I have a few mechanical filters for deciding whether or not I will trade at the reversal, or wait for the continuation.


This is 1 of them | CiC Filter
Thesis: Cracks in Correlation (SMT & PSP Variants I have taught you) validate swing formations and phases of distribution in a MMXM.
Phase 1 = SMR (reversal)
Phase 2/3 =redistributions (continuation)
Fair Value Gaps away from reversals define new invalidations I.e. where continuations form.
n = # of CiC necessary to validate a swing point.
HTF True Reversal | n = 2
HTF Continuation [in gap] | n - 1 = 1
LTF Continuation [in gap] | n - 2 = 0
When we lack a 2-stage-CiC at the reversal
We wait for to trade the HTF Continuation & validate the swing formation with at least 1 crack in correlation.
We do not need an entry time frame crack in correlation (m1-m5) based on this logic.
Gap selection:
Now do you remember how I taught you to filter gap selection timeframes. Recall we use implied dealing ranges from the point of reversal to the DOL.
Let’s use the example of a H4 universal model; Generally speaking I taught you the following
1. Below 50% IDR (early in reversal) m15 gaps are permissible
2. Above 50% IDR (higher in range, more time has passed) m30/h1 gaps are preferred
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