The GxT Model | 4H PO3 Made Mechanical

Understanding GXT Sequences for Intraday Trading

Introduction to GXT Sequences

• The video introduces the three types of GXT sequences, crucial for intraday trading and confirmations within the GXT model.

• Focus is on profiling higher time frame candles with lower time frame swings, emphasizing its application in various candle types, particularly the 4-hour candle.

GXT Continuation Sequence

• The continuation sequence involves a new higher time frame candle opening within a lower time frame swing created by the previous candle.

• If the prior 4-hour candle shows a reversal, the next one will likely expand or continue in that direction, hence termed "continuation."

• Higher time frame closes can vary; they may not always reflect lower time frame formations but can still indicate expansion.

GXT Reversal Sequence

• This sequence features a reversal candle formed from a lower time swing. A small wick in this context supports potential expansion.

• If the small wick does not support expansion, traders should wait for the next 4-hour candle to align with market movements.

• The distinction between reversal and expansion candles lies in their formation relative to lower time frames; alignment is key.

GXT Aligned Sequence

• An aligned sequence occurs when trading continuation without needing a swing point; it confirms bullish movement through opposing runs.

• Traders look for realignment after retracements within an expanding 4-hour candle to catch further moves effectively.

Practical Examples and Logic Application

• The speaker shares personal trade examples from recent weeks to illustrate practical applications of these concepts.

• Emphasis on understanding market logic rather than just theoretical concepts helps traders make informed decisions based on price action dynamics.

Market Analysis and Trading Strategies

Key Levels and Continuation Expectations

• The current price is at a significant key level, indicating a potential cap on retracement before continuing higher. There is no reversal expected; rather, continuation is anticipated based on the daily close.

• To target all-time highs, traders should mark the equilibrium (EQ) of the previous day's range and look for signs of reversal in the upper half of this range.

Understanding Price Action and Manipulation

• Observations from the 4-hour timeframe reveal that previous day’s price action included consolidation and manipulation around 2 a.m., which ties into the GXT model used for trading narratives.

• The focus shifts to looking for continuation signals at 6 a.m. and 10 a.m., with an established low day providing context for potential trades.

Analyzing Candle Patterns

• When considering trades, it's crucial to assess if the previous candle exhibited lower time frame reversals that can be leveraged at 10 a.m.

• The analysis reveals that the 9:00 a.m. candle acted as a reversal candle, supported by SMT (Smart Money Technique), making it significant within its hourly window.

Logic Behind Trading Decisions

• Traders are encouraged to use logic over pattern recognition; assumptions about market movements should consider existing equal highs left behind during recent price action.

• Acknowledging that recent downward movement was merely manipulation helps clarify expectations regarding future price behavior.

Entry Strategy Considerations

• It’s important not to expect large wicks in certain candles; instead, traders should anticipate smaller wicks forming within prior ranges.

• Utilizing resources like Trad's YouTube channel can enhance understanding of fractal models for confirming highs/lows and refining entry levels.

Trade Execution Insights

• At 10 a.m., news impacts market behavior; observing how drivers fail to reverse lower provides insight into trade viability.

• Personal trading decisions were made prior to news events based on observed patterns, emphasizing preemptive strategies over reactive ones.

Risk Management Techniques

• Stop-loss placement is critical; positioning it near swing lows minimizes risk while allowing room for market fluctuations post-news announcements.

• Recognizing deep retracements as part of news-driven volatility aids in maintaining confidence in trade setups without unnecessary exits.

Trade Analysis and Market Logic

Overview of Trading Opportunities

• The speaker discusses a recent trade opportunity, emphasizing the potential for a two-risk-reward (RR) ratio.

• They highlight the importance of understanding market logic and concepts taught on their channel, indicating that these principles are accessible to viewers.

Analyzing Gold's Market Behavior

• The analysis shifts to gold, where the speaker identifies a Tuesday low and discusses market expansion based on weekly candle behavior.

• They explain how daily price action supports expansion, using specific candlestick patterns to predict market movements.

Candle Profile and Trading Strategy

• The speaker references previous content about candle profiles, noting that they indicate bullish trends when certain conditions are met.

• A two-stage Price Structure Pattern (PSP) is introduced as part of their trading strategy, highlighting its significance in identifying swing points.

Time Frame Analysis and Trade Execution

• Transitioning to a 1-hour time frame, the speaker marks key prices related to significant candles that indicate potential reversals.

• They emphasize the importance of timing in trading sessions, particularly focusing on New York session dynamics around 6 a.m.

Reversal Patterns and High Probability Trades

• The discussion includes details about reversal sequences leading into driver pairing strategies for high probability trades.

• The speaker shares personal experiences with successful trades in gold, reinforcing confidence in their methods.

Market Conditions and Trading Mechanics

Navigating Difficult Market Days

• The speaker describes current market conditions as challenging due to poor price action (PA), suggesting careful navigation is required.

Understanding Consolidation Phases

• They define consolidation phases by analyzing candle behavior within ranges without breaking previous highs or lows.

Mechanically Trading from Consolidation

• Strategies for trading away from consolidations are discussed; specifically manipulating relevant swings within defined ranges for optimal entry points.

Anticipating Market Movements

• The speaker emphasizes recognizing potential breakout directions based on failed displacements at key levels during consolidation periods.

Understanding Market Dynamics and Trading Strategies

Analyzing Price Ranges and Support Levels

• The current week's low is identified as a failure swing, indicating the necessity for this range to hold for potential price increases towards the range high.

• Observations of market behavior show that while some assets are below the current week's low, others remain in equilibrium (EQ) within the range, suggesting a continuation pattern.

• The low of this week coincides with a new week opening gap, highlighting sensitivity in price reactions around this level.

Reversal Patterns and Trade Execution

• A 10 a.m. New York reversal candle indicates an expansion following a reversal; trading opportunities arise from hourly and 30-minute swing points.

• The GXT reversal sequence confirms trade setups aimed at reaching previous failure swings, although personal trading experiences reveal challenges faced during execution.

Intraday Candle Analysis

• The analysis of a 4-hour candle shows it supports expansion after forming a reversal; traders can anticipate movement through engineered highs based on this structure.

• Within the same candle, there is manipulation followed by retracement back into the EQ of the current 4-hour range before another expansion occurs.

Strength Switches and Market Correlations

• A notable strength switch occurs when comparing bullish INQ against bearish YM during an 11:30 candle, indicating differing asset strengths.

• Traders should wait for lower time frame swings to realign with higher time frame candles to confirm trade entries based on observed strength switches.

Final Thoughts and Community Engagement

• The session concludes with encouragement for viewers to engage through subscriptions and comments about desired content topics, emphasizing community interaction as vital for future content creation.

• A goal is set for reaching 15,000 subscribers to motivate further video releases; viewers are invited to share their trading experiences on social media platforms.