You are losing trades because you are not building price narratives. Read this entire post twice. It will help.
Before you focus on aligning expansion candles through swings & cracks in correlation/SMT, you need to apply universal model logic.
Don't blindly search for a "2 stage" or a "strength switch" or a "Psp" do the following.
There are 5 components of my model; this is the order you must apply them in. Here's the logic as to why.
1. Draw on liquidity | Highs/Lows & Gaps
- This is derived directly from universal models
i. ERL > ERL (Order Paired Ranges) -> i.e. Reversal P.o.P
ii. IRL>ERL (FVG>Swing) -> i.e. Continuation P.o.P
iii. ERL>IRL (Swing>FVG) i.e. Retracement P.o.P
2. Profile [Protraction Profiles]
- How are we delivering to that ERL or IRL in context of a fractal OHLC/OLHC concept (Daily and H4 [session])
i. Asia Reversal
ii. London Reversal (Classic P or Delayed P)
iii. NY reversals
iv. Void Profiles (S&D)
3. Key Level | Also Highs/Lows or Gaps
- Where are we delivering to the draw from?
i. Reversals (External Ranges | highs & lows)
ii. Continuations away from Reversal (Gaps)
At this point we have established a Price Narrative, now we can apply FILTERS to qualify high probability swing formations, and specific price phenomena such as SMT Breaking, Decoupling etc.
Filter 1: Cracks in Correlation | Component 4 of Model
4. CiC | SMT & PsP formations
i. At a "True Reversal" we will see a 2-Stage CiC; this will confirm the swing formation as high probability and filter out relevant swings in the market that form in key levels.
- This can look like some variant of SMT + PSP (Part 1 of my YouTube masterclass on reversals, go study if unsure)
ii. In continuation from a true reversal we will see at least a 1-stage CiC forming within [ideally] a gap to qualify the redistribution swing [think MMXMS here, redistribution away from a fair value gap]
- This can look like some variant of SMT-Fill (Part 2 of my YouTube masterclass, go study if unsure)
Filter 2: Asset Synchronization | P.o.P Arguments
i. Decoupling | 6:00 H4 Candle on Indicies
- In the case of decoupled expansion at 9:30 I have a specific protocol to identify which assets are manipulating and which are in foreseen distribution. I also have a specific protocol using CiC to trade the resync.
- This is referred to as Algo 1 in my teachings.
ii. SMT Breaking | Leading/Lagging Asset Dynamics
- In the case of SMT Breaking I will mechanically use strength switch to qualify/time when assets will expand to previously diverged highs/lows.
- I will use SS-CiC's | Remember CiC is a FILTER on a swing. So if I am trading a lagging asset in continuation, I will demand a SS-CiC either a SS-SMT (SMT fill in gap) or a SS-PSP
- If you are unsure about this watch my YouTube lecture titled: Strength Switching Universal Frameworks)
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Once you have
1. Established your Price Narrative
2. Qualified your swing points using CiC Logic
3. Established which Filters you are applying to the specific trade
you then demand the following:
5. Lower Time Frame Reversal Signature
- A v shape away from the key level + CiC + Filter
- CISD, the creation of LTF gaps
Now you have a complete trade idea. A narrative + swing formation. You now are trading a high probability Universal Model.