80-ICT Mentorship Core Content - Month 8 - Integrating Daytrades With HTF Trade Entries

Last modified by Drunk Monkey on 2022-10-10 09:33
1 00:00:06,509 --> 00:00:16,889 ICT: Hey folks, welcome back to Lesson Eight the final of April 2007 teams content for ITT day trading model. This lesson is gonna be teaching integrating
2 00:00:16,919 --> 00:00:19,919 day trades with higher timeframe trade entries
3 00:00:25,620 --> 00:00:36,840 Okay, folks, we're gonna be revisiting power three. And we're gonna be talking specifically with day trade entries and higher timeframe setups. Now he news day
4 00:00:36,840 --> 00:00:49,710 trading entries, to position ourselves in our longer term higher timeframe trades. And a method that employs very little time and analysis. We do not need
5 00:00:49,710 --> 00:00:58,470 to use the money kill zone, if you're not able to trade it. Some of you aren't able to get up, aren't able to stay awake can't deal because of business family
6 00:00:58,500 --> 00:01:09,420 work, I get it, trust me, I've been there. We don't need that alone and kill zone to be a day trader. You don't need to learn the kill zone to be entering
7 00:01:09,450 --> 00:01:18,210 with your higher timeframe setups as a day trader either. Here's a way of using day trading concepts to facilitate an entry on a longer term higher timeframe
8 00:01:18,210 --> 00:01:34,950 sets. There are two essential times of the day it refers to reset. The daily candle can point the ideal entries for all styles of trade. And we look at a
9 00:01:34,950 --> 00:01:46,470 daily candle. Obviously, I've taught this in the past, power three refers to the open the rally or decline and then Close. Obviously, for an up close day or
10 00:01:46,470 --> 00:01:57,720 bullish day, we would see the open near the low of the day, a small little wick below the opening price and expansion move or range expansion up, then a close,
11 00:01:57,870 --> 00:02:06,510 that typically closes just a little bit off the high of the day. For down close or bearish day, we see the open near the high of the day, with a very small
12 00:02:06,510 --> 00:02:15,840 little wick above the opening price and expansion move lower with the clothes coming off the low with a small little wick making the low the date and respect
13 00:02:15,840 --> 00:02:30,060 to the close. That's power three, it's the open rally up close or open decline down close. The open is near one extreme of the daily range. And the close is
14 00:02:30,180 --> 00:02:40,050 near at one end of the daily range. So going the opposite extremes. Now obviously it goes without saying typically, you know, we've mentioned this and
15 00:02:40,050 --> 00:02:51,720 many times before in the free stuff. But there is a vacuum of concern. When we look at price action like this as a retail trader. We're not even aware these
16 00:02:51,750 --> 00:03:03,990 phenomenons have any significance. So when we look at price on a daily chart, okay, just think for a moment, say for instance that you are not able to have
17 00:03:03,990 --> 00:03:15,510 any difficulty getting up in London. Okay, just imagine for a moment, if you did, how could you enter as a day trader? Or how could you day trade. And you
18 00:03:15,510 --> 00:03:25,620 have to avoid the london session. That was one of the things I had to come up with to fill in the void where there was a short period of time where I could
19 00:03:25,620 --> 00:03:37,980 not do anything in London, I had to help take care of the kids, my wife was just unable to do anything. She was nursing and healing up from having a child. I
20 00:03:37,980 --> 00:03:47,370 wanted to trade but I couldn't do it because I had to take care of three kids. And one of them being a newborn. So I had to really figure out a way to overcome
21 00:03:47,370 --> 00:04:00,900 that. And this was my answer or my solution to it. And obviously there's this isn't the last and be all end all. But for me it worked. Okay, the open or
22 00:04:00,900 --> 00:04:10,860 openings. Now there's two session openings that I monitored daily. It's the zero GMT. This is your standard platform on forex Ltd demo that you see me teaching
23 00:04:10,860 --> 00:04:21,450 with in my tutorials, you can use that time for calibration wherever you are globally. And then obviously everyone knows about the midnight New York time
24 00:04:21,450 --> 00:04:32,460 that opening price as it relates to New York time, whatever that time is on your platform. That opening price on an hourly chart, that's what we're looking for.
