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86-ICT Mentorship Core Content - Month 9 - Bread and Butter Buy Setups

Last modified by Drunk Monkey on 2022-10-17 10:11
1 00:00:00,000 --> 00:00:00,450 ICT: Okay
2 00:00:15,719 --> 00:00:25,979 welcome back folks the lesson six of the May 2017, ICT mentorship, ICT amplify day trading and scalping this teaching is bread and butter by setups
3 00:00:31,650 --> 00:00:42,090 okay bread and butter by setups daily opportunities in scalping now, what you're gonna be focusing on is consistent small price movements that can be harvested
4 00:00:42,870 --> 00:00:57,060 not every day but just about every day. Now in my programs iptable perform one of two price engine models. The first is accumulate sell side liquidity by
5 00:00:57,060 --> 00:01:09,990 repricing under an old low sell stops will be triggered inducing counterparty sellers to pair long entries with price will seek a higher short term premium
6 00:01:09,990 --> 00:01:21,630 array to offset positions. So offset accumulation is the first price engine model. The second is array accumulate fair value in retracements. Lower at
7 00:01:21,630 --> 00:01:33,450 discount arrays. week long holders will be squeezed in the retracement lower so almost anyone that's already long. When you see the retracement intraday many
8 00:01:33,450 --> 00:01:42,420 traders are usually eating way too tight of a stop loss. And there'll be squeezed out there'll be providing short term sell side liquidity to pair up
9 00:01:42,420 --> 00:02:00,000 orders with and price will seek to expand higher to a short term premium array to offset positions or engineering sell side liquidity offset accumulation, it
10 00:02:00,300 --> 00:02:09,390 will reprice the market below an old low to promote sell stops that will be residing there for current long holders. Now, this is in essence engineers
11 00:02:09,420 --> 00:02:17,700 sellers at a deep discount price. The open float which is the existing orders that are actually in the marketplace above and below them current market price.
12 00:02:18,690 --> 00:02:29,340 The open flow below that old low may also have sell stops for breakout systems that wish to sell on weakness. This model is called offset accumulation. Its
13 00:02:29,400 --> 00:02:37,800 primary purpose is to offset current long holders or induce more sellers at discount pricing the model is seen frequently in bullish market conditions and
14 00:02:37,800 --> 00:02:47,370 while higher timeframe institutional order flow is suggesting higher prices typically offset accumulation models unfold quickly and you must learn to
15 00:02:47,370 --> 00:02:49,950 anticipate them at key lows intraday.
16 00:02:56,160 --> 00:03:08,670 Alright providing banks new long entry points or pricing with re accumulation if that will reprice the market lower to a fair value price array to provide Smart
17 00:03:08,670 --> 00:03:16,290 Money discount pricing for long entries, the market will be bullish from an institutional perspective and many times unfolds after a recent Sell Stop rate.
18 00:03:16,680 --> 00:03:26,040 The retracement lower in price will place pain on current long holders and tends to induce selling. Thus providing sell side liquidity to pair smart money long
19 00:03:26,040 --> 00:03:37,350 entries with this model is called RE accumulation its primary purpose is to re accumulate new long entries and or induce more sellers at discount pricing. The
20 00:03:37,350 --> 00:03:45,990 model is seen frequently in bullish market conditions and while higher timeframe institutional order flow is suggesting higher prices typically, re accumulation
21 00:03:45,990 --> 00:03:59,460 models unfold quickly and you must learn to anticipate them at key discount arrays intraday. Okay, realistic objectives. Your trade duration when we look
22 00:03:59,460 --> 00:04:11,190 forward scalps are going to be typically one to two hours or less many times a lot less but usually about two hours is the maximum pips portrayed usually
23 00:04:11,190 --> 00:04:25,680 you're gonna see a low end of 15 pips 30 pips on average, timing the market, we're gonna be using the five minute chart. Now the frequency of setups per
24 00:04:25,680 --> 00:04:39,360 week, you get as many as 15 or more, yes, 15 or more. per day, you get about two to three setups, typically per session, you generally get about one per session.
