The Anomaly Mentorship - Advance course - Lesson 7 - Asset Sync

Hello, everybody. Welcome to the anomaly course core content lesson seven.

Here, we're going to be going over SMT breaks for reversals.

So the first step is you're going to create an SMT with a correlated market.

And what will make it obvious that the assets are likely to break this SMT

is if the SMT is in close proximity. As you can see, the failure swing high is in close proximity

with the high that is being manipulated on the leading asset.

Now, the next step over here is the SMT actually is going to break.

So that SMT is not going to hold because that proximity is very, very close.

Once this asset breaks the SMT, that's essentially a trigger for the market to actually reverse.

So as you can see, here is a depiction of that happening.

As soon as that middle asset, it's typically going to be the middle asset, breaks that SMT, this is when that leading asset actually starts to reverse.

And the ideal scenario is this triad sequence where the leading asset creates SMT with the middle and lagging asset.

It doesn't hold. That middle asset breaks the SMT, but that lagging asset actually does hold that SMT.

It doesn't matter if it's close proximity, SMT or not, on the sitting asset.

This is exactly ideally how we want to see the sequence play out.

Now let's go over another ideal scenario for SMT break reversal.

And this is a two-stage SMT in the form of a strength switch.

It's going to create a high, as you can see, a high on this asset, a high on this asset.

And then that lagging asset actually goes ahead and breaks the SMT and simultaneously creates a new one, as you can see.

This asset breaks the overall SMT but creates a new one with the high that was actually created with that first stage SMT.

It kind of looks like a roof SMT, but it's any form of a strength switch, right?

Because this asset over here was stronger, as you can see, because it took out the high.

But now it's showing weakness as it could not take out this high.

So it's showing weakness and creating the SMT divergence while also breaking that original SMT, which is a trigger for reversal.

Now let's go ahead and go over some examples of every concept within asset containerization.

First concepts we're going to be covering is SMT break for reversals.

So as you can see, how do we know when SMT is likely to break when a leading asset runs deep through a low or a high?

So you can see this asset fails to manipulate its low. That means the middle asset, which is going to be over here, ES.

If YM is the weakest, then ES will be the middle asset. That's when the middle asset is likely to run at that same low.

And when it runs at that low, that is when price can reverse.

And the most high probable sequence is when the strongest asset is actually not even taking out that low. It's actually creating SMT.

So this is the triad sequence for SMT break reversal.

Now let's go over another high probability sequence for SMT break reversal. This is in the form of a strength switch.

So you can see what is going to happen is that price is going to make an original SMT, right?

And we know this is likely to break because of how close proximity to SMT is. This asset runs to the high, right?

It's going to print a swing high. this

asset this lagging asset is going to break that overall smt and

actually create a new smt with the

high that was created on the the

asset that was originally stronger that created that original smt so

it looks like that roof smt and this is another way

assets can reverse for smt break so

now let's talk about when we expect the smt to actually break within the middle asset and that

when we create close proximity smt so you really really see this when the leading asset here

trades through a low and you can see this when we drop

down to lower time frame you can see when we engage with this low here

we fail to manipulate it we consolidate it when that happens and you're creating this close proximity smt so check out this close proximity smt that we once created

right here at one point this

was close proximity smt as you guys can see right

there um we know this is likely going to break if

we do not reverse here right and i know there's a strange psp here

guys but it happens at 1500 so very very late in the day so just doesn't end up holding um but yeah as you see price clearly doesn't manipulate it so that means that's

The trigger for this SMT to hold is going to be when ES, the middle asset, breaks.

And we went over this and SMT break for reversal. So as soon as ES breaks the SMT, look what happens.