25 00:04:33,630 --> 00:04:43,950 Well, this teaching Okay, we're gonna go a little bit beyond that. And there are very refined entry points that can be had in the London Open obviously that goes
26 00:04:43,950 --> 00:04:57,120 without saying. But here's the here's the rub with it. You don't need it. If you understand the daily range and you understand what it is going to do, or most
27 00:04:57,120 --> 00:05:06,090 likely to do, let's say it that way. And you understand where you're at in the PD rate matrix. Where are we moving from? Are we moving from a discount up into
28 00:05:06,090 --> 00:05:15,720 a premium? Are we moving from a premium down into a discount? Knowing that gives us directional bias, it gives us an understanding what we should be looking for
29 00:05:15,720 --> 00:05:18,360 being a buyer seller. And
30 00:05:20,400 --> 00:05:29,880 it's not required to position day trading concepts on higher timeframe setups, by using the London Open, you're not limited to that. There's other ways of
31 00:05:29,880 --> 00:05:38,700 doing it. So I want you to think for a second, imagine being able to trade the daily range for a single day, or hold for a much longer duration of trade,
32 00:05:39,000 --> 00:05:55,380 harvesting a larger number of pips, how could you do that? Well, we're gonna be looking at if the true day open, and this is reset the daily candle at zero GMT.
33 00:05:56,730 --> 00:06:04,830 That's our beginning reference point for HIPAA. That's treaty opening. But then there's true day, as I refer to it, when I'm trading London, using the midnight
34 00:06:04,830 --> 00:06:14,130 candle in New York, that's my opening price there. Because I'm able to be awake, and I'm able to trade London, wanting to be there, because I want to be able to
35 00:06:14,130 --> 00:06:24,300 capture that really small, tiny little move of protraction up on down days or down moves, right before the up close, I want to be able to capture that little
36 00:06:24,570 --> 00:06:33,900 movement, or at least get in there and fade that move so that we can have a very tight, ultra small stop and relationship to what I may be doing on a higher
37 00:06:33,900 --> 00:06:42,060 timeframe setup. But when we look at the power three, what we're really doing is this, we're we're looking at the opening price, and we're waiting for the
38 00:06:42,060 --> 00:06:54,750 opposite to occur in the daily range. When we're bullish, we're going to be buying near the low of the day or near the opening. The main question is, how
39 00:06:54,750 --> 00:07:04,620 much lower from the opening will go? If it's gonna be an up close? And if it's going to be a down close, how much higher than the opening? Will it go before it
40 00:07:04,620 --> 00:07:16,650 makes a lower close? I get this question so many times. And I'm just gonna tell you this. It's been staring at you all this time. It's been in your charts every
41 00:07:16,650 --> 00:07:26,790 day, and you don't pay any attention to it. I have also led everybody away from this, because it's just one of those things I wasn't willing to share. But
42 00:07:26,790 --> 00:07:37,950 because you're in the mentorship, you get to learn it. This little hyphenated little dash that appears on all the daily candles, or not candles, but open high
43 00:07:37,950 --> 00:07:49,890 low close bar, if you set that for your platform, that little opening hashtag tik to the left of your daily candles or bars. That opening is all you need to
44 00:07:49,890 --> 00:08:02,190 know. That occurs very, very early in the evening in New York time. So I'm on the East Coast, I'm basically the same time it is in New York, residing in
45 00:08:02,190 --> 00:08:17,130 Maryland. I have East Coast time. wherever that is, in terms of zero GMT, using the Forex Ltd platform, the demo, you need to calibrate your local time and know
46 00:08:17,130 --> 00:08:27,270 what that time is where you live. All you need to know is that opening price. That's it. What we're going to do with that information is frame it in such a
47 00:08:27,270 --> 00:08:37,230 way where we can use it knowing when we want to be buying or selling. When it's up close, we're trying to capture that big lines portion move up. And when it's
48 00:08:37,230 --> 00:08:48,780 down close, we're trying to capture that big range going lower for a day trade. But this is the same concept we'll use this in the same vein by trading with
49 00:08:48,780 --> 00:08:59,700 higher timeframe setups. The key is you have to know where you're at on the higher timeframe pdra matrix. Obviously, for looking for up close, we need to be
50 00:08:59,700 --> 00:09:12,570 seeing the daily moving away from a discount array. It has to have already respected a discount array so that way, the next trading day, we should see no
51 00:09:12,570 --> 00:09:25,740 movement at all, if very little below the opening price at zero GMT. If we're looking at a bear scenario, on the daily chart, we have to have recently traded
52 00:09:25,950 --> 00:09:35,880 at a premium array and price has to have shown a respect of that. In other words, it's repelled or failed to go higher. The next trading day at zero GMT,
53 00:09:36,570 --> 00:09:48,990 we're going to use an opening price to facilitate trade. So let's assume for a moment we have watched our daily chart trade down into a discount PD array. And
54 00:09:48,990 --> 00:09:57,870 we're expecting bullish prices now. institutional order flow has been bullish. We've come down into a level that would be expected to be bullish on a daily
55 00:09:57,870 --> 00:10:06,900 timeframe. We've hit a bull shorter block, and price has shown a willingness to rally away from that. Then very next day, at zero GMT, we're going to look at
56 00:10:06,900 --> 00:10:15,330 that opening price. Now I've trained and conditioned all of you to look for the opening price and then expect that down move. That's your classic London setup.
