Anomaly - Advanced Course - Lesson 2 - Key Level Filtering

Hello everybody, welcome back to the Anomaly Course Core Content Lesson 2.

In this section, we're going to be covering key level filtering.

And the first key level we're going to be talking about is how to filter out highs and lows.

But firstly, you must define what is a relevant swing. It's really simple.

It is simply spaced out highs and lows. We're looking at the proximity.

I would say a fairly easy way to mechanically define a relevant swing is by using the premium discount tool.

I don't have a slide going over this, but it's simple, right? Mark out from low to high. Fifty percent will be around here.

Any low printed at EQ or a premium is definitely a defined relevant swing.

If it's in deep discount, I really wouldn't define that as a relevant swing.

but relevant swings are essentially the highs and lows that we want to be using for our key levels

so now let's talk about what a failure swing is it is the

exact opposite of a relevant swing it is not spaced

out highs and lows right so you can see the space between that right if you mark premium discount from you to here this is in premium right it has that large proximity that once.

Over here, we have that close proximity, right, from low to low.

So this low here, we're not viewing this as a relevant key level. So if price comes down here and tags this low, we don't care about it.

We care about the relevant swing being tagged. All right.

So as you can see, if you mark out from low to high, this low is printed in deep discounts.

So when price engaged with a failure swing, we do not look for reversal. We only look for reversals at relevant swings.

we'd actually rather target failure swings as a draw on liquidity. So now let's go ahead and cover what a protected swing is.

And that is simply when price engages with a relevant swing and manipulates it, right?

Once price engaged with a relevant swing, manipulates it, expands away, essentially you have high resistance liquidity being created.

And there's no reason to return to this level because the proximity to the next relevant area is far away, right?

price has cleared out all liquidity in this given area. Therefore, there's no reason to return.

So as you can see, this failure swing here, just sitting above this relevant swing,

we only care about the relevant swing being engaged. So in this little slide here,

it's going to be talking about when to use 15-minute gaps versus one hour slash 30-minute gaps. It's really, really simple.

So when you have a higher technical drill liquidity and that reversal, you're going to have internal objectives on your way to the overall draw on liquidity, right?

So you see this relevant high here, the space between these highs, right? That would be a relevant high.

When we engage with these relevant levels on the aligned timeframes, the lower timeframes, this is where we can get new phases of price, right?

So very early on in that reversal, you're going to be within, you know, an hourly C2, C3, C4.

This is typically where you're going to find 15-minute gaps.

It's actually within the creation of these hourly swing points, right?

But once we engage with these hourly relevant levels to the left on our way to overall draw, you know, as time passes, it's going to create, you know, candle five, candle six on the hourly timeframe, et cetera.

This is when you can get an hourly gap, right? Or an hourly new phase of price after we hit an hourly key level.

So really, this is a mechanical way to decipher where to use the 15th gap.

It's going to be low in the range early on the reversal, higher in the range after hitting relevant levels.

You know, this is where we're going to get new phase of price in the 30 minutes, less the hourly. So that's when I choose those higher sign from gaps.

So another way to look at it is like this. Here's your higher sign from universal model, right?

Mark it out from higher sign from general liquidity to higher sign from reversal.

And below EQ, you can use 15th gaps and above EQ and premium, we're going to use those higher time frame gaps.

So now we're going to talk about how to filter your entries. So with this little example here, what is the problem here?

It looks all good, right? C2 candle, C3 expansion, right? You have the candle opening low first.

You have an order block that looks good to enter, right? But there is a problem here with what exists inside of this C2 candle

on the 15-minute time frame. Let's go to the next slide and check it out. So when we look within this previous C2 candle,

what do we see? Price has a 15-minute fair value gap within it.

So if you're entering, before we tag this 15-minute gap on the lower time frame,

you're essentially putting your stop loss right above a higher time frame gap, right?

Which is obviously not a protected level. So