What is TGIF in Trading?
45sDefines a unique trading concept with a catchy acronym, sparking curiosity.
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This video is the final installment in a weekly profile series, focusing on the 'TGIF' trading strategy. TGIF is a specific pattern where Friday's price action forms the wick of the weekly candle, following a classic expansion week. The presenter outlines the criteria for a valid TGIF setup and demonstrates it with multiple TradingView chart examples.
Chapters
[00:16]
Definition of TGIF
TGIF is a strategy that revolves around a classic expansion weekly profile. It looks to trade the WIC (Weekly Internal Candle) low or high back to the close of the weekly candle, forming the wick.
[00:53]
Steps for a Valid TGIF Setup
The setup requires: 1) The low (in a bullish scenario) formed on Monday or Tuesday. 2) Expansion through Thursday (ideally three days: Tuesday, Wednesday, Thursday). 3) Price must hit a key level or draw on liquidity. If the key level isn't hit, it's not a valid TGIF setup.
[01:46]
Target Area for TGIF
The target is 20-30% of the weekly range (0.2 or 0.3 on a Fib). This is the area where price is expected to return to on Friday, forming the weekly wick.
[02:49]
Example 1: Bullish TGIF
In the first example, a low formed on Tuesday, expansion occurred through Thursday, and a higher timeframe key level was hit. This met all requirements for a valid TGIF, allowing for a short on Friday.
[03:25]
Thursday Reversal vs. Friday Reversal
If Thursday forms a reversal, look for Friday to continue off of that. If Thursday does not form a reversal, then look for Friday to form the reversal itself.
[05:29]
Example 2: Invalid TGIF (No Key Level)
In this example, there was expansion, but no relevant level was hit. Therefore, it was not a valid TGIF setup, and price continued lower instead of retracing.
[07:00]
Example 3: TGIF with Friday Reversal
Here, the relevant level was hit on Friday. After hitting the level, a 4-hour bullish candle closure provided confirmation, leading to a successful 2R trade back into the range.
[09:41]
Example 4: Invalid TGIF (Continuation vs. Reversal)
Even when a key level is hit, it's important to analyze the phases of price. If price takes out a high but only retraces slightly and continues, it's not a reversal, and TGIF is not applicable.
[11:03]
Example 5: TGIF with Thursday Reversal
In this final example, Thursday formed a reversal candle after hitting an objective. This made Friday a continuation day, where price moved back into the weekly range.
TGIF is a specific weekly profile strategy that requires a low/high on Monday/Tuesday, expansion through Thursday, and a hit on a key level. The strategy aims to trade the retracement or reversal on Friday that forms the weekly candle's wick, targeting 20-30% of the weekly range.
Mentioned in this Video
Tutorial Checklist
5
07:54
Wait for confirmation (e.g., hourly change in state of delivery, candle closure) before entering.
💡 Key Takeaways
⚖️
TGIF Definition
Provides a clear, concise definition of the strategy, setting the foundation for the entire video.
00:16
🔧
Setup Criteria
Outlines the exact, testable conditions required for a valid TGIF setup, making it actionable.
00:53
📊
Target Area
Gives a specific, quantifiable target (20-30% of weekly range) which is crucial for risk management.
01:46
💡
Thursday vs. Friday Reversal
Clarifies the decision-making process based on Thursday's price action, adding nuance to the strategy.
03:25
⚖️
Importance of Daily Chart
Emphasizes the need to check higher timeframe levels, preventing false setups.
06:45Full Transcript
[00:00] How's it going everyone and welcome to the final video in my weekly profile series and
[00:16] that will be on TGIF. So what is TGIF? TGIF is going to revolve around a classic expansion weekly profile. So if you haven't already seen that video, it is crucial to understand that.
[00:28] So go ahead and go back into this playlist and that will be the first video in the playlist. Check that out before watching more of this video. But when we have a classic expansion week, we have expansion through Thursday. What is TGIF?
[00:41] Well, TGIF is going to be looking to trade that WIC low to the close of the weekly candle or the WIC high to the close of the weekly candle in a bullish scenario. Now, how do we do that?
[00:53] Well, we're going to be focused on Friday alone. So what are the steps to look for a valid TGIF setup? We need to have the low in a bullish scenario formed on Monday or Tuesday.
[01:05] This will be the same as a classic expansion week. From here, we want to see expansion through Thursday. So generally, it's best if it's three days of expansion, but Tuesday, Wednesday, and Thursday.
