MMT ESSENTIALS: NARRATIVE
The art of finding the PD array that will holdโญ
A Thread๐งต
The art of finding the PD array that will holdโญ
A Thread๐งต
๐๐๐ซ๐ซ๐๐ญ๐ข๐ฏ๐ ๐ข๐ฌ ๐ญ๐ก๐ ๐๐ ๐๐ซ๐ซ๐๐ฒ ๐๐ซ๐จ๐ฆ ๐ฐ๐ก๐๐ซ๐ ๐ฐ๐ ๐๐๐ง ๐ญ๐ซ๐๐๐ ๐ก๐ข๐ ๐ก๐๐ซ/๐ฅ๐จ๐ฐ๐๐ซ ๐ข๐ง ๐ญ๐ก๐ ๐๐ข๐ซ๐๐๐ญ๐ข๐จ๐ง ๐จ๐ ๐ญ๐ก๐ ๐๐ ๐๐ซ๐ซ๐๐ฒ ๐ฐ๐ ๐ฐ๐๐ง๐ญ ๐ญ๐จ ๐ญ๐ซ๐๐๐ ๐ญ๐จ๐ฐ๐๐ซ๐๐ฌ
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) ๐๐ค๐๐๐ ๐๐๐๐๐ก๐
2) ๐น๐๐๐ ๐๐๐๐ข๐ ๐บ๐๐
3) ๐น๐๐๐ ๐๐๐๐ข๐ ๐ด๐๐๐
Price could retrace to any of the PD arrays in the order flow leg. ๐๐จ๐ฐ๐๐ฏ๐๐ซ, ๐ญ๐ก๐ ๐ฉ๐ซ๐จ๐๐๐๐ข๐ฅ๐ข๐ญ๐ฒ ๐๐จ๐ซ ๐๐๐๐ก ๐๐ ๐๐ซ๐ซ๐๐ฒ ๐๐ข๐๐๐๐ซ๐ฌ
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 defense๐ก๏ธ
The order flow leg has all 3 PD Arrays:
1) ๐๐ค๐๐๐ ๐๐๐๐๐ก๐
2) ๐น๐๐๐ ๐๐๐๐ข๐ ๐บ๐๐
3) ๐น๐๐๐ ๐๐๐๐ข๐ ๐ด๐๐๐
Price could retrace to any of the PD arrays in the order flow leg. ๐๐จ๐ฐ๐๐ฏ๐๐ซ, ๐ญ๐ก๐ ๐ฉ๐ซ๐จ๐๐๐๐ข๐ฅ๐ข๐ญ๐ฒ ๐๐จ๐ซ ๐๐๐๐ก ๐๐ ๐๐ซ๐ซ๐๐ฒ ๐๐ข๐๐๐๐ซ๐ฌ
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 defense๐ก๏ธ
๐
๐ข๐ซ๐ฌ๐ญ ๐ฅ๐ข๐ง๐ ๐จ๐ ๐๐๐๐๐ง๐ฌ๐๐ก๏ธ
๐โ๐๐ ๐๐๐๐๐ ๐๐๐ก๐๐๐๐๐ ๐๐๐ก๐ ๐๐ ๐๐๐๐๐ ๐๐๐๐ค ๐๐๐, ๐กโ๐ ๐๐๐๐ ๐ก ๐๐ท ๐๐๐๐๐ฆ ๐๐ก ๐๐๐๐๐ข๐๐ก๐๐๐ ๐๐ ๐กโ๐ ๐๐๐๐ ๐ก ๐๐๐๐ ๐๐ ๐๐๐๐๐๐ ๐
The highest probability scenario to trade from the FLOD is when the FLOD is a Fair Value Gapโ
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 usโ
๐โ๐๐ ๐๐๐๐๐ ๐๐๐ก๐๐๐๐๐ ๐๐๐ก๐ ๐๐ ๐๐๐๐๐ ๐๐๐๐ค ๐๐๐, ๐กโ๐ ๐๐๐๐ ๐ก ๐๐ท ๐๐๐๐๐ฆ ๐๐ก ๐๐๐๐๐ข๐๐ก๐๐๐ ๐๐ ๐กโ๐ ๐๐๐๐ ๐ก ๐๐๐๐ ๐๐ ๐๐๐๐๐๐ ๐
The highest probability scenario to trade from the FLOD is when the FLOD is a Fair Value Gapโ
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 usโ
๐๐ฏ๐๐ซ๐ฅ๐๐ฉ๐ฉ๐ข๐ง๐ ๐๐๐๐๐ง๐ฌ๐๐ก๏ธ
๐โ๐ ๐๐๐๐ ๐คโ๐๐๐ ๐๐๐๐๐ ๐๐๐๐ ๐ก ๐๐๐ก๐๐๐๐๐ ๐๐๐ก๐ ๐กโ๐ ๐๐ฃ๐๐๐๐๐๐๐๐๐ ๐๐ ๐ก๐ค๐ ๐๐ท ๐ด๐๐๐๐ฆ๐ ๐๐ ๐ก๐๐๐๐๐ ๐กโ๐ ๐๐ฃ๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐ ๐
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 valueโ
A Fair Value Gap as OD is a probable narrative compared to the FVAโ
Remember, we want to identify the highest probable scenario to remain profitable in the long run
๐โ๐ ๐๐๐๐ ๐คโ๐๐๐ ๐๐๐๐๐ ๐๐๐๐ ๐ก ๐๐๐ก๐๐๐๐๐ ๐๐๐ก๐ ๐กโ๐ ๐๐ฃ๐๐๐๐๐๐๐๐๐ ๐๐ ๐ก๐ค๐ ๐๐ท ๐ด๐๐๐๐ฆ๐ ๐๐ ๐ก๐๐๐๐๐ ๐กโ๐ ๐๐ฃ๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐ ๐
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 valueโ
A Fair Value Gap as OD is a probable narrative compared to the FVAโ
Remember, we want to identify the highest probable scenario to remain profitable in the long run
๐๐๐ฌ๐ญ ๐ฅ๐ข๐ง๐ ๐จ๐ ๐๐๐๐๐ง๐ฌ๐๐ก๏ธ
๐กโ๐ ๐๐๐ ๐ก ๐๐ท ๐๐๐๐๐ฆ ๐กโ๐๐ก ๐๐๐๐๐ ๐ค๐๐๐ ๐๐๐ก๐๐๐๐ ๐ก๐ ๐ ๐ก๐๐๐ ๐๐๐๐ก๐๐๐ข๐ ๐๐๐ค๐๐/โ๐๐โ๐๐ ๐๐ ๐กโ๐ ๐๐๐ ๐ก ๐๐๐๐ ๐๐ ๐๐๐๐๐๐ ๐
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.
๐กโ๐ ๐๐๐ ๐ก ๐๐ท ๐๐๐๐๐ฆ ๐กโ๐๐ก ๐๐๐๐๐ ๐ค๐๐๐ ๐๐๐ก๐๐๐๐ ๐ก๐ ๐ ๐ก๐๐๐ ๐๐๐๐ก๐๐๐ข๐ ๐๐๐ค๐๐/โ๐๐โ๐๐ ๐๐ ๐กโ๐ ๐๐๐ ๐ก ๐๐๐๐ ๐๐ ๐๐๐๐๐๐ ๐
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.
โข โข โข
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ใ
