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Understanding the Confirmation Model

The Confirmation Model outlines a strategy for identifying entry points in trading after missing initial opportunities. It emphasizes the importance of recognizing transitions between buy and sell models on higher timeframes and using lower timeframes to find valid entry points while respecting bullish price delivery arrays. The model illustrates how to anticipate price movements towards a defined objective level (DOL) and utilize bullish fair value gaps (FVG) for potential trades.

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7 views5 pages

Understanding the Confirmation Model

The Confirmation Model outlines a strategy for identifying entry points in trading after missing initial opportunities. It emphasizes the importance of recognizing transitions between buy and sell models on higher timeframes and using lower timeframes to find valid entry points while respecting bullish price delivery arrays. The model illustrates how to anticipate price movements towards a defined objective level (DOL) and utilize bullish fair value gaps (FVG) for potential trades.

Uploaded by

ezelichinamerem0
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Confirmation Model

Sometimes, you will miss or not get any opportunities for the best setup of a clear
move. For example, sometimes on our original manipulation leg after sweeping a
major liquidity pool, price will take out the internal high/low before closing our
inversion therefore making it invalid. Aside from this, there will also be times
where you may have hesitated or simply weren’t looking at the charts during this
move. You don’t always need to accept that you missed it, you may still be able to
catch a piece of the pie using this model.

Confirmation Model 1
If you take a look at the image above, what you can notice on the higher
timeframe is that after our sell-model (sell side of the curve) we are now
transitioning into a buy model (buy side of the curve). The reason for this is we are
now respecting and delivering from bullish PD arrays and disrespecting bearish
ones.

Now if we go down to a lower timeframe what can you see?

Confirmation Model 2
You can see that we had our major liquidity sweep, SMT, delivery from a higher TF
FVG, etc.. so the circled area would’ve been the best place to look for an entry
model. Let’s say now for the sake of this model, that you didn’t get any valid entry
in the circled area. We still have lots of clear DOL’s above, such as our Internal
high, London high, and our Intermediate term high. So if we have just transitioned
into a higher timeframe buy model, I wouldn’t anticipate price to go lower than that
circled area, prior to us completing our buy model which would be once we sweep
that Intermediate term high (ITH).

Confirmation Model 3
Now, what this implies, is that we will continue to respect bullish pd arrays until at
least that ITH is swept. With this in mind, the move is not yet over as we still have
our overall DOL in tact. If we still have our overall DOL in tact, and I am anticipating
bullish pd arrays to continue to get respected until we reach it, then once we
create and tap into a bullish pd array (if our DOL still hasn’t been met) I can go
onto a lower timeframe and look for an entry model out of that bullish pd array to
target my DOL.

If you take a look above at the chart, you can see that we have now created a
bullish 15M FVG and our DOL is still in tact. So at this point in time, i’m anticipating
price to use this 15M FVG to take us to our DOL above. Once this 15M gets hit, I
will go onto a lower timeframe and look for the highest timeframe inversion of the
retracement leg to target that ITH above.

Confirmation Model 4
Now as you can see, that’s exactly what happened. Once we tap into the 15M FVG,
we immediately get displacement higher out of it. Along the way, we get our lower
timeframe inversion. The reason that this matters, is that displacement out of the
bullish fvg shows us that we are respecting bullish pd arrays and our lower
timeframe inversion shows us that we are disrespecting bearish pd arrays.

Hope this helps

-NqCam

Confirmation Model 5

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