[01:17] And we need it to hit a key level or the draw on liquidity. If our key level has not been hit, it doesn't make sense to look back into the range, right? we would be wanting to see a continuation into that key level. So once both of those things have
[01:30] been met, we can then look for Friday to return back into the range, which forms the what? The wick of the weekly candle. And with a bearish scenario, it looks the same, but it is just reversed. Now, what do we actually want to look to target on this profile? Well, with a classic
[01:46] expansion week, we want to see price close near the lows. Now, with that, we'd want to look for 20 to 30 percent of the weekly range. So going from the high of the week to the low of the week, 20 to 30 percent here, or 0.2 or 0.3 on a Fib. That's the area we want to see price go back up
[02:02] to on Friday or go back down to on Friday here. Let's get into TradingView and go over a few examples. So here we are in our first example, and you can see that price is trending up. What do we have here? We have price taking out these equal lows, as well as reaching into this fair
[02:18] value gap here which we can mark out. Now with this we have a nice v-shaped reversal and you can see that by a fair value gap here and a fair value gap here and that forms a change in the state of delivery. So with this change in the state of delivery we could anticipate price to continue
[02:32] higher. We have expansion. This is looking like a retracement so we could look for the retracement to end and you need protected swing to form and to trade higher. Let's see what happens. So here we do? Get a move lower on Monday. Tuesday, what do we do? We have a candle to closure, which is ideal
[02:49] because it is forming a protected swing. And so then now we can be looking for a continuation on Wednesday and Thursday. So this video is about TGIF. Now here, what do we see? We have expansion Tuesday Wednesday Thursday So a classic expansion week Now do we hit an objective We do We take out this high here on the left So all the requirements have been met for a valid
[03:11] TGIF. We have a low on Tuesday, expansion through Thursday, and we hit a higher time frame key level. So this is where we could be looking for price to trade lower. Now generally speaking, if Thursday
[03:25] forms a reversal, we can look for Friday to continue off of that. If Thursday doesn't form reversal then we are looking for friday to format reversal so let's go down to the hourly time frame head down here on the hourly time frame has third day fallen day reversal no so we're going to be
[03:39] looking for friday to form that reversal so let's see what happens if we go and take out this previous high here we take out the previous high we want to look for your confirmation via candlesticks or a change in the state delivery i prefer a change in the state delivery earlier
[03:56] into the day as a volatility is lower but if we get into new york we can use just the candles closures so right here we make a new high we could be waiting for a new change in the state of delivery here and now it's a bit further away you can see we don't want to change in the state of delivery
[04:10] here and here now you can see we have a new move up sweeping out a high so i could either use this candle closure a candle to closure as we're entering new york now or wait for a close through
[04:23] this up-close candle here. Now this is where I could be looking for price to trade lower. Now with the candle 2 closure what are we going to mark out here because it has a larger wick we'll mark out 0.5 of the wick and that's what we want to see price reach up on an intracandle
[04:37] change on the state delivery and then trade lower. What is lower this low here or what can we mark out the whole weekly candle range from low to high mark out our 0.2 to 0.3 and that gives us an area
[04:51] that we can look to trade back into which also lines up with the pda raise around that which is just this low here so that is what we could be looking for on this nose here and we do go ahead
[05:03] and get that so just to review a tgif is a retracement or a reversal on friday that forms the wick of the weekly candle you can see early in the week here we form the lower wick so we open
[05:17] we've fallen below then we trend through thursday getting a higher time frame q level and then friday's move is actually forming the wick of this weekly candle so let's get into another example so
[05:29] here we are in our next example and what do we notice here we have some previous lows equal lows as well down here so we can go ahead and mark those out now what do we notice we have
[05:41] Tuesday forming a high here. Do we get expansion on Wednesday? We do. Do we get expansion on Thursday? Yes we do. Now why would I not be looking for Friday to come back into the range here?
[05:53] Well we have never hit any relevant level. So this is not where I'd be looking for Friday to continue back into the range to form the weekly lick, but where I'd want to see a continuation to reach for this target So here you can see we reach lower Now on the new week what do we do We open up we reach into this gap So are we going to fall behind Monday or Tuesday Here we get Tuesday with a candle to closure Now do we expand
[06:18] Wednesday and Thursday? We do. Now once again, what are we doing? We are just shy of this relevant level. So I would not want to be looking for Friday to come back into the range yet because
[06:30] I'd want to see it trade into the low first. So these are examples of where you're not going to be looking for TGIF even though there's a high on Monday or Tuesday and we have expanded off of it because we haven't hit those relevant levels. And that's why it's important to actually look
[06:45] at the daily chart. Do we have relevant levels? And not just give off of what the candles are doing. So here you can see we do get a little retracement to form that weekly WIC, but we get a continuation on Friday because we have yet to hit that relevant level on Thursday. So these are
[07:00] just examples of where TGIF does not apply. So here we are in our next example, and what do we have? We have Monday making these higher. Tuesday has a candle to closure. What do we get on Wednesday?