25 00:04:39,600 --> 00:04:49,590 That means one in London, one in New York, one in London close and one in Asia, doesn't mean you get one every single session for every single pair. It just
26 00:04:49,590 --> 00:04:57,150 means if you look across a handful of pairs, get a basket of four or five. You can watch and see that there's a scalp usually setting up in one of these
27 00:04:57,150 --> 00:05:03,420 sessions in one of those pairs or another. There's going to be more valid till you one pair over, though. So if you look at, for instance, the majors across
28 00:05:03,420 --> 00:05:13,620 the dollar, if you look at all those majors paired with $1, if you look at every major in London, obviously London so volatile, you'll get something there,
29 00:05:13,620 --> 00:05:27,330 obviously. But New York does same thing. But usually London close and Asia both will have something crop up in either one of those major crosses with $1. But
30 00:05:27,330 --> 00:05:36,270 not all of them, just one of them. Now, the risk reward typically is going to be one to one, which isn't hot, but sometimes you can get a little bit better than
31 00:05:36,270 --> 00:05:45,870 that. But generally, if you're thinking scalping, think one to one, and that's about all you're gonna get. Ideal risk per trade is a half percent to 1% and 1%,
32 00:05:45,870 --> 00:05:53,340 maybe a little high. But as you start to get better at it, you can start seeing more setups, you know, obviously in graduate to the 1%, but I wouldn't do
33 00:05:53,340 --> 00:06:07,110 anything more than that. Now, this is the offset accumulation model, basically, it's a stop run on cell stops the by profile for offset accumulation. So, in
34 00:06:07,110 --> 00:06:18,450 other words, this engineering sellside liquidity, knocking out cell stops to take it higher. And for re accumulation using fair value or re accumulation by
35 00:06:18,450 --> 00:06:30,630 profile for the price engine model. This is what it is, is typically the optimal trade entry. Alright, consistent small price movements are going to be specific
36 00:06:30,630 --> 00:06:39,540 to kill zones. All scalping should be done during ICT kill zones. Since the duration and style of trading is so short term in nature, we need the most
37 00:06:39,540 --> 00:06:50,160 volatile times of the trading day to ensure that we get a move. There are times when using limit orders. An entry may execute outside the kill zone. This tends
38 00:06:50,160 --> 00:07:00,000 to happen in London lunch, that means between 5am New York time to 7am New York time for Post New York open basically around 10 o'clock, and later in the
39 00:07:00,000 --> 00:07:07,620 afternoon. So it's best to be actively following the market if you're going to be scalping intraday. In other words, what am I saying? Try to do all your
40 00:07:07,620 --> 00:07:16,680 scalping with market orders. You can get fancy if you want to with limit orders. But my opinion is if you're going to be scalping, just use market orders get in
41 00:07:16,680 --> 00:07:25,470 there use market orders and use limit orders for your exits. Now gave me here a little a little chart for the major sessions. And you can see how they overlap
42 00:07:25,470 --> 00:07:36,510 with GMT time and Eastern Standard Time. The Kill zones aren't completely lined up with this. So you have to use the lesson that gave you in earlier months
43 00:07:36,540 --> 00:07:47,880 where actually give you the specifics about what each kill zones time start and end is. All right up close days or bullish days. And we're gonna be revisiting
44 00:07:47,880 --> 00:07:49,710 the daily range here for completeness sake.
45 00:07:51,660 --> 00:07:59,760 When the market is poised to trade higher based on higher timeframe institutional order flow, in essence, we expect the open to be at or near the
46 00:07:59,760 --> 00:08:10,110 low the daily range. There can be a small decline below the opening price. So you're probably asking yourself Well, Michael, what's opening price you
47 00:08:10,110 --> 00:08:19,380 referring to remember, we look at both? Zero GMT open at Asia's open, and we're looking at midnight in New York. So higher timeframe institutional order flow.
