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4. Asset Synchronisation

7 min read

  • Trade whichever asset is closer to the DoL, as long as RR supports the trade.
  • If the leading asset has already taken the draw, switch to the lagging asset to trade the catch-up.
  • If trading the lagging side, prefer the middle asset because it is stronger than the laggiest asset.
  • After SS, prefer entering the new leading asset.
    • After SS, the relative strength relationship has changed.
    • Prioritise the new leading asset rather than continuing to use the old leading / lagging logic.
  • If ES is leading, the price action is usually not ideal.

Reversal approach:

  1. Trade the leading asset first.
  2. After the leading asset hits the draw, switch to the lagging asset.
  3. If the leading asset fails to manipulate the true draw, the lagging asset will usually manipulate the opposing range extreme and then reverse.

If trading the lagging asset while the leading asset has a close-proximity draw reason to continue, additional SS is not always required.

  • If the asset that swept a high / low does not reverse and instead consolidates or continues, that SMT is likely fake.
  • A fake SMT can still be traded: use the lagging asset to trade into the same level once it shows a strength switch to catch up.
  • Relative strength is scoped to whatever range you are actually trading, not just the higher-timeframe read. An asset can be the higher-timeframe-strongest one overall while being locally the weakest inside a smaller intraday box, and vice versa — read strength within the box you are trading, not the whole day.
  • Pick whichever asset’s local strength or weakness matches where your target actually sits: if the take-profit is the far daily draw, trade the asset that is weakest across the whole day; if the take-profit is a nearer relevant low specific to the current intraday range, trade whichever asset is weakest inside that range, even if it is not the weakest one on the higher timeframe.
  • It is normal for different assets in a triad to each have their own local range where they are weakest or strongest — this does not contradict the higher-timeframe read, it just means the correlated assets will hand off strength as price moves through each range.

  • After assets decouple, do not trade immediately.
  • Wait for SS or 2-stage PSP as the re-sync trigger.
  • Decoupling is not an entry signal. It indicates that the market is preparing for re-sync / SMT break / lagging-asset catch-up.

Common Algo 1:

  • The 6:00 H4 candle is usually the decoupling initiation.
  • 10:00 re-sync usually happens through Q2 or Q3 / 10:30.
  • The leading asset is usually in foreseen distribution.
  • The lagging asset is usually in manipulation ranges / gaps.
  • If the leading asset fails to manipulate the true draw, the lagging asset will manipulate the opposing range extreme and reverse.

Process:

  1. Wait for the 6:00am H4 candle to close

    • This H4 candle may often form a PSP.
    • Do not assume re-sync before the 6:00 H4 candle has closed.
  2. Identify foreseen distribution and manipulation assets

    • NQ / ES may expand in the opposite direction to YM.
    • Usually one side is in foreseen distribution, meaning the direction the other asset(s) will later reverse and expand towards.
    • The other side is manipulating into a key level opposite the draw.
    • In practice, YM may often be the foreseen distribution asset, while NQ / ES may often be the manipulating assets, but this should not be applied mechanically.
  3. Wait for manipulating assets to trade into a key level

    • Re-sync usually happens at the key level the manipulating assets are trading into.
    • At the same time, the already distributed asset enters a new PoP:
      • consolidation, or
      • retracement.
  4. Observe two results

    • The 6:00 H4 close forms PSP;
    • the 10:00 H4 candle shows SS;
    • the manipulating assets reverse;
    • the distributed asset starts to consolidate / retrace.
  5. Wait for SMT fill sequence / SS-SMT

    • The foreseen distribution asset may create an SMT fill sequence from a gap.
    • The manipulating assets may form SS-SMT.
  6. If 10:00 does not complete re-sync

    • 10:30 may complete re-sync.
    • 10:30 corresponds to a new 90m open and requires reassessment.

Ideal continuation:

  • SMT + SS
  • PSP + SMT
  • Failure-to-manipulate decoupling: the leading asset fails to manipulate a key level but already has draws beyond it — no strength switch is required, only the failure to manipulate itself, before trading the lagging asset to catch up.
  • Spaced-out decoupling: the leading asset is so far ahead that the lagging asset is unlikely to ever reach the same level. In this case, trade the middle asset instead of the lagging one — it has better proximity to the draw once the strength switch confirms.
  • Pure decoupling: all three assets are simply moving in different directions with no coherent leading/lagging relationship. There is no valid setup here — skip the pair entirely rather than force a trade.
  • In a trending (bullish or bearish) profile, any decoupled move against that trend should be read as manipulation, not a genuine change of bias — don’t second-guess the trend just because one asset is temporarily moving the other way.
  • In a consolidating profile, you cannot assume which side of a decoupled move is the manipulation, since there is no established trend to weigh it against. Wait for one side to fail to manipulate its level, then trade the lagging asset toward whichever side actually held.
  • If your trend bias is wrong — the counter-trend move actually succeeds where you expected it to fail — that invalidates the original bias. Flip to trading the lagging asset toward the direction price is actually confirming.

A second, distinct asset-sync reversal pattern, separate from market-open decoupling:

  1. The leading asset trades into a key level (a high or low) but fails to manipulate it — it consolidates or retraces instead of reversing.
  2. The middle asset then breaks that SMT, but does so deep in premium or discount of the range (a “spaced-out” SMT, well away from the level) rather than close to it.
  3. The lagging asset forms its own, even larger-range SMT relative to the same level.
  4. Once this sequence completes, treat it the same as any other two-stage crack in correlation: look for a strength switch (often a strength-switch PSP) to confirm, then expect all three assets to synchronise and expand together.
  5. Invalidation: if the SMT that forms is a very tight failure swing, or the assets fail to reverse together after breaking it, the sequence does not hold.

4.3 Reading Relative Strength via Candle Closures

Section titled “4.3 Reading Relative Strength via Candle Closures”
  • In the index triad, strength is typically inverse between the outer two assets: when NQ is strongest, YM is weakest, and vice versa. ES is typically the middle asset between them.
  • Relative strength can also be read from how each asset closes relative to its own wick. An asset that repeatedly wicks through a level without a body close through it, across several consecutive candles, is building a high-resistance liquidity signature — repeated three times, this is a “three drives” pattern and a strong sign the level will hold and reverse.
  • Whichever asset’s body closes furthest from that wick, and closest to its own low / high, is showing the most relative strength (or weakness) in that direction.

Personal study notes, shared as-is and in good faith. Educational material only — nothing on this site constitutes financial advice.