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Reversal Sequence (TTRS) - How To Blend PD Arrays

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00:05
Speaker A
how's it going everyone? This video is going to be over building an entry model. I will first talk about the concepts used within an entry model, and then a few confluences, as well as how a reversal forms and which entry model is correct for you. So let's get into the video.
00:24
Speaker A
correct for you so let's get into the video the first thing we need to cover before we get into the Concepts is the kill zones so if I'm looking to trade inaday which is what I include to be
00:36
Speaker A
The first thing we need to cover before we get into the concepts is the kill zones. So if I'm looking to trade intraday, which is what I consider to be below the hourly chart, I'm going to want to focus on the kill zones for taking trades within these time windows. Now, I personally focus on the New York AM session for indices, so I'm going to focus on 8:30 to 11 for my trading. However, if I was a London trader, I would generally want to be looking between 2 to 5 a.m. And all times are in Eastern Standard Time.
00:50
Speaker A
however if I was a London Trader I would generally want to be looking between 2 to 5 a.m. and all times are an Eastern Standard Time now when choosing a time frame It generally works out as impatient people want to be on a lower
01:04
Speaker A
Now, when choosing a time frame, it generally works out as impatient people want to be on a lower time frame, while patient people are generally better suited for a higher time frame. I personally find myself right in between those two, and I focus on executing on a 5-minute time frame. Not only does that align with the daily profile very well, but I also just find it to be the correct time frame for me. Now, this is something you have to figure out for yourself, and we will talk about time frame alignment in a future video.
01:17
Speaker A
profile very well but I also just find it to be the correct time frame for me now this is something you have to figure out for yourself and we will talk about time frame alignment in a future video
01:27
Speaker A
Now we are going to get into the concepts. Don't focus on understanding and mastering every single concept. That is a mistake I see many people make. Instead, focus on one of these concepts and master that. And if you have followed me long enough, you know that my focus is on order blocks.
01:40
Speaker A
you have followed me long enough you know that my focus is on order blocks so getting into our first Concepts here we have a fair value Gap now most of these I have an individual video on so if you
01:50
Speaker A
So getting into our first concept here, we have a fair value gap. Most of these I have an individual video on, so if you are confused, I would check out those videos, and I will link those in the top right corner as we go through this. With a fair value gap, it is a three-candlestick pattern in which the high of the third candle does not overlap the low of the first candle, or where the low of the third candle does not overlap the high of the first candle. Now, this is a point of interest. By drawing out the high and the low that do not overlap, we look for price to react off of it.
02:00
Speaker A
the third candle does not overlap the low of the first candle or where the low of the third candle does not overlap the high of the first candle now this is a point of Interest by drawing out the
02:12
Speaker A
The next concept we are going to cover is an inversion, and that is when a fair value gap gets closed over and then is used as support to trade higher or resistance to trade lower.
02:24
Speaker A
support to trade higher or resistance to trade lower the next concept is an order block this is what I focus on personally this is when we have price reach into a point of Interest I take the series of
02:37
Speaker A
The next concept is an order block. This is what I focus on personally. This is when we have price reach into a point of interest. I take the series of up-closed candles into that point of interest. When it is then closed below, I'm expecting this high to remain, and this to be a point of interest to trade lower. So you can see over here, when we trade into an important level, the series, in this case a single candle, is then closed over, and that level is used as support to trade higher.
02:51
Speaker A
in this case a single candle is then closed over and that level is used as support to trade higher the next concept is a breaker block this is very similar to an order block but it is where we
03:01
Speaker A
The next concept is a breaker block. This is very similar to an order block, but it is where we have a high, a low, a higher high, and a lower low. I'm then marking out the down-closed candles in between that high and that low to use as resistance to trade lower. Similarly, for the bullish breaker block, we have a low, high, lower low, higher high. I'm going to use the up-closed candles from that low to the high as the point of interest for price to trade higher.
03:19
Speaker A
higher high I'm going to use the up close candles from that low to the high as the point of interest for price to trade higher now the next concept is OT and this is when I'm taking an Impulse
03:32
Speaker A
The next concept is OTE, and this is when I'm taking an impulse leg or a displacement leg and marking out from the high to the low with a Fibonacci, using the Fibonacci retracements, and specifically the 70.5 area, looking for a lower high to form and then trade back lower to the low, or following the trend.