48 00:08:19,680 --> 00:08:30,420 That means that monthly, weekly daily for our we've done our analysis, we've done all of our directional bias studies, we looked at the if the daily ranges,
49 00:08:30,480 --> 00:08:42,060 where is the quarterly shift most recently? Is it looking to go higher as you go lower? Are we recently trading off of daily bullish discount arrays? Are we
50 00:08:42,060 --> 00:08:50,310 seeing bullish order block support pricing bearish shorter blocks breaking away? Are we coming down and filling in liquidity voids and rallying? are we filling
51 00:08:50,310 --> 00:08:57,390 in fair gaps in and rallying? What that's telling you is institutional order flow is bullish, you don't need trend lines or moving averages to do that and
52 00:08:57,390 --> 00:09:08,130 you just need to see what price is doing. How's it supporting our up candles up close candles being broken and down close candles finding support for every time
53 00:09:08,160 --> 00:09:15,600 price comes down to it. That's institutional order flow. So if you're looking at on a higher timeframe, monthly, weekly, daily and four hour and you see those
54 00:09:15,600 --> 00:09:24,960 evidences in price, and you did your PDA array matrix and you see where those PD arrays are where's the one that you're most likely most likely going to fit see
55 00:09:25,770 --> 00:09:34,830 facilitate a long entry it's the next one that price trades to once you get in there obviously you're gonna be looking for something that's a premium to be
56 00:09:34,830 --> 00:09:41,760 counterparty to so that way it frames your trade you have to have an entry point you have to have a number one yet them consensus of whether the markets bullish
57 00:09:41,760 --> 00:09:49,320 or bearish and we don't use anything except for institutional order flow to get that. That means we're looking at price action to tell us what's what's
58 00:09:49,320 --> 00:09:58,740 occurring. are old highs breaking but lows not being broken. Or are those lows being broken quickly, in in price snaps higher right away. What that's showing
59 00:09:58,740 --> 00:10:06,960 you is the The price and model was re accumulation, they took it down took to sell stocks announcer going higher. These are all fingerprints are hallmarks of
60 00:10:06,990 --> 00:10:22,680 HIPAA showing institutional order flow is bullish. London Open post the initial leg higher intraday, then waits for New York open. Typically you'll see that
61 00:10:22,770 --> 00:10:33,330 London Open swing, pretty volatile, pretty aggressive mood one sided. And usually it does about anywhere between 40 and 60% of the daily range before we
62 00:10:33,330 --> 00:10:43,920 get to 5am, New York time. And then there's a small period between 5am and 7am, which is the London lunch. And usually you'll get some measure of retracement or
63 00:10:43,920 --> 00:10:56,220 consolidation there. And then you have the New York open. So New York open sees a continuation higher when we're bullish, it usually tends to expand up to 10am
64 00:10:56,220 --> 00:11:06,570 New York time, usually they'll start to consolidate their or create the high of the day and retrace a little bit or could be a complete market reversal. But in
65 00:11:06,570 --> 00:11:14,070 this case, what we're looking for is bullish environments where the higher timeframe institutional flow is bullish. And we expecting a big range day where
66 00:11:14,070 --> 00:11:23,970 we can get some scalping done. Price should trade up into the five day average daily range high. Now that's a little indicator I can give you, it'll be
67 00:11:23,970 --> 00:11:33,120 attached to the forum to where you can download it, I'm not going to give it to you until we do the bread and butter sell setups so that we will have a complete
68 00:11:33,390 --> 00:11:45,180 understanding what you're gonna do with it because I'll give you the additional instructions about that in sell setup, teaching. And once the five the average
69 00:11:45,180 --> 00:11:53,280 daily range is hit, and then we go into London close time of day, usually the price will be posting its high and then it'll start retracing off of that high.