57 00:10:17,010 --> 00:10:26,370 But what if you can't be up? During that time? The London protraction, you may not be able to be able to see it. You can't be there to watch it, you can't
58 00:10:26,580 --> 00:10:37,680 participate, if you will. Well, is that entirely true? Not necessarily. Just because you're not awake doesn't mean you can't take advantage of it. What we
59 00:10:37,680 --> 00:10:48,600 look for, is, yes, the opening price. But we have already arrived at what if we were awake at London, we would expect that move down anyway. That's what we're
60 00:10:48,600 --> 00:11:00,420 looking for that Judas swing that protection a state in the market, where price goes lower, to seek liquidity to make a move higher, with an up close. All we
61 00:11:00,420 --> 00:11:12,240 need to know is are we more likely to go higher or more more likely to go lower. So if we set our daily bias based on the daily PD arrays, and if the data
62 00:11:12,240 --> 00:11:21,270 ranges, and the quarterly shift is still bullish, everything that's significantly pointing higher, if we're going to seasonal tendency for bullish
63 00:11:21,270 --> 00:11:33,300 prices. If it's a Monday, Tuesday or Wednesday, it's a loaded deal. The main thing is we have to see price having already respected a daily discount pdra You
64 00:11:33,300 --> 00:11:44,820 have to see it do that. And then the very next trading day, you're looking at zero GMT opening price. So that means at my local time in America, it's pretty
65 00:11:44,820 --> 00:11:53,430 easy, regardless of where you're at in the North American continent, real easy to get that price where you're at in the world where it makes it difficult for
66 00:11:53,430 --> 00:12:03,630 you. I can't answer for that. So you'll have to work in the London session. But for those individuals that want to trade Asia, but have the effects of London
67 00:12:03,630 --> 00:12:16,620 Open, this is how you do it. We don't know how much of a projection and state is going to be not always but we can have a reasonable expectation. So why zero
68 00:12:16,620 --> 00:12:25,170 GMT? Well, you already have central bank dealers range closing right now. At zero GMT, you know what the central bank dealers range is most likely going to
69 00:12:25,200 --> 00:12:34,080 provide you in terms of standard deviations. But what if you don't want to use central bank dollars range? Why you would think that I don't know. But this is a
70 00:12:34,110 --> 00:12:44,130 you don't even want to consider it. I think it's advantage that knowing it so you can expect how much of a projection or you face and price will go higher or
71 00:12:44,130 --> 00:12:53,610 lower in this case going lower below the opening price. We're bullish up close during London. But what we're going to be doing is focusing primarily on being a
72 00:12:53,610 --> 00:13:07,950 buyer at zero GMT Wayman, I'm just gonna buy it at zero GMT. Yeah, you're gonna bite at zero GMT. You're going to use a five day average daily range as your
73 00:13:07,950 --> 00:13:22,620 stop. Whoa, Michael, wait a minute, what you're saying is this could potentially be a 90 pip stop. What if it's 100 pips stop? Then that's what it is. Remember,
74 00:13:22,620 --> 00:13:34,320 we're not day trading with minute risk trying to capture 20 are okay, no, we're not trying to do that here. This topic and teaching is how to integrate day
75 00:13:34,320 --> 00:13:44,370 trading and concepts to get into your higher timeframe trade entries. Since you're looking for higher timeframe setups, but 90 to 100 pips stop is
76 00:13:44,370 --> 00:13:52,170 relatively insignificant, because you're looking for moves that are going to be paying several 100 pips or you should be, that's what you'd be looking for those
77 00:13:52,170 --> 00:14:01,110 types of moves. So if you want to frame those ideas, and use day trading concepts you will be buying at zero GMT. Using a five day average daily range as
78 00:14:01,110 --> 00:14:09,900 your stop loss, you would take whatever the average daily range is subtracted from the opening price at zero GMT. There's your stop loss and use let it rip.
