T.G.I.F. Setup ⭐

Date: 2023-06-20

URL: https://youtu.be/wTR-vhOdMgo?si=AezmjrgjNQTkWJba Watched Date: June 20, 2023

So we’re going to be talking about a concept that’s near and dear to me. It is the TGIF setup, or Thank God It’s Friday.

Now, this is a date-based algorithmic ICT trading model, and you can use it on all assets.

As you may have already noticed, this is a day-specific model. That means the model will appear one day per week. It’s on the Friday, hence the name, Thank God It’s Friday.

And it’s a pun on the expression we say here in the States, TGIF, Thank God It’s Friday, meaning that you survived the workweek and then you can party and rest on the weekend.

But the pattern and the characteristic of this pattern is a retracement into the current weekly range. And we’re going to talk a little bit about the weekly Power Three and the distribution phase of that.

So let’s take a look at the Nasdaq futures contract. This is a 1-month chart.

Now, obviously, we want to do a top-down approach when we’re doing our analysis. And the TGIF trade is going to be extremely precise if you’re anchoring it against some higher-timeframe premium array or discount array.

Now, I’m describing a premium distribution, meaning that the assumption is the market has been going up, and we’re going to be looking for some measure of exhaustion for the weekly range, and it will pull back into said weekly range.

As you can see here, the monthly chart for Nasdaq.

You can see here on a monthly chart, right here, we can see a small little imbalance in the form of a fair value gap, a sell-side imbalance / buy-side inefficiency that’s defined by these ranges’ extremes, which is this month’s low and this month’s high.

This only portion on the downside, or sell-side delivery, would be requiring buy-side delivery. So you can see buy-side being offered here in the month of June 2023.

So this is a premium fair value gap on a monthly chart.

So with these levels in mind, let’s drop down.

You can see how, on the weekly chart now, you can see the weekly and those respective levels here from the monthly chart.

You can see we did, in fact, reach up into a monthly premium fair value gap and it’s linked directly on the monthly chart.

But then dropping down to a weekly chart, it’s going to look like this. So it doesn’t look like there’s a fair value gap at all on the weekly, but it is on the monthly. We have to do our top-down analysis in the hierarchy of my premium and discount arrays. We’ll work from a higher timeframe down to a lower timeframe.

Okay, so you can see we did reach up into a premium fair value gap. Now, when it does that, it’s very likely to see some measure of pullback.

And you can see, as we hit up in the upper end of this premium fair value gap on the monthly chart, but now we’re showing it on weekly, we went up to it and then came back down towards the low end of that range.

Okay, and that range being, again, that fair value gap on the monthly chart.

Notice how we’ve had multiple weeks of Nasdaq going higher. I’ve been counseling you to anticipate Nasdaq being the upside leader across the three averages, Dow, S&P, and Nasdaq, Nasdaq being the leadership issue on the upside.

And it has performed in stunning fashion to the upside, outperforming ES and outperforming the Dow.

But I want you to take a look at how each one of these weekly candles are created. True, they’re all up-close candles. But notice where the close is. It’s above midpoint of the candle’s entire range. The close is near each candle’s high.

This candle here closed near the high. This closed really close to the high. Close to the high, close to the high, and close to the high.

So I want to talk a little bit about my Power of Three concept now. I’m not going to go into great detail here, but I do have lectures on this YouTube channel that cover this, and it’s mentioned and laced throughout a lot of the teachings.

I’m a firm believer that repetition makes mastery. You have to see things over and over again to condition your mind and your eye to see it.

Power of Three is not linked to any one particular timeframe. But when I first introduced it, it was an appropriate time to teach it on a daily chart.

Okay, so let’s look at this with a reference of a weekly range, the low of the week, where we started trading here, the open and onwards. This is open, high, low, close bar.

Most of my analysis is done on candlesticks today. Okay, I know I have moved away from this type of chart, which is how I used my commodity charts and S&P charts, and bar charts, back in the mid-90s when I first started trading.