70 00:11:53,550 --> 00:12:04,860 So between 10am and noon in New York time, we expect the higher the daily range to form and at or above the five day average daily range projected high. Price
71 00:12:04,860 --> 00:12:15,570 will normally retrace lower and close off the high of the day. Now, normally does it mean every time? Okay, some of the folks in our membership, okay, take a
72 00:12:15,570 --> 00:12:31,350 statement that is not highly specific and rigorous about its context. Okay, it's a normal thing, but doesn't mean it's a panacea. Okay, it's not a be all end all
73 00:12:31,350 --> 00:12:32,550 it's not a absolute
74 00:12:33,570 --> 00:12:44,580 price will normally retrace lower and close off the high of the day. What am I supposing there without actually saying it, it can go higher, sometimes can go a
75 00:12:44,580 --> 00:12:55,890 lot higher. So just be mindful that while we understand the daily range is typically formed like this on highly explosive up moves. 10 o'clock isn't gonna
76 00:12:55,890 --> 00:13:02,760 stop price. 11 o'clock is gonna stop price noon isn't gonna stop price one o'clock, is it gonna stop price? It can rally all about the bond close at 3pm in
77 00:13:02,970 --> 00:13:16,260 New York time. Alright, the London Open when we scalping the london session, there were some details about that. Now obviously, when the higher timeframe
78 00:13:16,260 --> 00:13:27,270 institutional order flow is bullish, we're going to be anticipating the london session low of the day formation. The open as your GMT or 12am in New York, can
79 00:13:27,270 --> 00:13:37,710 see a protraction phase lower in price. This can be scalped from the open or just above it prior to the 1am New York time. Now what am I saying here, you can
80 00:13:37,710 --> 00:13:43,380 look at price action on a bullish day. And if you're gonna be scalping, you got to be really nimble about this you got to know exactly what you're looking for.
81 00:13:43,380 --> 00:13:53,940 For a discount Ray. Noise you gotta really be confident that your convictions are so strong that you think that when price drops down, to create that Judas
82 00:13:53,940 --> 00:14:02,970 swing, creating low the day, where you're gonna be getting out and where the opening is, if there's not a large enough range there, that can be scalped. I
83 00:14:02,970 --> 00:14:13,590 teach people not to try to do that. But more appropriate would be to wait for the Judas swing and then buy it down there. Okay, but for scalping some some of
84 00:14:13,590 --> 00:14:20,970 you guys are really excited about being nimble in and out both sides of the marketplace. Again, I'm not trying to promote that idea, but I'm just giving you
85 00:14:20,970 --> 00:14:30,810 a complete array of tools and guidelines. I came up through the market using all these things, but I gravitated away from doing that just highly specifically
86 00:14:30,810 --> 00:14:42,750 looking for the Judas swing down on days. It's bullish and I expect it to be up close. I'm trying to nail down that low get real close to that low. The classic
87 00:14:42,750 --> 00:14:51,540 London Judas swing lower can be scalped even easier. If you're looking at the midnight candle in New York, that moved that drops down from that candle and
88 00:14:51,600 --> 00:14:59,040 that in my opinion is a little bit easier to scout even if you're going to be seeing a higher close on the day. But Asia is open deck can be a little bit
89 00:14:59,040 --> 00:15:08,070 tricky because you could happen really tight Asian range, and it doesn't do anything. The market retraces between 5am and 7am New York time and this can
90 00:15:08,070 --> 00:15:20,430 provide a long scalp entry. Once a discount array is hit. Now think about this. Ramon. There's times when we looked at the price, and after the London kill zone
91 00:15:20,580 --> 00:15:28,380 closes, okay, and there's that little quiet period of time, okay, where Moroccans generally go quiet, and it's in consolidation. And then it's waiting
92 00:15:28,380 --> 00:15:37,500 for New York open around seven o'clock 630 In the morning, seven o'clock in the morning in New York Time is the New York session open for ICT. So what's going
93 00:15:37,500 --> 00:15:45,330 on between that time it's, it's the London lunch. But just like in New York, sometimes traders can work through lunch, they can say, well, the markets are
94 00:15:45,330 --> 00:15:54,930 really hot right now. I'll eat lunch when I go home. So if the markets are really busy, many times you can get a retracement into the London lunch, that
95 00:15:54,930 --> 00:16:03,480 creates an early entry and it moves before New York open. And that's going to happen sometimes, and you can get mad and cut it to screen all you want. But
96 00:16:03,570 --> 00:16:13,620 sometimes you if you're really seeing a very volatile market in London, or it was quite early in London, and then towards the 430 time period, when news comes
97 00:16:13,620 --> 00:16:24,900 out, then it gets really active. Usually it'll cross over into London launching, you'll get maybe a small little 15 or 30 minute consolidation and then you get
98 00:16:24,900 --> 00:16:35,520 the retracement back into New York and Enron's. But not always, but very, very infrequently, you'll see setups that occur where the entry point would be really
99 00:16:35,520 --> 00:16:43,680 good if you're trading between 5am and 7am. But it's better just to not even trade that time period. Don't even look at it and think that you have. So that
100 00:16:43,680 --> 00:16:53,400 having new expectation there's a quiet period in the marketplace since 5am and 7am. This keeps as a general rule of thumb. But unless the london session is
101 00:16:53,400 --> 00:17:01,620 quiet in the beginning and then gets really active after three o'clock or four o'clock, then you'll probably see a little bit of bleed over in to post 5am New
102 00:17:01,620 --> 00:17:02,070 York time.
