The Phases of Price Action: A Blueprint for Market Movement

How's it going everyone and welcome to my final video in the phases of price series.

So this video we are going to discuss how to blend all the phases of price together. So let's get into the PDF.

So if you watched my first four videos in this series, you should have a good understanding of the individual phases of price, expansion, retracement, consolidation, and reversal,

but how do they actually all blend together? Well, let's go ahead and simplify this. So what do we actually want to focus on?

Well, it's going to always start with expansion. So if we are going from expansion into retracement, that is a continuation signature, and we'd want to see expansion from that retracement.

So you have expansion, retracement, into another expansion.

Now, if we have expansion into consolidation, that can be a continuation or a reversal signature, depending on if we manipulate or break out of the range.

So when we go expansion to consolidation, we're looking for another expansion, which will either be that manipulation or a breakout for a continuation.

Now, if we go from expansion met with expansion, that is a reversal, then we are looking for price to continue in that direction after the reversal.

So in a formative reversal, we want to look for a continuation or that expansion following.

When we have this expansion again in each one of these phases, then we're just going to restart the process.

So with this, I designed a flowchart, so let's go over that. We are always going to start with expansion, so this is where we are going to begin.

If we go ahead and walk through the scenarios, we can have expansion into retracement, in which case we expand again in the same direction.

From here, we will then repeat the process coming back up to expansion and looking for that new phase.

If we have expansion into consolidation, that's

when we can either get that manipulation, which is expansion opposite,

and then we can see expansion met with that expansion, forming a reversal, and then we go into a new phase, or we can have expansion consolidation, and then an expansion again, which is a breakout.

Now, if we have expansion met with expansion, that is a reversal.

And that's where I come back up to this flowchart and then look for the next phase of price. So let's take a look at this flowchart with the given scenarios.

So here you can see we have expansion. And then what do we have? We have a retracement. So we have expansion, retracement.

I want to see a continuation. So another expansion again in that same direction.

now if we have expansion into consolidation that's

where we can get a continuation or a reversal so you

can see we have expansion down into a consolidation

and in this case we break out of that consolidation

so we get expansion in the same direction and then I want to look for the next phase of price here we retrace and then continue lower right so we break out of that range here you can

see we have expansion consolidation and

then we get expansion opposite right so expansion consolidation

expansion is this met with expansion or a

retracement we have expansion opposite so that

is a reversal expansion consolidation expansion

opposite met with expansion forming this lower time

frame reversal and then we have that continuation or that expansion following when we have expansion met with an expansion, or I discussed in the previous video, that is a reversal.

So you can see we expand higher, that is met with expansion lower, and that is a reversal.

Then I would go into using expansion and finding the next phase of price.

So what does that look like with blending all the phases of price together?

Here you can see we have expansion lower, then I'm getting into a new phase of price.

Is it going to be consolidation, retracement, or a reversal or expansion against.

Here you can see we get a slow shallow move higher and then we go and close below that series of up close candles.

So that is a retracement. So we have expansion, retracement,

I'd want to see another expansion or a continuation of this move. Here you can see we expand lower and we get a consolidation.

So I'm looking do I have an expansion over the high when I can look for a reversal to trade it lower or do I have a breakout of that low.

Here you can see we have a consolidation, and then we expand below that low.

So then I want to see, do we retrace, consolidate, or reverse? Here you can see we have a little consolidation.

We manipulate the low and then expand higher. So this is a reversal.

Expansion, met with expansion, that's going to form a higher time frame wick. Now we have expansion.

I want to see, do we get a retracement, consolidation, or reversal? Here you can see we get three down candles.

That would be either a retracement or a reversal? If I don't know, I can let some more candles print to tell me.

Here you can see on this next closure, we get a nice bullish candle.

So I can anticipate this to be a expansion into retracement to continue higher with a new expansion.