03:48
Speaker A
following the trend now that we' have gotten through the main Concepts I want you to focus on which one stood out to you the most and either write that down or remember in your head and just be focusing on that now as we get into
03:59
Speaker A
Now that we've gotten through the main concepts, I want you to focus on which one stood out to you the most, and either write that down or remember it in your head and just be focusing on that. Now, as we get into additional confluences, these will be things that can be paired with our previous concepts. So you can see here, when we use premium and discount, or the 50% fib of a range, I can then look for either a fair value gap or an order block, or whatever PD array I chose, in that area. So you can see here we have a fair value gap in a discount to look for a low to form, and then here we have an order block in a premium to look for a high to form.
04:13
Speaker A
block or whatever PD array that I chose in that area so you can see here we have a fair value Gap in a discount to look for a low to form and then here we have an order Block in a premium to look for
04:26
Speaker A
Another additional confluence, and this would be my personal favorite, is SMT, or smart money technique, with correlated assets having a difference in structure. So you can see, marking out this low here and this low here, one asset made a higher low while the other one made a lower low. This can indicate, or be used as a confluence of, a reversal.
04:40
Speaker A
here one asset made a higher low while the other one made a lower low this can indicate or be used as a Confluence of a reversal now let's talk about an order of a reversal forming so now if you go
04:53
Speaker A
Now let's talk about the order of a reversal forming. If you go ahead and remember which PD array you chose from the concepts or focused on, watch that in here as we go through this list. The confirmation of the reversal forming will become greater and greater, however you are getting in later into the move. I personally prefer to trade continuations, so later into the move. However, you will see when each concept forms, so I want you to remember what you wrote down or what concept you are focused on and find it in here when we go.
05:07
Speaker A
to the move now I personally prefer to trade continuations so later into the move however you will see when each concept forms so I want you to remember what you wrote down or what concept you are focused on and find it in here when
05:19
Speaker A
Each reversal won't always include this, but this is generally how reversals form. We first have a purge of a low or a turtle soup. Now, we will not have this if we have SMT right now. The next thing that forms will be an inversion. The move down that purged the low, once we close over the fair value gap, if there is one in the leg down that created it, that will be the second thing to form. The next thing to form will be the change in the state of delivery, or an order block formation, once we close through this series of down-closed candles that purged that low.
05:31
Speaker A
the next thing that forms will be an inversion right so the move down that Purge the low once we close over the fair value Gap if there is one in this leg down that created it that will be
05:42
Speaker A
After that, this is where four and five kind of blend together, but generally we will have either a fair value gap here or a breaker block. Those will be the last things to form in the reversal. So almost every reversal starts with either a purge of a low or an SMT. We then have an inversion, a change in the state of delivery, and then once we close through or over this high, we'll have either a breaker block or a fair value gap.
05:54
Speaker A
four and five kind of blend together but generally we will have either a fair value Gap here or a break breaker block now those will be the last things to form in the reversal so almost every reversal starts with either a purge of a
06:07
Speaker A
What I said about confirmation is that the further down this list, the more confirmation there is that a reversal has formed. So if we go back to the very beginning, you can see we still have this trend down. We swept this low, and there's not very much confirmation that this reversal has formed yet. Versus, as we get to, say, a breaker block, there is quite a bit of confirmation: as we get the move down, the inversion, the change in the state of delivery, and this displacement up, this reversal has formed. So you sacrifice more confirmation for entering higher into the move.
06:20
Speaker A
about confirmation is the further down this list the more confirmation there is that it has formed a reversal so if we go back to the very beginning you can see we still have this trend down we swept out this low there's not very much
06:32
Speaker A
So let's hop into TradingView now to go over some examples. Here we are with our first example. In this, we are just going to focus on the order of the reversal, or how a reversal forms, with a little context. You can see we have failed to displace out of either side of this range, and we are consolidating. So understanding how consolidations work, I'm looking for a manipulation. I can mark out the high and the low of this consolidation range. As we let this continue, you can see we have taken out this low. So if we are anticipating price to manipulate this side of the range and then trade to this high, I can anticipate this to be a turtle soup, or that would be step one in the reversal. You can see there's not much confirmation here yet.