103 00:17:03,630 --> 00:17:12,900 Even after the initial Judas entry point has passed, that means you know what you missed it, you couldn't get in with a drop down. Many of you are too afraid
104 00:17:13,020 --> 00:17:21,360 to get in here because I say you want to be buying on the Judas swing down or below the opening price and don't chase price. So some of you are holding fast
105 00:17:21,360 --> 00:17:29,160 to that rule. And but you don't ever do anything. But there's opportunities if you use the five minute chart, you can use a scalping technique to get you in
106 00:17:29,160 --> 00:17:37,560 sync with it. Now the reason why I didn't teach it to you Sam because it scalping we're in that time period where we can use these tools now. Up until
107 00:17:37,590 --> 00:17:45,210 recently, we haven't even looked at a five minute chart you know we were always higher timeframe and sticking to the rules of each parameter for each style
108 00:17:45,210 --> 00:17:54,990 trading. In scalping, we look at a five minute chart now I'll comment on the markets with a one minute chart a few times before we close this month out but
109 00:17:54,990 --> 00:18:07,770 generally five minutes what I'm working off of okay, this is an example of a London session scalp okay, and you see the price trades back down for a fair
110 00:18:07,770 --> 00:18:20,070 value gap for re accumulation fills in the gap in the London open trades up ADRs hit in London Open and it's a 30 pips scalping a little bit more now obviously.
111 00:18:20,550 --> 00:18:31,320 But that's all you would be looking for for scalping it's over done. scalping the New York session when London Open confirms institutional sponsorship on the
112 00:18:31,320 --> 00:18:42,420 long side and post the daily low. We expect to see New York open to continue higher unless a higher timeframe premium array has been hit intraday and or ATR
113 00:18:42,420 --> 00:18:56,040 is reached. We look for intraday swings higher to determine discount range arrays to go long at into New York kill zone basically think prices move higher,
114 00:18:56,070 --> 00:19:03,990 then it starts to retrace, I think optimal trade entry long. Okay, it's basically what I'm describing there. So you'd be looking for a discount a ray,
115 00:19:04,380 --> 00:19:15,000 either a bullish order block a fair value gap or liquidity void. Using the 8:20am, New York time for CME Chicago Mercantile Exchange, that's when the
116 00:19:15,000 --> 00:19:26,760 Commodity Futures contracts start trading. Open to anticipate the New York Judas swing to fade. targets will be the five day average daily range high and the
117 00:19:26,760 --> 00:19:39,660 next higher timeframe premium array found on a four hour or 60 minute basis. If ADR high is reached prior to 10am, take 80% off of your position and leave a
118 00:19:39,660 --> 00:19:50,430 small portion on to capture any range expansion that might fill. Let me rephrase that again. If you're long in New York, okay, and you have a move that's quietly
119 00:19:50,460 --> 00:20:00,120 moving higher, but it goes up and hits the average daily range before 10am That means it fulfill its average daily range early, usually London close This
120 00:20:00,300 --> 00:20:08,370 creates the highest high of the day. But if it doesn't before 10am still take 80% of the trade off. But leave a small portion on here because you may end up
121 00:20:08,370 --> 00:20:19,110 getting a rather large range day and sometimes ADR can be doubled. Okay, so you can see an example here of the New York open trade, very similar in the same way
122 00:20:19,110 --> 00:20:29,940 we looked at the London Open, price comes down fills in a fair value gap trades into our block and that Bluth in line with the CME open, the price drops down
123 00:20:29,970 --> 00:20:39,870 after that. That's the Judas swing for the New York session. So every session has a projection or market state. If you're bullish in New York, you're looking
124 00:20:39,870 --> 00:20:52,440 for a 20 and Judas swing dropping down after 820. If you're bullish in London, you're looking for New York mainland candle and price trading lower after that
125 00:20:52,680 --> 00:21:02,730 to be a buyer and price should expand higher in Asia. It's your GMT eight o'clock in the evening in my time right now. If you look at that session, you
126 00:21:02,730 --> 00:21:12,330 want to see a trade down right after the your GMT it doesn't go down very much that time of day though, but it can go down just below a previous late session
127 00:21:12,360 --> 00:21:22,470 swing low like we talked about in previous lessons. That is a Judas swing at zero GMT or AGEs open. At London close, it can happen but it's the opposite.
