Wait for a swing high on the daily to be broken = Bullish stage
Swing high = Candle with lower highs to both sides
We anticipate buying opportunities in the future
When price retraces, look for a swing low to form but does not break a recent swing low
Swing low = Candle with higher lows to both sides
When swing low forms - anticipate the 3rd daily candle’s (last candle of the swing low formation) high to be raided or traded through the following day
The candle that opens after this should preferably open below the 3rd candle’s high
Look for previous day highs to be raided each day until a swing high on the daily forms or price reaches a key S&R level
Circle is swing low
Blue line is 3rd daily candle expected to be raided or traded through
Bearish scenario
Wait for a swing low on the daily to be broken = Bearish stage
Swing low = Candle with higher lows to both sides
We anticipate selling opportunities in the future
When price retraces, look for a swing high to form but does not break a recent swing high
Swing high = Candle with lower highs to both sides
When swing high forms - anticipate the 3rd daily candle’s (last candle of the swing high formation) low to be raided or traded through the following day
The candle that opens after this should preferably open above the 3rd candle’s low
Look for previous day lows to be raided each day until a swing low on the daily forms or price reaches a key S&R level
