Video summary

6) GXT Model | GXT - ANAMOLY | Advanced Course

Main summary

Key takeaways

Educational

Main lesson: the GXT Model (Anomaly Course, Lesson 6)

  • The video explains how to mechanically align multiple timeframes so trades occur in the same directional context.
  • The core goal is to align three timeframes “in the same direction” using specific candle types called expansion candles and retracement/confirmation candles (notably C2 and C3).

Core alignment goal (3-timeframe mechanical alignment)

What “alignment” means in this model

  • Mechanically align three timeframes in the same direction:
    • Daily
    • 4-hour (4H)
    • Hourly / 30-minute (1H / 30M)

Expansion candles and trading restrictions

  • In the example workflow, Daily is treated as an expansion candle.
  • When taking a trade:
    • 4H must be an expansion candle (directional context).
    • 1H/30M must also be an expansion candle for entry timing.
  • The model warns not to trade inside the 4H window if that’s presented as an undesirable case (example given: “large wick” / wick problems).

Candle behavior used to qualify an entry

Look for situations where:

  • The hourly/30M shows an expansion candle with a small wick (a “clean” sign).
  • The 4H and daily expansions are consistent with that direction.

Example logic:

  • If any timeframe is not supporting expansion (e.g., the hourly/30M expansion is “not the right type” due to wick/structure), then wait for re-alignment.

“Mechanically” doing alignment: the 3 sequences of GXT

The video states there are three sequences, defined by whether price opens within an aligned swing or misaligns and must realign.

1) Continuation sequence (open within aligned swing)

  • Definition: A higher timeframe candle opens within an already-aligned swing.
  • Example pairing mentioned:
    • Weekly (higher timeframe) + Daily (aligned swing) for continuation.
  • Key candle-opening rule:
    • Higher timeframe opens inside C3 or C4 (aligned-swing territory).
  • Why it often needs less “deep low” creation:
    • Prior structure suggests reversal has already happened, so the next move is expected to expand rather than form a major new low/high.

2) Reversal sequence (higher timeframe extreme confirmed by daily C2)

  • Definition: The weekly high/low (or higher timeframe extreme) is formed via a reversal candle, but the model waits for daily C2 to confirm the extreme.
  • Rule stated:
    • Wait for a daily C2 after the higher timeframe swing extreme develops.
    • The daily C2 is treated as confirmation that the low/high of the week is “in,” enabling expansion trading afterward.
  • Emphasis:
    • The higher timeframe extreme is not assumed immediately; it’s confirmed through aligned swing timeframes.

3) Expansion / Align (misalignment occurs; wait for realignment via C2)

  • Definition: When price does not open within an aligned swing, the model expects price to misalign, retrace, and later realign.
  • Rule:
    • Wait for the align timeframe to retrace and form a C2 candle.
    • Once C2 is formed, enter so that the lower timeframe returns to alignment with the higher timeframe expansion (then the higher expansion can “continue”).

Applying the model across different timeframe “profiles”

The repeated concept is: use an aligned swing on the higher timeframe, then confirm with aligned swing behavior on the chosen lower timeframe.

A) Weekly (higher) + Daily (aligned swing)

  • Continuation
    • Weekly opens within aligned daily swing (daily C3/C4-style condition).
  • Reversal
    • Daily confirms the high/low representing the weekly extreme using daily C2 confirmation.

B) Daily (higher) + 4H (aligned swing)

  • Continuation
    • Daily opens within an aligned swing on 4H (4H C3/C4 logic).
    • Often described as occurring when certain sessions reverse (example mentions PM session reverse).
  • Reversal
    • Wait for swing formation to define the low/high of the day, using 4H as confirmation.
    • Described as “daily reversal to expansion,” confirmed by 4H swing behavior.
  • Align
    • Daily expands, then price retraces; wait for 4H to realign (forming a 4H C2 inside the daily expansion context).

C) 4H (higher) + 1H/30M (confirmation)

  • Continuation
    • 4H opens with an aligned swing on the lower timeframe (1H/30M opens as hourly/30M C3 or C4).
    • Entry can occur early depending on confirmation.
  • Reversal
    • Only trade the reversal sequence when you see reversal into expansion on 4H, then confirm using 1H/30M swing formations.
  • Align
    • 4H expansion candle is present, but 1H/30M are misaligned.
    • Wait for price to retrace into the 4H candle’s range and hit a key level, then wait for a C2 realignment to enter continuation.

Entry methodology (mechanical rules)

Entries are repeatedly tied to:

  • Key level
  • SMT / change-of-state concept
  • C2 or C3 stage
  • CSD (change of state delivery) as confirmation
  • Small wick preference (for “reversal into expansion” quality)
  • Order blocks / propulsion blocks as execution structure

Definitions: “key trade signatures” for C2/C3 entries

To trade a C2 reversal into expansion (mechanical checklist)

You need:

  • A key level (examples referenced: fair value gap / gap fills / order block zones)
  • SMT (change-of-state behavior)
  • A small wick (interpreted as “reversal into expansion candle” quality)
  • Ideally a V-shaped CSD (for the CSD confirmation style)

Then:

  • After the CSD forms, enter to target C3 expansion.
  • Stop-loss and targets are tied to structure (order block/high/low).

