[0:00]Most traders don't miss parabolic moves because they are unlucky. They miss them because they're looking in the wrong place. By the time the move is obvious, it's already too late. So they hesitate, they chase, or sometimes they try to even fade it. But the move doesn't start at the breakout. It starts right here when nothing seems to be happening. Let me show you how to identify that.
[0:36]Let's start with something from yesterday. Tuesday, 28th of April, Nasdaq. So there you see price was suddenly breaking out to the downside. So most traders would look at this and either try to buy the low here as it it's uh coming into the low of this range. Or then if it breaks out, they think it's too late to get even into this move and uh are not willing to get into a short um trade from here. But now let's look what's happening here before the move even started. So let's switch on the indicators, then you see it. One thing is it worked into previous week's high and failed here, so that's already gives us bearish multi-time frame alignment. But the most important thing is this structure here. So we had a peak formation low in the New York session the day before. We have a peak formation high in Asia in the morning and then it was breaking down here. This is trapping shorts, trapping longs, so this is a very strong compressing coil. And this typically blows off in one direction into a one full range expansion of this structure. So, either you identify this early and already enter it right here, or this as it was in the London session, you take the breakdown and then follow it to the one full range expansion. This was not a perfect timing yesterday. It was not a trade I typically would take Nasdaq in the London session, but you see already how nicely this structure forms. And if you these peak formations are in the sessions with a lot of volume in it, then this is a very reliable move. Here another example, Gold, 7th of April this year. You see here also a very straight breakout, never looking back really. And if you waited for this to come up here and break out, you probably would be hesitant to take that trade, right? But now let's look at the pattern again. You see here this coil as it uh develops here London session, peak formation high. New York session, peak formation low, and even before Asia already a peak formation low, so it was like a triple uh trapping pattern. And then what do we do? We take the range expansion tool from the last peak formation low, peak formation high, so our target is up here. Um and then we either already take it here after the last stop hunt somewhere where the move starts, or at least we we take it as it breaks out here and we are very confident that it reaches the one full range expansion. All right. Now let's simplify that. This is the structure behind what you just experienced. It's a pattern that repeats over and over again. So the market coils sideways. Then within a session, this is very important. It breaks out and pulls back in immediately. This is the eight hour time frame for this. So this needs to be a session with a lot of volume trapping longs. Then it breaks down and pulls in immediately again. So that means you have trapped traders on both sides of the range. And then typically into the next session, it coils, builds potentially a parabolic channel. And then you watch timing and already potentially position yourself early. But first, this is a very strong range if this happens. And then your line in the sand is the high of this range. So you might take a blow off to the high of the range, or then if it breaks out, this is a very parabolic high conviction breakout. And this you follow then to the full range expansion of this structure. That's it, very simple. Long trap, short trap, channel, blow off to the one X range expansion. If this sits in a higher time frame structure that's also supporting that, it's one of the most favorable trades you can find. Now here is the interesting part. This pattern appears across a lot of different plays. A lot of different situations. So it's in the end almost a confirmation pattern for a higher time frame trade setup. So, for example, in a continuation play, if you have a low hanging fruit, so it's breaking out, pulling back, then you might have a a zero pattern on the session before it then breaks out again and expands um to the next leg up. So in trend continuation, that's often the pattern you see before it expands the next time. In parabolic play, so if you have like a an outside day, for example, then you have a parabolic pattern within a parabolic pattern. So then it's even stronger. So you have a a three session zero coil in a daily coil. And if this then starts to move, it then typically starts to move even stronger to the one full range expansion of the daily pattern. Or in a reversal play, so it fails at the high, pulls back potentially with the first red day in a pump and dump um template. And then before it starts moving down, what we've just seen on the on the Nasdaq example, it prints a peak formation low, peak formation high on the session level before it then breaks down and then expands parabolically to the downside. So, pick your favorites, but this is a pattern that really happens a lot in the market and gives you strong edge. Now let's look at how to really trade that. So here you see my typical multi-time frame trading process. So before the session or in the first hour, we generate our thesis. As we start screening the session, we look for a confirmation of the setup, and then into third hour, typically, we look for an entry to finally take the trade. So you already see here, the orange boxes are the ones that are relevant for us at the moment. The session zero pattern is on the day, so it's almost a setup confirmation, but it's a very strong one that's almost a setup in its own. So, to keep it simple, we don't go through all of these signals on the higher time