Opposition Rule:Timeframe Selection, sessional signals
FULL TRANSCRIPT
Okay guys, welcome back. And in our last
discussion, we spoke about opposition
rule. And of course, if you are new to
the channel and you are wondering what
are these ones talking about, you don't
even understand a thing. I would advise
you start from the free 2024 mentorship
playlist as you can see right here or in
the description below. It will always be
there. I think that's the only major
playlist on this particular channel. So
watch from the beginning so that you
will follow and stay updated on the
beautiful value that have been bringing
to you guys. All right, without further
ado, let's talk about our next topic on
the series that we started a little time
ago. Now the next thing we are to talk
about like I said in the last video is
quadrant rule. And I said the effect of
quadrant rule after we have used our
position rule to niche down the time
frames that we are interested in like
two time frames conclusively are saying
different thing based on frequency. So I
now said quadrant is what we use to
balance frequency in order to actually
know which of those time frames or at
every point is it the swing guy do we
register buyer and after the flip do we
register sellers or whatever. So when
two time frames that are conclusive
based on opposition rule are saying
different stories then we will to now
niche down that more and be able to know
that yes this particular final time
frame is what we will stick with and is
what we will use to you know register
our final participants. So what is the
work of quadrant 2? Quant is talking
about our odd harmonics that is odd
frequency movement. The movement is not
actually odd. The movement is even. I'm
talking about four movements now. So
let's say for example we know that um
for a complete movement of our
participant they will make three moves.
Buyers will buy, they will sell and they
will buy. Sellers will sell, they will
buy and then they will sell to complete
their cycle. Right? But one thing there
is that after the complete cycle in as
much we are still within the range of
the same day. For example, if price now
come to raid the second leg of any of
those participant, we say that that is a
flip and that is the fourth move. So
that fourth move is a situation whereby
we have a certain participant cycle
being complete and then a new
participant now takes over. All right.
Now if that happens on a certain time
frame but on another time frame that is
conclusively true based on our
opposition rule which we discussed that
will also be linked in the description
in case you missed that that will also
be linked in the description. So on
another time frame that is also
conclusive let's say there is even no
completion of cycle that is price did
not complete any cycle there but it was
conclusive. So it is cord that will now
let us know okay based on the
relationship on this two wave or
participant movement. What can we do to
then ensure that we go with just one
time frame which is true and relevant
for whatever it is that we want to do.
Therefore that is what we want to do in
this video and without further ado let's
get into the chat and talk about that.
All right guys welcome back to class. So
we have discussed opposition rule and
different logics. However, the logics we
refer as their uses and the three major
logics we will focus on all through and
that we use will be the open price
logic,
the close candle logic that is closing
range logic and also the close open
logic. All right. So I would like to
start with the binary
signals which is um daily and above that
is using opposition rule to get daily
true daily participants weekly
participants monthly and above and
before I go to the sessional case.
So for daily participants and above
weekly, monthly, yearly,
we majorly use closing range logic
majorly most times except when there are
gaps. I times there are gaps at the open
especially on a time frame where you can
spot it. Huge gap I mean gaps that are
very visible. We focus majorly on close
open logics.
Close open logics but majorly generally
we use close candle logic that is the
closing range logic where the candle the
closing candle I handle is um
so say for example I have uh let's say
I'm on 1 hour time frame for example and
this is the last candle that closed
there. So we say that our close
candle logic or closing range logic is
majorly that such that when the new day
opens if price clear the high even if I
clear the low of this I clear the low of
this and then go like this this will be
close open logic. So this is not um
close candle logic. So close logic is
that this is not target yet. This still
has to come and read it. So that is the
low permanently the low of the closed
candle and it high are the open range
high and the open range low
respectively.
So we have price clear the high clear
the low and then it makes the target.
Okay. And if we flip is flip. So that's
pretty much our close candle
logic
and we now say that in case where there
are visible gaps.
So when can we have visible gaps? So
let's say for example I have this.
So all right and this was the closed
candle.
This is a closed candle.
So here now we have
our closed candle. Then we now have a
gap. All right. So let's say price gap
up like this at the open with a new
candle that clearly break away from the
close or the previous candle here.
