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55-ICT Mentorship Core Content - Month 5 - Limit Order Entry Techniques For Long Term Traders

Last modified by Drunk Monkey on 2022-09-19 16:26
1 00:00:10,769 --> 00:00:23,759 ICT: Okay folks, welcome back. This is lesson 7.2 of the January 2017 content using limit entry techniques for long term traders. Okay, we're looking at
2 00:00:23,759 --> 00:00:35,909 buying with a limit order. And much like we used for the buy stops, the monthly and or weekly should suggest institutional order flow, we'll be seeking a pdra
3 00:00:35,939 --> 00:00:46,019 above daily market price. The daily should post a bearish candle, the daily chart must close the candle with a down close and it is not valid while the
4 00:00:46,019 --> 00:00:57,539 daily chart candle is trading and or forming. And the buy limit is going to be placed at the bearish candles close as the daily candle. So we're looking at the
5 00:00:57,539 --> 00:01:10,949 daily high, the daily low to daily open, and the daily close, we're gonna be looking to enter a buy limit order at the close of the daily candle that's a
6 00:01:10,949 --> 00:01:20,789 down close while the market is bullish, and we're expecting a higher price move in the asset class we're trading, what you're gonna be seeing is the markets
7 00:01:20,789 --> 00:01:29,189 already going to be undervalued in already primarily bullish market condition. Preferably, this is going to be useful to you when the markets already shown a
8 00:01:29,189 --> 00:01:37,739 willingness to have a market structure break, it's already starting to move higher. It's already starting to move higher. So therefore, prices are really
9 00:01:37,739 --> 00:01:47,369 underway. That's going to be opportunities. When we start talking about swing trading, we can utilize the information in that module to help get better fills
10 00:01:47,489 --> 00:01:57,449 on the long term entries. Closer to the turning points. But for this module, really we're focusing on how you don't necessarily need the big turning points
11 00:01:57,449 --> 00:02:06,779 at the top or the bottoms, you just need to meet in between and be a long term trader still, and it capitalized on a lot of pips and a lot of points if you if
12 00:02:06,779 --> 00:02:14,969 you do these types of trades, takes a long time for them to come to fruition and long time for them to set up. And nonetheless, when we use a buy limit entry at
13 00:02:14,969 --> 00:02:24,299 the close, what we're doing is the very next day or the next candle, when it opens up, we're expecting price movement to move below that down candles close,
14 00:02:24,749 --> 00:02:34,079 what we're actually doing is we're buying at a deeply undervalued price. It's already going to be oversold without requiring any indicators. But we're going
15 00:02:34,079 --> 00:02:44,579 to be buying at a deep discount. When the market is predisposed to move higher you're going to see in our examples how it nails down extremely extremely
16 00:02:44,609 --> 00:02:52,349 awesome entry points I mean there's so deep and discount and you get quick immediate feedback even on a daily basis that you're on the right side of the
17 00:02:52,349 --> 00:03:04,859 marketplace and you start seeing profitability almost immediately. Okay selling with limit orders, just like we had with the sell stops, the monthly and or
18 00:03:04,859 --> 00:03:14,849 weekly should suggest institutional order flow will be seeking PD arrays below daily market price to daily should post a bullish candle and the daily chart
19 00:03:14,849 --> 00:03:24,029 must close the candle with a up close it is not valid while the daily chart candle is trading and or forming and sell limit is going to be placed at the
20 00:03:24,029 --> 00:03:35,789 bullish candles close. So this candle again representing our daily candle up close is the daily high, the daily low, the close and the open for that
21 00:03:35,789 --> 00:03:47,219 particular day. And we're gonna be looking to have a sell limit order right there at the candles close. And what we're doing is essentially we're selling
22 00:03:47,219 --> 00:03:58,499 short in an overvalued or overbought condition in a market that's predisposed to go lower based on monthly and or weekly PD arrays that will draw price lower so
23 00:03:58,499 --> 00:04:07,949 institutional order flow should draw prices lower on a daily but we're getting this up movement against what longer term institutional order flow is suggesting
24 00:04:07,979 --> 00:04:17,909 again on monthly and or weekly chart. So while price is moving higher for this particular day, what we're doing is we're going to be looking to sell short at
25 00:04:17,909 --> 00:04:28,529 the next day but it has to be above this particular candles close. Now again, we're not just selling one on one on any up candle if we have an opinion about
26 00:04:28,529 --> 00:04:38,819 being bearish. These conditions are best suited when we align them with a daily PD array. In other words, here's a bearish order block if there's a gap that
27 00:04:38,819 --> 00:04:48,059 it's traded into, if it's filled in a void if it's traded above a recent high, okay or it's retracing back into an old historical low support broken analysis
28 00:04:48,059 --> 00:04:54,239 resistance. There's like those types of ideas. We're not just indiscriminately going out and finding up candles and damn candles. I should have mentioned this
29 00:04:54,239 --> 00:05:01,979 as well when we talked about the stop orders but you're not just simply going in based on the candle itself by itself, it's not a be all end all in
30 00:05:04,230 --> 00:05:13,380 a system. In and of itself, you have to blend the PD arrays on the daily chart as well. So by blending these things together with the higher timeframe monthly
31 00:05:13,380 --> 00:05:24,600 and weekly pulling price, one side or the other bullish or bearish respective on those higher timeframe charts, when we have those conditions also in opposite
32 00:05:24,600 --> 00:05:35,220 terms. So basically what I'm saying is on monthly and weekly if you're expecting lower prices, or bearish PD arrays that should draw price down to a discount,
