| | | | What if I told you there's a specific time window during every trading day where you can predict with 80% accuracy whether the market will mark its high or low? This isn't wishful thinking — it's a statistical pattern I call Genesis, and it's one of the most reliable timing tools in my trading arsenal.
The concept is elegantly simple yet powerfully predictive. Four out of five days this time of day will mark the low or the high. During a recent market session, I demonstrated this principle in real time as we tracked a significant selloff. We had been coming down to Genesis, which means the odds are you're going to mark a low four out of five times.
The Binary Decision Framework
Genesis becomes tactical the moment you identify its high and low. The high of Genesis is often the first major clue. When I marked the Genesis high at 6896 on the Nasdaq E-mini (NQ), that level signaled the market was beginning a potential recovery phase. When price moves above a Genesis high, odds shift toward a reversal or sustained upside attempt. When price fails to reclaim that level, the market remains vulnerable to continued weakness.
But the exceptions matter. Roughly 20% of the time, the market ignores the Genesis reversal window and powers through it. These are continuation days, and they require different positioning. When the market keeps heading lower, the most effective vehicle to track and trade is Invesco QQQ Trust (QQQ). A clean break below the Genesis window is often the earliest tell that the day is shifting into continuation mode rather than reversal mode.
This is also when I employ what I call the BuzzFly approach on Dow-linked positions. When weakness persists, you adjust quickly, reduce directional exposure, and rotate into setups that benefit from volatility and downward pressure. The goal is to stay nimble while the market trends decisively.
Calculating Your Reference Points
Another key component of Genesis is the midpoint calculation. Whatever the low of Genesis is, you add the high and low together and divide by 2. This midpoint gives you a clean reference level that often becomes a magnet if the market begins to recover. It acts as a sanity check, a confirmation area, and a balance point that can validate whether a move off the low has real strength behind it.
Genesis works best when paired with the high reference bar and low reference bar from the last 24 hours. This broader context shows whether Genesis levels are aligning with deeper structural support or resistance. As I always tell traders, you trade by odds, and Genesis provides those odds with mathematical clarity.
Timing isn't everything in trading — it's the only thing when you're trying to catch market extremes. Genesis turns intraday noise into actionable intelligence, especially during volatile periods when emotional decision-making tends to dominate.
Click here to learn more about Genesis and find out how you can use it in your daily trading
Trade to Win,
Tom
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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