This is a gap. Now in that case what we
use to register our signal
is the close open logic because that is
close logic there is what can ensure
that because when there's a gap there is
discontinuity you know price is
continuous it is a continuous function
over time when there are gaps there are
some minor discontinuities or major
discontinuities and so close open jig is
the one that can help us reconnect that
fact and is the one that will enable us
to be able to now use opposition rule.
So majorly here now I can then use close
open logic on this.
So by ensuring that this is already
registered as price clearing the high
tring.
So after that I can then say price clear
the high tring. Therefore, we can now
say if I clear the low of the open
candle that has already price clear the
low and price met the target and so any
other thing here will be a flip. So yes,
close logic is what works perfectly for
the situation around this particular
one. So that should be well noted. More
on that will be in practical classes
when we have that.
So these are major logics that we use.
Now our position rule therefore is
specific to
the time frame as seen and it is not
like an infinite slope. It is a very
finite slope. Every time frame is
discreet though not unique.
Why is it not unique? It is not unique
because obviously
if price crosses a certain level let's
say 1.0725
on one minute time frame it surely
crosses on every other time frame
intrinsically. So summation of effect of
time frame they showing the true things
what shows uniqueness but each time
frame is discrete which means that it is
separate to read present data that we
want to read. All right, that's by the
way. Now one thing to
understand therefore next is operation
rule is conclusive as seen under our
defined logic that we might have picked.
So which means let's say we have
something like this
um previous day
and a new day
and um basically let's assume this to be
on any time frame say 1 hour time frame
any time frame at all.
The whole idea of oblationary is to
ensure that it is not about time frame.
This can be six hour time frame. It can
be any other time frame.
Now the previous day does not have to be
correct. It doesn't even have to be
correct in opposition rule wise. The
major thing there is that the previous
day cleared the low, clear the high
under close candle logic now met the
target maybe flip to buyer and keeps
coming and keeps coming and then closes
here. The major signal it closes with as
red on that time frame. We don't need
that. Oh, is the buyer is closed with is
it correct on a position? No, we don't
need that. The major thing is as seen on
that one hour time frame, I saw that it
cleared the low clear, he met the
target, it flipped to buy and so it
ended in buyer. So the liquidity at the
closing candle on that time frame on 1
hour time frame for daily participants
is daily participants. Now we are trying
to read. So for daily bib as read on 1
hour time frame liquidity at this high
is telling us buyer plus at the low also
plus an opposition says that there must
be absorption first which means that
liquidity rate which means seller must
rate buyer or buyer must rate seller for
us to conclusively say okay 1 hour time
frame is something we can be conclusive
about. But there is one more thing we
need to talk about between higher time
frame difference and um lower time frame
difference. Higher time frame retains
imbalance. Lower time frame retains
structure and liquidity.
We'll get to that shortly. So basically
here now what position rule is saying is
that for me to agree with one hour time
frame that is showing me something real
it must first clear the low first that
is must signal to me that buyers
are in control that sellers are in
control sorry D minus that is all
positive participants towards the
previous day closes.
This must show me that sellers first
right and when it show me that it's sell
at first
then I can now proceed with this. So
here
we have sell as first. So this time
frame is conclusive that participant for
this day has an energy called D minus.
All right. So has an energy called
D minus.
So that's basically
it. So here now we have D minus
and so 1 hour is conclusive.
But say this now opens at plus first
then that is not conclusive.
So let's say with this start with D plus
then that will not be conclusive and we
will drop 1 hour. So that's what
position helps you do. It helps you not
to even deal with that time frame at
all. That is I have nothing to do with
you. All right is what it is. Now
another thing to note here is that the
logic
to be deployed does not have to be
consistent for the two parties.
What do I mean by that? Because
continuity is still maintained and
opposition rule can still effectively be
used. What do I mean by that? The logic
price show you is what you are to use
based on what I discussed earlier.
