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

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
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
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
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
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
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
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
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
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