Here’s your paragraph broken down into easy key points without missing anything:
1. Main Focus
Lesson: Management Lesson #5 – Trade conditions & setup progression.
Scenario: Buying at deep discount (monthly, weekly, daily) aiming for premium price.
Approach: Identify bullish PD arrays at discount → Target premium arrays.
2. Key PD Arrays to Watch
Bullish PD arrays for long entries:
1. Mitigation blocks (first objective)
2. Bullish breakers
3. Liquidity voids
4. Fair value gaps
5. Bullish order blocks
6. Rejection blocks
7. Old lows / old highs
Bearish scenario (not the focus here): Sell at bearish PD array aiming to buy back at bullish PD array.
3. Equilibrium Concept
Price often rebalances to equilibrium (midpoint of the recent range).
At equilibrium:
o Can move up toward premium PD arrays (possible short setups)
o Can move down toward discount PD arrays (possible long setups)
Monthly chart structure helps decide bullish or bearish bias.
4. Timeframes
Monthly, weekly, daily all use same PD arrays (premium/discount).
Example uses Japanese Yen cash price & Dollar/Yen pair:
o Yen falling → Dollar/Yen rising.
o Premium = higher end of range; Discount = lower end.
5. Monthly Analysis (Dollar/Yen)
Identified high (premium) & low (discount) range.
Equal lows = sell stops likely there.
Two consecutive down candles = bullish order block at equilibrium.
Example: Rejection block at November candle after clearing candle bodies.
Breaker block identified from an old high breakout.
Gaps/fair value gaps as upside objectives.
6. Weekly Analysis
Deep in discount zone.
Price hits weekly bullish order block and rallies.
Bearish order block from last up candle before down move as an objective.
Equal body candles above = rejection blocks as upside targets.
Fair value gaps also noted as objectives.
7. Daily Analysis
Weekly bullish order blocks marked in darker color for hierarchy.
Price repeatedly hits weekly bullish order blocks and rallies.
Identified equal highs, fair value gaps, and daily order blocks.
Focus on down candles in uptrend for institutional buying points.
Example: Three consecutive down candles → buy at highest open.
Multiple retests of daily order blocks give re-entry opportunities.
8. Institutional Behavior
Institutions buy at down candles during an uptrend.
If price returns to the same down candle later, they buy again.
This pattern repeats across multiple timeframes.
Here’s the paragraph made into easy, clear key points without missing anything:
1. Core Idea
Daily chart levels can fail — if they do, look to weekly PD arrays for the next support/resistance.
If weekly fails, drop back to monthly PD arrays.
This hierarchy is critical for long-term trades.
2. Why Higher Timeframes Matter
Daily levels don’t always hold during monthly retracements.
Monthly & weekly levels have greater influence — even day traders should mark them, because they
impact short-term price.
For position trading, monthly/weekly levels are crucial for trade framing and understanding
support/resistance.
3. PD Array Context
A bullish daily PD array may:
o Fail to hold price.
o Lead price to drop into a weekly bullish PD array for support.
If that weekly level breaks → price targets monthly support.
4. Example: Dollar/Yen Case
Market moved from discount to long-term premium (weekly bearish order block).
Weekly bearish order block:
o Last up candle before sharp down move.
o Example: Opening price 118.61 — highly precise reaction.
Multiple tradable ranges exist between higher timeframe high & low.
Even if you don’t hold to deep premium, you can take premium within smaller ranges.
5. Using Higher Timeframe Levels on Daily
Transpose monthly & weekly PD arrays onto daily chart.
They give context for:
o Institutional order flow.
o Where buying/selling is likely to occur.
Every down candle in an uptrend = possible institutional buying footprint.
6. Scaling In
Institutions scale into positions gradually.
Every time there’s a down candle → up move, they may be adding positions.
Identifying these candles helps anticipate future buying zones.
7. Losing a Daily Level
Example: Daily bullish order block fails → price drops to weekly bullish order block.
2016 case: Trump election volatility took out daily levels and went to the lowest weekly bullish order
block.
Once that higher timeframe level was hit, market rallied strongly.
8. What to Do in Unclear Moves
If daily price action seems confusing, check weekly chart — often reveals the target.
If weekly still unclear → check monthly chart.
Algorithms work mainly on daily, but if daily levels are used up, they will target weekly levels.
Weekly PD arrays = high-probability reversal zones for large institutions.
9. Takeaway
Always keep monthly & weekly PD arrays marked.
Use them as a roadmap:
o Daily fails → check weekly.
o Weekly fails → check monthly.
Large moves often start from weekly/monthly PD arrays because that’s where big money steps in.