frame. So, you really hunt for this pattern that I just showed you on the day. And once you have that, you look to the left for confluence. So you want to have the multi-time frame context green or red aligning in the favor of your trade. It also helps if it's out of balance, so if you have a breakout or breakdown close, the market out of balance aligning red or green, so meaning the month and the week helps your trade. Then you basically look for this structure, wait for your session, uh wait for the coil and then you only look for the open box pattern to uh kick off the move and get you into the trade to take it to one full range expansion. So let's look at this even a bit deeper. How to think along the whole process as you come into the session. So here you see the orange one are the eight-hour candles. So my indicators show you this very clearly on the chart, so you clearly wait for a eight-hour fakeout high, fakeout low in the session. So this might be Asia, this might be London. So, that's the first question. Do you have a three session zero pattern? If this is yes, then you start going through this uh questions as the session evolves. So the next question is, do you have multi-time frame alignment? So are you in a breakout on the weekly and on the monthly and on the daily and is this pointing in one direction? Uh the next question is what's the weekly template? So are you up high or down low? So are you expanding already outside out of the weekly box or are you ranging inside? This gives you information about the conviction of the trade. Then is potentially the day before in a breakout or breakdown close. If this is the case, it makes it even more interesting and you can expect a strong follow through move. So, then you judge the the range itself. So this zero range, is it narrow or wide? If it's wide, it's rather a range and you might try to find a trade inside this range. If it's narrow, you typically look for a parabolic range expansion. So then you check before you come into your entry window, do you have the multi-time frame three star? This is shown by Trend Predator. This uh shows you in the moment, you might look for an entry if you have your multi-time frame alignment. Then you look at the pattern. Do you have a parabolic channel evolving? Maybe an ascending triangle or a creeping trend working into one direction. So once you back test that a bit and look at these patterns more often, you will see that. So often this is a very narrow coil that's just creeping into the open and then blows off. Then as the open box trades, so meaning equity open, you get your open box. You follow the open box pattern. So either you get an open box fake out low after 10:00, or it breaks out of the open box. So the conservative approach is always to let the open box print, wait for third hour, and then wait for it to break away from this open box, and then you go into your continuation. Right before the entry, you know my system potentially, always look for a continuation trap. So I always want to have the market trapping traders in the other direction in the last moment. So it might be a very strong five-minute bar back into the the VWAP or something, looking like a short, everyone goes short and then the real move starts. So always nice to have a continuation trap. Then as this breaks out, you are in your trade and the only decision you then have to take, do you take this iron fist, as I say, so do you go to the one full range expansion without even managing the trade? For this you have to judge how far is the the zero 1X. So this range expansion, the 1X, how far is that? Sometimes if this range is wide, it's just too far to to hold the trade, then you just check to get an R3 or R4 trade and then potentially cut it with the open box 1X. So to be conservative because then you might get a pullback and it might creep into the next day to to hit the target. So, that's how my thinking process for these uh trades work and it's always exactly the same. It might be overwhelming a bit at first, but in the end this is very simple and once you are familiar with this pattern and always look at the same things, this is uh a quick a quick check only. Before we go into examples, this is your cheat sheet. That's the template of this setup. That's exactly how you think about it and what you uh need to know to trade that setup. So the rationale is a multi-session coil trapping traders on both sides of the range. A very strong range that breaks hard and drives one side out of their positions. The range breaks hard if it does, the coil unloads to one full range expansion. The signals to also check is are you in a breakout or breakdown close? That means is the day closing in a breakout, then the move might be even more explosive. You want to have day, week and month aligned, that's the multi-time frame alignment, and you want to see a parabolic channel here into your open. That's what you're what you're looking for. Then the entry open box pattern. You either get a parabolic blow off just breaking out of the open box to the upside. You might get a breakout pullback VWAP retest, if it's not that parabolically taking off immediately. Or it's a fake out low, so a trap in the other direction, crossing the VWAP and then breaking out. So if you study the open box pattern, it's pretty clear, but you just want to have a open box pattern that confirms your trade. That's it. Stick this to your wall and hunt for this pattern and this will make you definitely profitable and consistent. So let's look at some real trade examples that I took based on this pattern. So, here now my first trade example that's straight out of my own journal. You see here the one-hour time frame, no, the 15-minute time frame and here the five-minute time frame. Here you see the pattern. It's a peak formation high in London, peak formation low in New York, coming up from a daily fake out low, creeping sideways into the Asian