79 00:14:10,020 --> 00:14:21,090 You just treat it accordingly based on your heart timeframes until it trades to a premium PD array. Now what if you want to use this concept as a day trade? You
80 00:14:21,090 --> 00:14:30,690 just want to do it as a single one day event. You think it's gonna be a big range? Everything's pointing to a larger update close and it's been small ranges
81 00:14:30,690 --> 00:14:38,820 leat recently and we respected a discount pdra on the daily chart. Its institutional workflow has been bullish anyway, its quarterly effect is underway
82 00:14:38,820 --> 00:14:51,420 and it's still bullish. Everything is expected to go higher. It's a Monday or Tuesday or Wednesday. What can we do with that in regards to intraday? Well,
83 00:14:51,960 --> 00:15:05,070 you're going to take the same thing and reverse it for sales. We don't know how much of a projection I stay Eat, we will have without being awake. So we don't
84 00:15:05,070 --> 00:15:13,590 need to know exactly how much that is. We can have central bank dealer trains hint at that. But again, we don't know how much of that London protraction or
85 00:15:13,590 --> 00:15:17,520 phase and price is going to move up above that zero GMT.
86 00:15:19,199 --> 00:15:28,619 The key is we have already seen price move away from a premium PD array on a daily chart, it has to have to happen the day before the trade day. So the
87 00:15:28,619 --> 00:15:38,219 previous session, we want to see price having respected a premium PD array, and it's not wanting to rally or obviously hit it and started to sell off. So we're
88 00:15:38,219 --> 00:15:50,189 near the high end of the range. It's at a premium. It's already shown a willingness with respect some measure of a premium PD array, some bearish order
89 00:15:50,189 --> 00:16:00,749 block where it's rejected an old high turtle suit, the very next trading day, well, zero GMT on forex LTDs demo platform, you're going to be looking to sell
90 00:16:00,749 --> 00:16:20,849 short range zero GMT. Or you can sell it zero GMT plus 20. pips. And again, using the five day average daily range, I just thought, what are we
91 00:16:20,849 --> 00:16:30,539 accomplishing here? Well, we can anticipate, obviously a little bit of movement or projection a phase in the marketplace where the Judas swing occurs, right
92 00:16:30,539 --> 00:16:46,289 before that down close, adding 20 pips to zero GMT opening price, that would be your sell limit order, and then adding the average five day range ADR to your
93 00:16:46,289 --> 00:17:03,779 limit entry. So let's give an example say it was, you're getting it at 1.5000. And the average daily range is at 50, you would get in at 10500. And your staff
94 00:17:03,779 --> 00:17:18,269 would be at 10550. Now that's a relatively small stop, but that would be an example. So what you're doing is you're protecting yourself and building in
95 00:17:18,269 --> 00:17:28,889 enough of a filter or, or a barrier, if you will, that the likelihood of price rallying from the open at zero GMT 70 pips before going down with a down close,
96 00:17:28,949 --> 00:17:40,199 highly unlikely, especially if we've seen a previous day or yesterday, it trading from a premium pdra from a daily chart. So long and short is we already
97 00:17:40,199 --> 00:17:48,179 know there's going to be very little upside above the opening price because we are in a bearish cycle. So if that's the case, we can just look at the opening
98 00:17:48,179 --> 00:17:57,989 price at 20 pips to it the entry limit order your stop is the five day average daily range added to that entry. And then you use your higher timeframe
99 00:17:59,579 --> 00:18:10,019 objectives for your turn off your profit and you go to sleep, just let it go. Now there's gonna be sometimes you might have a 2020 Pip limit, and it doesn't
100 00:18:10,019 --> 00:18:21,329 go up 20 pips and just runs away. How can you accomplish the same thing and not be afraid of missing the move? Well, if you take your total position, okay, and
101 00:18:21,329 --> 00:18:29,669 you divide it in half, what was your total lot size that you were going to trade and or percentage risk that you were going to trade at plus 20 pips above zero
102 00:18:29,669 --> 00:18:43,799 GMT is opening, take half of that risk and just simply add it at the zero GMT. There's your first portion, put it in there right away at zero GMT, and then you
103 00:18:43,799 --> 00:18:53,399 can do a second portion at 20 pips above the opening price, it may not fill you there, but at least you have something in so that way, with a five day average
104 00:18:53,399 --> 00:18:56,999 daily range, that's your stop. There you go. You're positioned.
