- There are 2 questions that you have to have a answer on before you going to start trading, to know where the market is going:
- Is it likely going up for BSL or going down for SSL?
- It it likely going up to rebalance or down to rebalance?
- Anytime a imbalance is rebalanced that becomes an intermediate term low or high
- intermediate term low and highs are formed at the rebalancing of an imbalance.
- If the intermediate term high is not higher than the two short term highs that is telling you that the market is very weak. And the algorithm is tipping its hands to those people that are looking at it like this. Smart money traders look at this.
- Smart money are looking at imbalance, rebalance and liquidity, that is it.
- When you see an imbalance get rebalanced, the high formed as it rebalances it, that high should not be violated by price going higher than that if you are bearish.
- When you see an imbalance get rebalanced, the low formed as it rebalances it, that low should not be violated by price going lower than that if you are bullish.
- When you are watching the charts, look everytime if the market rebalances a imbalance candle. Classify that as an intermidiate high/low. Then watch how prices stay away from violating it.
- While the market is moving in your favor, you are going to continue to trust that move and hold on to your trade, because if you are bearish, up candles should keep price below it. They may come back up and touch them and act as a orderblock, but you do not want to see them traded above if you are bearish and vice versa if you are bullish.
- If you are bearish and your intermidiate high is broken, then you have to move to the sidelines and dont go in again. Wait for more setups.
- T**he daily chart,** thats exactly what institutions and banks are working off of. Thats where the money is. Thats also where your BIAS going to be determined. The majority of your time and study should be on determining where that daily chart is going over the next day, two or a week.
EXAMPLE CHART FROM THE VIDEO:
The red line is the daily FVG that gets rebalanced. As you can see, when a imbalance gets rebalanced its going to be called as a intermidiate high/low
