The Market Rewards Patience and Discipline!

The market rewards those with patience and discipline. I start with this because in the past week, I’ve seen so many people go from winning every trade to blowing accounts left and right.

Especially those who trade SMC, the week prior to this last was phenomenal for these traders. What most didn’t realize is you need to know when to take a step back. This week was one of those weeks.

Identifying when PA (Price Action) is inefficient can save you hours of headaches and blown accounts.

The markets move in these three specific ways: Accumulation, Manipulation, and Distribution.

I show this example because the market is currently looking like this on a higher time frame.

Now let’s jump to the real charts.

Markets cannot reverse from consolidation alone, we have to see manipulation in the market to be able to think about seeing a reversal in price action.

Above, you can see the market was stuck in a period of consolidation (Accumulation), going sideways in a range for over a week.

If I saw clear manipulation at the highs, meaning some sort of divergence between $NQ_F ( 0.0% ) and $ES_F ( 0.0% ) , I would be more inclined to think we can reverse price to the downside here.

But we did NOT. Instead price has fallen from this consolidation without any clear manipulation of the highs. This means I expect this move down we’ve seen to be the manipulation to then go higher into this week.

So, what does this mean for the upcoming week?

Well, initially, I’m going in extremely bullish as long as we continue to hold higher time frame order flow (FVGs), and I want to see a move into the BSL (Buyside Liquidity) highs that haven’t been taken yet.

I know I’m wrong if we open up the week and are disrespecting higher time frame bullish FVGs. If we are extremely bullish, we expect the market to respect higher time frame bullish order flow, if that’s not happening we can accept that we may be wrong in this scenario.

Price is fractal, so let’s bump up the timeframe to a weekly to get even more clarity.

If you’ve been looking at the charts on an intraday time frame this last week, you probably think this market looks horrible.

Looking at it from a weekly perspective, what did we really do?

All I see is a rebalance to Equilibrium (50% Retracement) of the previous trending week. (After a trending day/week, you can expect the following candle to retest the Equilibrium of the previous candles’ range.)

In this scenario, we have our thoughts on price action from the internal time frame (4hr), and we have even more clarity supporting our thoughts on an external timeframe (Weekly)

This is how we align timeframes to get the best A+ setups in the market.

If needed, I could potentially see the market opening up a new weekly candle and manipulating the previous week’s low to then go higher, so If we do get some early downside price action in the week, don’t be surprised.

Regardless of what happens in the market, remember to only be putting yourselves in the best opportunities and trading efficient price action.

Cash is a position, and sometimes the best one to be in.