Day Zero Fakeout Detector MTF

Day Zero Template (Stacey Burke)

Definition:

“Day Zero” is essentially the setup day in Stacey Burke’s playbook.

It’s the day when the market creates a significant inflection — often forming a Peak Formation High (PFH) or Peak Formation Low (PFL).

It usually occurs after 3 days of directional movement (the classic 3-day cycle Stacey teaches).

Example:

Day 1: Breakout expansion.

Day 2: Continuation or consolidation.

Day 3: Exhaustion + reversal (forms PFH/PFL).

Day Zero: The day after this reversal template begins — where traders start looking for measured moves back inside the range.

👉 Day Zero = the transition day where the new weekly cycle (up or down) begins.

2️⃣ Peak Formation Highs (PFH) and Lows (PFL)

A PFH occurs when the market fails above prior highs (often with stop hunts/fakeouts).

A PFL occurs when the market fails below prior lows.

These PFHs/PFLs mark the anchor points for the next 3-day cycle.

Once identified, they become reference levels:

Above PFH → fade long traps (short bias).

Below PFL → fade short traps (long bias).

👉 This is where rectangles (Peter Brandt style) can come in handy to box in the PFH/PFL area.

3️⃣ Peter L. Brandt – Rectangles & Classical Charting

Peter Brandt’s approach (classical charting) complements Stacey’s playbook:

Rectangles are consolidation zones (value areas).

When a PFH or PFL forms, price often consolidates in a rectangle range.

A breakout from that rectangle confirms direction (continuation or reversal).

The measured move target is typically the height of the rectangle projected from the breakout point.

👉 Applied to Day Zero:

PFH/PFL = the extreme boundary of the rectangle.

A breakout from the rectangle in the opposite direction = confirmation of Day Zero reversal.

4️⃣ How They Fit Together

Stacey Burke: Focus on intraday cycles, 3-day cycle, Day Zero as the reset after PFH/PFL.

Peter Brandt: Focus on classical rectangle consolidation and breakout targets.

Integration:

Day Zero = when you’ve spotted a PFH or PFL and are preparing for the new cycle to begin.

Mark the PFH/PFL → draw a rectangle around the consolidation.

Wait for breakout/acceptance beyond rectangle → trade toward measured move (often aligning with Stacey’s Day 1/Day 2 directional bias).

✅ Example in practice:

Monday & Tuesday rally → Wednesday exhaustion → PFH forms.

Thursday = Day Zero (new short bias starting).

Rectangle consolidation forms under PFH.

Breakout below rectangle = signal.

Target = rectangle height measured down → often aligns with yesterday’s lows or prior session value area.