06:44
Speaker A
this reversal has formed right so you sacrifice more confirmation for entering higher into the move so let's hop into trading view now to go over some examples so here we are with our first example and in this we are just going to
06:57
Speaker A
Now, step two would be looking for an inversion. So let's see when we get a close over the fair value gap that made that leg down. As we let this continue, you can see here we get this close through. This is the inversion, and that would be that entry. You can see this has more confirmation than the turtle soup, or just entering below the lows. Now, what is our next confirmation, or the next step in the order of the reversal? It would be a change in the state of delivery, or an order block formation, when we close through...
07:11
Speaker A
a manipulation I can Mark out the high and the low of this consolidation range as we let this continue you can see we have taken out this low so if we are anticipating price to manipulate this side of the range and
07:26
Speaker A
then trade to this high I can anticipate this to be a turtle soup or that would be step one in the reversal you can see there's not much confirmation here yet now that step two would be what looking
07:38
Speaker A
for an inversion so let's see when we get a close over the fair value Gap that made that leg down as we let this continue you can see here we get this close through right so this is the
07:50
Speaker A
inversion and that would be that entry you can see this has more confirmation than the turtle soup or just entering below the lows now what is our next confirmation or the order of the reversal would be a change in the state
08:04
Speaker A
of delivery or an order block formation when we close through the series of down closed candles in this case it is a singular candle that made the low so as we take a look there we get the close through that
08:18
Speaker A
so then this would be another entry here and you can see as we continue into this sequence it gets more and more confirmation that we have formed a low however we would be entering further and further over away from this low now if
08:31
Speaker A
you look right here have we formed four and five or a fair value Gap or a breaker block we have you can see here we have formed a fair value Gap and taking a look for a breaker do we have a
08:44
Speaker A
low high lower low higher high so we do so then marking out the series of up closed candles from this low to this high before the lower low and higher high right here that would be our breaker block so I can mark that out
09:03
Speaker A
there clean up my chart a little bit and let's see how this works out so as we go we get a retracement back into this fair value Gap do we get a continuation higher we find some support consolidation there and then we expand
09:20
Speaker A
higher through this other side of the range so reviewing this one more time the order of a reversal we have that turtle soup or a purge of a low this wouldn't have to occur if we have smt the next is a inversion right or a
09:36
Speaker A
close through the fair value Gap that made this low the next is a change in the state of delivery or the order block formation or the series of down Clos candles that made the low gets closed over and then we have a fair value gap
09:50
Speaker A
which would be this three candle pattern right here and then we have a breaker block which is a low high lower low higher high now if you remember earlier in this video I said to pay attention to one of these and the reason for that is
10:02
Speaker A
if you were trying to focus on every single one of these every single time you're likely to get overwhelmed for example what is easier to see is it easier to understand price action when everything is shown here or is it easier
10:13
Speaker A
to understand if I get rid of almost all of these and just focus on an inversion or get rid of almost all of these and just focus on a change in the state of delivery is when you simplify things
10:24
Speaker A
down it becomes more and more clear so taking what you wrote down as your favorite PD array or the one that makes sense to you go ahead and remove all the other drawings except for that one right and focus on that performing reversals
10:38
Speaker A
now let's hop into a few examples of actually going top down using this method so here we are with our next example and if you remember this from Twitter I talked about it but we have manipulated the low in this
10:50
Speaker A
consolidation range we've closed back inside the previous bar and we have continued to expand higher here so looking left where is Price likely to go is it more likely to reach for this low or more likely to reach for this high
11:03
Speaker A
and in my eyes it is more likely to reach to this high so continuing this bullish bias into this next day let's go down to the lower time frames so here we are down on the lower time frames and if
11:13
Speaker A
we take a look at the daily profile what do we see well we see Asia form a high with a bunch of failure swings and then we decline into London which just has a consolidation so if we are bullish on
11:26
Speaker A
the day we can anticipate London highs or these equal highs up here to get taken out and then if we are in a manipulation we want to see what we want to see either a manipulation of a low or
11:38
Speaker A
