market mastery pt1 introduction
when approaching the market one must remember that price is one meaning that it is truly just going in one direction in the long term view. price is a creature of habit like anything else in this world once we fully understand this we can start looking at its observable patterns that has been hidden in plain sight. as spoke on before price or "they are to big to hide their moves so all one must do is be patient and wait for the daily patterns to present it self. 3 things will be true every day when the market is open.1 there will be a high and low of the day. 2 a session low or high will be ran for liquidity purposes. 3 once price has ate( gathered liquidity ) it will run for safety and rest. when we keep these 3 simple ideas in mind we can start looking for the easily identifiable patterns.
now to further break down this thesis and approach to the market we have to align all thoughts and beliefs lets begin.
it is in my core belief that all thoughts are shared with one singular Consciousness. yes traders and the market are all tied with one singular thought that is what allows the market to trend. now building upon this we must ask what gives value to life and how do we measure life? TIME! time is the confines of all material things. time allows things to operate in a orderly fashion. so when we approach the market the rules are the same time is single handedly the most important signal when trading.
as we all know NY and london are the most liquid sessions and asian session is usually the pullback/ reset session.
so starting with london what is going on? london session is used as the setter for price and its operations . or you can think of london as ny partner that helps the moves come into fruition. how does london do this ? london does two functions .
1 create ideas and fals signals
.2 accumulate or form liquidity.
now london can create liquidity by either ranging or clearing Asia highs and lows creating some type of retail pattern that will entice traders to enter on a false premise bringing in more liquidity to the market. IT is important to note that price moves in a cyclical fashion meaning that . the previous session is usually the current session targets ie; london targets Asia highs and lows, NY target london highs and lows, and Asia session targets NY after noon/ london session. now the simple explanation is that in order for price to move it needs the most recent liquidity and those are the closest targets. this idea has more moving parts to it but for now this understanding will suffice.
building upon this understanding this is how you can start seeing the easy habits of the market. so once london has filled one of these functions. the next thing to do is to leave a return of information. this will be a small signal left in the market to signal the ny traders as the mode of operation for the day. these small signals usually would be candles with the same structure as the session low or high pictures will be provided to show examples. once this return has been placed in the market then london session is done. this usually happens around 7 am as the NY premarket is now open.
now as the NY traders enter the market the first thing they are doing is seeing what their big brother london has did with their funds. as the money never leaves the inner circle only transfered into diffrent hands at certain times of the day week and year. depending on what operation london has formed ny will do 2 things as well .
1 create liquidity
2 continue the move of big brother
starting with the first the way NY creates liquidity is by either taking a london high or low or by ranging untill london close/ untill afternoon session.
it is important to note that the time of the week is important when trying to identify the mode that it is operating in. but for a good general consensus . if london makes a large move early in the week and the weekly high or low hasn't been established that is london enticing traders traders to enter the market for ny liquidity. why so ? you will usually see a move like this when us has some type of high impact news traders will see the large london session move and think that ny will continue in london footsteps. the ny traders will have fomo and enter off a false premise. when this happens this allows ny to open and target the fomo traders position and use their sl/ pending orders as entry into the market. the second typical move you will see is london making are quick large move then resting until ny pre market or even all the way unto the real ny open.
when this set up takes place it is usually after a weekly low or high is formed and london is holding the market to allow NY traders to get their premium levels before running. the third scenario will be when london doesn't move much at all. when this condition is present in the market it typically means that a big NY move is coming and it will trend through out the whole session. now i say typically because about 30-40% of the time london will be stagnant and NY will open run and take a london target and then reverse in the larger timeframe trend. this move usually happens after a weekly target has been hit and the algo is in seeker mode where it really only offers one sided delivery.
after NY did either 1 or 2 the next significant time is 11pm the london close or as i like to call it the clope(close and open).
this clope is very important to the overall daily direction. this is because depending on how large the full london move was taking into factor the NY session. NY will either continue big brothers move or reverse and take the real trend of the day. an easily identifiable way to see what ny is going to do for the day is seeing the range from NY open to the clope. there are about 2 main scenarios you will see for the clope. first is when NY sets a new low or high for the day then at the clope it hits a old session target and pullback. if this happens then most likely the trend will continue. second is when ny stalls out until the clope, when this is happening this a key sign that NY afternoon move will have some size to it. the clope should primarily be used for signs of continuation dependent on the formation of the candle, and NY targets. i will make a whole separate presentation on the 9-11 session overlap playbook.
finally after the clope has formed and we have gotten are key information the last move of the day is of course the NY afternoon move which forms at 1:30 pm. this move is probably the easiest do to the time constraint. the key things for the afternoon move is looking at the session overlap movement. as stated above if there is no significant move during the overlap then take play the higher tf trend in the afternoon. if price has reached a prev session target during the overlap and it was in the direction opposite of the higher tf trend look for a return around 1:30 to 2:30 to make a reversal and continue to move in the way of the trend. lastly if NY made a low or high in favor of the counter trend and it starts to move in the way of the trend ie( price is in a downtrend ny makes a new low then starts to pullback around the london clope and hits a target). this will be a easy set up to take to enter and ride the trade down to a new session low or high.
these are the primary plays that we can see day in and day out in the market of course there are other moves that may be seen but those are less common and for this series I will only focus on the easily repeatable and identifiable moves. I will close this intro off with key take aways
1. london and NY work in tandem to move the market.
2. the clope is a significant candle in the structure of the intraday charts.
3. each sessions targets its predecessors highs and lows as price move in a cyclical fashion.
4. price primarily targets session opens/ highs or lows.
