Introduction

The goal that we are trying to achieve here is playing the daily range expansion, that last bit where we play towards previous daily highs/lows. It's actually quite simple, it’s not rocket science.

The task here is to identify the direction for the day, where the main draw of liquidity will be for our daily timeframe and the lower timeframe slotted within the stage of our higher timeframe DOL. Looking for higher timeframe order flow direction, and what price is reaching for; liquidity levels, imbalances, orderblocks any form of PD Arrays.

At this stage of exodus, you should already be able to identify the most probable direction for the day. It won’t be easy, but we know when it’s not clear, or you are lacking clarity, that you stray away from the charts until there is development that makes sense for you. The last thing I want you guys to be doing would be to force setups against momentum just for the sake of getting setups because you still lack that expert intuition or clarity. It won’t come overnight. As ambiguous as it may sound, the following statement remains true.

“Price is either reacting from action, or looking for action.”

State of seeking vs distributing liquidity. I can go in many examples within scientific fields to explain this, but I hope you get the point.

"Price is in a constant state of flux and uncertainty "

Perceived to be in a never-ending pendulum between action versus reaction. This vicious spiral between a spark and ignition, seeking catalysts in order to remain in flux.

Enough philosophy. You get the point.

To summarize -> We want to see price eyeing oÉ a certain level or reacting away from a certain level. Simple.

The model

The model combines our two most bread and butter arrays;

• - Orderblock

• - Imbalance

So, this is what we want to see on our ETF. We will be waiting for price to run liquidity, in this case take out those relatively equal lows, SSLQP -> Could be Asia range lows, or just congested lows. This goes hand in hand with that expiry range again, and it being calm "dead time". So, if that Asia range is calm, and not so aggressive, we can anticipate better trading conditions during the next true day.

IF the market was moving aggressive and expanding past true day times, then we expect London session to be relatively quieter. To repeat, Asia range plus "CBDR" our expiry range should be 40-50 pips. Less volume, the better. 30-40 pips are top notch.

So then, after we see price run that liquidity, we need to confirm the intent, with the infamous market shift. From here we get our infamous E1. Entry one there is no criteria as to which array needs to be met. But we will discuss those in the future.

E1 - often enough, is the first entry after having grabbed liquidity, running liquidity. In the above case, taking out SSL. In an ideal world we see price retrace back into the Bullish orderblock that is left behind. We want to see price here reject it - it won’t always be a high probability orderblock. Now we need confirmations, here we need to see the high of that E1 get broken. Again, won’t always happen.

Once the high of E1 has broken, we can anticipate that price has made up its mind, and the intent should be a bit clearer with pressure leaning towards buyside momentum in this case. E2 in that case should be a quick tap onto the proximal line of the imbalance. This is where you can enter on liquidity injections of price.

• - E1 - Retracement in price

• - E2 - Continuation in price

That would be the most logical way of diÉerentiating between the two.

The dissection of the model

The dissection of this model is simple, we focus on internal range plays, where we eventually target previous day highs/lows as external liquidity.

This pattern is not rocket science, it forms on every timeframe, but this sync within our ETF being m15 and lower lines up nicely to ask previous daily levels from the market. This model is also the perfect reason for scale ins if we have retracements along the way because it showcases intent in price.

The targets are simple;

• - 20 pips away with extension levels

• - 30 pips away with extension levels

• - PDH/PDL

And lastly you can always leave a small portion for proper external liquidity levels.

SL placement is simple. Either under the low that tapped into the HTF array, or under E1 entry. This is situational based oÉ of your timeframe and risk appetite. Don't become too greedy.

“Never have a stoploss lower than 7 pips. You’re not at that level yet. Trust me.”

Graphical interpretations of this model

Understand that this is all taking place on our ETF. M15/5/2

More common interpretation of this model

Now let’s compare these two. You see the top one is a more textbook operation, where e2 is acontinuation of the trend. Structure is more repetitive, it follows through, creating a higher high/higherlower or lower low/lower high.

It induces the previous E1 highs/lows. But that is not always the case, E2 can also be within the range ofthat E1 expansion, as we see in the common move.

Here you see, E2 occurs after we induce previous highs. This is great.

So become adaptive, understand that you don’t need two consecutive break of previous structures for an E2. Once this clicks, a lot more opportunities will arise, the strike rate is lower. But you can often enough get into the move easier.

Graphical examples

Conclusion

Recap visual - Buyside vs Sellside

Theoretical explanation

At the end of the day, it isn't rocket science why this model works so well. This model makes it so that you layer up several technical confluences before pulling the trigger. Acting as a filter to avoid all the traps in the market.

The theory behind it is simple. We raid the first liquidity pool. Shaking out buy/sell side liquidity. Which in turn means entering a new realm of supply/demand. Where the price is relatively either cheaper or expensive. This is often enough in line with that HTF PDA -> Where we anticipate and WAIT for a clear injection of liquidity in the opposing direction of that raid. This is the infamous market shift that needs to happen.

From there we want even more, another factor to fall into place which is that orderblock to form and react, this will give us the indication of whether or not we are injecting into that buy/sell program. That becomes our E1.

E2 -> (this high probability model); Requires then even one more factor, which would be that displacement imbalance to form.

All in all, this then solidifies bullish/bearish order flow. This model helps avoid traps. This model allows you to enter after signs of delivery. This entire model becomes our sequence to confirm orderflow and a potential shift in it.

• - Run on liquidity into HTF PDA

• - Reaction creating Market Shift

• - Retracement to an OB that formed

• - Clear movement to showcase intent

Mechanical

This model becomes mechanical, you have clear rules in place. No need to make more of what it already is. That will only cause confusion for yourself on these tested roads.

This is fractal, once again. IT can happen on every timeframe. This can be a conjunction of our 60-minute timeframe that is in-line with our FLOW/FEEL state of Daily maybe even weekly. We can see ETF development occur inside of the 60-minute displacement.

“Daily Direction à 15/60 min array à ETF Model.”

Models