Then, over the years, my eyes have unfortunately taken the toll with looking at screens for a long time. It’s a lot easier to read the data with a candlestick now.

From a Power of Three stance, the open, the decline below the opening price, the rally higher making the high of the day, and then the close near the high, this is Power of Three.

We anticipate the market moving higher on the basis of weekly analysis, higher-timeframe analysis. We think it’s drawing to a premium, right? Something that makes it want to go up here, or draw to.

On Sunday, when the markets open, we anticipate, if we’re bullish, that opening price, this opening price at midnight New York local time, it can open, drop down, and we would not see that as bearish. We would anticipate that.

It’s the accumulation phase. Below the opening price, the manipulation is the open and then decline. But we’re utilizing that function to accumulate long positions.

For the purpose of studying, we would anticipate it opening, trading down into some discount array. Would that be a fair value gap, running short-term sell stops on a lower timeframe, trading down to an old high, something that would promote some discount or quote-unquote support level?

Then the market would displace higher above the opening price, return in some kind of imbalance that would be seen with a bullish fair value gap or a bullish breaker, and rally up.

This is the expansion portion of Power of Three, increasing the extreme high of the week, and then trading off that high to close. And this will be the distribution phase of Power of Three.

It’s open, high, low, close. Accumulation of longs at that opening price and down when it drops below it. This is manipulation.

This is where retail traders would chase that move lower, and then they get raked across the coals as the market goes higher, reaching towards some higher-timeframe premium array, some kind of target. Okay?

Think of it like I’ve outlined here. The market has been drawing each week up into this area here.

I’m teaching Power of Three with this open, high, low, close bar.

And obviously, everything I do is reversible. Whatever I’ve said previously for when it’s bullish, you would just use it when it’s bearish.

You would open the accumulation of short positions when you think that weekly candlestick is going to go lower, reaching for some kind of discount or some kind of sell-side liquidity, something to that effect.

You would see the opening price and the rally up. We would see this open as accumulation of shorts in relation higher, tricking retail traders into thinking it’s going to break out to the upside.

Smart Money would accumulate short positions here and then ride it down throughout the week, reaching to some discount array.

Then, before the end of the week, it comes off the low and closes on Friday’s close, near but off the low. I want you to understand that premise.

Now, this theory of mine is not limited to a weekly. It’s not limited to a daily chart. It’s on every timeframe, every single timeframe.

As long as you know where the next draw on liquidity is, regardless of what timeframe you’re trading, what style of trading you’re utilizing, this idea of understanding accumulation, manipulation, and distribution will serve you well in terms of finding setups and sticking to institutional order flow.

In other words, trusting that price is going to continue moving in your direction if you’re onside. If you’re offside, it means you’re incorrect about what you think is going to happen in the marketplace, then you’re obviously going to get stopped out.

That goes without saying, but assuming all things equal, if you’re right, this is how we interpret price action.

I want to take your focus into that very range right there that is encapsulated by highlights.

So this weekly range here, okay, we’re going to look at that. We’re going to zoom in.

With this range in mind, I want you to think about how, without those levels I had drawn on the monthly, you can see how if you don’t have those reference points, it’s kind of hard to determine what it would be reaching for.

That’s when you want to spend the majority of your time on higher-timeframe charts, because the market is going to gravitate towards these higher-timeframe premium arrays or discount arrays.

And if it’s drawing towards a premium array, that means the bias is going to be primarily bullish each day of that week or the week to come.

You will be anticipating any decline as an opportunity to accumulate long positions and then distribute those long positions to a premium array.

I’m using the continuous contract here, so that way you can see the distinctions and/or the similarities.

Right now, it is mid-June 2023, and this is the Nasdaq weekly candlestick.

We have the run higher, makes the high of the week, and then we close here on the week.

TGIF, or Thank God It’s Friday, is a setup that I’ve codified for end-of-week range concepts. I don’t want to say reversal pattern. Sometimes I have mistakenly referred to it as a reversal pattern.

It is a reversal pattern in the sense that, in the last portion of Friday’s trading, if it hasn’t occurred yet, you can anticipate some measure of retracement into the weekly range. And when I say that, what do I mean?