5 trading with the higher timeframe trend ill give you the highest probable set up.
6. before a major move occurs liquidity will either be accumulated or taken.
7. higher tame frame moves usually take 2-3 days to complete.
8. the market tends to reverse on a higher time frame outlook around the 15-21.
9. price will continue its direction untill a higher time frame target(open) is hit
now to further break down this thesis and approach to the market we have to align all thoughts and beliefs lets begin.
it is in my core belief that all thoughts are shared with one singular Consciousness. yes traders and the market are all tied with one singular thought that is what allows the market to trend. now building upon this we must ask what gives value to life and how do we measure life? TIME! time is the confines of all material things. time allows things to operate in a orderly fashion. so when we approach the market the rules are the same time is single handedly the most important signal when trading.
as we all know NY and london are the most liquid sessions and asian session is usually the pullback/ reset session.
so starting with london what is going on? london session is used as the setter for price and its operations . or you can think of london as ny partner that helps the moves come into fruition. how does london do this ? london does two functions .
1 create ideas and fals signals
.2 accumulate or form liquidity.
now london can create liquidity by either ranging or clearing Asia highs and lows creating some type of retail pattern that will entice traders to enter on a false premise bringing in more liquidity to the market. IT is important to note that price moves in a cyclical fashion meaning that . the previous session is usually the current session targets ie; london targets Asia highs and lows, NY target london highs and lows, and Asia session targets NY after noon/ london session. now the simple explanation is that in order for price to move it needs the most recent liquidity and those are the closest targets. this idea has more moving parts to it but for now this understanding will suffice.
building upon this understanding this is how you can start seeing the easy habits of the market. so once london has filled one of these functions. the next thing to do is to leave a return of information. this will be a small signal left in the market to signal the ny traders as the mode of operation for the day. these small signals usually would be candles with the same structure as the session low or high pictures will be provided to show examples. once this return has been placed in the market then london session is done. this usually happens around 7 am as the NY premarket is now open.
now as the NY traders enter the market the first thing they are doing is seeing what their big brother london has did with their funds. as the money never leaves the inner circle only transfered into diffrent hands at certain times of the day week and year. depending on what operation london has formed ny will do 2 things as well .
1 create liquidity
2 continue the move of big brother
starting with the first the way NY creates liquidity is by either taking a london high or low or by ranging untill london close/ untill afternoon session.
it is important to note that the time of the week is important when trying to identify the mode that it is operating in. but for a good general consensus . if london makes a large move early in the week and the weekly high or low hasn't been established that is london enticing traders traders to enter the market for ny liquidity. why so ? you will usually see a move like this when us has some type of high impact news traders will see the large london session move and think that ny will continue in london footsteps. the ny traders will have fomo and enter off a false premise. when this happens this allows ny to open and target the fomo traders position and use their sl/ pending orders as entry into the market. the second typical move you will see is london making are quick large move then resting until ny pre market or even all the way unto the real ny open.
when this set up takes place it is usually after a weekly low or high is formed and london is holding the market to allow NY traders to get their premium levels before running. the third scenario will be when london doesn't move much at all. when this condition is present in the market it typically means that a big NY move is coming and it will trend through out the whole session. now i say typically because about 30-40% of the time london will be stagnant and NY will open run and take a london target and then reverse in the larger timeframe trend. this move usually happens after a weekly target has been hit and the algo is in seeker mode where it really only offers one sided delivery.
after NY did either 1 or 2 the next significant time is 11pm the london close or as i like to call it the clope(close and open).
this clope is very important to the overall daily direction. this is because depending on how large the full london move was taking into factor the NY session. NY will either continue big brothers move or reverse and take the real trend of the day. an easily identifiable way to see what ny is going to do for the day is seeing the range from NY open to the clope. there are about 2 main scenarios you will see for the clope. first is when NY sets a new low or high for the day then at the clope it hits a old session target and pullback. if this happens then most likely the trend will continue. second is when ny stalls out until the clope, when this is happening this a key sign that NY afternoon move will have some size to it. the clope should primarily be used for signs of continuation dependent on the formation of the candle, and NY targets. i will make a whole separate presentation on the 9-11 session overlap playbook.
finally after the clope has formed and we have gotten are key information the last move of the day is of course the NY afternoon move which forms at 1:30 pm. this move is probably the easiest do to the time constraint. the key things for the afternoon move is looking at the session overlap movement. as stated above if there is no significant move during the overlap then take play the higher tf trend in the afternoon. if price has reached a prev session target during the overlap and it was in the direction opposite of the higher tf trend look for a return around 1:30 to 2:30 to make a reversal and continue to move in the way of the trend. lastly if NY made a low or high in favor of the counter trend and it starts to move in the way of the trend ie( price is in a downtrend ny makes a new low then starts to pullback around the london clope and hits a target). this will be a easy set up to take to enter and ride the trade down to a new session low or high.
these are the primary plays that we can see day in and day out in the market of course there are other moves that may be seen but those are less common and for this series I will only focus on the easily repeatable and identifiable moves. I will close this intro off with key take aways
1. london and NY work in tandem to move the market.
2. the clope is a significant candle in the structure of the intraday charts.
3. each sessions targets its predecessors highs and lows as price move in a cyclical fashion.
4. price primarily targets session opens/ highs or lows.
5 trading with the higher timeframe trend ill give you the highest probable set up.
6. before a major move occurs liquidity will either be accumulated or taken.
7. higher tame frame moves usually take 2-3 days to complete.
8. the market tends to reverse on a higher time frame outlook around the 15-21.
9. price will continue its direction untill a higher time frame target(open) is hit
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