MMT ESSENTIALS: NARRATIVE
The art of finding the PD array that will holdβ
A Threadπ§΅
πππ«π«πππ’π―π π’π¬ ππ‘π ππ ππ«π«ππ² ππ«π¨π¦ π°π‘ππ«π π°π πππ§ ππ«πππ π‘π’π π‘ππ«/π₯π¨π°ππ« π’π§ ππ‘π ππ’π«ππππ’π¨π§ π¨π ππ‘π ππ ππ«π«ππ² π°π π°ππ§π ππ¨ ππ«πππ ππ¨π°ππ«ππ¬
An order flow leg shows us the PD array to trade from and the PD array to trade towards
The order flow leg has all 3 PD Arrays:
1) ππ€πππ πππππ‘π
2) πΉπππ ππππ’π πΊππ
3) πΉπππ ππππ’π π΄πππ
Price could retrace to any of the PD arrays in the order flow leg. ππ¨π°ππ―ππ«, ππ‘π π©π«π¨ππππ’π₯π’ππ² ππ¨π« ππππ‘ ππ ππ«π«ππ² ππ’ππππ«π¬
Our job is to find the PD array with a higher probability to trade from in the order flow leg so that the odds for profitability are in our favor
To find the highest probability narrative, let us discuss the three lines of defenseπ‘οΈ
π
π’π«π¬π π₯π’π§π π¨π πππππ§π¬ππ‘οΈ
πβππ πππππ πππ‘πππππ πππ‘π ππ πππππ ππππ€ πππ, π‘βπ ππππ π‘ ππ· πππππ¦ ππ‘ πππππ’ππ‘πππ ππ π‘βπ ππππ π‘ ππππ ππ ππππππ π
The highest probability scenario to trade from the FLOD is when the FLOD is a Fair Value Gapβ
When the FLOD is a Fair Value Area (FVA), it has a lower probability than an FVG as we can see in the picture that there is a recent bullish momentum going against usβ
ππ―ππ«π₯ππ©π©π’π§π πππππ§π¬ππ‘οΈ
πβπ ππππ π€βπππ πππππ ππππ π‘ πππ‘πππππ πππ‘π π‘βπ ππ£πππππππππ ππ π‘π€π ππ· π΄ππππ¦π ππ π‘πππππ π‘βπ ππ£πππππππππ ππππππ π
The highest probability scenario to trade from the OD is when it is a Fair Value Area because price has no reason to retrace above the FVA as they have already been offered fair valueβ
A Fair Value Gap as OD is a probable narrative compared to the FVAβ
Remember, we want to identify the highest probable scenario to remain profitable in the long run
πππ¬π π₯π’π§π π¨π πππππ§π¬ππ‘οΈ
π‘βπ πππ π‘ ππ· πππππ¦ π‘βππ‘ πππππ π€πππ πππ‘ππππ π‘π π π‘πππ ππππ‘πππ’π πππ€ππ/βππβππ ππ π‘βπ πππ π‘ ππππ ππ ππππππ π
We do not expect to use LLOD for narrative. we use them as the PD array to trade towards (direction)
We could still use LLOD if there is no FVG in the leg. With no FVG, there is no order flow leg
So the swing point becomes the only line of defense to trade off of.
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