Retail believes its sheer vastness drives price — supply & demand, trendlines, moving average crossovers. That's a facade. A small circle of traders — the banks — is the actual drive shaft that makes the markets go around. They are the liquidity provider; everyone else is liquidity. The markets are always efficient — but efficient for the smart money, not for the speculators.
Paradigm shiftYou are not trading against a person anymore — it's a computer program that delivers price, and it knows human behavior because it's always been the same: fear and greed. Your stop getting run, the move that "looked exactly like it was going up" but came all the way down first — that's not your broker, it's the interbank feed. Are you a lamb or a lion? Leave the herd; the small circle doesn't draw attention to itself — it just quietly does its thing.
The Daily Template
Every day the interbank price delivery algorithm runs the same generic, systematic structure — expansion, retracement, reversal, consolidation applied to time of day:
Asian range
Consolidation = price equilibrium — the day starts here, orders build
After midnight NY
Manipulation — the Judas swing, always by way of some news event/driver at or just before it; on a buy day it drops down making the false move for the low
London open
Reversal — the classic scenario: it shoots down, runs the stops, makes the higher low of the day, then range expansion into 5:00 AM NY
5:00–8:00 AM NY
Consolidation
8:00–8:30 AM NY
Retracement (the news injection window)
New York session
Reversal or another expansion — the range makes the rest of the day into 10:00–11:00 AM NY
10–11 AM / London close
Reversal
After
Consolidation — ending the true day
The Rules of Conditions
Rules — the algo has only a few options
A consolidation always goes to an expansion. It can't retrace — it hasn't moved anywhere; it can't reverse — it has to come out of the consolidation first.
From expansion it goes to a retracement or a reversal — retracing means coming back to the orderblock it just left behind, recapitalizing it, then making another leg in the same direction.
A consolidation can NEVER go directly into a reversal or retracement.
Consolidation → expansion never goes directly into another consolidation.
After a reversal there'll be another expansion, then back to consolidation.
When you see a consolidation or holding pattern, think: the next leg is an explosive move — an impulse price swing. These processes are time sensitive, day sensitive, and intermarket related — when one market is being held while a correlated one is let run (why the EuroPound matters when trading fiber or cable), that's where the trade is setting up.
The Weekly Template
The same repeating format plays out across the weekly range:
Sunday open
Consolidation
Monday
Expansion
Tuesday (or Monday)
Reversal
Wednesday
Another expansion
Midweek
Consolidation
Friday
Reverse or retrace
Key ideaWith the higher-timeframe directional premise understood, this price delivery model repeats over and over — it's very generic, it will not break, and it will not stop working. It doesn't matter what timeframe you're looking at; the daily range just makes it easy to study every single day.