Nathan

In a situation like this where YM does not reverse from the highs to go lower, the general rule is: If price refuses to reverse/manipulate from a key level/SMT sequence, price must require one of three things to expand: 1. Strength switch 2. New key level (Engineered key level/Further key level) 3. HTF open (90m/4h/6h) If you study the actual framework of price, the failure to manipulate at the highs on YM was not a sequence for NQ to catch up higher. This can be filtered by: 1. Phase of price - NQ was not showing bullish signs and is failing to manipulate the lows - 1a. But if NQ is failing to manipulate the lows, you then have to determine which one plays out with the draw/profile (Refer to the 5 key components - the first two are draw on liquidity/profile) - 1b. NQ has key levels lower/the weekly profile on NQ was clearly bearish - high of week on a daily gap in an overall bearish trend, monday forms the high of week with a reversal candle so we can expect tuesday continuation 2. No strength switch on YM in the first place to take NQ higher. Massive bearish gaps being formed. 3. Overextended on YM on the daily timeframe following this; with YM pushing higher I wasn't even looking at anything else except a strength switch between NQ/YM and a followthrough lower, and that's how you frame trades using strength switch

Daily retracement framework Intraday open high -> HOD formed from strength switch