GxT #1 - The Complete Trading Course | KEY LEVEL

Hello everybody, welcome back to the anomaly course core content lesson two.

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 have defined what is a relevant swing. It is 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. 50% will be around here.

Any low printed at EQ or in 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 we want.

Over here, we have that close proximity 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.

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 the 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 gaps versus one hour slash 30 minute gaps

It's really, really simple. So when you have a higher rate of drill liquidity and that reversal, you're going to have internal objectives on your way to the overall drill liquidity.

So you see this relevant high here, the space between these highs. 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.

So very early on in that reversal, you're going to be within 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.

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

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 15-minute 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 we're going to get new phase of price in the 30 minutes that's the hourly

so that's when to choose those higher time from gaps so another way to look at it is like this here's

higher time frame universal model right mark it out from higher time from general liquidity

to higher time from universal and below

eq you can use 15 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.