0. Core Trading Logic Overview

0. Core Trading Logic Overview

The core of this framework is not to treat SMT, FVG, CISD, or time windows as isolated signals. Instead, they should be used together to answer four questions:

1. What is the current price narrative?

   • Where is the weekly candle likely heading?
   • Where is the daily candle likely heading?
   • Where is the current 4H / 6H candle likely heading?
   • Am I trading a reversal or a continuation?

2. Has price already reached a key Draw on Liquidity?

   • Daily high / low
   • Weekly EQ / Previous Week EQ
   • NWOG / NDOG
   • HTF gap
   • HTF swing high / low
   • Range edge / internal range level

3. Are the correlated assets synchronised?

   • Is there SMT?
   • Is there a Strength Switch?
   • Has the leading asset already reached the draw?
   • Does the lagging asset still need to catch up?
   • Are assets in a decoupling / re-sync phase?

4. Is there sufficient displacement confirmation?

   • CiC / CiSD
   • FVG
   • PSP
   • Driver expansion
   • Whether the 1H / 90m / 4H candle supports extension

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0.1 Underlying Causal Chain

This model can be understood as a causal chain from draw to execution:

1. The market requires a low-resistance draw to expand → Draw on Liquidity

   • For the market to expand, there must first be a low-resistance draw.
   • Draws include highs / lows and FVGs.
   • The ideal draw is low-resistance liquidity.
   • Low-resistance draws are usually failure swings.
   • High-resistance draws are usually protected swings.
   • Do not trade directly into a protected swing unless there is exceptional confirmation.
   • Without a clear draw, do not force an expansion forecast.

2. The market requires a swing formation to reverse → Profile

   • For the market to reverse, a valid swing formation must appear.
   • Swing formation is the foundation of a reversal profile.
   • The preferred profile is AMD with a small daily wick.
   • In Seek-and-Destroy conditions, trade extremes.
   • In range consolidation, SMT will usually validate a failure swing.

3. Swing formations require a key level to form → Key Level

   • High-quality swings usually form from key levels.
   • Daily highs and lows also usually form from key levels.
   • Valid key levels are relevant swings.
   • Exception: a failure swing with SMT can act as a valid reversal reference even if it is not a classic key level.

4. Cracks in Correlation validate a swing formation from a key level → CiC

   • A Crack in Correlation, such as SMT / SSMT / PSP, validates a swing from a key level.
   • Without a CiC, the swing is lower quality.
   • CiC confirms a bias; it does not create the bias by itself.
   • Valid SMT should be at a key level.

5. Reversal signatures following cracks in correlation confirm that expansion is happening → LTF Reversal Signature

   • After SMT / SS, there must be an LTF reversal signature.
   • Real expansion confirmation comes from displacement / gap / CiSD.
   • A bulky-bodied CiSD is preferred.
   • If the clean CiSD is too far away, a failure-swing CiSD may be used as the execution trigger.

Simplified formula:

Draw → Key Level → Swing Formation → Correlation Crack → Reversal Signature → Expansion

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0.2 Daily Procedure

Daily workflow:

1. Daily

   • Decide where price is likely going today.
   • Decide what price is trading away from.
   • Identify the main DoL and close-proximity draws.

2. Align Daily Logic with 4H / 6H Profiling

   • Use the 4H / 6H candle profile to decide whether the session supports the daily narrative.
   • If daily logic and 4H / 6H profiling do not align, reduce trade priority.

3. Trade on Clean 30m / 1H Price Action

   • Wait for clean 30m / 1H price action.
   • Do not force a downgrade into LTF execution when MTF price action is messy.
   • LTF is only for the entry trigger; it does not replace the HTF narrative.

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