an smt to form and confirm this reversal to trade higher so as we let this play out and here we get a purge of that low so if we are anticipating this to trade higher to Asia highs this would be the
11:52
Speaker A
turtle soup entry now there isn't much confirmation here so if I let one more candle form what do we have now we have a fair value Gap that has formed here that can be used as an inversion so that would be step two does
12:08
Speaker A
that form in step two yes we now have an inversion but what else has we but what else have we had form here we also have step three or the change in the state of delivery and we also have the breaker
12:20
Speaker A
block formation right here so marking all of those out we can see if we form a fair value Gap here which we do so now you can see all of these basically overlapping or acting as a Confluence together to trade higher from this area
12:38
Speaker A
here so like I said before it makes more sense to focus on one so what I would be focusing on here is just the change in the state of delivery and then the main threshold of this order block so as we let this continue you can
12:53
Speaker A
see we get a reaction out of this area and we start to trade higher now where do we want to see price trade to our Asia highs or continue higher within our daily profile so just to review one more
13:05
Speaker A
time we have a bullish bias we have a daily profile this is then when we can use our order of a reversal to look for our turtle soup inversion Chang in the state of delivery breaker block and fair
13:18
Speaker A
value Gap but like I said I think it is important to focus on one or two of these and not all of them so for instance I focus on the change in the state of delivery as that is how I trade
13:29
Speaker A
but there are other people that only focus on inversions that only focus on Breaker blocks really the most important thing here is you have to find what catches your eye and what works for you so here we are with another example if
13:41
Speaker A
we take a look at our daily chart here we have swept out this High we have closed back in that high or into the range and then we have a continuation lower so I could be looking for this low
13:52
Speaker A
to get taken out as well as looking to fill some of these pair value gaps here on the left side so down here on the hourly chart you can see we have all these lows resting right here so let's
14:01
Speaker A
drop down to the 15minute Chart so here we are going into the day and I want to see if this low gets taken out you can see we don't take it out yet we get a consolidation or a retracement higher so
14:14
Speaker A
if I'm still anticipating this low to get taken out and we have expansion and I'm viewing this as a retracement or a consolidation right here I either want to see a close below these up close candles here to validate this high or
14:27
Speaker A
for this High to get swept out so look to see which one of those happens first what do we get we have more EV consolidation here so then I stop considering this I'm zooming in and I see us reaching for
14:42
Speaker A
this high you can see we still never closed below there but I wouldn't be interested in it as it is a consolidation and now we have swept out this high so if I'm viewing this as a consolidation reaching
14:57
Speaker A
into London we sweep out this this high and I'm expecting a reversal to form here to trade lower I would anticipate this to be a turtle soup or step one in a reversal where would be step two an
15:10
Speaker A
inversion forming here so let's see if that occurs here we get the inversion so then that would be an entry or step two now step three would be looking for this change in the state of delivery or the
15:23
Speaker A
order block formation right here we do get that order block formation or the change in the state of delivery and then right after what do we get we get a breaker block formation and a fair value Gap so
15:36
Speaker A
you can see get our fair value Gap right here marking that out and then marking out our breaker block is from our low to our high this one isn't very clear so generally on this I would just use this
15:49
Speaker A
whole leg up so marking that out you can see how those overlap then I would anticipate price to continue to these lows after this reversal has formed so we reach back up into that fair value Gap into that breaker body is still
16:03
Speaker A
respecting the change in the state of delivery and how I would view this is we get a new propulsion block right here but as we go to trade lower we go and we take out that low there so just to
16:15
Speaker A
review one more time we get our turtle soup or the sweep of a high then we get our inversion or a close through the fair value Gap that made this High then we get our change in the state of
16:26
Speaker A
delivery or the order block formation then we get our breaker block and our fair value Gap and then we get a continuation as the reversal has then confirmed and I'm a huge fan of this propulsion block right there within my
16:40
Speaker A
strategy so I hope you found this video helpful if you do have any questions or concerns or if you need a video on something please leave a comment below and I will read through those but with that thanks for watching and I'll see
16:52
Speaker A
you guys next time have a good one

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