68-ICT Mentorship Core Content - Month 7 - Short Term Trading Blending IPDA Data Ranges and PD Arrays
Last modified by Drunk Monkey on 2022-09-29 14:12
| 1 | 00:00:09,719 --> 00:00:28,259 | ICT: Welcome back, folks. This is Lesson Four for short term trading, blending data ranges and PD arrays for liquidity runs. Okay, while we're looking at IP |
| 2 | 00:00:28,259 --> 00:00:41,789 | the data ranges that we're referring to specifically time and PD arrays are dealing specifically with price. So blending the two elements together, you |
| 3 | 00:00:41,789 --> 00:00:57,389 | blending time and price theoretically. If the data ranges provide you a context to look back the last 20 days the last 40 days in the last 60 days, as you move |
| 4 | 00:00:57,389 --> 00:01:12,329 | forward, you're casting forward for a new set of 2040 and 60. Each new day, you shift that range forward to look back period gives you the context of frame the |
| 5 | 00:01:12,359 --> 00:01:25,919 | PD arrays with a reference point in time. The interbank price delivery algorithm will reach back in two data arrays between the last 20 days the last 40 days and |
| 6 | 00:01:25,919 --> 00:01:42,989 | Alas 60 days which data array they use or referred to is respective to the PD array in reference to price if price is in a premium market, obviously working |
| 7 | 00:01:43,319 --> 00:01:59,159 | for the market price up we will be looking for a bearish mitigation block a bearish breaker liquidity void fair value got a bearish order block a rejection |
| 8 | 00:01:59,159 --> 00:02:13,889 | block an old high or an old low from the market price and below for discount market, we will be looking for a bullish mitigation block, bullish breaker |
| 9 | 00:02:14,609 --> 00:02:29,129 | liquidity void, fair value gap, bullish order block rejection block, old low or old high moving from the market price up in the order that's listed in the |
| 10 | 00:02:29,129 --> 00:02:41,249 | premium data race. That's the order in which the algorithm will seek those respective price reference points. They're not in any different order. This is |
| 11 | 00:02:41,249 --> 00:02:53,009 | the order or the heirarchy in the way that they're set up. There is not always a void or gap or mitigation block, it may just simply need to go all the way up to |
| 12 | 00:02:53,009 --> 00:03:05,909 | a bare shoulder block or a rejection block. And the same thing is said in opposite terms for when the markets in a discount. It's not ambiguous when we |
| 13 | 00:03:05,909 --> 00:03:17,699 | look at price in the form of the PD array matrix. A good practices is always to simply go through your price charts. And just look for where prices right now at |
| 14 | 00:03:17,699 --> 00:03:32,909 | the market price and above you okay looking back last 20 days or 40 days and 60 days, which PD arrays in the form of premium market exist. Again, not all of |
| 15 | 00:03:32,909 --> 00:03:46,739 | these bearish or premium arrays will exist in your price. There may be a selection of three or four, or maybe as little as two. Rarely will you have all |
| 16 | 00:03:46,739 --> 00:03:57,449 | of them to choose from. So what you're doing is you're looking back over the last 20 days. And you're looking to see above us in terms of the market price |
| 17 | 00:03:57,989 --> 00:04:14,819 | would be deemed as a premium market. The last 20 days which PDE array exists in price action. Looking back 20 days, which discount pdra exists below us. There |
| 18 | 00:04:14,819 --> 00:04:25,559 | may be a PD array above and or below us that's already been used by price action. For instance, it may be a bullish order block, prices already traded |
| 19 | 00:04:25,559 --> 00:04:36,779 | down into and responded and reacted accordingly and had higher prices. That PD array has now been exhausted. So you'd have to look for another discount PD |
| 20 | 00:04:36,779 --> 00:04:49,889 | array. When we refer to time and price, what we're doing is we're blending both of the components just like the algorithm does. The algorithm has to go back a |
| 21 | 00:04:49,889 --> 00:05:02,339 | specific number of time. So we do is we break it into 20 trading days which is essentially one month 40 trading days versus essentially two months and 60 |
| 22 | 00:05:02,339 --> 00:05:04,949 | trading days versus essentially three trading months. |
| 23 | 00:05:07,440 --> 00:05:17,850 | By combining both time and price, we get the closest thing we can arrive at in terms of what the algorithm will seek to do in terms of trading to the next |
| 24 | 00:05:17,850 --> 00:05:18,780 | level liquidity. |
| 25 | 00:05:20,130 --> 00:05:25,290 | When the markets are bearish, we work from a premium market down to a discount. |
