Change in the State of Delivery (CISD) in Trading

Introduction

• CISD is a reversal pattern where price momentum shifts suddenly from bullish to bearish or vice versa.
• It signals potential market reversal and presents trading opportunities with higher risk-to-reward ratios.
• Important to combine CISD with other smart money concepts for high-quality trades.

Understanding CISD

• CISD occurs as a sudden change in price momentum.
• Example: A bullish trend with recent candles breaking above market structure shows bullish momentum.
• If price drops and closes below a demand area, reversing bullish momentum, it is a CISD.
• Indicates: Breakout was a fake out targeting liquidity; buyers lost control, sellers took over.

Trading Strategy Using CISD

1. Market Bias Shift:

   • Shift to bearish bias, look for sell opportunities after a break and close below the origin point of buy-side delivery.
   • Former support becomes resistance, providing a short trade opportunity.
   • Importance of patience for price return to resistance area.

2. Bearish Scenario:

   • CISD when price shifts momentum and breaks above sell-side delivery after sweeping liquidity below key low.
   • Sellers lose control, signals potential reversal.

CISD vs Change of Character

• Change of Character: Breaks a well-defined market structure, shifts overall trend.
• CISD: Focuses on sudden momentum shift, signals market structure change earlier.

Trading Rules for Effective CISD

1. Rejecting Higher Time Frame Key Level:

   • Most effective when CISD occurs at higher time frame key zones (4-hour, daily, weekly).
   • Indicates market likely reversing at crucial area.

2. Sweeping Liquidity Pool:

   • High-quality CISD often follows market sweeping liquidity from one side.
   • Indicates potential reversal after liquidity is taken.

3. Volume and Confirmation:

   • Look for increased trading volume during price action shift.
   • Higher volume confirms pattern's validity.
   • Fair Value Gaps (FVGs) indicate high momentum and enhance trade setup.

4. Waiting for Pullback:

   • Wait for retest after price breaks origin point.
   • Confirm previous level flip from support to resistance or vice versa.

Real Chart Examples

• Analyze charts to see CISD in action using multi-timeframe analysis.
• Example: Euro/Dollar 15-minute chart showing bearish momentum and FVGs.
• Importance of confirming broader trend using higher time frame charts.

Platform Suggestion

• Fast Bull: Offers financial news, fundamental analysis, economic calendar, and market data.

Risk Management

• Importance of solid risk management to protect capital despite promising setups.

Conclusion

• Backtesting is essential to see CISD strategy effectiveness.
• Combining CISD with liquidity concepts and FVGs improves trade reliability.
• Encouragement to test and refine strategy for better trading outcomes.