session. That's our pattern. But we are still inside, so first as we said, this is a strong range. So, let's go through it. Reversal continuation play after beautiful session zero pattern. This one here, yesterday London Peak formation high, New York, peak formation low, trap at open box low, very impulsive higher high, entry after pullback and M5 FOL, reclaiming CP, 11:35, target PDH, hit after 90 minute and deep pullback, 125P, R4. So let's look at the charts how this presented. So let's start with my heat map. Screening template. Um all you see here on the chart is done by my indicator Trend Predator. So here the yellow one, uh that's the weekly structure. So we broke out of this week after Monday with a huge gap up hitting the monthly level here. Then this blue ones are the days, so the day pulled back and printed here a fake out low. Um so you already see you have here alignment of Trend Predator, not the month, but the the week and the day are aligned bullishly. So a reversal continuation previous fake out low, continuation low of day, three star multi-time frame setup. So, and here you already see that, we will see this on the next template. That's the peak formation high, peak formation low. Now uh creeping into the London session. So now let's go to the lower time frames. So here you see the situation as we come into the London session. Here you see the pattern. London peak formation high, New York peak formation low. So our next target is this level here from where we are. So the setup is not yet confirmed, so let's see how it trades. So now open box is completed. Everything is bullish, so setup is confirmed now. We go to the five-minute and zoom in. So what we need from here is only um the final confirmation, which is the open box pattern and a continuation trap. So let's observe here it breaks down heavily into the four-hour time rotation. This one that I really like for for the DAX. So the four-hour time rotation uh prints in a last very strong um continuation trap here at the low. So this is pretty nice. And then as this breaks out here, um 11:15 time rotation, this candle there is the entry. So it breaks out impulsively with 11:15 time rotation. So this is pretty tricky to get in. And then you wait for um another continuation signal. This this one here, it pulls back and prints a five-minute fake out low here retesting the eight-hour level and the daily. That's where I entered this trade. So that's would be your long entry here close to the eight-hour and then the target is is up here. Maybe something like this, a 30-point stop here below the daily level. And then from here you just let it run. It's pulling back a bit, and then eventually hitting take profit after one and a half to two hours roughly. Then it's a 150.85 trade as we have seen. So, next example, a Nasdaq reversal continuation play here you see the pattern again. Uh Asia peak formation low, London peak formation high, creeping into New York open and then the blow off to the 1X. Perfect pattern, even an open blow off trade. So, breakdown continuation low hanging fruit after three days of longs, so it was obviously also higher time frame um reversal structure. Double first red day, three session zero parabolic as we discussed, entry 9:35 after strong switch candle, target session 0 1x, hit after 10 minutes, 130 P, R5. So let's look at the charts how this presented. So here you see the situation Nasdaq 13th of November last year. Weekly time frame or weekly structure here breaking down, closing in breakdown, hitting a monthly level. So the month is bullish, but the week is in breakdown and closed in breakdown. Then from here, one, two, three days taking the high. So three days of breakouts with the first red day. I said double first red day because this was the first first red day and then another first red day. It hit the weekly level and then lost the daily level. So you see here previous fake out high, continuation, reversal continuation, all aligned on the lower time frames, a two-star setup into the New York session. So let's look at the lower time frames. Um the higher time frames already look very good. Here now the pattern into the open and here you see also the session pattern. So New York peak formation low, Asia another peak formation low, then London peak formation high. That's your structure. And then it creeps with lower highs and lows parabolic channel into the open. And you see here it's already confirmed before the open, first hour high and low breakdown. Then we go to the five-minute.
[27:26]Um because I really took a blow off trade on this one and see how this behaves into the open. Um and the first five minutes bar with the open is this one here. This was a very strong trap shift candle. And then from there, um you just uh take it to the structure 1X as we as we discussed. So you take the high and the low to the 1X. That's down here is your target. You take a short position. I I took it somewhere in here with the target then just to the lows down there. And then you let it run. And here very parabolic trade. And with like two bars, it it just ran down and and hit and hit target. And that was it. It was roughly here 180 points. I think I took it a bit earlier. Uh 150 points with a bit of a more narrow stop loss. R four or R five. So, that's the second example, a real blow off of this move. Takeaways. You now learned that the move starts inside the range, not at the breakout. So really focus on identifying the session zero pattern. If you have the session zero pattern, you just zoom out a bit or check Trend Predator to get multi-time frame alignment. This alone, if you keep it simple, gives you already a very strong edge. Then define the range, define the target, then wait, hit the trade and let it run to target. Most traders only react to the move, you now focus on what creates the move. So, most traders look for the breakout. You now look for the coil. Have fun with this setup.