If
here for example at the new day I want
to register part if there was gap for
example the logic I will use will be
close open that is if I come down and
then climb up then clear the eye and
then met the targets and then let's say
it's flip so that means after I have
done my D minus D minus D minus then
this will be a D+ for
Now that you all understand the
opposition rule for daily in fact
generally that is how position is used
and above. One more thing to understand
is now the higher and lower time frame
um dynamics. All right. So we have the
higher
and
uh lower time frame dynamics.
Lower time frame dynamics
structurally higher time frame retains
true structure if it is conclusive as of
opposition rule. Lower time frame
retains only imbalance which means
higher time frame retains what you can
call liquidity. Lower time frames can
only retain imbalance and I will explain
this shortly. So let's say for example I
have um 1 hour and I have 8 hour time
frame
and
say for example I have two different
days
okay which form a passive as you can see
here passive and the move that read it
is our aggressor
1 hour in this case let's say tells us
that
conclusively or we might conclude our
passive maybe on an incremental it might
not be on 1 hour time frame but
conclusively our passive is D+ so the
one that will vary here will be the
aggressor conclusively on 1 hour time
frame the aggressor here is D minus
that same range that we have there is
now what we also have here on 8 hour
Conclusively like I said for the passive
I have no issue with that conclusively
no matter the higher time frame we will
go to let's say we still have D plus but
conclusively aggressor here conclusively
which means opposite day opposite day
can even be somewhere around there so
don't think this is immediate days this
might be you know Monday this might be
Wednesday this might be Thursday or
whatever so the immediate day previous
day that confirms these aggressor can be
Wednesday can be somewhere found around
here can even be found around there or
whatever but conclusively that is that
previous day was uh D minus and um our
new day on 8 hour time frame to conclude
the aggressor so this time frame I wrote
here we use them to conclude the
aggressor now let's even say they are
not even the one we use to conclude the
passive maybe passive is another time
frame entirely you know based on same
logic and conclusively no two different
time frames says oppos What do you think
or the passive? So for the aggressor we
have aggressor here is D plus
conclusively under same logic please. So
here now
most of my reference will be closing
range logic. Remember where I use close
open logic for daily and above is only
when I have what only when I have um
gaps in order to you know to balance
frequency and to ensure position and to
ensure continuity after the
discontinuity that is repair or
continuity and whatever. So D plus D
plus
so the dynamics of this time frame is
that let's say 8 hour is the highest
time frame to register daily
participants. Now mind you you cannot
register a participant on the time frame
on that of that same participants. What
do we mean by that? Even if it's
conclusive day I cannot register a daily
participant truly like truly truly truly
on daily time frame. No, it has to be a
lower time frame. Maybe from app daily
below 12 hour below. So let's say 8 hour
is the highest time frame possible to
register daily participants here.
All right. And that gives us the
conclusive the highest conclusive time
frame was 8 hour maybe when you go to 12
hour or it's no longer conclusive. And
also mind you you don't just pick any
random time frame that should we now
check all time frame 15 minutes 55
minutes. No, you want to go for time
frames that align with open of the
participant you are reading at least a
new hour candle opens at exactly when
the day open. So not like you now go to
let's say 11 hour 11 hour time frame
will not always open at exactly when the
day open. All right. So that cannot
accurately give us the cycles of daily
participant or the footprint of daily
participants.
So basically here now this is 8 hour
time frame and we have said let's say
this is the highest conclusive based on
opposition row highest conclusive
participants D plus 1 hour D minus. Now
this I here is not liquidity even though
1 hour is showing us that it is
liquidity. That is not
liquidity. 1 hour is showing if we want
to go by our logic of D minus D plus 1
hour is showing us that it is liquidity
but it is not liquidity.
It is not because when two time frames,
a lower time frame, this could even be
one minute time frame. A lower time
frame conclusively say this and higher
time frame and it will always be two
time frames comparation, never three
because this is binary. It can only be
one showing you buyer, the other showing
you seller. So it's all about highest
conclusive time frame against
any low relative time frame. All right,
any lower relative time frame but
highest conclusive time frame very
important emphasis on highest highest
conclusive
time frame is what we use to conclude
our true signal. highest conclude safe
time frame. So basically 8 hour holds
our liquidities.
