Intra-Week Reversal Trading — Step-by-Step Guide & Transcript

[00:00] Intro Music How's it going everyone and welcome back to another video in our weekly profile series.

[00:16] In this video we are going to be talking about an intra-week reversal. So let's get into the pdf. What is an intra-week reversal? An intra-week reversal is where we don't have the reversal forming the high of the week. And so what does that look like? Here you can see

[00:30] with a bearish bias, Monday expands away and then we'll get Tuesday consolidation. Wednesday is forming a reversal for then Thursday and Friday to expand. So where does the opportunity lie here?

[00:43] Well, following the reversal on Wednesday or inside the week following that interweek reversal. So here you can see what are we going to actually look for? We're going to look for a candle two closure or a candle free closure even inside that weekly candle after we've already expanded away

[00:59] from the weekly open and looking to trade that move lower. Now what we need to see first before we can trade that move following the intra-week reversal we need to see an hourly change in the state of delivery inside that reversal candle. So if we have that change in the state of delivery

[01:14] then we can look for those following candles to expand. So this is going to happen a lot where you don't actually have that picture perfect pattern or a classic expansion or a mid-week reversal or a Thursday counter. This is where it becomes a little bit more messy, but this is the

[01:30] logic of weekly profile. You wait for the high or low of week to be formed, or you can anticipate that to have formed, and then you're just looking to trade swing points away from that level. So here you can see it's a Monday following high, and then Tuesday consolidates Wednesday, forms a

[01:46] reversal then we want to focus on Thursday and Friday. But what if Wednesday also consolidated here? Well then Thursday would be the reversal and then we could look to trade Friday. It's not always going to appear the same but that's just the logic of it. You don't want to just try to

[02:01] match these together you want to actually use the logic and combine it with the daily and hourly fractal model. So let's get into some examples. So here we are in our first example and you can see price is currently in a fair rally back here. So we could look for a reaction out of this area.

[02:16] Now here is Friday. We have some failure swings on the lows, so we kind of want to let Monday open up. Monday expands away, so this is showing us that price wants to expand out of this area or form a reversal.

[02:29] Now I can look for price to continue on Tuesday here, but a lot of times following a large expansion, we can get a smaller range on the next day. So here on Tuesday, what do we get? We get a small candle to closure opposing that.

[02:42] So that tells us what we're looking for some sort of a trace angle for the previous day low to get taken out Which is a new fair value gap So we could be looking for price to trade lower here into the next day and look to see if it can trade higher

[02:55] So what we get on this next thing we have a candle to closure So now we have Monday forming the low and expanding away telling us that we want to trade higher Tuesday consolidates which is not a reversal

[03:08] signature, and then Wednesday forms a manipulation of this range low. So with this candle to closure, what do we want to go and see? On that hourly time frame, do we have a change in the state of delivery? So going in here, we do have that hourly change in the state of delivery and a new

[03:24] continuation that formed right here. So ideally we would not want to see price do what? Take out this low as it expands higher. So let's see what happens. You can see we get a continuation higher and then

[03:42] we get into the next day here with a large expansion the previous day. I can be looking for this next day to continue as well but I do want to be careful or it could form some bit of a consolidation.

[03:54] And you can see, it's not as clean, and it does get a move up, but it comes back into the range. Let's go back out to the daily chart. So just for review, what do we have? We have Monday forming an aggressive move out of an inflamed of interest,

[04:07] showing us that price wants to form a reversal in this area. Then on Tuesday, we get a little consolidation. Wednesday, we manipulate that low in the consolidation. We have a Campbell 2 closure, which shows price is reversing on Wednesday.

[04:21] That paired with an hourly change in the state of delivery, We can expect Thursday to be a continuation day, and we can also look for a Friday continuation as well. You just want to be careful following these large ranges as you can get a new phase of price.

[04:34] Let's get into another example. So in this next example, what do we have? We have price reaching into this fair value gap, and we want to see if we can form a reversal point here. And so far, we don't have a very aggressive reaction, so let's see what happens around these highs right here on Monday.

[04:49] So after Monday forms, what do we notice? We expand right through them. So is this forming a reversal off of this high or in the spare value gap to trade lower? No. So we could look for a continuation higher. Let's see what happens. We do get that

[05:02] continuation higher. Now we're in candle 2, 3, 4, 5. This would be candle 6. We have two days of expansion here. We could get a new phase of price. So generally speaking, we want to let another candle form. Here you can see we reach into the spare value gap. Now what do you notice?

[05:18] This isn't the best reversal candle, right? Because it's what? A candle to closure that is bearish, but also a candle to closure that is bullish. So if we go down to the hourly time frame here, the whole idea is we are looking for price to form a reversal here. You notice price opens,

[05:33] and then this is just trading lower. Do we have a change in the stage delivery here? We do. So if we go ahead and throw on my indicator here, what do we notice? It'll mark out that change in the stage delivery. But it's not very ideal because you can see it's a bullish and a bearish model.

