Elements To a trade setup

A. Context or framework surrounding the idea.

1) Expansion
2) Retracement
3) Reversal
4) Consolidation

B. Reference points in institutional order flow

1) Order blocks
2) Fair value gaps & liquidity voids
3) Liquidity pools & stop runs
4) Equilibrium

The interbank price delivery algorithm ( the algo )

it is the actual artificial intelligence it’s a price engine that when we receive our price for our
currencies it’s actually 90% done by electronic algorithms and it’s based on principles .
There is a movement away from human involvement with market making it’s become much more
efficient to be electronically based and these things are programmed by humans and those
intelligence are limited . It’s actually not a free market you are trading in it’s highly manipulated
especially the foreign exchange which is what we’re primarily dealing with here because of the
nature of it being so manipulated.
The fingerprints if you will are easy to see once you understand the operation and the conditions
that the market maker interbank price delivery algorithm functions so when the market does
what it’s doing it gives you indications and fingerprints or clues as to what you should be
expecting next and that’s where your anticipatory skills are going to be coming in .
there will be times where the market goes sideways and consolidation (holding patterns)
When this happens the market will be looking to do an expansion, all markets start from a
consolidation and move into an expected (. That means there’s an impulse move or an impulse
price swing after the impulse swing it either goes back to a consolidation again or it goes to a
retracement when retracment happens it goes back down into another level of expansion or
after expansion it can go to a reversal pattern after the reversal pattern it’ll see another
retracment then back to potentially consolidation these four conditions they interchange
throughout the ups and downs and ebbs and flow the market place you’re only going to get one
of these four conditions .

The consolidation begins with everything all the moves that take place in the marketplace start
from a measure of consolidation because that’s where the market is building orders so the
market maker keeps the market in a tight range or defined range until there is enough money on
both sides of the upper and lower of the range that’s being defined by the consolidation
whichever one has highest amount of money to be absorbed that’s the direction it’s going to
move in , wait for the expansion when the expansion occurs that’s when we get the clue as to
what the market is most likely going to be doing and then we wait for either retracement or
another consolidation or reversal but we always wait for the first expansion that gives us all the
insight that we need to make a decision.

What is expansions ?

Expansion is winning prize moves quickly from the level of equilibrium

Now expansion couples quickly with the tool of an order block order block

What is the importance ?

When you brought slaves a little quickly is indicates a Willingness on the part of market makers to
Reveal their intended the pricing model.
If we are in the consolidation or point of equilibrium If price were to move up quickly That would
give us an indication Looking for A bullish order block We don't want to chase priceWe are going
to wait for price to come back Down Into the order block Where is the going to occur We look for
In price The order block the market makers leave Near or at equilibrium Price point .
What do you look for In price?
The order block the market makers leaves at or near equilibrium