Phases of Price: A Mechanical Way to Get Your Bias

Core Framework

The presenter describes four price phases: expansion, consolidation, retracement (also called a “setback” or pullback), and reversal. The approach is a price-action trading framework, not a discussion of company fundamentals or long-term portfolio construction.

The main rule is to avoid trading consolidation and retracements as standalone phases. Instead, use the preceding expansion to establish a directional bias, then look for a new expansion after consolidation or a pullback. Reversals are described as expansions away from key levels, though the presenter also says traders can skip reversal setups and focus on continuation trades.

Trading Methodology

• Set the bias from the latest expansion: An upward expansion suggests a bullish bias; a downward expansion suggests a bearish bias.
• Assess expansion characteristics: The presenter looks for one-way movement, gaps, order blocks supporting price, and relatively shallow pullbacks. In an uptrend, lows are treated as “protected”; the inverse applies in a downtrend.
• Assess the next phase:
  • Expansion → consolidation: Treated as a continuation signal in the direction of the preceding expansion.
  • Expansion → retracement: Also treated as a continuation setup. The retracement is identified by nearby or equal highs or lows and is expected to end at a key level.

Trading Consolidation

• Preferred approach: Wait for a manipulation—a move through one side of the range—then trade the subsequent expansion or distribution toward liquidity.
• Alternative approach: If price does not manipulate the range, wait for a body close beyond it. Then look for a new key level, such as a gap, to form before entering toward a liquidity target.

Trading a Pullback

Wait for price to reach a key level, then look for confirmation—often a “C2” candle or lower-timeframe CSD—before trading in the original trend direction.

Reversal Criteria

The presenter says a reversal requires a key level, an expansion toward it followed by an expansion away, and confirmation with CSD. SMT is also described as necessary. A higher-timeframe swing or candle close is offered as a mechanical confirmation for a lower-timeframe reversal.

Entries, Risk, and Exits

Examples use lower-timeframe confirmation, with stops placed beyond an order block, protected high or low, or nearby swing. The presenter favors shallow pullbacks and says price should respect key levels. Liquidity targets or fixed risk multiples are used as possible exits.

The presenter says consolidation should normally lead to expansion. An apparent direct move from consolidation into reversal or retracement is treated as a possible false move. These are the presenter’s stated rules, not independently verified market laws.

Markets, Instruments, and Examples

• YM — Dow-related futures contract or chart
• GC — Gold futures chart
• Silver — Chart referred to as silver; no ticker specified
• Euro — Currency or euro-market chart; no ticker specified
• TradingView — Used for chart examples

Concepts mentioned include liquidity, gaps, order blocks, key levels, equal highs and lows, candle 2 (“C2”), CSD, SMT, and “market maker” buying and selling models.

Key Numbers and Timelines

• Pullbacks are discussed relative to 50% and 70% levels. The presenter generally prefers shallow retracements and says price should respect key levels.
• Example trade outcomes shown or proposed include approximately 1.2R, 2R, and 2.3R. These are chart examples, not a verified performance record.
• Examples use 4-hour, M15, and M5 charts. The presenter says the framework can be applied to scalping, day trading, or swing trading across timeframes.

Cautions and Disclosures

The presenter cautions against trading during consolidation and against treating every apparent reversal from consolidation as genuine.

No explicit “not financial advice” disclaimer is included in the subtitles. The examples do not establish a live, audited track record.

Presenter/source: The presenter is not named in the subtitles; the channel is AleeE.