The lowest low of the week all the way up to the highest high of the week. That’s your weekly range.

Okay, now let’s assume for a moment that it’s 2 o’clock in the afternoon, New York time, and you’re trading. We’re studying the index futures to see what happens. We’re looking at the Nasdaq.

I taught that there is a PM session, okay? Between 2 o’clock and 3 o’clock, there is a formation that I dubbed the ICT Silver Bullet. Okay, I codified that as well. I’ve already shared an introductory lesson.

The range for that entire weekly low and high, when we assume that there is a high formed for the week, okay, and we can assume that is the case when we get to about 1:30 or so on Friday, then we can anticipate some measure of retracement into the weekly range.

Now again, this is a major point that needs to be required in the analysis. If the market has reached some premium array, if it has not reached a higher-timeframe premium array, then it could continue into the close and close right on the high.

That’s how you distinguish whether or not it’s going to form or keep on going and close on the high.

But because we traded up into that monthly fair value gap, and because we have been trading up for a long series of weeks, each week being bullish, we’ve maintained a bullish delivery.

And we have been maintaining a bullish analysis on stock index futures over the last few weeks, so none of this has taken us by surprise.

I want you to think about when you anticipate a high of the week is probably in, and I’ll talk about that when we get to the lower timeframes.

For the sake of conversation, let’s assume for a moment that you had the ability to determine that there was a high already formed, and now anything going into the close on Friday of this week is inside this weekly range, the high of the weekly range and the low of the weekly range.

If you measure with a Fibonacci from the lowest low all the way up to the high, now, you will be doing this intraday as you approach the afternoon session.

It doesn’t mean that you can’t see this TGIF pattern form in the morning session. It’s more likely to form in the afternoon, especially if we had continuation on the upside in the morning session. Then it’s more likely to create in the afternoon session.

20% and 30% of the weekly range.

Those two levels here, that is your sweet spot, okay? That’s where TGIF will likely draw into.

There are times when it can draw into 40% or more. That’s more of a conversation for reversals, or market tops or bottoms. But we’re going to reserve that for another time because it’s outside the scope of this discussion.

If we can watch price delivery on Friday, whether it be in the morning session or the afternoon session, if we get to some level of a premium target being reached, or as we saw on the monthly chart, we traded up into that fair value gap.

The day of the week is Friday. It’s been going up every day. So it’s within the realm of reasonable to anticipate the market drawing back.

Okay, so the fact that it’s dropping down, I learned, and I’m sure you’ve probably heard this also in books and such, and other educators, it’s profit-taking.

And I have been guilty of using those terms early on in my career, where the market would be dropping lower and I would assume that that is profit-taking.

I don’t believe that is the case, and I’m not going to try to sell that to you.

It’s my argument and case that I make that these markets are algorithmic, and everything happens because it’s designed and engineered to do such.

If there was a reasonable means of measuring, or a macro, a short little list of directives that the algorithm would follow to reprice from the highest high of the week down to some predetermined price, what would that be?

Well, we’re going to walk through it here.

But the bullseye, if you will, a little sweet spot that the market can retrace down into now, where we don’t anticipate it closing right on the high, if it’s going to come off the high before Friday’s close and ending the week of trading, it’s going to stop somewhere between the 20% and 30% range.

Now, right away, this is going to sound like, oh, here we go. We have a cherry-picked example.

But I promise you, I have very, very long-term students that have learned this from me years ago, and they see me do this with the daily ranges. They see me do this with the weekly ranges, and they’re able to do it as well.

So I’m teaching you the concept and the building blocks to understanding it. But there’s a lot of other things you can do with this information.

This is just an introduction to the TGIF setup.

Here is that same idea now being applied to the NQU2023 on TradingView. If you’re following along on that, that’s the teaching medium I use.

And pulled up on a weekly chart, you would see this range.

Here’s 20% and 30% of that weekly range from the high, and those levels being shown here.

