Elements to a trade setup -
📖• 4 major things the market does:
Consolidate
Expand
Retrace
Reverse.
(Core content month 1, episode 1)

These are the four conditions you don’t need to know them all, the main take away is learning where the market will likely to go using these mechanics.
Consolidation starts everything order are allowed to be built up.
After the consolidation we wait for an expansion do not try to trade inside a consolidation, after the expansion from a consolidation we wait for a retracement or another consolidation or reversal.

The 1st expansion gives depth in knowing where we are likely to go after a consolidation, it can never go from a consolidation into another consolidation it’s consolidation into an expansion then we can utilise retracements.

Retracements this occurs after the expansion when we have one sided directional bias, where price moves back into the range created.
Once price retraces the key areas to look for are areas of fair value (premium & discount)

Reversals is when price moves the opposite direction of where the market true direction is, when we have a consolidation if we then have a reversal after that, view this as PO3 we are going in the opposite direction only to manipulate utilising liquidity pools.

This was a short thread on elements to a trade setup, I would recommend watching the video and core content to learn more.

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