128 00:21:22,470 --> 00:21:32,370 You're looking for the range to create a for a bullish day, what's going to happen is it's going to go up a little bit after 10 o'clock in the morning. So
129 00:21:32,370 --> 00:21:41,700 you can have a line on your chart vertically 10 o'clock New York time and the rally that takes place post 10am That's the Judas swing or projection a state
130 00:21:41,700 --> 00:21:51,990 where it creates the high of the day. And then you'll be looking to sell that if you're going to be a London closed trader, which we'll talk about next. Okay,
131 00:21:51,990 --> 00:21:53,190 scalping the ones and clothes.
132 00:21:54,750 --> 00:22:07,230 Before I get into this, I did a teaching way back then it was in 2010 the trading and loving clothes. And really what I gave was a lot of the rules I use
133 00:22:07,230 --> 00:22:18,450 for my s&p trading because there was a lot of trades that you can take trading Spoos which is s&p futures. The when you're trading day trading the s&p you
134 00:22:18,450 --> 00:22:28,080 really trade in two sessions the morning trend, then you wait for launch to go sideways or retrace and then you have an afternoon trend. Okay. Usually it's
135 00:22:28,110 --> 00:22:39,690 about 1030 to 11 o'clock in the morning New York time. That's the the end of the morning session or the am trend for the for the spoons market. Usually traders
136 00:22:39,690 --> 00:22:49,020 go to lunch between 11 o'clock and one o'clock. At Little after one o'clock you have a pm trend that goes into the clothes at four o'clock. But the
137 00:22:49,020 --> 00:22:59,460 characteristics that you see for London clothes for forex is the same thing that trade day traders do for s&p. So it's that time of day influence where London
138 00:22:59,460 --> 00:23:08,460 traders to trade s&p, they're going to do going home too. So when the New York and London sessions have moved in tandem, that means they've moved in the same
139 00:23:08,460 --> 00:23:19,020 direction. And the five day average daily range high has been reached, and it is at least 10:30am. Now it's a little different as a filter 10:30am in New York
140 00:23:19,020 --> 00:23:29,160 time, expect a retracement off the day's high again between 10:30am and 1pm. That's what you're looking for for that setup for London close. Ideally price
141 00:23:29,160 --> 00:23:36,840 should exceed the five day average daily range high it should be more than what you expected to see in the five day average daily range because then you have a
142 00:23:36,840 --> 00:23:47,940 really overbought, really stretched out range. Look for a five minute failure swing at the high and a bearish order block the entrance so basically what
143 00:23:47,940 --> 00:23:54,990 you're doing is you're waiting for it to create a high start to back off and it rally one more time until it until the last up candle and it has to occur
144 00:23:54,990 --> 00:24:05,550 between 10:30am and 1pm. You gotta risk 10 pips above the day's high and you got to target 20 to 30% of the total daily range in a retracement lower than I'll
145 00:24:05,550 --> 00:24:15,090 show you what that looks like on a fib. Keep in mind this trade can be very difficult to see pan out some days as the range can and could expand far more
146 00:24:15,090 --> 00:24:24,210 than the average daily range high. Remember, the average daily range is not a barrier. It's not a forcefield. It's not going to stop price. All we're doing is
147 00:24:24,210 --> 00:24:31,410 getting calculation of what's the average expansion we've seen over the last five days. Well, if you're looking for a big move in the upside, would you
148 00:24:31,410 --> 00:24:40,170 really expect it to go beyond average daily range. And that's the problem we're trying to buy in a preconceived idea that the market should go up. So
