Market Analysis and Trading Strategies

So when I call a original consolidation, that is where the market is accumulating.

So what I did here, I, I seen these two candles here,

and then the body of this

one and the body of this one. So right away my eye jumps to

that 'cause it's what?

It's a smooth edge. So I wanna use that as the high of the original

consolidation. What's the low? The lowest low. See how easy that was?

So when I'm looking at the original consolidations,

I'm looking for a repetitive

overlapping or reoccurrence of a level that's being constantly referred

back to inside of a consolidation.

Now, I'm anticipating the market to go higher,

to go above the buy side

here and then reach up into this inefficiency up here.

But I'm anticipating also that it should offer some measure of

consolidation, because if it's gonna do that,

my premise behind swing trading is

it's all on the basis of a market maker sell model or a market maker buy model.

That's what swing trading is. Whether you realize it or not,

whether you wanna

subscribe to it or not, that's what the market's doing.

It's moving on the principles of running to liquidity, or it's running to

inefficiencies. And if it's not doing that,

it's consolidating.

And if it's not doing that, it's highly manipulated,

and then you're having some

kind of manual intervention, some kind of shock and awe, surprise rate

announcement, some kind of wartime event, something that would destabilize the

marketplace that you can't and I can't predict before it happens.

So this area here is where I'm framing that.

You can see still, look how many times it's referring to

that same level that's

based over here. So when I'm looking at consolidations,

I'm looking at levels that

constantly repeat. I'm not just gonna layer over top of this

high or this

high or this high. I'm looking for something

that frames it very

clearly. When you go back and look at my examples

when I'm doing this in the past,

and I've been doing it for a long, long time, since the nineties, look

and see how

I'm drawing your attention to these specific consolidations. Do you see it?

Do you see it as a consolidation? Go back and look at your other annotations

that

maybe you have journaled before. Start looking at it like this.

When the market does eventually leave the original consolidation, 'cause we're

underlyingly bullish, we have traders that are trapped down here.

They don't wanna drop down below to give them an opportunity to get out.

Even though the market does eventually drop lower here, they may not come back

down into this area until a later time.

It could be weeks, it could be days, it could be hours, it could be, you know,

a

time that's unknown to you. What you're looking for

and what I'm looking for is

trades that make sense, where the market's reaching for liquidity

inefficiencies

and then reversing for the sake of going back against the original consolidation,

where people are gonna see this as a support level.

And I don't trade support and resistance, I attack support and resistance,

and I use inefficiencies as targets or means of

entry to trade against those same ideas.

When we can frame the original consolidation properly,

then once we leave it, how

are we, how are we leaving it here? Look at the body right there.

Yeah, we had a wick here. We had a wick right there too.

Look at the body staying inside that original consolidation. See that?

That's characteristic to algorithmic price delivery.

It's indicating to individuals that I'm trying to show you that this

is the

language that traders that use this information

and the algorithms, the

high-frequency trading algorithms, they highlight these things in price.

And so it gets their high-frequency trading algorithm in the hunt for

long entries. When is it allowed to take the long?

That candle right there tells you.

So now we can then refer back to the same level here.

If it trades back to that level, what's it doing?

It's returning back to the original consolidation.

The original consolidation, it can leave it.

It doesn't have to touch it, but if it does, that's usually a trade.

So this would be your, your original entry.

Okay, so you could go long there, but sometimes it won't offer a return back

to the

original consolidation. So it might just need a higher order

entry and not offer something right at the high of the original consolidation.

The market rallies up, trades right into

that sixty-minute fair value gap, sibi.

Bodies tell a narrative. It's not interesting going any higher.

Why?

'Cause look at this big candle drop down there. Wonderful.

We have an inefficiency here. We have an inefficiency here.

Drops aggressively below the original consolidation.

Right back to the high of the balanced price range right there, which is also

just below that old low right there that make these relative equal

lows what? Suspect for sell side. So sell side liquidity

resting below there, that's the draw.

If it's gonna go well beyond the low here where the original consolidation sell

side liquidity would be resting. So in, in layman's terms, what we're saying is

it's building up a lot of interest to go higher.

Then it rips higher, comes back down, gives one more chance, okay, one more

chance, then takes off, takes above this high here,

then reaches up into the

inefficiency. Then at that point, does it indicate

that it wants to go lower?

Because if you're bearish and you're extremely bearish to the degree

where you

think this is a good entry point, you could sell up here as it does that.

But eventually, the idea was to draw back down into this area here.

But if it goes below this, how far can it go?

There's no inefficiency over here.

It's these relative equal lows, and that's where the market drops to.