[07:14] Wednesday, we get a continuation lower, and we also get a continuation lower on Thursday. You can see Tuesday, Wednesday, Thursday have expanded. Now, have we hit a relevant level? Well, we have a fair value gap up here and right here, but we've traded through both of those.
[07:29] So I wouldn't consider them relevant anymore. We have a fair value gap here and a candle with no wick. So this is an example of where if we are looking for Friday to form the wick, we'd first want to see it hit its relevant level.
[07:42] We could be looking for a continuation lower and if we get a reaction down here, then we can look for it to come back into the range. Let's go to the hourly timeframe here. Now, what do we do if we actually want to trade this?
[07:54] So we want to first wait for that relevant level to be hit. So here we do, open below, and we reach into that relevant level. Now here is where we need to wait for this wick of the daily candle to form.
[08:06] If we're trying to trade this move counter trend, we want to have some sort of confirmation that the daily low has formed that we can trade away from. We can either do that by waiting for an hourly change in the stated delivery, or if we get into New York, a lower timeframe change in the stated delivery, or we can use candle
[08:20] closures. So let's say for instance we go to the 4 hour timeframe, we could wait for a 4 hour candle closure that is bullish and here we do get that 4 hour candle closure that is bullish. So if I zoom out go ahead and put on my indicator that will show my 4 hour and 15 minute model. Let's see
[08:36] what happens. Here you can see we have what a reversal with a change in the state delivery and then we have continuation forming. We have a continuation there as well as what a new
[08:49] continuation forming when we close over this level. This means I could take an entry on the open I might stop on the low and why am I choosing this low? Because it's below the EQ of this previous candle and I could be looking for 2R. Let's see what happens.
[09:05] And there we get our 2R. So just to review why could this trade work out Well because we have a TGIF setup We have Tuesday or Monday forming the higher league expansion through Thursday we hit a relevant level Now in this particular example we hit the relevant level on Friday
[09:24] but once we hit that relevant level, we can look to trade it back into the range to form the wick of the weekly candle. So here we are in this next example, and let's just take a look at this in hindsight. So what do we have? We have the expansion, consolidation, and then we expand again.
[09:41] But what do we notice? We have Tuesday, for May low, Wednesday expanding, Thursday expanding. Now why wouldn't we be looking for a TGIF here? Well because we have the previous highs over here. And you may be saying, well aren't these considered a relevant level as well?
[09:57] And yes, you consider those a relevant level. But we want to take a look at the phases of price around those levels. We want to see, do we actually reverse off of that level, or do we retrace or consolidate for a continuation?
[10:11] And you can see, as we expand into this level here, we take it out. Do we get a reversal? No. A reversal would have looked like this, where we take out this high, and we have a nice V-shaped reversal there.
[10:23] But what do we get? We take out the high, we get a small retracement, and then a continuation, which tells us that we're not looking for a TGIF, And it's okay to trade this towards this higher term from objective because we are not reversing off of this high so we can get a continuation.
[10:38] Now, if you ever want to learn concepts, the best way to do it is just in hindsight. Go find examples in the chart. Quit trying to test yourself on knowledge that you haven't learned. Go learn it first, then test yourself. So that's why I'm showing an example like this.
[10:51] It already has formed. I already know what is happening. That's how I learn. So let's get into one more example. So here we are in our last example. And you'll notice, not everyone is picture perfect, right?
[11:03] So let's take a look at this. Monday, we have a consolidation. Tuesday, we sweep out Monday and Friday to form a new swing, candle to closure. Wednesday, we expand into an objective, right?
[11:16] On Thursday, we hit that objective and form a reversal candle. So this can also be a TGIF, but this is where Thursday forms a reversal. And this is where Friday is the continuation day. So if we go down to the hourly timeframe, what are we looking for if we want to trade
[11:30] a continuation in Friday, or we want to see an hourly change in the state of delivery, then we can be looking for this to trade back lower. So if we remove the drawings, we have hit our higher timeframe objectives, we've expanded
[11:42] from Tuesday, Wednesday into Thursday, the Thursday formed a reversal, so we can look for Friday to get a small continuation lower, or reach back into the weekly range. Here you can see, it's a bit choppy, but we do get that continuation, or that move back
[11:56] into the range on Friday. I hope you found this weekly profile series helpful. If you did, please consider liking and subscribing, and if you want a new series, please let me know in the comment section below what you would like to see.
[12:08] With that said, thanks for watching, and I'll see you guys next week. Have a good one.
[12:21] you
