All language subtitles for 2.Scenarios of one or two movements

Scenarios of one or two movements.

Depending on the current location of the
price, our scenarios will be made up of

one or two movements until we reach the
trading level, where we will look for

the entry trigger.

When predicting scenarios where we only
need one movement to happen, the price

will already be aligned with our plan,
so we just need to wait for a simple

action that will drive the price towards
the trading zone.

Meanwhile, scenarios of two or more
movements will appear in those

which the price is not yet in a position
where we can immediately look for the

entry trigger.

We will need to see that the price first
develops a certain action until it

positions itself in favor of the trading
level so that once there, we can

predict the scenario involving the
movement that we would need to see for

reach the trading zone.

We are now going to look at some
examples of all the trading zones that

previously studied.

so that we are really clear about the
logic behind each of them let's start

trading zone number one in which the
price is in the middle of developing a

trend our strategy here will be to apply
the concept of a reversal movement in

this context and applying this strategy
we are simply going to wait for a one

movement scenario we have previously
seen the downward impulse movement and

since we know that markets move in waves
of impulses and corrections The key

here will be to wait for the market to
develop the correction upwards so we can

start looking for the entry trigger
immediately, applying the concept of a

reversal movement.

The appearance of the SOW bar, which
confirms the reversal, puts us in a

position to wait for a potential bearish
movement subsequently.

This is the context and roadmap when
applying this strategy.

I personally consider it a somewhat
risky strategy to trade directly after

appearance of the renewal without
waiting for anything else.

but it can be useful in a high -speed
context.

Looking at trading zone number two, when
we are in the middle of the development

of a trend, if we want to apply the fast
pattern strategy, the predicted

scenario will involve one or two
movements depending on where we are.

If we find ourselves in this first
situation, where we have already seen an

initial bearish price reaction, we
simply need a single upward movement

takes the price to our trading zone,
where we would expect to look for the

trigger. In this case, we would wait for
a false breakout at that previous high

to take place before considering
entering short.

This is the one movement scenario.

If you think that you won't be in front
of the screen when that potential

movement occurs, my recommendation is
that you set an alert right in that zone

so that it will notify you if the price
finally reaches it.

And this is the two movement scenario.

Same situation, same strategy to apply.

but at an earlier moment in which that
first bearish movement has not yet

developed. If right at that moment we
want to apply this strategy, to reach

trading zone, the price would first have
to make some kind of downward movement

to confirm the highest pivot.

And then we would wait for the bullish
movement that would penetrate the

liquidity zone of the newly created
pivot.

This is the dynamic.

But be cautious.

These are just scenarios.

This is our job as analysts.

But the market will do what it wants.

Sometimes this scenario will be
accurate, but on many other occasions,

There will be times when the price
simply continues with the bearish

that point and we won't find any
opportunity to trade.

But be aware that this doesn't end here.

We could still consider a more complex
scenario made up of three movements. The

first and second movements would be
responsible for generating the pivot.

while the third would visit the trading
zone created and provide us with an

opportunity to enter the market there.

This is really what we should work on,
the ability to generate multiple

scenarios and for the market to confirm
which of them will be executed.

The problem is that if we are not aware
of all the possibilities, we will not be

able to take advantage of the one that
finally appears.

With respect to trading zones 3 and 4,
where the strategy to be applied

false breakouts, The approach would be
the same and will depend on the current

situation of the price.

In this situation, since the trading
zones will have already been previously

identified, we will only need to predict
a scenario with a single movement.

This is the one that will interact with
the trading zone to generate the false

breakout. As with the previous case, if
you can't be present, consider the

possibility of setting alert when the
price reaches the trading zones.

so that you can analyze the subsequent
reaction and perhaps take some kind of

action. In essence, this context of
looking for potential phase B and C

breakouts is exactly the same as the one
we just saw in which we applied the

strategy involving false breakouts and
fast patterns.

And we will look at it again later.

But the dynamic is always the same.

If the pivot has already been generated,
the market is going to need to develop

one or two movements depending on where
the price is.

to reach the trading zone.

If the market is in the middle of
developing the phase D trend movement

see the false breakout, we can consider
several scenarios.

The first is that it will continue the
bullish movement and reach the highs of

the structure without stopping, which
would not offer us any trading

opportunity. Another scenario would
involve waiting for it to go back to the

base of the structure where it would
develop the spring test.

And the third scenario would be to wait
for some type of horizontal

consolidation with no correction to the
lows before generating the second part

of the bullish movement up to the highs.

