GxT Invalidations | Continuations

What's up, guys? Welcome back. Got a

good video for you guys today. We're

going to be talking about invalidations,

specifically continuation. So, I'm going

to be showing you guys how to go from a

higher time frame candle close all the

way down to, you know, um really

refining your invalidation point. And

yeah, so this is going to be part one of

invalidations. It's going to be

continuation. Like I said, the next part

will be about reversal. So without

further ado, let's run through these

slides. Got a lot of examples to show

you guys. So yeah, let's run through

these slides real quick. So the first

thing we look for

is a higher time frame candle close. So

within continuation,

you have to have you have to work off

the previous candle's range. The first

step is to mark out EQ of that previous

candle's range. So, if it's a candle 2

close with a large wick, you want to see

candle 3's um low being in support of

the upper half. And when you're trading

um when the previous candle is basically

an expansion candle, you want to see

that next candle form its low in the

upper half of that expansion candle's

range. Now, why is that? Why are we

marking out EQ of these ranges? Well,

this just forces a small wick on that

higher sent from candle because we want

to be trading expansion candles away

from reversal or just at all times.

Ideally, we want to trade expansion.

That's the face of price we want to

trade. And one thing about expansion

candles is they have small wicks, right?

These small wicks. So, this is a

mechanical way to kind of force a small

wick. So, shout out teach for this

concept. Yeah, go check his video out on

this and you will learn more. So, this

is the first step of doing so. You mark

out EQ of that range, but this is a very

large area, right? So, what we're going

to do is we are going to refine this

level down. Um, we're going to drop down

a couple time frames here. So, right

here, this is fractal, but we're

starting from the daily time frame. So,

pretend this is the daily chart, right?

Then we're going to drop down to the 1

hour and 4our chart. So, if I'm going to

trade the protraction phase of the daily

candle, meaning the open low, if I'm

going to catch that wick, if I'm going

to trade the wick of the daily candle

under the open opening price, I'm going

to look back within the previous candles

range for a key level to form that that

that uh key level from right or sorry,

that low of the day from. Um, and these

are the key levels that I look for. I

look for a fair value gap within the

previous candles range. It's going to be

located in the upper half or an order

block or a or some swing lows, right?

Either relevant low that we can

manipulate or maybe failure swings we

can manipulate which would create a

protected swing that would create the

low of the day, right? Or the wick of

the candle that we can trade away from.

So this is what it would look like if

price opens low into those levels,

right? This is price trading low into a

fair value gap, expanding away. This is

price trading low into an opposing

candle, more like an a bulky opposing

candle and then trading away. And these

are, you know, price opening low into

failure swings, creating a protected

swing and expanding away. So, we want

these levels to hold, right? Because if

these levels to hold, then what would

happen, right? Likely this will not be

an expansion day. So, we want to to keep

it simple. You looking for key levels

around the opening price of that candle

because if we disrespect that, what are

we doing? creating a large wick which

doesn't support expansion. It's simple

as that really. Um so moving on now

we're going to refine it even more.

Right? So we already did that. We

already went from this um this 0.5 level

down to the 1 hour 4our chart. Right?

But now as soon as we hit that level

that key level we expecting reversal. So

how do we confirm reversals with swing

points? Shout out teach trades again.

Market can't reverse without swing point

right. So when we put in a swing point

here, we want to see price do what?

Expand away from the key level because

that's what price should do from key

levels. We don't want to see price

hangar around. We want to see price put

in that reversal, expand away. Okay. So

how do we confirm key levels again is a

swing point and we must see it expand

away. But what happens if price doesn't

expand away? Well, this is viewed as a

consolidation. So the way I treat um

invalidations is I will give it two

chances to reverse. The first one like I

said is the swing point from the key

level. What if it doesn't reverse from

that swing point? This is when I mark

out the low of that swing point. So the

low like candle two here and I will

demand this to be manipulated. Okay. So

I'm doing this as consolidation. So

basic expansion, consolidation and a gap

and I need price to manipulate this low.

Right? So we start the process over

again. As soon as we hit this low, I

demand a swing point and I demand price

to expand away from it because that's

what should happen after manipulation,

right? What happens if we don't do this?

Well, then that would be your

invalidation, right? And this goes back

to protected swings, right? What we're

doing here is mechanically defining

relevant swings really and the creation

of a protected swing and over here right

what what would be be doing that would

wouldn't be a very strong key level

right um if you know we hit a fair value

gap and we're just creating lower lows

in a fair value gap so typically this is

when whatever reversal you're trying to

trade away from is not likely um valid

right it's not likely a strong reversal

or whatnot right um so this would clear

invalidation of that idea.

Now, like I said, this goes handinhand

with mapping or using relevant swings,

protected swings. So, we're going to go

over a little refresher on that and how

to incorporate this. So, the how to map

out relevant swings. They're just simply

spaced out highs and lows. And this is

where we um will get a good idea of

price continuing through a level or

reversing. Okay, these are levels we

want to see phases of price at um

especially these levels. So, how do we

mark out a failure swing? They're just

close proximity lows, right? So, you see

the space between these lows, right?

That means that this low is a relevant

swing. But this low cannot be a relevant

swing because it's in close proximity to

this low. Does that make sense? And uh

the space between these lows, right, are

quite significant. So, that makes this a

relevant swing because it's not a

failure swing to any of these lows,

right? This low is a fair swing to this

low. So moving on, we want to see price

manipulates relevant swings to trade

away from to get towards our draw

liquidity, right? Or maybe to trade away

from to trade into the opposing side of

a range. Okay? So when we trade into a

relevant swing, like I said, this is

where we want to see that swing point be

created, an expansion away. Now, we do

not want to trade away from failure

swings. So, even if we get that swing

point, even if we have an SMT right

here, I don't care, right? I'm not going

to trade away from this because this

little manipulation of this failure

swing is still creating a failure swing.

It's still a failure swing, right? Even

though it manipulated a fair swing, the

manipulation itself, whoops, is still a

failure swing to this relevant swing.

Right? This is the relevant level,

right? So, we want this relevant swing

to be manipulated, right? Because this

is not the relevant level, it's this

one. So when price manipulates all these

lows in close proximity to actually