NJAT Concepts
Mitigations
The charts below shows mitigation to mitigation price delivery which creates and sustains orderflow in the market until an objective is met. The continuation within RIMC usually has the objective of taking out the structure created in the initiation.
Unmitigated Ranges
In the charts below you can see slightly more complex RIMC deliveries - price is not always going to be nice and clean so you need to adapt to the different variations yet still following the same narrative + intentions. Both images show unmitigated ranges/OB's within larger sideways deliveries. If you followed this narrative and understood RIMC for the week commencing 13th then you would have been able to participate in these moves during NY session on both days for continuations that pushed price higher into premium of the recent HTF bearish A-B.
Sideways Delivery During Initiation Phase
The 2 charts below showcase a framework that traders use within NJAT so that they can trade aggressive initiation deliveries. The principle is that price cannot sustain vertical delivery for long periods of time.
Price has to slow down and add more fuel (volume/orders) to the move before the next initiation - think of it like a shelf which holds price whilst volume is added into the market. Whilst price moves sideways, BFI's stack orders by liquidating internal structure and early buyers/sellers. Within this contained delivery, we want to play the 75/25 edges as illustrated below.
Sideways Delivery During Initiation Phase
The 2 charts below showcase a framework that traders use within NJAT so that they can trade aggressive initiation deliveries. The principle is that price cannot sustain vertical delivery for long periods of time.
Price has to slow down and add more fuel (volume/orders) to the move before the next initiation - think of it like a shelf which holds price whilst volume is added into the market. Whilst price moves sideways, BFI's stack orders by liquidating internal structure and early buyers/sellers. Within this contained delivery, we want to play the 75/25 edges as illustrated below.
Which OB will price react from?
The chart below shows the power of ranges that break structure. Have you previously struggled to identify which range to observe? Have you previously asked yourself "Which OB will price react from?". The answer is to observe the reactions at these areas, but you can pick higher probable locations based on what the range creates. As you can see in the Below picture there are several ranges lower down in the A-B but the one highlighted is the range that broke structure. This means there is significant volume entered into the market within this range as it broke a high that had previously broken a low... Observe these locations yourself and see how much weight they hold, but remember, it is a game of probabilities - not every range before a BOS is the range that price will react from.
Strong Highs & Lows
Illustrated below is the concept of Strong Highs and Lows vs Weak Highs and Lows. Strong H/L is structure that is created with a fast change in direction which shows a large volume of orders were entered at that location in order for price to turn that aggressively. That means when price returns to these areas we will likely see a good reaction out of the H/L. These are good places to identify as POI's at edges. But, in the chart you can see that these structural points have been broken down to match the intention we are seeing. When price is bullish, stacked lows (weak lows) will act as cau$e supporting a mitigation for bullish continuation. And stacked highs (weak highs) will act as the target for continuation. Notice that the continuation after the mitigation comes from a strong low after the 3rd drive into the POI. The other 2 lows were slow changes in direction therefore weak and likely liquidity.
Momentum Rules
The chart below illustrates the importance of the Law of Effort. When price is moving with intention it will be visible through speed and aggression. Price creates an A-B during this phase and when price starts to pullback, it is important to note the momentum at which it is doing so. Is price pulling back slower than the initiation? Is price showing lack of momentum compared to the initiation? If this is the case then it is higher probability that price will continue in the same direction as the initiation, once we have mitigated a key location.
LOCATION
Sideways ranges can be complex for most traders to navigate. However, that is not true for NJAT Traders. Our traders have a framework they can apply to sideways ranges in order to determine the best locations to execute trades at. We ensure that we are Selling High and Buying Low - one of the fundamentals as a trader that most others forget. This allows us to "position" ourselves on the right side of probabilities, therefore capitalising more often than not. Sideways ranges are not just about focusing on the edges...
The FU Candle
FU's followed by Intention are a great sign of BFI footprint in the market. These combined shows signs of heavy buying or selling in order to turn price on its head and initiate in the other direction. Great trades can come after FU followed by initiations. You can see during the continuation delivery boxed off in green that there are multiple opportunities for a 1:10 continuation as we are currently observing price on the M30. Even though price does not follow through to take the swing high, the trades can be managed according to the market phase we are in, which is a large sideways range... refer back to our weekly analysis videos on YouTube, episodes 10-12 and you will see the phase of the market that is explained.
Initiation Phase
This type of delivery can be hard to trade for many people out there. It can be fast paced, require high levels of focus, and great skill to execute at the correct time and locations... At NJAT, we have specific framework and concepts that help you build narrative and give you an understanding into how to identify what type of market phase price is moving in. Using these concepts, it was relatively simple to identify the HTF initiation we have seen recently. Look back at last weeks candle close and compare to this weeks delivery down towards the swing low. This type of delivery shows strong bearish delivery. When price delivers in this way, it is key to box off the ranges when price slows down so that we can apply our location tools relative to the delivery and enter at the edge of each sideways delivery before the anticipated continuation of this aggressive market phase. You will see in the chart below that each sideways range gives opportunities to get short and then during london session you can see on the bottom right of the chart I noted the change of intentions as price started a bullish pullback - compare this to how price has moved since that comment! This follows weekly cycles which can be identified with chart experience and NJAT concepts.
