Time & Price Algorithmic Trading: Time

Summary

In this lecture, the focus is on identifying where time meets price within a lower time frame trading protocol. Key concepts include recognizing liquidity environments, order flow direction, and smart money reversals (SMR). The lecturer explains how specific times of interest (TOI) – between 45 and 15 minutes past the hour – can signal either reversals or expansions, aligning time and price. Two rules for executing trades are shared: one for when the SMR occurs within the TOI, and another for executing 3 minutes before the TOI if the SMR happens outside it. This method helps filter high-probability trade setups.

Takeaways

• 😀 Time meets price when price produces a reversal or expansion within a time of interest (TOI).
• 😀 A TOI is a time window between 45 and 15 minutes of any hour, e.g., 9:45 to 10:15, 10:45 to 11:15.
• 😀 If the Smart Money Reversal (SMR) occurs inside the TOI, time meets price, and you can execute inside or outside the TOI.
• 😀 If the SMR happens outside the TOI, time does not meet price, and you should wait for the next TOI to execute.
• 😀 You can position yourself 3 minutes before the TOI (at XX:42) if the SMR occurs outside the macro window to avoid missing price action.
• 😀 The 3-minute buffer (XX:42 rule) is used to anticipate that the market will move towards the draw liquidity without you if you wait until the TOI.
• 😀 The protocol applies to both bullish and bearish market models, with specific rules for each scenario depending on whether you’re looking for a reversal or expansion.
• 😀 In the case of a reversal inside the TOI, execute the trade immediately after confirmation of the SMT and CSD (Change of State Delivery).
• 😀 If the reversal occurs before the TOI, execute only after waiting for the next TOI and anticipating an expansion.
• 😀 By using TOI and these execution rules, you can avoid bad trades and focus on high-probability setups, aligning time with price for optimal trade opportunities.

Q & A

What is the main topic of the lecture?

The main topic of the lecture is the concept of 'time meets price' in trading, specifically in the context of the lower time frame trading protocol.

What does 'time meets price' refer to in this lecture?

'Time meets price' refers to the alignment of price movements with specific time intervals, or times of interest (TOI), in the trading process. This is used to execute trades when price either reverses or expands within the TOI.

What is the 'time of interest' (TOI)?

The 'time of interest' (TOI) is a set period within each hour, specifically from 45 minutes past the hour to 15 minutes past the next hour (e.g., 9:45 to 10:15, 10:45 to 11:15). These periods are crucial for identifying market reversals or expansions.

What are the two delivery programs that traders should look for during a TOI?

Traders should look for either a reversal or an expansion within the TOI. If either occurs, it signifies that 'time meets price' and a trade can be executed.

What is the significance of the Smart Money Reversal (SMR) in the context of TOI?

The Smart Money Reversal (SMR) is critical in determining whether time meets price. If the SMR occurs within the TOI, then 'time meets price,' and traders can execute trades both inside and outside the TOI. If the SMR occurs outside the TOI, traders need to wait for the next TOI or execute trades 3 minutes before the next TOI.

What happens if the SMR occurs outside the TOI?

If the SMR occurs outside the TOI, time does not meet price. In this case, traders need to wait for the next TOI to execute their trades. They can, however, execute up to 3 minutes before the next TOI if a setup is present.

What is the role of SMT (Smart Money Technique) in validating the trading setup?

SMT is used to validate the trading setup by confirming the market maker's model. It is applied to identify the market direction and validate whether a reversal or expansion is likely to occur within the TOI.

What does the 3-minute buffer at XX42 signify in the trading strategy?

The 3-minute buffer at XX42 allows traders to execute trades just before the start of the next TOI (e.g., 9:42, 10:42) to mitigate the risk of missing a move. This ensures alignment with the upcoming distribution of price, especially when the SMR occurs outside the TOI.

How does the concept of 'time meets price' help traders avoid bad trades?

By ensuring that trades are executed only when the conditions of time and price align, the strategy helps traders focus on high-probability setups and avoid entering trades based on misaligned price movements.

How are the concepts of reversal and expansion applied in the lecture’s trading model?

In the model, a reversal occurs when price moves against the prevailing trend within the TOI, while an expansion occurs when price moves in the direction of the trend. Both signify that time has met price and can be used to trigger an entry into the market.