Alternative C2 entry: two-stage PSP

Another mechanical path described:

  • A two-stage PSP
  • Prior candle runs out a level, then creates a small wick
  • SMT occurs at the key level
  • Then confirm with CSD

This is treated as another valid method to trade reversal into expansion.

Trade structuring: confirmation and entry types

C3 positional entry (more conservative)

The video describes positional C3 entries like:

  • Mark out equilibrium (EQ) for the prior candle.
  • Wait for price to hit a key level within the previous candle range.
  • Execution example:
    • Use a fair value gap as the key level.
  • Stop-loss:
    • Placed on the low of the prior structure (per examples).

C3 confirmation entry (more conservative)

  • Confirm the low/high of C3 using the lower timeframe.
  • Entry occurs when:
    • The lower timeframe opens and forms an order block that “protects” the wick/level.
  • Then:
    • Expect expansion.

Continuation trade entry logic

  • Continuation is described as:
    • Let the candle open low first
    • Hit a key level
    • Then wait for CSD confirmation
  • Result:
    • Extra confirmation often means entering deeper/higher in the range compared to early entry.

Stop-loss placement rules (common logic throughout)

Stop at order-block body vs swing low

  • Stop loss at candle body
    • Use when confirming/opposing candles are bulky (mostly body, not wick-heavy).
    • Rationale: reversal expansion after confirmation shouldn’t require deep retracement into extremes.
  • Stop loss at swing low/high
    • Use when confirming candles have large wicks (wick-heavy ~50/50 body/wick).
    • Rationale: wick-based structure is fragile; body placement risks being “wicked out.”

Continuation stop-loss tendency

  • Continuation often requires more conservative placement (often at swing low/high rather than body), due to natural retracement behavior after expansion.

Trailing stop-loss and break-even logic

Reversal: trailing from early CSD entry

Method described:

  • Enter on the first CSD early.
  • Place initial stop at the earlier invalidation.
  • When price tags and confirms a propulsion block / protected level, move stop closer.

Benefit emphasized:

  • Stop can be trimmed quickly, substantially reducing risk.

Break-even trigger options mentioned:

  • After a sufficient move (e.g., around a level where a protected order block forms), or
  • When hitting ~2R.

Continuation: break-even after protected level re-test

  • If entering at the propulsion block:
    • When price revisits that area or forms an order block above entry, move stop to break-even.

Filter against managing too early

  • “Move stops only after retracement is meaningful” using premium/discount EQ-style logic.
  • Avoid break-even too early if retracement is too shallow to prevent getting whipped out.

Targets, partials, and holding to liquidity draw

Minimum RR and general target philosophy

  • “You will never target under 2R.”
  • Average RR is often higher than 2R (example target style: 3–4R depending on timeframe/objectives).

Partial profit approach (half at relevant levels)

  • Partials emphasized at relevant internal levels, not only at 2R.
  • Example rule:
    • Take 50% at internal relevant levels where reward is at least 2R
    • Hold the remainder toward overall draw liquidity (higher timeframe opposing liquidity).

Win-rate expectation

  • Stated expectation: about 40–50% win rate can still be profitable due to the RR profile.
  • Many losses are not “full losses” because break-even/trailing can occur quickly.

Step-by-step “mechanical” workflow (condensed)

  1. Determine the higher timeframe expansion candle (Daily/4H/Weekly depending on the section).
  2. Decide which GXT sequence applies:
    • Continuation: higher TF candle opens in an aligned swing (C3/C4).
    • Reversal: wait for aligned timeframe C2 confirmation of the extreme.
    • Expansion/Align: lower TF misaligns; wait for C2 realignment.
  3. On the aligned/confirmation timeframe, require:
    • Key level
    • SMT / change of state
    • Small wick (for reversal into expansion quality)
    • CSD (V-shaped preferred) for confirmation
  4. Confirm where the C2/C3 candle belongs:
    • Enter to capture C3 expansion after C2 confirmation
  5. Execution:
    • Use order block / propulsion block concepts around the confirmation structure
  6. Stop-loss placement:
    • Body if opposing candles are bulky (body-heavy)
    • Swing extreme if opposing candles are wick-heavy
  7. Trade management:
    • For reversal: trail to the protected propulsion block after entry triggers
    • For continuation: move stop after a revisiting / order block formation
    • Break-even filtered by retracement depth logic (premium/discount EQ logic)
  8. Targets:
    • Minimum 2R
    • Partial ~50% at relevant internal levels, remainder to draw liquidity

Speakers / sources featured

  • Speaker: The instructor/trader delivering the lesson (no name provided in the subtitles).
  • Source: No external sources, interviews, or named organizations referenced in the subtitles.

Original video