We're doing a top-down approach and study the importance of the higher time frame down to the lower time frame and how the PDRA Matrix is utilized throughout the time frames.
All right, so here's the monthly chart. This will be an example how you might want to journal. You want to bring in your own unique personality. This is the basic approach to annotating your chart and how you might record some observations, but you might want to include a lot more self-love. Something that you might want to do in your annotations is really write in those types of comments that you saw it coming, even if you didn't really see it coming. You're conditioning your subconscious by recording these pseudo experiences. That way, you're tricking your brain into seeing something at a later time, referring back to these as examples like on the weekend or say a couple of weeks ago. You'll look at your journal, and by looking at them with these annotations and reading them out again, your brain sees these PD arrays. What PD arrays?
How is that a -Breaker?
On 4H you can clearly see the formation.
We have also 2 FVG. The BISI is something in the future while the SIBI is in the past.
“I was anticipating the down closed candle on September of 2021 to provide characteristics of an ICT bearish breaker. It was long overdue for a down close monthly candle after five months of buy-side delivery.”
We had 5 months in a row of price going higher (BSL delivery). Then it's reasonable to anticipate August creating a down close candle. It does not need to close lower, but we can anticipate the delivery of price lower like this, because we've had so many up close candles, and we traded up into a breaker, fulfilling the redelivery to SIBI. This kind of simply returning inside the imbalance gives us a repricing. This is not rebalanced yet. On the LTF’s price has to leave it to be rebalanced.
Maybe you didn’t see the breaker initially, but in your journal you will write down as if you saw it. What this is implying is that you felt when it reached up into this area between these two heavy red levels, there would be some measure of a draw to it. Then, inside between these two levels, where is their liquidity? That would be right above REH and we have inefficiency. So, is it required for price to come all the way up to the breaker high? We don't want to see that; that's one of the rules about that pattern or that very PD array. We don't want to see it trade to the high; it can, but we don't want to see that. So inside the range of breaker, we have liquidity and inefficiency just above The main take away from this the language that should be used while annotating the empty spaces.
I am very pleased to see price open near the high of the present August 2023 monthly candle. Subsequent delivery of lower price is showing respect for the January 2022 fair value gap, which is located inside the range of the ICT bearish breaker.
Notice that we’re using terms that are very emotionally positive. They're not communicating confusion; they're not recording moments where you were frustrated. You're never recording anything like that in your journal. Do not use your journal to record scary thoughts. Don't record periods of confusion or feeling like you just don't know. You're cheerleading yourself by doing this very thing. Your brain is extremely powerful. It's the fastest and most powerful computer that will ever exist because it has a personality attached to it. A computer can only do what it's programmed to do. It can make calculations, reason within the logic it's supplied, but you can create, imagine, regret, and feel good. You have emotional stimuli associated with your previous and future learning experiences. In your journal, you want to filter out every negative aspect. That's not to say you can't observe things you didn't do correctly or moments where you didn't see things coming.
Always record these instances as opportunities for improvement. For example, if you thought price would move in a certain way during the morning session but it didn't, you can record something like, "I'm grateful for the chance to learn why the sell side was favored over the buy side today." See the difference? You disarmed any pain and frustration that you might have felt while watching real-time price action that didn't unfold as expected. When you annotate the chart, you're doing so in a way that doesn't hurt you psychologically. You're not creating a memory or monument to a period of confusion.
If (NQ) finds its way lower and goes below the ICT breaker low, there is a FVG formed on the June 2023 monthly candle.
You may include other things that you were identifying or saw something in the empty spaces. Something that you want to make sure you record and build up this scary area in your understanding. For example knowing how long you should expect the bias to stay in effect. Well if you've been bullish it's reasonable to anticipate price eating up into this bearish breaker. And if it does, how far can it go? We have BSL above the REH and then we have the inefficiency. July delivered that and the wick goes just past it by a little bit, but that's okay. The Wicks do the damage the bodies tell you the story. That's the narrative.
💡As you go down to a lower time frame, label your PD arrays with the corresponding time frame. On the weekly we have a Premium C.E. of a wick and a Propulsion block.