We can see that this candlestick here makes the high of the week. Then we trade down into the range between 20% and 30% of the entire weekly range, the weekly range being the high here and the low here.

20% of this entire range here, subtracted from this high, would give us this level right there. And then 20% and 30%, respectively, would be that TGIF draw on liquidity.

Okay, so think about it like that. The market will likely draw down to 20% or 30% of the weekly range. That’s how we can anticipate Friday’s trading in terms of an intraday reversal or a weekly retracement. I’ll leave it up to you how you want to classify it. Okay, either one would be considered correct in terms of describing what it is you’re trading.

Monday’s trading here, Tuesday’s trading, Wednesday, Thursday, and then Friday opening, making the high of the week, then trading down and closing inside that 20% and 30% of the total weekly range.

That is a successful TGIF trade.

Let’s go into the details with this a little bit more.

Right here is an hourly chart. Okay, you can see how, again, we have a short-term high, rallied up.

Don’t look at this as support because we don’t know what the high is yet. I’m just showing you these are the levels that, once the high is in place, we can anticipate forming in the lunch hour or just before lunch, around 1:30 going into 2 o’clock.

The assumption is that we’re likely to draw down into 20% or 30% of the weekly range if we’ve been bullish. And we’ve been bullish for a while, and we hit our higher-timeframe premium arrays and targets. So it’s reasonable for it to draw back.

If it’s going to draw back, it’s going to do so in a controlled manner, because the market is algorithmically delivered. So price is controlled. It’s following a script.

Therefore, where can we anticipate the market to draw down to if a retracement is, in fact, what’s going to come in before Friday’s close?

We have to define where that weekly high is. The low is obviously here, formed on Sunday.

So Sunday at 6 p.m., we’re seeing that candlestick here represent that weekly range low. And then we can see Friday, all that range in here, the highest high.

We anticipate that high forming Friday morning to Friday’s lunch, or certainly between 1:30 and 2 o’clock. Why? Because it’s likely to retrace into the close.

Now, in terms of keeping things easier for some of you that are, I guess, familiar with trading and some of the terms that are used, unfortunately, incorrectly, they’ll say profit-taking is coming in, and the market will retrace lower.

And it’s not an absence of buyers. And it’s not the sellers overtaking buyers. It’s absolutely controlled. The market will just simply gravitate towards 20%, 25%, 30%.

And sometimes, if it goes beyond 30%, that could indicate an all-out reversal on a long-term basis.

That’s your weekly range viewed over the scope of an hourly chart.

Okay, so we’re going to get into this in more detail.

Dropping down inside that range and zooming in towards the high end of it, this is the 15-minute candlestick chart.

So on 15 minutes, we can see that the high forms in here around the 9 o’clock in the morning hour on Friday.

It rallies up, creating what? A Judas swing.

All this initial run here sucks traders into thinking it’s going to go higher. It’s been going higher. Don’t fight the trend. Don’t fight the Fed. Don’t try and do this. Don’t try to do that. Everybody has an opinion about what they should or shouldn’t do.

But if they don’t have the rules of engagement that the algorithm is employing, all of the ideas or the dogma that every trader has and subscribes to as a religion, whether you want to believe it or not, your trading system is a religion. You have faith in it. You’re investing in your paying tithes to it.

The bottom line is, all this deciding of taking on risk is going to have to be rooted in something that makes sense.

And I don’t believe that buying and selling pressure is the sense behind why price is going up and down. It’s 100% controlled.

If we can see that initial surge at the open on Friday, as we see here, the market runs up, creates this tendency to want to expect it to keep going higher, and old highs are broken here.

But I teach that as buy-side liquidity. So the market goes higher to run out these relative equal highs because there are pending orders that would be used for traders that trade on a breakout.

They want to buy strength. Smart Money employs that as their counterparty to going short, and they’re going to trade with this in mind: 20% to 30% of the weekly range.

TGIF, Thank God It’s Friday. There is a systematic approach to trading these types of days on Friday, where it trades back to 20% to 30% of the range.