33 00:05:35,880 --> 00:05:45,630 what you're expecting to see on a daily is up movement to go to a short term premium. When that occurs, and you have really, really low risk, high
34 00:05:45,630 --> 00:05:54,240 probability entry patterns at your disposal. And this is one of the most amazing ones you're going to see, by selling short and limit above that candles close,
35 00:05:54,480 --> 00:06:03,000 what you're doing is essentially getting that last little piece of market movement above getting that last little surge. And many times when we look at
36 00:06:03,000 --> 00:06:09,600 day trades, you're gonna see the Destiny many times what you'll see as the Judas swing, it'll open, make the high in London and then sell off and then it'll be
37 00:06:09,870 --> 00:06:22,500 the beginning of a long long term move in that particular pair or asset. Okay, we're gonna go back to that Japanese yen example. And we're going to use this
38 00:06:22,500 --> 00:06:36,840 idea as well. And you can see we have the down candle, and using the clothes as our limit order to be a buyer. You see how that transpires here, each down
39 00:06:36,840 --> 00:06:47,190 candles close, the next day, it trades down below it, you would be filled, only limit going long. And look at the responsiveness of price immediately after that
40 00:06:47,250 --> 00:06:55,350 there's 1234 Or five examples here on this daily timeframe. And while it probably doesn't look exciting here probably doesn't feel like you know, it's
41 00:06:55,350 --> 00:07:04,470 that big of a deal. I can assure you when we get into two slides from now, you'll see just how much of an importance this is. But again, what we're looking
42 00:07:04,470 --> 00:07:17,160 at is the weekly chart here, we can see how price was moving away from that 100 level. And there was a bearish order block up around that 118 119 level. And
43 00:07:17,280 --> 00:07:28,500 that was the weekly premium PD array that would draw price up to that level long, long term. And we saw a bullish order block down in the discount level at
44 00:07:28,500 --> 00:07:38,160 100. So you saw the willingness to want to bounce off that level. And we go back down into a daily chart here you can see in November during the post election
45 00:07:38,430 --> 00:07:53,190 rally of Donald Trump's election US price stabbed one more time down into that weekly bullish order block. Prior to that November dip, we saw a September rally
46 00:07:53,190 --> 00:08:02,310 away from a previous order block that was formed in August 2016. September we saw it retreated back down into it and using the down candle the very next day
47 00:08:02,310 --> 00:08:10,680 it did trade down below the close giving an amazing fill. Now what you're seeing here is these lines that are drawn right up from the down candle up into that
48 00:08:10,680 --> 00:08:19,710 red shaded area. That's that weekly PD array or bearish order block. What that means is is price should be drawn up to that level on a weekly and from the load
49 00:08:19,710 --> 00:08:29,850 it was formed in September buying on a limit below the daily candles close from that point all the way up to the weekly PD array or bearish order block. It's
50 00:08:29,850 --> 00:08:46,020 1800 pips for that particular well. The next one comes in around November 17 or thereabouts. And you can see that that limit order below the daily clothes would
51 00:08:46,020 --> 00:08:56,940 have been filled as well. And from that point up to the weekly weekly PD array up at the weekly bearish order block was 980 pips and then the next down close
52 00:08:57,450 --> 00:09:07,350 on this daily chart here again using the close of that down candle as a buy limit order entry point, that next candle puts you in a position where it would
53 00:09:07,350 --> 00:09:17,670 have been 785 Pip move, the next down candle again, comes in with a 600 pit rally. And another one comes in at 500 pips and the last one right before it
54 00:09:17,670 --> 00:09:29,940 gets to the weekly PD array, given a 360 Pip price move, and again buying below the candles close on a limit. You're buying that real deep, suppressed,
55 00:09:31,200 --> 00:09:40,590 undervalued market and it's in a DD D discount, and it will look to seek to move to a premium. And it's an amazing thing when you go through your charts and you
56 00:09:40,590 --> 00:09:49,680 look at this and start studying. And again, what we're looking at is daily timeframes. It's not that we're looking at you hourly charts or 15 minute
57 00:09:49,680 --> 00:09:58,440 charts. And a lot of folks assume just because we're on these higher timeframe, charts, there's not a lot of opportunities. There isn't as many as you would see
58 00:09:58,440 --> 00:10:07,260 in terms of day trades or scalping. I would quickly agree with that. But there are plenty of opportunities when you're in these long term trends. And you have
59 00:10:07,260 --> 00:10:14,850 a real clear indication. And once a move higher to a monthly or weekly level, there's many opportunities you can get in there and get positioned and not have
60 00:10:14,850 --> 00:10:23,730 to get too high. And you can see here that move from the 980 Pip move. That's essentially the equilibrium price point just below it. And even above the
61 00:10:23,730 --> 00:10:31,710 equilibrium price point, there was many opportunities where you could have got several 100 pips, and whether you are a day trader scalper or whatever. I mean,
62 00:10:31,710 --> 00:10:38,610 those types of numbers are just simply not something to scoff at. They're very respectable numbers. So my question to you in closing is, is do you still think
63 00:10:38,610 --> 00:10:48,870 you need intraday trading to make pips? Hopefully, after this teaching, you'll quickly come to the conclusion that you do not need that. So folks that felt
64 00:10:48,870 --> 00:10:58,050 that I'm only teaching day trading and short term trading things. This is the type of trading that you can find opportunities with, still maintain risk
65 00:10:58,050 --> 00:11:09,960 relatively low and still find a payable framework for your trading ideas to pan out and this is just one pair and one focus on a pdra one, a weekly and monthly
66 00:11:09,960 --> 00:11:13,050 basis. And until next time, I wish you good luck and good trading