Adding Confluence To The Automatic OTE

This week's newsletter explores how price interacted with key technical structures across Index Futures and Crypto Markets. We break down how the Dow Jones responded to an OTE retracement aligning with Premium Arrays, and how Ethereum respected an orderblock within key retracements.

We also feature insights from Slim's analyst channel, where he explains the 001 | 002 | 003 framework, balancing price action phases.

Dow Jones Futures (YM) 4-Hour Retracement

During the London session, YM moved into a Fair Value Gap before the new 4-hour candle opened at 2 AM. Following the open, price retraced into the Optimal Trade Entry (OTE) [0.62 – 0.79 Retracement Levels] formed within the previous 4H candle. Within this OTE, there were also two volume imbalances that aligned within the premium end of the range.

The confluence between the OTE and the Premium Arrays provided context for a subsequent expansion lower reaching the Fibonacci expansion targets and the Sellside Liquidity pool.

Ethereum Futures (ETH) Orderblock Alignment

In this example, the Automatic OTE° [Pro+] utilizes the manual anchoring aligned to Wednesday's price action from midnight to midnight. On Thursday price retraced to the .62 level, aligning with a clear orderblock. Price respected the downclose candle in discount before expanding higher.

This move aligned with broader market reactions to Federal Reserve Chair Jerome Powell's remarks at the Jackson Hole symposium, which many participants interpreted as dovish and as fueling the aggressive expansion.

Analyst Insight

When selecting an orderblock, it's important to align various confluences to support the broader market narrative. This orderblock formed below the midnight open, raided a prior swing low, and traded into the original Change In State of Delivery that formed the daily low. Additionally, this downclose candle broke structure and provided a clear Re-Accumulation before running low resistance liquidity above.

Slim's Framework: 001 | 002 | 003

Check out Slim's post explaining the 001 | 002 | 003 framework and how it relates to consolidations and expansions. Explore his detailed walkthrough and live chart breakdowns in the Escape Discord analyst channel.