GxT Mentorship | Universal Models | Ep.6

Yo, what's up guys? Going to be doing

another lecture here uh within the

mentorship. Today we're going to be

covering universal models or framework.

Something that's relatively simple,

something you guys probably already

know, but uh it's very important to

understand. It's something we're going

to build off of in the upcoming

lectures. So, what is a universal model?

It's something you use across all time

frames, right? Um hence the word

universal. It's fractal. Um and it's

simply just a framework where price will

go from point A to point B. Right? Price

is going to reverse from a key level and

draw towards the opposing side. Um which

is your target. Right? So let's go over

the first universal model which is

internal to external right price trades

into internal or a fair value being the

key level for price to reverse from and

expands away targeting the external

range high. Right? This is your target.

So from price going from point A to

point B fair value gap to opposing side

of the range which is your uh your

external range liquidity right this is

the point of retracement. So essentially

this is just going from expansion

retracement expansion right so this is

just um going back to phases of price.

So here what this would be is

essentially price expanding into a high

or a low which is just external range of

liquidity printing a reversal and

expanding into internal range of

liquidity. So essentially expansion,

some form of retracement back into IRL,

right? Or it can be a reversal back into

IRL. And uh you know what happens here

is important because we could

potentially target the opposing side of

the range depending if price is you know

going to find support at this ER level

or IR level. But this is your first

drawing crudity, right? Just going from

external to internal point A to point B.

Now let's go over manipulation ranges.

This is simply where price trading to

one side of the range manipulates it

expands into the opposing side of the

range right from point A to point B.

Now we're going to talk about swing

formations, right? This is where what

we're going to be applying to confirm

our universal models and to get on side

of the expansion. So C2 closures, this

is simply where C2 cannot close back

within or not close over back within

K1's range. Once it closes back inside

of the previous candle's range, this can

give us an insight that price will

reverse. Right? So, when price prints a

specific closure, in this case, a

reversal close, we mark out the whole

wick, right? Mark the whole wick and

we're wanting to see the upper half

being respected um to support expansion,

right? So, in our candle profiling

video, we talked about how expansion can

have small wicks. We mark our EQ of that

previous candle's range to be respected

as an invalidation level. So once price

expands away from our swing point, our

candle 2 closure, if we get a strong

candle 3 closure, which is a close above

candle 2's high, really just an

expansion candle close, we can mark out

the whole uh candle's range, right? So,

we're going to mark out the whole

previous candle's range and we're

wanting to see continuation uh for

candle 4 and respect of candle 3's

range, the upper half, right?

So, what is a candle 2 reversal

expansion? This is simply when candle

one hits the key level, right? But does

not reverse. So, therefore, we must

reverse off of candle 1's range, right?

To put in a reversal candle. So when we

do just, you know, reverse off of the

previous candle's high or low and we're

opening near that level. So it's

important, right? Because if this is an

expansion candle, this new candle will

open up near that low. And we can use

this as a reversal point reversal um or

like a key level almost, right? And if

you have that small wick, right, which

is only allowed to, you know, create

that small wick because we're opening

near this level, we can expect price to

reverse into expansion, right? So here

is a bullish example. Here's a bearish

example. And we can only anticipate a

reversal into expansion candle. A C2

candle is when we actually hit a key

level. Because if we don't hit a key

level, how can we ever anticipate a

reversal to ever happen? So we must hit

a key level. It's either candle one hits

level or candle two hits a key level

where maybe like candle one comes really

close to the key level, doesn't quite

hit it. Then, you know, candle 2 hits

the key level, slightly sweeps out pre

uh previous candle's high and reverses

like that.

Now, we're going to get into C3 closure.

This is where we do not trade the C3

because again there's no swing

formation. We don't trade C3 because

there's no reversal um being printed

visibly by the higher side from closure.

So, we have to wait for that and that

will be by C3 closure, right? There is

no CT C2 closure. So, we can't

anticipate reversal until we get, you

know, until price shows it's like an

reverse, right? Creates that three

candle swing formation. And this is

where we close above candle 2's body,

not high body, right? Because we're

going to be opening far away from uh you

know, this candle's high. So, it's a bit

different, right? Whereas over here, we

require a close above this candle's high

because we're opening a lot closer to

it. Does that kind of make sense?

Hopefully.

Um so once you have a C3 closure now you

can begin to trade right now you can

trade C4 as expansion right because with

this whole swing commission candle 2

didn't expand at all candle 3 expanded

uh but we still have a lot more room to

expand so we can expect a candle 4

expansion um whereas maybe over here

or especially like right here if candle

2 expanded already candle 3 can have

some trouble expanding because again if

the previous candle expanded with a

large range we can potentially get a new

phase of price. So in this case like

this the swing formation is being

printed but we haven't even yet really

expanded right away from the swing

point. If we go over here like you see

right here where candle 2 never reversed

but candle 3 can get a large expansion

and so can candle four because we

haven't really reached the draw rate. So

that's another thing we want to uh look

out for. Now framework confirmation. How

are we going to confirm our framework?

um which is simply remember internal to

external, external to internal and

manipulation ranges. How are we going to

confirm this is by candle closes, right?

So here we see that we hit the key level

which is IRL or a fair value. But candle

2 did not close a reversal candle. So we

don't know if price can reverse yet. The

only way we would know is after a candle

3 closure, right? It closes above the

previous candle's body. So now we can

expect candle 4 to expand respecting the

upper half of the previous candle's

range. Over here we have a candle 2

closure from our ER. So now we would

expect we have a reversal to trade away

from and target our internal liquidity.

So we will try to capture the expansion

in C3 where we look to you know have

C3's high being in respect of the

previous candle's range over here. This

is our C2 reversal to expansion candle

over here. This is where C1 hits the key

level. But you see how it does not put

in a reversal. So this is where we look

for price to print a reversal candle,

right? And we would assume it would uh

we can anticipate it to reverse off of

this candle's low and we can trade this

candle if it has a small wick, right?

That's what we want to see. Um once we

have a C2 closure now, this really

confirms to us that we have are going to

print a reversal and we can trade C3 as