Summary of "Ttrade Garett weekend stream"

Game/Trading Strategy Storyline

The video is a detailed live stream by Garett focusing on trading strategies, specifically how to trade "candle twos" (C2) and use concepts like drivers, SMT (Smart Money Theory), strength switching, and Phase of Price (PoP) for high-probability entries and exits in the futures/equities market. Garett shares his thought process, trade examples, and answers viewer questions about trading mechanics and setups.

Key Concepts & Strategies Discussed

1. Trading Candle Two (C2)

C2 trades are positional entries taken in specific scenarios requiring experience.
Key conditions for trading C2:
- The candle (C2) should have a small wick.
- It should be expanding away from a key level or low of the day.
- Price should be reversing from a key level (e.g., low of day, fair value gap, or order block).
- Avoid trading C2 if it is creating the low of day or reversing at the low of day (too risky).
Two main scenarios for C2 trading:
- Driver expands away from a low or key level, then C2 reverses with a small wick.
- Price retraces before driver, then the driver expands away from the retracement, allowing C2 to be traded.

2. Drivers

Drivers are volatility injections (e.g., 9:30 equity open, news releases).
If reversal is put in prior to the driver, the driver should expand away from the key level.
If no reversal prior to driver, the driver should create the reversal.
Drivers are crucial for filtering trades and confirming market phases.
Example: 8:30 and 9:30 drivers expanding away from lows or retracements confirm trade setups.

3. Strength Switching and SMT (Smart Money Theory)

Strength switching involves rotating into weaker or lagging assets, triggering synchronized moves.
SMT refers to divergences or confirmations of price manipulation and reversals.
SMT confirmation often occurs after a true reversal and validates key levels.
Strength switching helps identify which assets will lead or lag in reversals or continuations.
Trades are taken when all assets confirm reversal or continuation signals.

4. Phase of Price (PoP)

Price phases include expansion, consolidation, and continuation.
Reversal signatures can be seen on lower time frames (1-hour, 4-hour).
If no reversal signature appears on lower time frames, expect consolidation on higher time frames.
Seek and destroy patterns indicate continuation rather than reversal.
PoP analysis helps determine whether price will reverse or continue at key levels.

5. Positional Entries

Positional entries are taken using limit orders at invalidation points inside previous candle ranges.
Requires a clear narrative and liquidity to be drawn into.
Best taken after manipulation and during volatile market phases.
Entries often paired with drivers and SMT confirmation.

6. Trading Examples

Garett shares multiple real trade examples on NQ, ES, YM, and silver futures.
Trades are often partial, with break-even stops to manage risk.
Emphasizes trading small moves consistently rather than chasing large runs.
Uses fractal models (C1, C2, C3) and fair value gaps/order blocks to identify entries and targets.
Shows how to anticipate price moves based on wick size, driver behavior, and SMT.

7. Invalidation and Risk Management

Invalidation occurs if driver fails to expand away or if price does not reverse as expected.
Stop losses should be placed at invalidation points.
Break-even stops are used once trades are profitable to avoid losses on retracements.
Importance of filtering trades to avoid overtrading and losing edge.

8. Answers to Viewer Questions

How to use PoP for bias: Reversals should show on lower time frames; otherwise, expect consolidation.
Trading lagging assets: Wait for strength switching confirmation.
Swing points and relevant levels: Trade away from protected swings, avoid failure swings unless SMT confirms.
Trading London session: Prefer hourly closures for confirmation due to lower volatility.
Managing trades when price reaches objectives: Use lower time frame signatures to confirm continuation or reversal.
Using C2 divergence to check SMT: Yes, can be used to confirm two-stage SMT setups.
Handling new higher time frame candles opening into POIs: Still valid for trading setups.

Summary of Tips and Step-by-Step Guides

How to trade C2:
- Identify if driver is expanding away from a key level.
- Confirm small wick on C2 candle.
- Confirm price reversal from key level (low of day, fair value gap).
- Avoid trading C2 at low of day reversals.
- Use SMT and strength switching as additional confirmation.