The Phases of Price Action: A Blueprint for Market Movement

Summary

The presenter explains how to combine four price-action phases—expansion, retracement, consolidation, and reversal—into a continuous trading framework. The approach combines price behavior with higher-timeframe bias and candle closes to identify potential continuation or reversal setups.

Framework and methodology

• Begin with expansion, then identify the next phase:
  • Expansion → retracement: Continuation is expected; look for a new expansion in the original direction.
  • Expansion → consolidation: Wait for a breakout or a liquidity “manipulation”—a move beyond a range boundary that reverses. A breakout may support continuation, while a failed move may contribute to a reversal.
  • Expansion → expansion in the opposite direction: Treat this as a reversal signal and look for a subsequent continuation in the new direction.
• After each new expansion, reassess the phase and repeat the process.
• Align setups with higher-timeframe context. The presenter primarily uses daily bias and daily candle closes, then checks the 4-hour and hourly charts before looking for lower-timeframe entries.
• Use protected swings, candle closes, equilibrium (EQ), and fair value gaps to help define entries, invalidation points, and potential targets.
• The model is described as fractal. The presenter also demonstrates using the hourly chart as the higher timeframe and the 5-minute chart for lower-timeframe price action.

Trading examples and risk management

• In a bullish context, the presenter looks for a consolidation low to be swept before a move higher, or for a breakout above the range followed by a retracement and continuation. Bearish conditions are treated conversely.
• He waits for confirming price action rather than assuming a move is a reversal or continuation. A higher-timeframe candle close can help confirm a change in the state of delivery.
• Stops are placed beyond a relevant protected swing. In one example, he cites 2R (2:1 reward-to-risk) as a minimum trade requirement. Targets may include prior-day highs or lows, session lows, or the previous day’s low.
• He cautions against forcing entries. If a setup does not form the protected swing or confirmation his system requires, he may miss the trade. He also says he does not change his bias solely because price briefly moves against it, and acknowledges that some trades will be wrong or invalidated.

Assets, instruments, and tools mentioned

• NQ, mentioned in a chart example
• Futures and charting context, including TradingView
• Technical concepts and tools: fair value gaps, EQ, SMT, protected swings, candle closes, and an indicator

Key numbers and disclosures

• 2R minimum is the explicit performance or risk-to-reward threshold given.
• Timeframes discussed include daily, 4-hour, hourly, 15-minute, and 5-minute charts.
• No specific price levels, yields, valuation multiples, or return statistics are provided.
• No explicit “not financial advice” disclaimer appears in the subtitles.

Presenter and sources

Presenter: TTrades. The individual is not named in the subtitles. The video refers to earlier videos in his price-phases series and demonstrates chart examples on TradingView.