What does it look like? Well, everything I’ve already taught you. But the premise is why and when it will reach for that 20% to 30% range of the weekly range, the highs and lows of the week.

Look what we see here. The last up-close candle prior to this move lower, this displacement here, the change in the state of delivery, is the opening price. That is my ICT order block.

The fact that the market is likely to create the high here, see, I already know that this is going to form because of that fair value gap on the monthly chart. We traded up into it.

The up-close candle is what we’re measuring.

Whether you want to have the wherewithal to go short up in here or not, you don’t need to. You want to wait for it to displace.

When the candle opens up and then it runs right on top of it, that opening price is where the change in the state of delivery is made when it goes back through it, which is right here.

Then we have a short-term low taken with this candle, and it closes and creates a SIBI here.

And then, as soon as this candle starts trading, we have what?

That’s your 2022 model.

The TGIF is a strategy that you anticipate price delivering to. No more. It’s a draw on liquidity. That’s all it is.

It happens on a Friday, and it reverses whatever has happened on the weekly range. It’s going to go back into 20% to 30% of whatever that weekly range has done.

Is that complicated?

Because it’s not. It’s really easy.

But how do you trade it? How do you go in and implement it? Take it and go out there and study it.

You go through the process of everything I’ve already taught you. You could trade the Turtle Soup, which is the run here above the buy-side.

So when the buy-side is taken, you can sell short right there. That’s a very, very difficult thing to do for new traders. You have to really trust you know what you’re doing.

You don’t need to be able to do that. Wait for it to give you your 2022 model if that’s your favorite. You got the short-term shift in market structure here.

Or if you want to use that one, either one, it validates it. Then it trades up into what? 2022 entry model.

So it’s trading in this little area. And because we have to traverse over lunch, that’s why we have multiple passes.

During the lunch hour, nothing has changed.

Treat this candle and this candle, and the highest one that trades into it, which is this one here, until we take out the low here.

As long as you don’t take out this high, all these candles in between are all time distortion. The range is already defined.

I want you to see how all the things that I teach, you can find them throughout larger fractals in price action.

That means there’s more than one way to skin a cat with my concepts. Just like there are other ways that people can trade, and you can find yourself, and it’s fun. It’s wonderful.

But with my concepts, you don’t have to be a one-trick pony. There is not one PD array, right? Not one model that is superior to the next one.

It’s whatever one you feel comfortable with, the one that makes the most sense to you.

You see how we moved from this area here, this fair value gap and the SIBI, sell-side imbalance / buy-side inefficiency.

So this move down here is separated by this candle’s low and this candle’s high. All the sell-side needs to be what? It needs to be delivered with buy-side.

We see that here. But look how many times it’s doing it.

Why is it doing that many times? Because it has to traverse through the lunch hour.

The lunch hour, there’s a macro that runs within lunch hour, and it usually runs what? The stops.

So where would the stops be?

Right above this high, we see it run there. And we return back to here, but there’s no necessity to get above it.

It’s respecting with these little Mohawks, these little tiny deviations outside of the range that creates my fair value gap, this low. So it goes above it here a little bit, a little bit here.

We expect that. We anticipate that type of thing. It does not undermine the overall scenario.

Then you watch price melt into 20% to 30% of the range before Friday’s close, and that will be the shaded area here.

Zooming in here again, you can see this is the 15-minute order block, and we’re trading up into that shaded area that was found and defined on the hourly chart.

You can see we have that run on the stops here. Then we drop down, take out sell-side, and then one more time rallies back up to the 15-minute bearish order block.

So this is a reclaimed bearish order block. Sell-side is below here. The market drops.

Here’s the 2022 model again.

Short-term low, drop, fair value gap, rally up. If you don’t get that entry, okay, because it’s before 2 o’clock and you have a rigid rule set, now that you’re going to be algorithmic behind every trading idea that you employ, you’re going to stay within the sweet spots in terms of time.

That’s already taught. Between 2 o’clock and 4 o’clock, the afternoon PM session, you can find a trade, a price run that will seek liquidity.

