looking to see price fall.
Everything, you know, works out. Everything fits. It's a puzzle. Everything fits. And yes, liquidity right here, um, NASDAQ equal lows, right? Everything fits. Everything works here. What do we have here? Okay, we had SMT here, then we had sequential here. Man effect, sent price higher. Okay. And what do we have here? Sequential SMT. Once price was trading here, and if you're looking at the Dow, one, you can see a sequential SMT which is, you know, over higher timeframe, which is the yearly cycle. It works. It's not hit and hit and miss. When it's there, it's there 100%. When it's there, it's there. Nothing else is better than this. And that's not just, it's literally, you know, you guys just seeing this, just seeing it working like this over and over and over and over and over again. It's working for you. It's working for everyone else. All you have to do is study this. That's literally what it is. Just study this.
You understand. A lot of you already understand. A lot of you are already making money. But some of you are having a hard time, right? Something that you need to, you know, take into consideration is, you know, if you're having a hard time, you're probably just using lower time frames. Try to trade using the weekly cycle. Try to study reading price using the weekly cycle. How can this be F? Listen, it's not that, right? I'm just talking about these concepts now. I've been talking about them for months. They just keep appearing in the charts. Why? Because it's real. It's there and they keep working.
Quick question, what time frame do you use to identify price points? All of them. The 15-minute goes with the weekly. The 5-minute goes with the daily. That's how it works. It's a sequence which price and, you know, time follows. It's a sequence. It's not just, oh, it's just this one. No, it works together. It's like you have gears just turning, different sizes. You have small gears turning big gears, and those bigger gears turning bigger gears, and those bigger gears turning probably some other gear, just, just different gears, you know, keeping the algorithm going around.
Most important thing, what is that? News events. News events must align with sequential SMT, right? And that's how you know that you will have a high probability setup. That's how you know that you are trading in the right direction. I hope that this was insightful, right? We will be back. I'm pretty sure this is not, you know, surprising to, you know, most of you because this is normal. This is usually what we expect to happen, right? If you, and remember again, if you're doubting anything, go back, watch the live streams that were recorded, you know, pay attention. Yesterday I was sick. This morning I was supposed to be live again, but I was sick again. Had no sleep last night, just coughing even right now, but I should be better. I went to the doctor and everything. So, yeah, you know, just study and you'll be fine. Everything that you're looking for is in the chart. You don't need to go outside. Only thing that you need from outside of the charts are what is what news events. You just need to know what time we're going to have news events. And even news events are on schedule. So you'll even, you know, be at a level whereas you won't even need to look at the economic calendar because you know which news event is going to happen this week. You don't know which news event is going to happen this day, this hour, because everything is on schedule. It repeats. The same thing that happened this month, it's going to happen next month again, right? CPI will always be in the second week of the month. It's not random, right? And it's not just me saying, oh, it's not random, just showing you a random screenshot. It's not me saying it's not random and then just just showing you some.
And here we have price going to the S equity, just like how, right? We, I just talked about it. It's happening again. What, what do we say usually happen when we have the failure swing within one of the triads? We had that triad will trend lower. What, what happened here? That's what happened. It's not random. And it's simply just amazing. Here, what do we have? Okay, again, SMT fill. Here we have this candle trading into, right, this liquidity void. And we don't look for liquidity voids, right, to, you know, for a reaction of price. What we look for is a balanced price range. So, right here, right, we have price trading into this balanced price range. This balanced price range, what happened? Price, right? Price did not get to it. That's also SMT fill, right? That's what it is. Whenever you have a quote unquote FVG, which is what this inefficiency, or an inefficiency, which covers more than half of the range, so from this high to this low, right? You have the inefficiency covering more than half of this range, you don't use this. You look here. Here, what happened? Price reacted to this. Price reacted to anything here? No. No inefficiency was touched here. Here, there wasn't even one for, you know, this to. Price didn't even trade into this inefficiency right here. The large inefficiency, price didn't even react to it here. It did. So here it did. So SMT fill, and we have price, I believe trading below this a bit right now. So, yes, of course, it's price is readable once you know what you're looking for. Time plus price, that's what it is. It's not just price. It's not just, okay, the single candle, the single FVG. It was just an FVG SMT. No. What SMT? What time did the SMT happen? What time was that high formed? What time was the swing low formed? What time was this candle formed? That's what's important.
Okay, last thing that I'm answering. How did you figure this out, man? Prior. That's it. All I can say, really, right? So I hope that you guys have a wonderful week. Again, I keep rambling and we will be back. Right? Next week, we'll be back stronger than ever, right? I should have overcome or overcame this flu or whatever it is by then, right? Hopefully. And even if I haven't, then doesn't matter. We'll still be here, right? So next week, we should have, you know, some cleaner price action than this, but today, well, this week was amazing already by itself, right? And listen, we're at all-time highs, which we expected price to go to. Is it amazing? It's like, you know, the future before it even happens. Amazing. I love it. Anyways, we'll talk right Sunday, the latest, which is the beginning of next week, then we will discuss, you know, the live streams that we'll have again, depended on the time of the news events. So there will be some news events that will be probably released at 9:45, 8:30, which we will, you know, be trying to walk through as we did this week. So I hope you guys have a wonderful weekend.
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