First thing is: Look at the last trading day and drag a trendline to the left until 60 trading days. If your broker shows sundays then you have to compensate for that, so you have to go further out
So now we have our ranges for fibonacci, and for our PD arrays. Initially our only primary focus is in the last 60 trading days. Count yesterdays day as day 1. Every new day we add a new day and we cut off 1 day, so its always shifting forward every day.
Every 3 months or every new quarter we anticipate a shift in market structure, a quarterly shift. We receive it as potential trend reversal, but we do not always expect it. Its not end all be all. We just know that it can happen.
When theres a gap and a breaker like that, we go with the breaker first because of the hierarchy. And we use the wick of the downcandle fo the breaker
Notice how we use the highest upcandle and not the downclosed one, because the upcandle thats where the resistance begins for the FVG
So now we want to look at the last 20 days, where is our PD arrays? For daytrading you’re going to operate in those last 20 days most of the time. If everything is already exhausted so everything is already been traded trough in the last 20 days then we look at the last 40 trading days
Now ask yourself are we in a premium or in a discount of the range, clearly at a discount of the 20 day lookback in this example.
Just because were in a discount it doesnt mean we can just buy it and expect it to go up, we have to look at where we are in terms of historical reference points. Even when we look at the last 60 and 40 trading days, we can see we’re really in discount. Historically weve referred to the low with the long wick to the left, (Ignore the wick look at the bodies) price swept below that and we had a little move up, so were in a discount market with a lot of premium arrays we can trade to, and still keeping the bearish tone on the daily of the dollar
Now the discount arrays, he disregards the mean threshold of the first orderblock because its already been violated. So we have an orderblock, a propulsion block and a rejection block for our discount arrays
We see upcandles getting respected in the last 60 and 40 days, we see it break lows. So institutional orderflow for the dollar index is bearish. So preferably we go short thats the highest probability, but since we’re daytrading we can countertrend trade that if we have the ranges defined in the form of a discount, so were already at an extreme and at a discount so we can possibly see a retracement, it doesnt have to but we can reasonably see it.