105 00:19:03,000 --> 00:19:17,130 Again, you could just sell at zero GMT opening and use the last five days average daily range as your protective stop. You can take the sell at zero GMT,
106 00:19:17,730 --> 00:19:30,840 or add 10 to 20 pips above the opening price for yourself. So that way, you're going to anticipate some measure projection every phase in price in London. When
107 00:19:30,840 --> 00:19:42,000 price rallies up, it might rally up 30 points, it might rally up 14 It might even rally 50 But you already have several pips above the zero GMT opening price
108 00:19:42,600 --> 00:19:54,150 to get you in as a limit to sell. Then by having a five day average daily range above your entry, your building in as much as 60 to 70 pips and again, that's
109 00:19:54,150 --> 00:20:10,200 highly unlikely if you're trading on the heels of the previous day, having respect of it Daily premium pdra You can buy days simply buy at zero GMT. Or buy
110 00:20:10,200 --> 00:20:20,640 it with 10 to 20 pips below the opening price is zero GMT. There's your limit order the buy to where you're going to get some Judas swing if it occurs if it
111 00:20:20,640 --> 00:20:29,100 goes down a few pips and fills you and say it goes down 30 More, the likelihood of the five the average daily range being subtracted from the opening price is
112 00:20:29,100 --> 00:20:41,220 your GMT and your 10 or 20 pips below the opening price as your entry. Again, the likelihood is 70 pips 6070 pips going down from the opening price just to
113 00:20:41,220 --> 00:20:53,640 have up close, it doesn't usually happen if price is already expected, a daily discount pdra. Now you have homework, I want you to find three examples. And
114 00:20:53,640 --> 00:21:04,560 yes, you have to do this. Go through your charts, and find in recent weeks where you'll have three examples of this concept in price action, using only the
115 00:21:04,560 --> 00:21:15,330 opening price at zero GMT, when you're bullish, where price rallied up or using it as the opening price and then a limit order above or below relative to what
116 00:21:15,330 --> 00:21:22,770 you think in terms of the close if it's going to be bullish or expected this the bullish prices based on the analysis that you would see around that time,
117 00:21:22,770 --> 00:21:29,400 obviously, you have the benefit of hindsight. But this is how you learn it, you look for it in price, and you show you show yourself many examples. I can give
118 00:21:29,400 --> 00:21:39,000 you 20 of them in this, but it's not as good as if you go through the price action yourself. Unfortunately, to go through the cycle of looking for PDA raise
119 00:21:39,690 --> 00:21:51,450 the higher timeframe, looking at institutional order flow, and framing that on clear cut, discount or premium arrays. When price is wanting to go higher.
120 00:21:51,900 --> 00:21:59,700 You'll see it obviously in hindsight, but I want you to focus on the zero GMT opening price, and how much that goes down relative to the five day average
121 00:21:59,700 --> 00:22:13,530 daily range. The five day average daily range, if you don't have my ICT indicator, just about everybody has that. But if you don't have it, you can use
122 00:22:13,530 --> 00:22:23,730 the simple indicators on most platforms, the ATR Average True Range, do it on a five day and that will give you your your your number, okay, for each day, it's
123 00:22:23,730 --> 00:22:30,000 gonna get real close to what the ICT average daily range indicator is don't think it makes that one good is it gives you a line when it hits it, it turns
124 00:22:30,000 --> 00:22:39,840 blue, it gives you the impression that you're you're a lot more fancier than you really are. You don't need it. But it's just a way of building our stop loss
125 00:22:39,840 --> 00:22:49,080 will know what our stop is based on whatever the average daily range the last five days doesn't mean you won't get stopped out. Sometimes it doesn't mean that
126 00:22:49,710 --> 00:22:59,940 the market won't stop you out and still go where you thought that still can happen. But this was what my solution was to not being awake during London, but
127 00:22:59,940 --> 00:23:07,320 still looking for the setups based on what I understood in price. So I look forward to seeing your example shared on the forum. It'll be shared, hopefully
128 00:23:07,350 --> 00:23:17,310 by majority of you, if not all of you. But three examples, do it in one post. What pair it was, where it was how much of a movement down or up from your
129 00:23:17,310 --> 00:23:28,980 opening price relative to being a buyer or seller. And I want you and these three examples I want to see one that worked as a buy. One worked as a sell, and
130 00:23:28,980 --> 00:23:36,780 then one where it did not work and I don't care if it failed as a buy or sell. But find one of each. Share that in your post on the forum in the April content
131 00:23:36,780 --> 00:23:40,560 thread. And until next time, I wish you good luck and good trading