Phases III - The Setup
The setup is a simple one, possibly the checkbox with the least amount of room for error of all three.
Theory
Setup simply refers to either a buy model or a sell model.
Now we want to combine this with liquidity okay, so pay close attention.
As you noticed with V3 we are bringing in speed, we talked about that a little in delivery - Now with the setup we are once again going to try and click all three concepts in one.
Buy model, Sell model
- Buy Model ; is when there is a HTF PDA below us
- Sell Model ; is when there is HTF PDA above us.
Not rocket science.
- BSC - Buy side curve of the model
- SSC - Sell side curve of the model
- PS - Pro stage (with our HTF DOL/BIAS)
- CS - Counter stage (against our HTF DOL/BIAS)
You must understand this as well, once we have a clear stage - meaning we have a DOL from our HTF, our setup can be in a buy model and a sell model.
It all depends on the particular fractal.
Let’s take a bullish stage for example in the diagram, that will be marked as the gray areas - those will be all of our opportunities to go long with stage in our favor.
Vice versa, the light blue will be with a bearish stage, showcasing the short opportunities.

If this doesn't make sense just yet, keep going over it. We do not want to rush this understanding. Its the perfect depiction and balance between reacting what the market gives you in conjunction with adaptability.
Keep asking yourself the core of liquidity and what we started with; remember?
Liquidity V1 - 3 Question Rulebook
We always want to know, or have a good idea where the markets is most likely going to.
That is why clear delivery, and market conditions is SO important. STOP trying to frame a bias if you are not seeing what you want to see.
Let's take a sell model for an example

Even if you have a clear level that needs to be hit, you won’t always have the confirmation of it completing the model. It’s something we simply cannot always know. So understand that price can also reach that key level, sweep some liquidity around that level and then continue with the original push, as you can see below in the example with the two pictures.


So we cannot always know the delivery of the model right, that is why we work with confirmations.
All that we are looking from the discount area, where the potential OC has formed is going to be understanding of where price needs to go to.
So let’s add more context to this, and imagine we are bearish stage right. We are just framing everything together. We are not SPECULATING anything. You must understand the precision comes naturally once you start applying better context and framework.
Here we get that impulsive move away from these lows, price may leave behind ;
- Imbalance
- High Probability OB
- Old BSL level
It doesn't really matter if we reverse from these levels, the goal in this case is to trade towards them. Understanding that " Aha, hey, if the stage is bearish, we might need to seek liquidity before going lower again, where can we do that?" - at XYZ, and then build the framework to trade COUNTER stage, with reason.
We must know if we are in a reasonable discount array where price can send us to our premium array.

In between that run, from those points, is where our buying opportunities are born.

You also have to note we deviate from textbook examples. We won’t always have two retracements up until the key level area. It can also just give you one opportunity and punch straight into the key level area right away.
Price is fractal, usually on the HTF - weekly, daily and 4H you will often have two retracements.
Often enough from H1 lower, we will have one retracement.
FRACTILITY is the most important concept you must start using, recognizing, applying in these phases of your trading journey.
What we are looking inside this setup is the infamous.
“We go higher, to go lower.”
You should by now have noticed me doing this, implementing this, showcasing this so often in my day to day analysis.

We want to price go up - to then reverse and then give setups to short the market.. But now you can clearly understand that we can also trade up until that main POI. We have a clear highlight of our premium area.
This area is what we believe price will reach before pushing lower.
If we can see that we are BELOW that premium area, it is very reasonable to trade towards it, in this case participate in longs towards it. Ride the wave to the upside before we go to the downside.
I hope it has been clicking for you guys, as my goal with this is to repeat the information in a vast amount of ways so that one angle will resonate with you the most.
Now we are talking about very specific fractals, this is where you will need to just have patience. Even if itmight not be clear just yet, it will become a lot clearer as we go on.