[05:48] So this is where, if you did want to frame to the outside, you need to have some more intraday confirmation What do I mean by that Let price open make a low form a new continuation and then look to trade it higher So let see if we have that intraday confirmation And you can see price is not respecting the area we want to see be respected so it looks

[06:08] like it's going to fail. Now taking out the low, we want to do what? Wait for a new daily closure. Now what do we notice about this daily closure here? This is a lot better because

[06:20] we are doing what? We are actually forming a reversal on the daily candle. You see how much better this candle to closure is versus this previous open low high close versus this was an open high low close. So this is an actual reversal candle and so what could we be looking for?

[06:37] If Monday expanded away and now Thursday is forming a reversal we can look for Friday to form a continuation. What do we have here? We have a protected swing so we have an area that we

[06:49] haven't been validation we don't want to see price trade below where right here so we could be looking for price to open make a low in this area and then trade higher let's see what happens it is quite choppy but we do that right

[07:05] now let's see how we close and we close pretty strong forming a new protected swing on the daily this is where we can have Monday forming continuation because what is it doing is reaching for those highs on the daily chart so just to

[07:19] review. Monday expanding away tells us that it is bullish. It's forming a reversal down here. So then we can wait for a new intra-week reversal or a new swing point on the daily to trade away from. Here, Wednesday potentially looks like it could have been, but it's not really a reversal

[07:34] candle. It's a bearish expansion candle. Here on Thursday, we form a nice bullish reversal candle, which allows us to look for what? A Friday continuation. On Friday, we close over and we could look for a candle 4 continuation into the highs. Let's get into another example. So here we

[07:51] are in our next example and this will have an extra scenario in it. What do we notice here on Friday of the last week? Well we have a candle 2 closure in what? A point of interest. So a lot of

[08:03] people ask do you trade Mondays? The only time I will trade a Monday is when I have a Friday reversal or a Friday candle 2 closure which allows Monday to be the candle 3. So I could look to trade Monday here, and what do we expect? A continuation, right, off of Friday's reversal. But with Monday

[08:20] expanding away, what is that telling us? That this weekly candle wants to go higher. So we could look for a continuation in candle 4 to trade this higher, and we do get that continuation. It's

[08:33] quite small, following a large range, and now we could wait for a new phase of price. Keeping a bullish bias, what do we have here? A candle 2 closure. So we could be looking for price to do what? Take out its previous day low or reach into this fair value gap. Now if we let

[08:48] this next day play out, it does take out our previous day low, close above, but most importantly there is an SMT with RB here, which allows us to treat this like a candle to closure or treat it like it as a swing point like that So with that SMT we now have Monday expanding away Tuesday Wednesday kind of a consolidation Then I would be treating Thursday

[09:12] like a candle 2 or a reversal, and I could be looking for what on Friday? A continuation. Now with this candle closure, I could look for another continuation on Monday because if this

[09:24] is candle 2, or I'm treating it like that because of the SMT, this is candle 3, and then I could be looking for candle 4 to continue higher. But this is another scenario where an inter-week reversal doesn't have to form from a candle 2 at a point of interest if you have SMT. If you notice,

[09:40] this is still our candle 2, but it's not at that point of interest. But it's fine because if we go to RB at this same time, you notice that RB is reaching into that fair value gap there, which allows us to consider that an SMT and trade it higher. So here we are in our last example.

[09:56] and what do we notice here? Well, our monthly timeframe has a candle 2 closure, we are trading lower here, and if we still close below on the end of this month, which we are, we can be looking for a continuation in the following day. As you can see, we've taken out a range high, we have a candle 2

[10:12] closure, candle 3 closes low, so we'd still be looking for Monday to do what? Expand lower, as long as it remains in respect to 50% of this candle. So Monday, we open up and we do expand

[10:24] lower. Now this is where I want to say okay well Monday expands lower that's candle four. I could get a new phase of price here so I want to be a bit more careful. So I could wait for a new swing point to form. What do we get? We do get another continuation but we form these equal lows. I want

[10:41] to wait for another day and then here we form a swing point. Now with this candle we could look for 50% of its wick to be respected and what do we have below? Equal lows as well as these equal

[10:53] lows and these previous month's lows so we have a lot of different confluences range high taken out expansion retracement we can be looking for another expansion so you can see monday expands

[11:05] tuesday also expands wednesday's forming an inter-week reversal so we could be looking for thursday to get a continuation and depending how thursday closes we can get a friday continuation as well here you can see that area is respected we're closing below this up close candle as well

[11:22] as below these equal lows so we are very close to this previous low and these lows here so we could look for friday to continue as well which it does and takes out those lows so just to review

[11:34] monday expands away as a continuation of thursday's reversal here we leave tuesday alone as it's already expanded a fair bit wait for a new swing point to form in this case that's wednesday which

[11:46] allows us to look for thursday and friday to be a continuation move as well now in ensure we reversal can form on Wednesday, Thursday. It doesn't have to be so picture perfect,

[11:58] but hopefully these various scenarios helped you learn it. If you did enjoy it, please give it a like and a subscribe, and I'll see you guys next time.