4 Phases Of Price
Delivery
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Consolidation
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Consolidation:
Consolidation is characterized by a range-bound movement in price, occurring between a swing high and swing
low.
During this phase, the price moves within a confined range, with no significant manipulation on either side of the
range.
This period often represents market indecision or a pause in the ongoing trend.
This phase is often engineered by market makers to trap traders within the range. During consolidation, price
movements are limited, creating a false sense of stability before a significant move.
Small ranges often lead to large ranges, and once the market has manipulated one side of the range—either the
high or the low—a new phase begins.
After this manipulation occurs, we wait for a reversal to be confirmed before entering the market.
The reversal is validated through the intermediate timeframe CISD. (In the case of daily Consolidation).
Once manipulation occurs on either side of the range—whether the high or the low—the opposite side becomes
the draw, meaning the price is likely to move towards that area next.
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Oppsoing Draw
Oppsoing Draw
Manipulation
Manipulation
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Expansion
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Expansion
Price will move in one direction following another phase, such as consolidation, retracement, or reversal.
In the context of weekly profiles, the expansion phase typically lasts up to three days. This period reflects the
maximum expected expansion before the price transitions into the next phase, such as consolidation, retracement,
or reversal.
We trade away from the point of reversal. Unlike the consolidation phase, the expansion phase exhibits a clear
directional bias.
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Reversal -> Expansion
Retracement -> Expansion
Consolidation -> Expansion
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Retracement
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Retracement
Price cannot move in one direction forever; it needs to accumulate more orders in order to continue expanding.
During the retracement phase, price pulls back to a point of interest, such as an Order Block, a Fair Value Gap, or
after sweeping a Short term low or Short term high.
This retracement allows the market to gather the necessary liquidity to fuel further expansion. As the price retraces
into one of these POIs, it often leaves behind failure swings, which become a draw for the price, setting up the next
potential move.
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Retracements to STL
Retracements to an OB
Retracements to an FVG
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Reversal
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Reversal:
After the expansion phase ends, the price reaches a certain draw on liquidity or a key level, leading to a reversal
back into the range.
The reversal phase indicates a change in market sentiment.
Reversals are often accompanied by the formation of specific reversal signatures, such as candle closures (as
discussed in the Candle Closures Lesson), and are confirmed through a change in the state of delivery on the
intermediate time frame.
The failure swing that occurred before the reversal now becomes the draw on liquidity, guiding the price as it shifts
direction.
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Bullish Reversal
Bearish Reversal
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