Anomaly - Advanced Course - Lesson 2 - Key Level Filtering

Main ideas / lessons

1. Key level filtering is about using the “right” swings

   • The course distinguishes between relevant swings, failure swings, and protected swings.
   • Key levels should come from relevant swings.
   • Setups involving failure swings are treated differently.

2. Define a “relevant swing” using swing spacing (Premium/Discount)

   • A relevant swing is described as having spaced-out highs and lows (enough room/proximity between them).
   • Mechanical rule suggested (Premium/Discount tool):
     • Mark low → high
     • The 50% point is “around here”
     • A low printed at EQ (equilibrium) or within premium is treated as a defined relevant swing
     • A low printed in deep discount is not treated as relevant (too close / not appropriate by the stated filter)
   • Purpose of relevant swings: they provide the highs/lows used to build key levels.

3. Identify “failure swings” (the opposite concept)

   • A failure swing is characterized by not being spaced out (closer proximity highs/lows compared to relevant swings).
   • Decision-making implication:
     • When price engages a failure swing, you do not look for a reversal.
     • Instead, treat failure swings as a draw on liquidity / liquidity draw.

4. Identify “protected swings”

   • A protected swing occurs when:
     • Price engages a relevant swing
     • Then manipulates it and expands away
   • Implication:
     • The area becomes “cleared out” (liquidity removed)
     • So there is no reason to return to the protected level
   • The course references:
     • “higher resistance liquidity being created”
     • “fair value swing” sitting above a relevant swing
   • Core idea: protection comes from manipulation + displacement away.

---

Methodology: gap/timeframe filtering (15-minute gaps vs 1-hour/30-minute gaps)

Core concept

• The lesson gives a mechanical way to choose which gap timeframe to use depending on where price is in the reversal / draw-on-liquidity journey.

Instructional bullets

• Use 15-minute gaps early in the reversal
  • Especially early phases like being “within an hourly C2/C3/C4”
  • 15-minute gap creation is tied to the creation of hourly swing points
• Use higher-timeframe gaps later
  • After price engages hourly relevant levels and time passes (e.g., “candle five, candle six on the hourly”)
  • This is when you can see hourly gaps / a new phase of price on higher timeframes
• Rule-of-thumb framing
  • Lower in the range early → favor 15-minute gaps
  • Higher in the range after key levels are hit → favor higher timeframe gaps
• Alternative universal-model framing
  • “Below EQ” → use 15-minute gaps
  • “Above EQ and in premium” → use higher timeframe gaps

---

Methodology: entry filtering using “gap protection” rules

Key problem being addressed

• A trade can look valid on a higher timeframe (e.g., C2/C3 expansion / order block), but the lower timeframe may contain a fair value gap that is forming, which means:
  • Your stop might be placed above a higher-timeframe gap
  • That higher-timeframe gap may be a future gap
  • If it’s a future gap, your stop is not protected

Instructional bullets (detailed)

• Before entering, check the inside of the prior key candle
  • If a previous C2 candle contains a 15-minute fair value gap, then:
    • Entering before tagging that 15-minute gap high can place your stop above an unprotected / higher-timeframe gap
• Wait for the gap to be created/confirmed so it becomes “protected”
  • The course emphasizes:
    • Wait for the candle to close
    • Then wait for price to tag the gap
    • Then use confirmation (it mentions CSD as part of confirmation)
• Handle “future gaps” vs “existing gaps”
  • Sometimes a candle opens without an immediate gap, but a future gap will be created by the candle close
  • Example implication: if wicks don’t “meet” at close → suggests future gap creation
  • If you set a stop-loss above the high of a future gap, that stop is not protected
• Protected lower timeframe entry criteria
  • Use entries only when:
    • The relevant lower-timeframe gap is tagged after it has been created
    • Then the subsequent reaction confirms the protected structure
• Avoid entries that would allow a future higher-timeframe gap to form
  • The lesson includes scenarios where:
    • People want to enter on “candle four”
    • But the wicks indicate the stop would sit on a future hourly gap
    • Therefore, it’s not valid to treat that as a protected entry

---

Methodology: “gap filtering” workflow (C2/C3 examples)

Instructional bullets

• After a C2 prints on the higher timeframe
  • Immediately check lower timeframes for whether they will create future gaps
  • Specifically mentioned checks: 30-minute and 50-minute charts
• If no future gaps will be created
  • Entry is treated as valid
  • Stops can be placed on appropriate lows (not on unprotected gap highs)
• If future gaps do exist
  • Do not enter immediately
  • Wait until:
    • Price tags the relevant gap
    • The protected structure appears
• Why timing matters
  • If you enter “too early” (during C3/C4 formation), the candle close may later complete and create the future gap that invalidates stop protection

---

Methodology: key level alignments (“model within model”)

Core concept

• Align a higher timeframe universal model with an aligned/inner model:
  • Higher timeframe: draw on liquidity + key level alignment
  • Lower timeframe: entry comes from internal alignment, not just any lower-timeframe signal

Instructional bullets

• Build the higher timeframe universal model
  • Use manipulation ranges (reversal point → draw on liquidity)
• Within that journey, identify:
  • Relevant internal levels (internal highs/lows, gaps)
• Use key level + draw alignment
  • When price displaces away and leaves a failure swing, that often implies:
    • retracement or consolidation
• On retracement/continuation
  • Use the closest relevant low/high opposing the draw
  • Inside the aligned range, ignore order blocks and keep it simpler:
    • “we only use highs and lows and gaps”
• Proceed fractally
  • The same logic repeats at multiple layers:
    • daily → hourly → lower timeframe (and even 50-minute in examples)
  • Each internal engagement creates a new phase of price
  • That phase is where the next key level is formed

---

Speaker/source identification

• No explicit speaker name is provided in the subtitles.
• Source featured: the video’s course instructor/narrator (unnamed).