| 26 | 00:05:26,550 --> 00:05:38,880 | Based on whatever premium PD array discount PD array exists in your current market action. When it's bearish, those premium PD arrays will be your |
| 27 | 00:05:38,880 --> 00:05:52,950 | resistance points or where sell signals or sell offs will occur. For new sell setups, the objective for price to reach down into will be the discount PD |
| 28 | 00:05:52,950 --> 00:06:06,210 | arrays that exist in your price action. We all force the idea of any of these PDA arrays. They're either in chart or they're not. If there's an absence of any |
| 29 | 00:06:06,210 --> 00:06:18,330 | one of them, it doesn't negate or increase or lessen the validity of the ideal setup. It just means that you have far less to choose from in terms of targets |
| 30 | 00:06:19,110 --> 00:06:31,230 | or setups. Alright, let's take a look at an example. We're going to use the Australian dollars to the daily chart. And the first thing you want to do is you |
| 31 | 00:06:31,230 --> 00:06:53,100 | want to break your market up in reference to time. So now we have the look back of 20 trading days 40 trading days and 60 trading days. We can go back all the |
| 32 | 00:06:53,100 --> 00:07:04,770 | way to the 60 trading days. And you can see that the lowest point with the old low noted and the highest high formed in the last 20 trading days. That is our |
| 33 | 00:07:04,770 --> 00:07:18,240 | total 60 day trading range. Splitting that market in half in reference to its old high and its old low, we can see where the premium and discount market |
| 34 | 00:07:18,240 --> 00:07:36,780 | ranges exist. If this old low is violated, we would have to go back and look at the old world formed in a 60 day look back period, the arrow delineating the |
| 35 | 00:07:37,020 --> 00:07:48,660 | lowest low in the last 20 trading days. If that is violated and traded below, we would go back not to the 40 trading days, because there's no lower low. The next |
| 36 | 00:07:48,660 --> 00:08:04,020 | lower low or discount PD array exists in the 60 day look back and those levels are noted respectively. The last 40 trading days you can see the range is |
| 37 | 00:08:04,020 --> 00:08:08,640 | defined by the highest high and the lowest low in the last 20 trading days. |
| 38 | 00:08:16,410 --> 00:08:30,270 | So when we look in the last 20 trading days we do is we think in terms of the PD array matrix. Now what I've done here is I've overlaid the actual matrix. Now |
| 39 | 00:08:30,270 --> 00:08:39,960 | you don't need to have this much information or try to have this in your price action. But I'm giving you a graphic depiction on how I interpret analyze and |
| 40 | 00:08:40,050 --> 00:08:53,430 | interpret price action. So if we see where prices right now, at Friday's close of the week of this recording, market price is defined as Friday's close and we |
| 41 | 00:08:53,430 --> 00:09:05,010 | would be looking at the highest high and the lowest low in the last 20 trading days. That's our first look back period of 20 trading days. We start looking for |
| 42 | 00:09:05,010 --> 00:09:16,890 | bearish mitigation blocks in the premium range, a bearish breaker liquidity void fair value gap, bearish order block rejection blocks and or on old high or old |
| 43 | 00:09:16,890 --> 00:09:31,800 | Low to low market price. We identify any bullish mitigation blocks a bullish breaker liquidity void, a fair value gap, bullish order block rejection block or |
| 44 | 00:09:31,800 --> 00:09:33,540 | an old low and or high |
| 45 | 00:09:39,720 --> 00:09:49,890 | with that in mind, what I've noticed is in the last 20 trading days, these are the respective premium and discount PD arrays in the last 20 trading days. |
| 46 | 00:09:52,200 --> 00:10:07,860 | Working our way from the top down, we have an old high rejection block a bearish waterblock mean threshold, that's three of candles, ranges other bodies, highest |
| 47 | 00:10:07,860 --> 00:10:14,550 | high and lowest low in terms of the bodies, not the wicks. That's the mean threshold or midway point. |
| 48 | 00:10:15,809 --> 00:10:27,419 | Then we have the bearish order block. And then we trade down into the discount area when we see him bullish order block, bullish order blocks mean threshold, |
| 49 | 00:10:28,619 --> 00:10:31,589 | the rejection block, and then finally the old low. |
| 50 | 00:10:36,900 --> 00:10:46,980 | If we move down into a four hour chart, you can see how these PD arrays give you much more detail, you can start to see how price moves from one PD array to the |
| 51 | 00:10:46,980 --> 00:11:03,570 | next. The market for the Australian dollar made a higher high on Tuesday failed to make a higher high and trade higher into a monthly range as I had expected in |
