Garrett explains decoupling in indices markets, covering relative strength, coupling, SMT, and trading strategies for manipulation and reversals.
Key Takeaways
- Decoupling involves indices expanding in opposite directions, signaling manipulation and trading opportunities.
- ES is usually the middle asset and should not be traded during decoupling until confirmation.
- Intermarket relations provide additional bias but are only useful when markets are strongly trending.
- Key levels and draw liquidity are critical for anticipating reversals and continuation moves.
- Waiting for confirmation through candle closes and SMT is essential before trading decoupling moves.
Summary
- Introduction to decoupling as part of Acid Sync Part Two, focusing on indices markets.
- Explanation of relative strength among NQ, YM, and ES indices, with ES typically as the middle asset.
- Definition of coupling as market expansion in opposite directions, with examples of NQ and YM movements.
- Advice to avoid trading ES during decoupling until re-sync occurs.
- Use of intermarket relations as confluence, noting metals and oil trends relative to indices.
- Identification of manipulation at highs, lows, and gaps, focusing on key levels and draw liquidity.
- Introduction of the concept of forcing distribution as expansion away from manipulation towards liquidity.
- Distinction between coupling for reversal (manipulation into key levels) and continuation (strength switch).
- Description of expansion candles (PSPs) and the importance of waiting for candle closes to confirm trades.
- Summary of coupling sequence for reversal, emphasizing clear key levels and price movement opposite to draw liquidity.