It’s Friday. The market has shown a willingness to do what? Give a Judas swing in the morning. We’re seeing that here. This is a Judas swing.

Then it overlaps all that, does a change in the state of delivery here. That’s your bearish order block.

We have a 2022 model to the 15-minute fair value gap in the form of a SIBI as the shaded box here. And then we hit the bearish 15-minute order block again.

It drops, creates a fair value gap. It’s also a breaker. High, low, higher high.

How many models have I shown you already? Which one would you have taken? That’s the part that makes this complicated.

I don’t make it complicated. I don’t complicate it. Am I detailed? Yes.

Notice that if one of these patterns, and whatever premium array you’re going to identify as yours, you already see the one that you like, you would be utilizing that. And the other ones aren’t so important to you.

So you’re able to see what I’m talking about and find what it is that meets your model.

I’m not trying to press you into a mold where you only do this entry technique, or you only do whatever I point to. You find your own model using my concepts, and there’s no better way than another.

The premise is that there’s a high forming when it’s been bullish all week long, and we’re going to trade off that high down into 20% to 30% of the range.

That’s all TGIF is.

TGIF is not finding the right PD array in the move and giving you that freedom to pick which one you’re going to use.

Now watch what happens if you’ve seen all this stuff in hindsight while the market is trading right around in here, and you missed it. It’s already traded outside of the fair value gap. You missed it.

What can you do? Well, has it traded to the 20% yet after leaving the fair value gap up here? I mean, it hits it here, yes, but we still have time. It’s still a little bit after 11 o’clock in the morning on Friday. We still have the whole afternoon, and the lunch session is still with me.

So what does lunch usually do? It runs stops. So we’re expecting and anticipating a rally up to clear the board of any trailed buy stops.

Does it sweep that high? No, it doesn’t need to, but it will run rejection blocks.

Now, in your notes, rejection blocks are the same function as running out liquidity.

What’s the highest up-close candle? This one here, prior to this high here. Is it here? No. Extend that through in time, and you can see we sweep that.

It does not require going above this high. We’re trading inside this wick, which is what? A gap.

So because we’ve seen it create a little Mohawk outside the 15-minute fair value gap, it’s also defined on that 15-minute bearish order block, the opening price.

So we anticipate that little movement outside of that. It’s reasonable. We don’t want to see it, but if that happens, we’re not freaking out.

Since we created this little deviation outside of that gap, returning back to it is permissible.

Notice where the bodies are inside of that 15-minute fair value gap. The wicks did damage.

So how to cut through all this stuff, if we already anticipated a run and permitted a Mohawk, a little tiny coloring outside the lines, if you will, we have to look in here.

Where is the rejection block? Think about your PD array matrix I taught you in Core Content Month 4 on this YouTube channel.

There’s your highest up-close candle. That’s your rejection block extended to the right. And as you see what we’re doing, we’re wiping that out.

It does not need to take out the wick high. Rejection blocks are a very instrumental part for me utilizing time distortion.

I will give you more details, but it requires a lot of other things for you to take anything away from it.

Don’t listen to anybody out there doing time distortion lectures, because they absolutely have no idea what they’re talking about. I promise you.

So getting back to this 5-minute SIBI/FVG here, if you want to utilize the TGIF, and you anticipated drilling down into 20% to 30% of the range of the weekly expansion that you’ve been witness of, whatever that week would be, any future week, you can utilize this information.

Okay, you missed the ideal entry inside the fair value gap. Now it moves outside of it. Can you participate?

Sure, we can.

We’re dropping down into a 1-minute chart.

Here’s that fair value gap that was on the 5-minute chart. You saw we hit it here, at the low end of the 15 minute fair value gap as this shaded area here.

And now we ring in the 2 o’clock time period, which is this bullish candle right there. It’s 2 o’clock on Friday, and then we drop.

So what did I teach you about 2 o’clock to 3 o’clock in the afternoon on index futures? My ICT Silver Bullet.

Well, here is the ICT Silver Bullet. We have a high, low, higher high, reacting off of an hourly bearish fair value gap in the form of a SIBI. We have a fair value gap here.