All right. So let me draw that again. We
have our 1 hour,
we have our 8 hour
and we have this, we have D plus and we
said this gives us D minus.
Okay.
Why we now have this D + D+ and we are
interested in the aggressor. We say
aggressor conclusively on one hour says
G minus conclusively on the A time frame
says D+. So this is not liquidity
because we go for what the highest time
frame possible says which is that this
is buyer and we already conclude that
the passive conclusively on all major
time frame is D+ but however so this
retains either this high liquidity or
not but however what retains imbalance
is the lower time frame. Okay, the lower
time frame shows D minus sellar, right?
So let's say for example when price is
now coming back,
price now engineer a daily liquidity DL.
Okay, so price engineers a daily
liquidity deal.
That same area can then sponsor price
because this is supply imbalance. All
right. When we get to im imbalance, we
will get to understand that better. But
this is what is happening here. We need
to understand that from signal
perspective right now. So this is seller
taking control from buyer. So it can
sponsor a sell. So you could have been
wondering if you had just seen the
opposition rule and everything confirmed
from you for one hour and you are
expecting that even maybe this eye will
be raided. No. Or maybe you even try to
buy and you were thinking that such I
will be rated. I'm telling you now that
that will not be rated because it is not
liquidity.
So
this
right here makes it not to be liquidity.
However, the imbalance structure is
retained. Same thing if it is say in
the same day. All right. So let's say um
it is same something. Let's say you know
price clear the high clear the low made
the target flip to seller conclusively.
Uh previous day here is D minus and this
now clear the eye clear the low made the
target flip to seller clear the eye. Let
me put it here. So clear the high, clear
the low, made the target for seller. So
this right here is imbalance for
sellers.
All right. Anytime we have daily
liquidity,
we relatively will have that sponsoring
it. But if there's a conclusive that is
D minus now, all right, if there's a
conclusively the higher time frame, the
highest time frame that is conclusive
tells us that we have give loss.
as the aggressor here. It means this OI
will be liquidity. If this is also
conclusively D minus, this will be
liquidity and therefore this cannot
sponsor anything that high will be what?
It will be raided. All right. So more
example on that on liquidity. But this
is the basis so that when we get to
liquidity or when we get to imbalances
you will not be confused and you will
get to understand exactly what we are
doing. All right. So that is liquidity
indexes imbalance. Okay. Now to
practically now round off what we have
on opposition rule. Majorly we have been
able to deal with every major thing as
discussed when it comes to position
rule. We have highlighted the fact that
our closing range logic most times for
daily and above and whatn not. So the
next one we want to talk about is now
for all everything we have discussed
here apply as well for sessional but we
want to discuss sessional because the
logic we use for that could vary. So for
sessional major thing we focus on is
usually OPL open price logic. So there
are certain cases where we have gap as
well. If we have gap as well we can use
close open logic. All right. But OPM
majority and the same rule applies. You
don't need previous session to complete
cycle one and all. The same rule of
highest time frame that is conclusive
retains liquidity structure. Lower time
frame that is conclusive based on OPL
retains imbalance what imbalance
structure. So let's say for example I
have
uh this
thing right here. So let's say I have
this.
All right. I have this. Now let's say
this is Brford Brford S+
and under open here S minus New York
open S plus conclusively as seen on this
time frame. So let's say New York now is
conclusive because London that was
active as dominant before is now minus
and New York open first as plus. So that
is accurate. Now let's now say here we
have close that is frank close signal to
us that we now have two sessions. So
whatever first impulse we see there as
well based on open price logic is what
we are using here.
So let's say on this time frame that
concluded as
C minus price and it's now flipped to
C++
is now flipped to C plus. So when it's
flipped to C plus that is that on this
time frame. Now when we now go to the
highest
time frame possible. Now to check for
closing range for example I cannot use 1
hour. I have to use time frame that are
lower 30 minutes and lower to conclude
the highest time frame conclusive. Why?
Because the whole cycle of sessional
closing range the whole cycle is there
is 1 hour. Same thing with Frankfort.
Frankfort registration only occur within
1 hour. The moment London opens no
already over. Same thing with um Sydney.
