Advanced MMXM Logic: Continuations

Main ideas / lessons

• Market Maker Models (MMxM) and swing logic

  • The talk builds on prior lectures defining swing formations as liquidity models.
  • Reversal behavior is located at swing extremes, specifically structured as C2 candles (swing extremes), often identified using filters like:
    • Cracks in correlation (often two-stage when needed)
    • Candle profiles / open-high-low-close characteristics
    • Protraction profiles
  • A key “order of operations” theme:
    • Expansion requires a swing
    • Swing formations = candle2–candle3 formation logic (liquidity models)
    • Swings are then filtered using the above tools.

• Trading reversals vs trading continuation

  • When trading reversals, the candle at the extreme is still printing; therefore, true reversal confirmation is assumed before candle close, using confluences to anticipate that the extreme will hold until closure.
  • When trading continuation, the lecture emphasizes that:
    • Once a swing is confirmed by candle close (i.e., the C2 closure), continuation trades do not require the same full set of confluences as the original reversal.
    • The focus becomes: trade away from the established extreme toward the opposing side of the range.

• “Opposing side of the range” as the draw

  • Continuation is framed as moving from one side of a range to the opposing side.
  • The “draw” is not just any short-term low/high—it is the opposing side of the range.
  • Proximity determines which swing is the “relevant” one for defining the opposing side:
    • Larger spacing between swing formations creates the range logic.
  • Liquidity imbalance framing:
    • The model has two liquidity types, both referencing the second word “range” (lecture references ERL and IRL naming).

• Candle fractalization / universal model in higher-to-lower timeframes

  • The talk describes a fractal structure:
    • Higher time frame uses market maker model phases
    • Lower time frame uses C1/C2/C3:
      • C1: the manipulated candle range (manipulation of a key level)
      • C2: reversal stage
      • C3: continuation stage
  • Importantly, the instructor argues:
    • You should not treat candle-range theory as random scans of all C1/C2/C3; instead, you filter C1 by key levels (where swings can realistically form), such as gaps or swings.

• C2 extreme continuation requires invalidation logic

  • The lecturer distinguishes cases where you may distrust trading the C2 extreme directly.
  • If the extreme does not present a clean “true reversal,” you can:
    • Wait for mechanical closure
    • Let a new invalidation establish
    • Then trade continuation away from that new invalidation rather than the original suspect extreme.
  • Invaliation definition (mechanical):
    • A swing where price will not return before delivering the opposing side of the range.

• Red flags for trading away from C2 before it closes

  • The lecture lists major reasons to hesitate:
    1. Failure swings
       • If the swing does not deliver the opposing side of the range in the required way.
    2. Lower time frame dynamics suggesting failure to manipulate / continuation mismatch
    3. Lack of “CIC” / true reversal logic, such as:
       • Missing required two-stage crack and correlation
       • Unfavorable lower time-frame dynamics
    4. Large/exaggerated protraction / wick behavior (time + price protraction)
       • Protraction is discussed as distance + time characteristics, not just wick size.
       • Heuristic: exaggerated manipulation can still resolve into expansion, but it changes how permissible the trade is depending on time remaining in the candle.

• Continuation sequences: “model within a model”

  • Continuation is described as:
    • A model within a higher time frame model
    • Built to travel from the confirmed true reversal extreme to the opposing side of the range.
  • Two continuation types are introduced:

Type 1 continuation (preferred / highest probability)

• Conceptual sequence
  • True reversal at higher time frame (C2 extreme)
  • Then continuation occurs via:
    • Retracement into an expansion signature
    • Ending in a continuation low inside a gap
• Aligned frameworks
  • Internal→external range liquidity
  • ICT 2022 model notions (e.g., liquidity sweep → BOS → FVG)
  • Universal sequence ideas
• Core claim
  • Type 1 is highest probability because it shows:
    • Expansion away from the true reversal
    • Followed by retracement back into a gap
    • Then expansion away again (retracement into gap → institutionally sponsored push).

Type 2 continuation (sub-optimal / lower probability)

• Conceptual sequence
  • After reversal candle:
    • Reversal → expansion → retracement → expansion
  • The path involves more range-like behavior (liquidity pairing dynamics).
• Internal model draw framing
  • The continuation high/targets become internal model draw (order-paired internal highs).
• Key claim
  • Type 2 is less ideal because the sequence can involve expansion met with consolidation, sometimes producing lower-quality continuation behavior.

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Methodology / step-by-step instruction bullets (as presented)

A) Determine swing formations (core filters)

• Identify swing extremes (C2) using market maker model context.
• Filter candidate swings using:
  • Cracks in correlation (often two-stage for true reversals)
  • Candle profiles:
    • Open/high/low/close behavior
    • Wick structure
  • Protraction profiles
• Use key levels as the anchoring requirement:
  • Key levels must be gaps or swings, not arbitrary candle formations.

B) When trading reversals (extreme candle is not closed yet)

• Treat the C2 reversal candle as pending until it closes.
• Define “true reversal” using mechanical conditions such as:
  • Two-stage crack in correlation
  • Key level
  • Appropriate wick size
  • Displacement
• Practical rule emphasized:
  • Reversal trades assume the extreme will remain intact until closure.

C) When trading continuation (after the swing is confirmed)

• Step 1: Wait for C2 closure that confirms the swing.
• Step 2: Identify the opposing side of the range as the target draw.
• Step 3: Use proximity to decide which opposing side is relevant (relevant swing selection).
• Step 4: Build continuation using “model within model” sequences:
  • Prefer Type 1 continuation (retracement into expansion signature / gap-based).
  • Use Type 2 only as a less preferred alternative.

D) “Invalidation first” approach when distrust exists at C2 extreme

• If the C2 extreme lacks a convincing true reversal signature:
  • Do not force the trade immediately.
  • Wait for candle close and the formation of a new invalidation.
• Mechanically interpret invalidation as:
  • Price will not return to the prior extreme before delivering the opposing side of the range.

E) Cracks in Correlation requirement logic (includes the only “equation”)

• The instructor states a rule:
  • Let n be the number of cracks in correlation required to filter a swing.
  • At a true reversal, n = 2.
  • For continuation away from the true reversal, cracks required decrease:
    • continuation requires n − 1
• Practical time-frame consequence described:
  • Higher time frame reversal: require two cracks in correlation
  • Higher time frame continuation (gap): require one crack in correlation
  • Lower time frame continuation entry (inside the gap’s reversal signature): require zero cracks in correlation
• Why:
  • Once the swing is filtered at higher timeframe with cracks in correlation, the lower timeframe reversal signature itself (phase/structure) provides enough confirmation.
  • The instructor explicitly claims cracks-in-correlation are not used as the entry filter on the entry timeframe (to avoid noise).

F) Categorize continuation crack patterns (3 types)

The lecture concludes continuation will present one of these three “cracks in correlation” types:

1. Crack at the key level (single-stage continuation)

   • Described as: SMT fill (highest probability category emphasized in their discussion)

2. Crack in the key level via:

   • Consecutive candles (e.g., SMT inside key level), and/or
   • Swing point closure + PSP (precision swing point)

3. Crack at and in the key level (two-stage variant)

   • SMT fill + PSP
   • Includes stage-one SMT followed by stage-two SMT type logic

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Speakers / sources featured (as identifiable from the subtitles)

• “Mr. V” (referenced as the source of an earlier/other YouTube lecture with “streamers” and “key level” questions)
• The main lecturer / instructor (speaker who delivers the lesson; no name given in the subtitles)