A Complete Trading Framework (Universal Models, SMT, Swing Points) | GXT

How's it going everyone and welcome back

to another tea talk. In this tea talk we

are going to have Garrett on here for a

second time to talk about universal

models swing points and SMT. I hope you

guys enjoy. What is up everybody? I am

back for a second episode of TT Talks.

Thank you T trades for the opportunity

here. Today's lecture we are going to

cover reversal confirmations

a complete approach to the market. The

lecture topics are going to be universal

model swing formations SMT SMT pairing

and two-stage SMT sequence. I'm going to

show you guys how to pair these all

together for a complete framework and

approach the market. Credit goes to T

trades, AM trades, the MXM trader,

trader day, and ICT, which I would

consider all my mentors. I have taken

little bits and pieces of each one of my

mentors and blended them together for my

personal approach and that's what I will

be sharing a piece of with you all

today. Let's get into it. So, here we

are on universal models. We're going to

be covering internal to external,

external to internal, and manipulation

ranges. This is something I really

learned from the MXM traders back when I

was first learning how to really trade

ICT. He really simplified it. So, I'm

going to try to do my best here for you

guys. So, all internal to external a

universal model really is is a

framework, right? It tells us, hey, when

price hits this key level, in this case

being internal range, a fair value gap,

we can expect price to reverse and trade

to the high or the external range that

caused the retracement into the gap.

Right? So, here we are on external to

internal. Once price reaches an external

high or manipulates a range high, we can

expect price to retrace back into the

range to see continuation from that gap

or a failure to reverse from this gap

and target the opposing side of the

range. But regardless, this fair value

gap becomes your first target. And

lastly, order pairing ranges or

manipulation ranges, a high or low or

range low being the key level. the

opposing side of the range or swing high

being the targets. Now, we are going to

be going over swing formations. Why are

swing formations so important? Because

the market cannot reverse without a

swing formation. This is the whole logic

behind the TH fractal model and why it

is so logical. So, firstly, let's go

over a candle 2 closure. What is a

candle 2 closure? It is simply when

candle 2 closes back inside of candle

1's range. Once we have that closure, we

mark out equilibrium of the previous

candle's range, wanting to see the upper

half of that range support price higher

and form the low of candle 3. So why do

we do this? Why do we mark our EQ of

ranges? It is a mechanical way to

measure wick size. What is wick size and

why do we care about it? Well, we know

that expansion candles, right, they have

these small wicks. Reversal candles have

these large wicks, which is what we

typically want to avoid. We want to

trade expansion with this large wick. We

know price cannot expand. So after

candle 3 expands, seeking continuation

in candle 4 is if we close candle 3

above candle 2's high. Once we have that

closure, mark a equilibrium of the

candle 3 expansion. This is where we

seek a candle for continuation forming a

low in the upper half of candle 3's

range. So here we are with a candle 2

reversal to expansion. It is the exact

same thing as a reversal candle. The

only difference is the wick size. Right?

So here we can see that we have a small

wick which allows price to reverse and

expand in the same candle. So when

candle one closes an expansion candle

after hitting a key level, we can

already anticipate a reversal. But if

candle one did not reverse, then we must

reverse off of its high or low here. As

you see, we reverse off the low. If we

form a small wick, then we can actually

participate in this candle because it

supports expansion away from the

reversal. So here we are with a candle

three closure. This is simply when

candle one hits a key level or candle 2

hits a key level, but we do not get a

candle 2 closure. As you see, this is

where candle 3 will just expand away

from candle 2's low without actually

taking that low out. So prior to candle

3's open, we cannot anticipate this

reversal because we have no closure,

right? The only way we anticipate this

reversal is after the swing formation

actually forms. Right? Candle 1, candle

2, candle 3. Once we have a strong

candle 3 closure, mechanically defined

as closing over the body of candle 2.

This is where we can mark out

equilibrium of candle 3's range seeking

expansion or continuation in candle 4

where the low is formed in the upper

half of candle 3's range. So now we're

going to put the two together. universal

models with swing points. We know that

when market hits these key levels, we

know we should expect a reversal and we

also know that the market cannot reverse

without a swing point. So this is when

we blend the two together to confirm our

framework. So as you can see market

trades lower into this gap creates a

candle too indicating a reversal from

the internal range of liquidity. Once we

hit internal range liquidity, we know we

should target the opposing side of the

range that caused a retracement. This is

where we seek a continuation within

candle 3 respecting the upper half of

the previous candle's range. So here we

have a reversal into expansion candle

where candle one hits the key level

being external range of liquidity, but

candle one does not reverse. We're

opening near the candle's high. So that

becomes the reversal point. If we create

that small wick, this is what allows the

candle to reverse and expand into the

fair value gap. So, we actually can

participate in this reversal candle. So,

here we are with order pairing ranges.

Here we have a candle 3 closure where

candle one trades into the range low but

does not reverse. So, we do not

participate in this candle because it

does not support expansion. And once

candle 3 opens, we also cannot

participate in this candle because

candle 2 showed no signs of reversal. So

we must wait for the close. If it closes

above the body of candle 2, this is what

validates us to trade candle 4.

Continuation marking out equilibrium of

candle 3 and looking for candle 4 to

respect the upper half of that range and

targeting the opposing side of that

range. Now we're going to get into SMT.

One thing we know about the market is

the market cannot reverse without a

swing point, but the market can also not

reverse without SMT. So this is where

we're going to combine the two. And this

is really the whole goal of this lecture

is to show you the power of combining

the two and how you can build a

mechanical framework and system around

this logic. With SMT, we must understand

the correlated markets to pair

divergences with. So for me personally,

I view correlated markets through a

triad that is simply three correlated

markets. So for forex we have DXY,

EURUSD,

GBPUSD. For indices we have ENQ, ESYM.

For gold we have gold or GC X AU Euro

and X AU GBP. For the oil triad we have

CL, RB and HO. Firstly, we're going to

be using SMT between highs and lows.

This is the most common form of SMT. It

is where one market manipulates a low or

range low where the other one simply

does not take that low. This is a Ken

correlation. It signals a potential

reversal. Secondly, and the other key

level we are going to be using S&T with

is a fair value gap or also known as SMT

fill. This is where one asset fills in a

gap or trades into a gap and the other

one leaves it open, right? A breakaway

gap. And this can signal a potential