Sydney only occurs. And you want to ask
what do we really signate to? You really
Sydney to the closing range of New York.
Let's say New York closes by 9:00 p.m.
to that 1 hour movement. What happen
from that 9:00 p.m. The 1 hour movement
before market opens to the 10 p.m. is
what you negate Sydney has. We will say
that in our examples in live practical
classes as it may everything cannot be
put in here. This is just to ensure that
our video but mentorship has to still be
retained because some of you even always
share people's video handing out to
other people and what not. So it's just
basics and live applications and much
more practical examples we'll be seeing
in uh in classes. So let's say what we
have here. So based on this now this you
could have said is liquidity but let's
say all of this was checked on like
let's say 5 minutes time frame and now
when we go to something like 30 minutes
time frame let's say 30 minutes is also
conclusive for the closing range let's
say nothing changes about the New York S
plus nothing changes about it but for
the closing range now let's say
conclusively on 30 minutes the closing
range this this is a single closing
range I'm not talking about two
different closing range now I said this
C minus flip to plus. All right. So
let's say 3 p.m. from close closing
range. So basically here we have on 30
minutes time frame conclusively straight
up our closing range let's say C plus on
30 minutes time frame C plus and it was
C plus as at the aggressor. So that's
the same thing maybe price just clear
the high clear the low met the target
under open price logic OP help meaning
that on the highest conclusive time
frame this low is not liquidity so it
means this low is not liquidity that's
it so it is not liquidity on high time
frame so it is not liquidity but this
retains imbalance structure which means
if price should come back and we have a
sessional liquidity SL all right that
particular
guy qualifies to promote it as imbalance
and it is not lia.
So same application but different what
different logic session most times OP
what open price logic and why does open
price logic work effectively for those
that care to know um or sessional that
that's practically because sessions
overlap all right and there is more
uniqueness in the what in the open price
because the open price is as active as
when live participants are coming in.
All right. When the New York Stock
Exchange exactly opens, when this one
opens and all that. So that's that open
price that they agree to open with
becomes much more important and much
more effective. All right? So like
highly high rates and for closing range
too highly rates except for when you
have gaps. All right? And then you want
to understand that. So that's pretty
much everything about opposition rule
and I've compressed quadrant rule here
but I don't need to start explaining all
the back end of quadrant too. Simply put
the quarter is simply the relationship
of the higher time frame and the lower
time frame which means the higher ZS
time frame time frame has to be checked
and in cases where you want to mark
imbalances you want to mark liquidity
you don't even need to go to once you
see your highest time frame possible and
you see it conclusively you don't need
to check a lower time frame flip or
whatever again at all but if you need
imbalances you want to pick imbalance
zones that sponsor areas then you will
need to compare and contrast with lower
time frame in order to pick imbalance
because why is that a place where you
see let's say you see D plus D minus
here and price has violated that range
or something all right and price has
violated that range or something and now
a liquidity was formed you go stick with
the higher time frame
talk the time frame will purely be
showing you
majorly that's what the time frame will
be showing you the time frame will
majorly be showing you that this was
supply
but meanwhile on a lower time frame say
the higher time frame is 8 hour lower
time frame is 1 hour the lower time
frame this aggressor might actually be
conclusively D minus that flipped to D+
and is still D plus as I here. So that
area where is it flew from D minus to D
plus
shows imbalance a daily imbalance and is
factually real true. So you would have
missed such and wondering weird and you
be wondering what price used. All right.
So to avoid that
um anytime you want to mark imbalance
always remember your lower time frame
and ensure that is right with
the trading plan. So I will see you guys
in the next
one. Okay guys, now you have seen
quadrant road, you have seen how
beautiful it is. Now I am so sure that
you are now confident about your cordon
rule. You are now confident about
picking signals about concluding buyers
and sellers and that will be able to
launch you into more greatness of being
able to you know pick the true liquidity
which we'll discuss in coming videos.
pick the right zones you know we now
understand every other thing because
everything has linked to uh getting
accurate signals have been discussed so
yes um that is it for quadrant 2 and um
that's it for this video guys I will see
you guys on the profitable
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