Transcription
Hello everyone. I hope that you're doing well today. Today, we'll be going over this week's price action in regards to index futures, and then I will be introducing Precision Levels to you guys. I'll be trying to keep it under like 15 minutes, so you guys don't have to stress too much or go over, you know, me talking about things that does not involve price action.
Okay, so first of all, we got exactly what we wanted this week in regards to NQ and ES. I spoke about Wednesday having a high probability of forming the low of the week for certain asset classes, and I also gave you guys my bias, whereas I wanted this exact thing to happen. I wanted NQ to take out this low and not go below this one. Below this low is the daily gap that I outlined this Sunday, so I did not want price to reach below here, but I wanted it to go below this low. So here was the sweet spot that I was looking for.
Also, if you guys realize, every time I talk about a level, there is usually SMT there, right? So SMT divergence is very important, right? Whenever this is what validates a key level, right? Whenever price is about to turn around and it's high probability, there is usually SMT divergence, right? So this is exactly what we were looking for. We got it. Price dropped below this low and then made a higher low right here, while the ES made a lower low and then it continued to rally as I wanted it to.
Also for ES, we see something similar, but this was the level that we wanted to see it reject from. It dug below it a little bit, trading into this daily fair value gap. Still, our eyes are on these highs right here where there's a lot of liquidity. We have a bullish order block for this down close candle that dug down into this fair value gap and within this order block. This has now become a very high probability order block, right? Because this one has overlap with this one, so now it's a propulsion block, which if you don't know about, we'll be talking about. Don't worry. So this is the reaction that we wanted to see, right? We did wake a little bit below it, but that's fine. You should be waiting for a confirmation like this, you know, and you should be waiting for the right time as well to be trading, which would be right here when price traded on into this fair value gap and this breaker right here.
So next draw liquidity in my opinion is above these highs. Seems very obvious. These highs are too clean, right? Whenever I come here and I talk about price, I expect you guys to take note of the things that I talk about, right? As you can see, you know, we've been pretty accurate so far. Um, even though, um, the US dollar did go higher than we expected, but that's fine. It's January's price action, you know, and we won't get everything correct in terms of our bias, and plus we don't trade the US dollar, so that's fine. We just use it for market analysis.
So right here, we have a fair value gap being formed. We have a shift of market structure. Highs above these highs. We have liquidity above these highs. We have a lot of buy liquidity, right? So so far, so good. And now we will look at Bitcoin.
So, um, as you guys can see, I remember when price was around here, I was telling you guys I was not bullish on Bitcoin, and this is the reason. We tagged a higher timeframe level. Remember what I talked about? And we quickly rejected right around here. I was calling for lower prices, which we did get, and I thought we would at least turn this week before going lower, but we did not get that. Currently, if you didn't sell somewhere here, it's very low probability. You don't want to be doing anything right now in regards to Bitcoin.
Okay, and now I'll be introducing Precision Levels to you guys. And before I do this, you'll see you will quickly pick up that no one has ever talked about this. It is me blending time and price to get a specific level, right? It took me a lot of time to figure this out. This is how you can find high probability changes in the state of deliveries, right? You can find high probability order blocks here. You can find high probability fair value gaps here. Basically, any high probability PD array will form within this level, right?
So right here, you can see this is the level that I've highlighted. I'll tell you guys why it is that level very soon, but this is very important, right? As I said before, you need SMT divergence, right? So also SMT, whenever you have one asset class trading into an order block, making a higher high, a higher low, whenever you have an asset class that's closely related to another trading into an order block, making a higher low, then obviously the other one will be trading below a liquidity pool, which makes the other one forming a lower low. So this is SMT divergence, okay? You need this for this to be valid. Whenever I talk about this, you need SMT divergence.
Most of you already know what it is. Most of you do not know what it is, right? It's simply divergence, usually formed where there are higher timeframe levels present, right? So you need a higher timeframe level for this to form. Um, I won't go out right now because I don't want to make this too long, but you have a one-hour low right here, which is a higher timeframe level, which price dug below. This is a 15-minute timeframe. You also have a daily fair value gap, which is around here, right? Which price reacted from. Right? Sometimes fair value gaps will work as liquidity pools if you have noticed that price will dig below them, right? And then go back above, right? It's the same thing, right?
So look at this. You have a higher timeframe order block right here. We'll be focusing on NQ whenever I change the charts, right? So we have a high probability order block here, and what do we have here? This is the afternoon session true open, right? So the afternoon session should open in between a higher timeframe order block or fair value gap, whatever it may be, after SMT has been formed, right? During the right time, that's where you will find this level right here. During this level, you will have all the entries that you need, right?
So now we'll go. This is the exact level right here, but this is the one-minute timeframe. Why are we using the one-minute timeframe? Because this is a 15-minute order block, right? This is where our time sync, our timeframe synchronization comes into play. So on the one-minute timeframe, the bottom of this level would be this order block right here on the 15-minute timeframe, and the top of the level, which is the Precision Level, will be right here, right? The 1:30 p.m. true open. So as you can see, above here we have time, and below here we have price, right? So we need a higher timeframe level and a true open, right? There's more rules to this, but I need to get you guys thinking, looking through your charts, right? And most of you right now, you're probably like, wow, this is cool. Yeah, this will save you from making a lot of mistakes, right? If I was taught this when I just started, then it would be amazing because, like, I would just wait for Precision Levels to trade, because if you wait for Precision Levels, then you're literally doing everything correct, right?
So right here is the 1:30 p.m. true open, and right here is a 15-minute order block. That's what this level is, right? So when price traded below this low and formed this swing low right here, which is this candle, which is lower than the one to the left and the one to the right, we saw price trade higher above this order block. Even when price was, once price traded here above this low and traded above the 50% of this order block, then you could enter right there and put your stop here, right? Once price trades above it again, you can still enter again. Price left this right here and traded above this swing high, which is a shift in market structure. This is a breaker right here, the last up close candle before price took the liquidity below this low, right? And then we have a high probability fair value gap right here, which is in line with this breaker, right? As you can see, all of the PD arrays here are reactive. Even when price trades above the Precision Level and comes back below this low, it still forms a buy, right? This other breaker right here, it was a buy, right?
So this is a Precision Level, right? It must be the high of the level is a true open, and the low is a timeframe PD. So this is where you will find all of your changes in the state of deliveries, your fair value gaps, your breakers, your mitigation blocks, anything that you used to trade will be within this level, right?
So going forward, I would like to see you guys just plotting Precision Levels on your charts. Send it in, send it to me, send it into the group so everyone else can see. And yeah, hopefully this wasn't too confusing for you guys, but yes, you'll be able to rewatch it, and I will be shedding more light on this and many other things over the course of this month and the months to come. Hopefully, I do not make it too long or confusing for some of you. I know that some of you have work and, you know, you can't be watching long videos. So yeah, I will speak to you guys this Sunday, the latest at 6:00 p.m. Eastern Standard Time. Please don't share. Nice day.