So is order flow bearish? It sure is. It’s respecting every premium array.

Small little fair value gap here, goes into it, rebounds in the bottom end of the 15 minute fair value gap. We would anticipate displacement lower. Boom. Does it happen? Yes, it does.

Breaker, fair value gap, trade up into it, get short, reach into the 30% to 20%.

How far can it go? Well, you have to wait on time.

TGIF, you submit to time.

So I’ll show you this. This is the 2 o’clock PM ending, so it’s 3 o’clock. At 2 to 3, that one-hour interval right there, there’s your fair value gap that forms the ICT Silver Bullet.

How many models have I shown you just in this lecture? How many opportunities to get in?

Multiple. Another one right here.

It’s still inside the Silver Bullet timeframe. So if you miss this one, you could have done this one.

But it hits the 20%. Michael, would that be the end of it?

No. There’s still time. Time ends with this shaded area here at the close.

Okay, at 4 o’clock, when that bell rings, you see it on CNBC, ding, ding, ding, everybody claps their hands like it did something special.

All this time, you’re going to submit to it.

And as we get into the last hour of trading, 3 o’clock to 4, yes, I understand that it trades until 5 o’clock, but the bulk of trading ends at 4 o’clock, unless earnings season comes in and does something after the bell.

But the point is, the majority of the trading is done before 4 o’clock New York local time.

So the entries must be taken between 2 o’clock and 3 o’clock for Silver Bullet. Okay, so I’m adding all that extra value into this lesson.

TGIF, Thank God It’s Friday, the pattern or setup is simply using 20% to 30% of the weekly range as the draw on liquidity on a Friday.

Okay, on a Friday, if there was no Judas swing at 9:30, when the market opened up on Friday and rallied higher, if it wouldn’t have formed that, in other words, if it would have just kept climbing higher and didn’t reverse, then I would anticipate lunchtime, or going into 1:30 to 2 o’clock, to create the high of the week.

So for some of you who are thinking, well, how did you know? Or how would you know which one of those two scenarios is going to happen?

You’re going to create the Judas swing at the open on Friday at 9:30. If you’re bearish, you’re anticipating it to pull down into 20% to 30% of the weekly range. But the weekly range has been going up, right? For this week it has, or for last week rather.

Then we would expect it to create a false run at the open, lure traders into trying to buy in, get trapped near the high, and then drag it lower into 20% to 30% of the weekly range.

Look how close we got to 30% of the weekly range right there. Isn’t that crazy?

Now, you can have static rules where you can take this 20% to 30% range, or the weekly range, and you can do gradients on that. Again, you can take it, this is the low, the lower 25%, half of it, the upper 25% or 70% of the range that makes up the 20% to 30% range.

You can take a partial as it touches 20%, take another partial at the upper portion or upper gradient level before 50%. If it gets to 50%, take most of your trade off, then roll your stop to the most recent swing high and see if it can reach to your next gradient level. And that would have done so here.

I just elected to wait to see what this low was formed in the last hour. This one here had already moved here. So in this retracement, I was comfortable with anticipating it ripping lower to take that one out. And it did.

And I did not require trades to 30%. So what I was usually using is simply the low that formed here, allowing traders to think that the low was formed. And they go in, they think they have the, you know, the 3:45, 3:50 algorithm. That’s not an algorithm.

There’s a macro that runs, and when you don’t know what it is, you won’t see what this is doing here.

All this was doing was pulling up against short-term buy stops, buy-side, relative equal highs here. So I knew that it was likely to go up there, but stay inside what range? 20% to 30%.

So relative equal highs, I was comfortable holding that. It’s reasonable for it to go up here and hit that. Then it broke lower, attacking the sell-side.

So all the people that tried to buy long in here, thinking they’re going to catch a little bit of a move on into the 4 o’clock hour.

If you study this, go back through every single weekly candle on any market. You will see this.

You will see a multitude of potential entry patterns using what I’ve taught also on this channel.

You only need one. You need one entry model.