| 52 | 00:11:03,570 --> 00:11:14,790 | my analysis, you're going to learn that having these understandings of short term trading, it's not required for you to know all the time exactly where the |
| 53 | 00:11:14,790 --> 00:11:25,560 | microphone to go. If you fail in your analysis, it'll give you an immediate reason to maybe reverse your analysis and take the trades in the opposite |
| 54 | 00:11:25,560 --> 00:11:36,180 | direction. This was the case this week in our mentorship. Originally, I was long or bullish on the Australian dollar with the expectation of a larger price move. |
| 55 | 00:11:37,290 --> 00:11:49,020 | It failed to do so on Tuesday, once Tuesday broke down. As you'll see in the later slides in this presentation, we have a lot more analysis to suggest the |
| 56 | 00:11:49,020 --> 00:12:00,210 | price was going to trade down and close that liquidity void. Now again, this is a four hour chart. So if we saw price fail on Tuesday and break down lower |
| 57 | 00:12:00,240 --> 00:12:14,250 | during Tuesday, we start looking for bearish ideas inside of the premium range. So we look for all the premium PD arrays to start keying off of potential sell |
| 58 | 00:12:14,250 --> 00:12:29,370 | scenarios. When we sell short, on the daily PD arrays in the premium range, we will be looking for a lesser timeframe to target our exit that would be in the |
| 59 | 00:12:29,370 --> 00:12:44,550 | form of a four hour or one hour chart. The Four Hour here shows a clear liquidity void as outlined here. Price also trades back up into a mitigation and |
| 60 | 00:12:44,550 --> 00:12:57,120 | breaker trades up to institutional price level 7680. And while we're not necessarily needing the actual high of The Week, we can still take participation |
| 61 | 00:12:57,120 --> 00:13:11,610 | in the market move because we understand that the shift in order flow has now been moved to bearish. So we will be looking for discount PD arrays below market |
| 62 | 00:13:11,610 --> 00:13:24,480 | action. At 7680 we were in the premium range. The Void closes and takes us into discount range. Notice that in the shaded green area |
| 63 | 00:13:29,970 --> 00:13:40,740 | if we further refine this into the days of the week, on a four hour chart, you can see how this clearly came down and closed and liquidity void. Right to the |
| 64 | 00:13:40,740 --> 00:13:58,710 | PIP if we add our market maker manipulation template, forming the high of the week on Tuesday, trading in an old monthly, weekly and or daily high liquidity |
| 65 | 00:13:58,710 --> 00:14:10,380 | pool. That's what we saw on Tuesday, it trades slightly above Monday's high rejected once Tuesday broke down, the likelihood that we would see lower prices |
| 66 | 00:14:10,560 --> 00:14:23,820 | was in effect why I said we can start looking for shorts at 7680 with the objective of 7605 as our downside objective that was framed, as we see our |
| 67 | 00:14:23,940 --> 00:14:37,050 | market maker manipulation template, the discount market PDA array is going to be used on a timeframe lesser than the premium liquidity pool that was used. So the |
| 68 | 00:14:37,050 --> 00:14:50,310 | daily high on Monday was violated on Tuesday. That's a liquidity pool read on a daily high. If that's the context, we're going to drop down to a four hour and |
| 69 | 00:14:50,310 --> 00:15:06,810 | or a one hour chart to look for a discount PD array. It comes in the form of liquidity void taking us down into 7605 was our objective. Everything tied |
| 70 | 00:15:06,810 --> 00:15:20,190 | together, we get a combination of elements of time and price, blending. And using the market maker manipulation templates in accordance to our market |
| 71 | 00:15:20,190 --> 00:15:30,600 | profiles that we used and learned. In lesson two, we get a symmetry in the marketplace that would otherwise probably escape everyone else. So hopefully |
| 72 | 00:15:30,600 --> 00:15:43,710 | with this example, and understanding and using an example we used in live analysis this week, while we were initially wrong, and our expectation of a |
| 73 | 00:15:43,710 --> 00:15:56,760 | higher breakout on Aussie dollar. That failure swing on Tuesday, gave us insight on how we can change gears and get short on Aussie dollar even while it traded |
| 74 | 00:15:56,760 --> 00:16:11,160 | in sympathy with the weaker dollar which isn't typical. blending the two time in price, it gives us the ability to work within the same parameters that algorithm |
| 75 | 00:16:11,160 --> 00:16:22,830 | will have to enter bank level. Hopefully this has been insightful to you. We'll build more on these ideas as we go through and trade with more insights using |
| 76 | 00:16:22,830 --> 00:16:26,190 | the IP to date ranges and PD array matrix |