1. Expansion/Reversal requires a Swing Formation 2. Swing formations are Market Maker Models 3. Market Maker Models Distribute Liquidity {ERL<>IRL} 4. Cracks in Correlation [CiC] form Swing Extremes
You must first understand which universal model that swing formation represents; there are two forms of liquidity in the market
i. Internal Range Liquidity (Gaps) ii. External Range Liquidity (Highs & Lows)
From these two forms of liquidity there are four universal model variants through which swings form, which correspond to a specific phase of price.
i. IRL to ERL (Continuation) ii. ERL to IRL (Retracement) iii. ERL to ERL (Reversal) iv. IRL to IRL (Consolidation)
For the purpose of trading the expansion phase of price we will only consider the first three variants and exclude IRL to IRL.
A universal model variant (IRL<>ERL) & subsequent swing formation is valid if a Crack in Correlation exists, specifically a 2 stage CiC...
There are four principal 2 Stage CiC formations that form range extremes / True Reversals
i. 2 Stage SMT ii. SMT Confirms PSP ~ Variant 1 iii. PSP Confirms SMT ~ Variant 2 iv. PSP Confirms SMT + 2 Stage SMT ~ Variant 3
Once you understand this foundation, you can thereafter begin to blend concepts such as
i. Profiles (Protraction, Weekly, Intraday) [OHLC] ii. Premium Discount Sequences (When will SMTs hold) iii. Asset Synchronization (Qualifying SMT Breaks) iv. Strength Analysis (Qualifying SMT reversals) v. Driver Pairing (Swings forming @ Key times)
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Here is how I mastered trading MMXMS....
Step-wise logic:
1. Expansion/Reversal requires a Swing Formation
2. Swing formations are Market Maker Models
3. Market Maker Models Distribute Liquidity {ERL<>IRL}
4. Cracks in Correlation [CiC] form Swing Extremes
You must first understand which universal model that swing formation represents; there are two forms of liquidity in the market
i. Internal Range Liquidity (Gaps)
ii. External Range Liquidity (Highs & Lows)
From these two forms of liquidity there are four universal model variants through which swings form, which correspond to a specific phase of price.
i. IRL to ERL (Continuation)
ii. ERL to IRL (Retracement)
iii. ERL to ERL (Reversal)
iv. IRL to IRL (Consolidation)
For the purpose of trading the expansion phase of price we will only consider the first three variants and exclude IRL to IRL.
A universal model variant (IRL<>ERL) & subsequent swing formation is valid if a Crack in Correlation exists, specifically a 2 stage CiC...
There are four principal 2 Stage CiC formations that form range extremes / True Reversals
i. 2 Stage SMT
ii. SMT Confirms PSP ~ Variant 1
iii. PSP Confirms SMT ~ Variant 2
iv. PSP Confirms SMT + 2 Stage SMT ~ Variant 3
Once you understand this foundation, you can thereafter begin to blend concepts such as
i. Profiles (Protraction, Weekly, Intraday) [OHLC]
ii. Premium Discount Sequences (When will SMTs hold)
iii. Asset Synchronization (Qualifying SMT Breaks)
iv. Strength Analysis (Qualifying SMT reversals)
v. Driver Pairing (Swings forming @ Key times)