Using PSP to Confirm Swing Points (TTFM)

how's it going everyone and welcome back to another video in this video

we are going to talk about psp i have received a

lot of requests for this video following the update of my indicator so let's get into the video as we've talked about before in my smt video correlated markets should have the same structure.

So you can see here with some higher time frame candles, this candle took out the previous candle's high and closed back inside, forming a candle to closure.

This candle took out the previous high and closed back inside, also forming a candle to closure.

We know that SMT is when there is a divergence between these assets, so one asset would not take out the high, while the other would.

So what is a PSP? A PSP is when we still have that same structure, but one candle is closing a different color.

Simply put, this is just like a little SMT clue or a little divergence between the closures of these candles.

So when you see correlated assets with different candle closures, that is what a PSP is.

Now where do I actually look for a PSP? I'm only going to look for a PSP within a valid fractal model.

So either with a candle 2 or a candle 3 closure, I will be looking for one.

I'm simply going to use the PSP as a confirmation, adding more confluence to an existing model, not trying to use it to form a model.

So there are two types of PSP that I look for. That will be a candle 1 PSP and a candle 2 PSP.

A candle 1 PSP is within an existing model. So here you can see we have a candle 2 closure.

Candle 1 closes a different color than its correlated asset. Right here, this is a downclose candle.

The correlated market or correlated asset has a bullish green candle.

Those are different, so that would be a candle 1 PSP.

A candle 2 PSP is when the correlated market closes a different color on candle two.

So here in candle one, you can see they are both up close candles.

But in candle two here, we have a bearish candle paired with a bullish candle. So that is what a PSP is.

Now, you can also combine this with SMT. So here you can see we have that same structure of a candle to PSP, and then we have the SMT.

Once again, these are all just confluences to be used within an existing model.

I'm not trying to use these concepts alone to frame a trade.

I'm only using it within an existing fractal model as extra confluence between correlated assets.

So now that you understand what it looks like, let's go hop into TradingView and go over a few examples of this.

So here we are in our first example, and we have ES and NQ here.

Now, with correlated assets, I can use for an ASDAQ, the S&P, or the Dow Jones.

I use all three personally, but what do we notice here? We have a candle to closure on either asset here, and then we are forming another candle to closure here.

So we have a model forming a valid fractal model. What do we notice about candle one here.

This is a green candle and this is a black candle, right? So there is a difference in the closures between these.

So this is a candle one PSP because within this fractal model, this candle two closure, there is a difference in candle closures here.

This is bearish, this is bullish. Now if we check YM here, we can also notice that we have a candle two PSP as this is a bullish candle, this is a bearish candle.

So let's go into NQ here. We'll go ahead and put on my indicator and go down to the align time frame.

And after we let this print, what do we get? We have a candle two closure, and you can see we have a PSP on candle one and on candle two.

So it gets displayed that way. I can hover over it, see that it is with ES and YM here and just with YM here.

And what would we then look for or how do I actually use that? It's just an additional confluence to a model.

It can help give me confidence in trading away from these levels. What would we look for?

Just like in my previous video or the intra candle change in the state delivery, price opens, forms a high, now forms a new protected swing.

So that is our intra-candle change in the state of delivery. That gives us a stop loss.

And then we could look to get on side with this move lower for the expansion candle and candle three, right?

And as we continue lower, let's let this candle finish. And there we go.

We get a nice expansion lower with new protected swings. A PSP is very simple.

It is just a difference in closures between assets. So here on NASDAQ, if this is a bearish candle and it has a PSP, that means YM here closed bullish, right?

And so if we take a look at this candle, it is bullish there. And if we go back to NQ, if this is bullish here, it shows PSP.