Video summary

Anomaly - Advanced Course - Lesson 1 - Phases Of price

Main summary

Key takeaways

Educational

Main ideas / concepts taught

  • “Phases of price” model (fractal): Price moves through repeating phases—expansion → retracement/consolidation → expansion—with higher-timeframe structure guiding lower-timeframe confirmation.
  • Core rule about all phases: Every phase starts and ends with expansion.
    • Consolidation and retracement are treated as continuation signatures (they are not expected to reverse).
    • Reversal from consolidation is possible, but the course’s method does not engage with that case.
  • If-then logic is the operational method for predicting what should follow a trigger (expansion, retracement, reversal, then the next expansion).
  • Use “key levels” to anchor decisions: Often tied to features like fair value gaps (FVGs) and other relevant highs/lows.
  • Reversal confirmation is essential:
    • Expansion into a key level should produce a reversal signature,
    • Then expansion away confirmation via change of state delivery (CSD).
  • Displacement behavior and order flow signals matter:
    • During expansion, look for displacement through highs and rejection of lows, plus structure signals like FVG respect.
  • Avoid “deep retracements” as a warning sign: Deep pullbacks (e.g., into EQ/discount ranges) are framed as red flags.
  • “Seek and destroy” is a special consolidation form:
    • Manipulation of one side of the range first,
    • Followed by failure to displace through the range low/high,
    • Creating a consolidation structure; it can be traded back into the high if order flow is expected to resume.
  • C2 / reversal candle and alignment across timeframes:
    • Higher timeframe provides the “universal model,”
    • Lower timeframe provides confirmation (e.g., V-shape reversal patterns, C2 confirmation behavior).

Methodology / rules (detailed)

A) The “if-then” statements (phase transitions)

  • If price shows expansion, then consolidation is expected to lead to continuation (not reversal as part of the method).
  • If price expands and then retraces, then the next expected move is expansion again.
  • If price trades into a relevant key level and prints a reversal signature, then expansion should follow.

B) Consolidation: what it is and what to do

  • After expansion, price may become range bound between a consolidation low and high.
  • It may show failure swings on both sides.
  • Do not engage immediately; instead:
    • Wait until one side of the range is met (i.e., price touches/manipulates a defined level).
  • Consolidation cannot “reverse” in the method’s logic:
    • The course assumes consolidation is a continuation signature.

Seek-and-destroy / broadening behavior (consolidation subtype)

  • Expansion → consolidation → manipulation of the high first (bullish scenario: liquidity above is engineered first).
  • The move may go lower just to manipulate the range low.
  • If price fails to displace through that low, it is labeled seek-and-destroy, treated as consolidation.
  • Trading idea mentioned:
    • Potentially trade back toward the high if it becomes consistent with expected order flow.
    • Rationale: price is not considered “reversed consolidation” under the system.

C) Retracement: signatures and constraints

  • Retracement is after expansion: price comes back into the range, but the printing style matters:
    • Close proximity highs
    • Deep pullbacks back toward the retracement point high
    • Lackluster movement (not strong decisive displacement)
    • Retracing is often associated with tracing into gaps
  • Another retracement pattern:
    • Expansion → consolidation → trades into the consolidation low, but fails to manipulate it.
  • In higher-timeframe retracement cases:
    • Price is typically headed toward a higher-timeframe fair value gap in the range,
    • Instead of manipulating the consolidation low to reverse, because the model assumes consolidation shouldn’t reverse.

D) Reversal: what to look for

  • A reversal signature occurs when:
    • Price expands into a key level,
    • Then expands away, forming a V-shape.

Reversal confirmation / CSD logic

  • The expansion into the key level creates an opposing candle / order block.
  • When price expands away, it creates a change in state delivery (CSD).
  • Confirmation trigger: Close above the opening price (as stated) and the resulting change of state.
  • Another reversal support technique:
    • SMT divergence, paired with the specific key level where you expect the reversal.

E) Expansion: signatures and what “good” looks like

  • Expansion highlights highs and lows behavior:
    • After the reversal V-shape, price should displace through highs and reject lows.
  • Order-flow within expansion:
    • Respecting opposing candles and fair value gaps.
  • Retracement depth rules during expansion:
    • After reversal and while moving to draw on liquidity, avoid deep retracements.
    • Ideally do not hit EQ and avoid deep discount pullbacks in a bullish expansion.
    • Deep retracement = red flag.
  • “Small wick logic”:
    • A lower-timeframe retracement (small wick) is acceptable if it respects:
      • equilibrium of the previous candle’s range
    • The system prefers shallow pullbacks, not deep EQ runs.

F) Higher-timeframe vs lower-timeframe confirmation workflow

  • Higher timeframe provides the “universal model”
    • Example mentioned: weekly as universal, then daily, then lower intraday confirmation (e.g., hourly / 5-minute).
  • Higher timeframe consolidation example:
    • Expansion occurs, then an inside bar indicates consolidation:
      • The next candle fails to take out the prior candle’s high/low.
  • Higher timeframe retracement example:
    • Expansion leaves close proximity highs (liquidity/failure swings),
    • Leading to deep pullbacks into the retracement point, then expansion again.
  • Higher timeframe reversal example (C2):
    • A C2 reversal candle after hitting a key level (often via FVG).

G) “Put it all together” (example confirmation sequence)

  • Reversal alignment:

    • On higher timeframe:
      • Identify key level (e.g., fair value gap),
      • Price hits it and produces a C2 reversal candle (in/at that structure).
    • On lower timeframe:
      • Look for the same V-shape reversal signature after price trades into the key level.
      • Expect a sequence like:
        • Expansion to the high → expansion away → change in state delivery → continued expansion.
    • Example stated:
      • Daily (key level & C2) → hourly view → confirmation on 5-minute for the V-shape.

  • After reversal, expect continuation phases:

    • After a C2 reversal, the system anticipates consolidations and retracements on the way toward draw on liquidity.
  • Critical constraint:
    • Fail to manipulate the overall draw-critical low/high.
    • Internal objectives (anything “inside” the higher-timeframe draw) are said to be less important than the external/higher-timeframe draw objective.

Consolidation handling

  • Wait for manipulation of consolidation, then look for:
    • reversal signature (C2) and
    • expansion toward draw on liquidity.

Retracement cap and gap use

  • Retracements are often expected to be capped by fair value gaps.
  • Once price reaches the gap, the expected sequence returns to:
    • expansion → retracement → expansion.

H) Risk / “don’t engage” cues emphasized

  • Don’t engage directly in consolidation; wait for range side interaction.
  • Don’t accept “C2 candle behavior” that doesn’t meaningfully expand away:
    • Example: if C2 prints but C3 does not expand away, the method says don’t engage until expansion away occurs.
  • Avoid deep retracements that reach EQ (framed as a red flag).

Speakers / sources featured

  • No individual speakers are explicitly identified in the subtitles.
  • Source: “Anomaly - Advanced Course - Lesson 1 - Phases Of price” (YouTube video, narrator not named).

Original video