Of the three possible scenarios, only
the second and third would leave us with

trading opportunity.

Here we see an example of what the
spring test scenario could be.

As we can see, from the starting point,
we simply need a movement that takes the

price from the trading zone, where we
could look for the entry trigger and the

confirmation of the spring test.

Before it develops, we need to visualize
what we expect it to do so we can

confirm one scenario or another.

This is a very powerful exercise which
will ensure we are prepared for any of

the predicted scenarios.

For the example of a horizontal
consolidation, said consolidation could

with the development of a complete
structure or by means of a fast pattern

the type that we have already looked at.

In any case, in both scenarios, we are
going to need a low pivot to be

where we can then look for the
subsequent false breakout.

Therefore, the scenario to be considered
here would have at least three

movements, the first two for the
generation of the pivot and a third

for the false breakout at the liquidity
zone.

In this case, it develops a small
reaccumulation structure where we can

easily identify its lower limit and
where the two pivots also coincide.

and we can clearly see how a subsequent
false breakout at the liquidity zone

causes the continuation of the upward
movement to the upper end of the

structure.

Again, this is the key to predicting
sound scenarios.

Based on the context and the roadmap, we
project the various possibilities in

which the market could offer us an
opportunity.

If we see that the market is right at
the moment of the breakout, and if all

signs suggest that the structure is
highly likely to be in accumulation,

We should follow the roadmap in line
with this idea.

And at that point, the closest trading
zone will be the level of the creek or

resistance. But be careful.

To reach that level, the price needs to
develop two movements, two key actions.

One, on the hand of the breakout, and on
the other hand, the movement that acts

as a test after the breakout.

The key here is that we want to buy, due
to the context.

But the price is not in an attractive
trading zone since it is moving towards

key zone and we don't know what might
happen there.

This is why I never recommend you trade
at breakouts.

Therefore, in this case, we should look
for a two -movement scenario.

In the first, we would position
ourselves in favor of the trading level

second movement would generate a visit
to this level where we should assess the

interaction between the participants to
decide on a possible entry.

Continuing with the development of the
accumulation structure, at the point at

which the market has developed the
bullish breakout, the methodology's

suggests that the most likely outcome is
a visit to the resistance level of the

broken structure, which we would now
consider a support level.

At that point, using this roadmap as a
basis of being already positioned in

favor of the trading level, our scenario
would only consist of a single movement

if what we are looking for is a simple
test on the level of the structure.

As we know, this could just be a false
breakout, upthrust, after which the

would re -enter the equilibrium zone.

But initially, we should be
directionally biased towards an uptrend,

seeing that the false breakout at the
bottom of the range and breakout

of the uptrend meet the ideal
characteristics.

But as you already know, the market
could behave in some other way. For

it could develop a new minor structure
at that point, or some type of fast

pattern. This is exactly the same as the
scenario proposed previously.

The dynamic is always the same. Since we
do not know how the market will move,

we predict the situations that are most
likely appear and that give us the most

confidence. For this alternative
scenario to the simple test, we should

wait for the creation of the pivot and
the false breakout of this pivot, which

would comprise a minimum of three
movements from the high of the bullish

breakout. This would be for a rapidly
developing horizontal consolidation

scenario. We could still allow for the
possibility of the full development of a

minor structure.

In essence, nothing changes.

We would also need that first movement
that generates the selling climax.

Subsequently, the second movement would
be formed by the AR and all the

subsequent sideways movements before the
development of a potential spring,

which would be the third movement.

Regardless of whether the consolidation
is fast or slow, it will always be made

up of the same basic elements, the
generation of the first pivot and its

breakout, whether with a longer or
shorter duration.

On this occasion, we see that what he
finally develops is a fast pattern with

false breakout at two previous pivots,
which would confer greater strength to

the scenario.

And finally, now in the middle of the
development of the trend, we can apply

same concepts once again. In other
words, wait for the generation of a

its subsequent false breakout.

As you can see, the fundamental element
is always the false breakout.

We have insisted on this point
throughout the course because there is

that this behavior offers us an
advantage.

And as I always say, if you carry out
the simple exercise of analyzing any

chart, you will see that practically
every impulse movement originates from a

prior false breakout.

The market obviously will not always
follow our predicted scenarios.

We will often find that we have to
change our sentiment based on how the

moves. The key is to continuously
analyze the reaction of participants as

information reaches the market.