149 00:24:40,170 --> 00:24:49,440 eventually, you know, if we take everything off at five day average daily range highs when we're bullish, you leave nothing on to capture these double ATR days,
150 00:24:49,650 --> 00:24:59,610 they can happen. So with that in mind is understand that just because we have both New York and London sessions moving in tandem one direction doesn't mean
151 00:24:59,610 --> 00:25:07,170 that there's gonna Have you retracement of any measure that you can trade short? That's why I don't trade long and close anymore. I used to do it a lot, but it
152 00:25:07,170 --> 00:25:14,340 just fell out of favor with me because I just didn't get enough pips out of it. Or I'd get stopped out you know what just keep on going against me so I teach it
153 00:25:14,340 --> 00:25:23,550 for completeness sake here because I've done lessons in the past. But when we get an SMP it's a little bit more favorable trade net, it's an index. Ideally,
154 00:25:23,550 --> 00:25:36,180 take one to one risk reward targets based on required stop and try to get no more than 20 pips okay and mean that don't try to get 65 pips or don't try to
155 00:25:36,180 --> 00:25:45,480 get a one shot one kill vol. One on living close doesn't do it. Typically, I should have it in my notes here but it should be about 15 to 20 pips, if you get
156 00:25:45,480 --> 00:25:47,340 20 pips the bank will move to the sidelines.
157 00:25:49,110 --> 00:25:57,390 Okay, here's an example what a London closed looks like it comes down into London close time period, and you're going to be buying it on a failure swing.
158 00:25:58,080 --> 00:26:04,680 And you can see here it actually went a little bit lower. And if your stop would have been just below one or two pips you would have get knocked out. But again,
159 00:26:04,680 --> 00:26:16,500 we're using 10 pips below the low and looking at the price on looking at the price, but the Fibonacci on this chart here, you can see that it says London
160 00:26:16,500 --> 00:26:26,970 close objective that's 30% on the FIB, point three, zero, you just add that level, and you'll have that and point 20 Is the lower level. So in between those
161 00:26:26,970 --> 00:26:34,920 two lines, that's usually where the market will reach up into on retracements. And that's a good rule of thumb for day trading also, because if you have an
162 00:26:35,310 --> 00:26:42,660 expectation the markets gonna go higher, and you know what the average daily range high is going to be, you can use that projection from the daily low or
163 00:26:42,960 --> 00:26:51,480 London low, and draw their fib all the way up to an anchor to the five day average daily range high, well before price even gets there. And you can
164 00:26:51,480 --> 00:26:58,890 actually see using this 20 to 30 level on your fib that's usually where the close is going to be on the up close date or it's going to close right on the
165 00:26:58,890 --> 00:27:08,730 high. But generally when it trades off the high, it'll, it'll trade off the high and close in between the 20 and 30% levels on your fib. If you add them I don't
166 00:27:08,730 --> 00:27:16,440 keep them there. I just know what 2030 looks like oh my my range because I've been doing it so long but for a crutch while you're doing it and you learning
167 00:27:16,950 --> 00:27:31,140 it's good idea to have it on your your Fibonacci that we can use it okay trading the Asian are scalping the Asian open. When the market is bullish, we can enter
168 00:27:31,140 --> 00:27:42,780 long at or just under the zero GMT opening price and expect an expansion of 15 and 20 pips. And as I said 15 to 20 higher as the Asian range is established.
169 00:27:44,400 --> 00:27:53,940 Agent sessions can traditionally be very narrow. And while this trade has proven profitable in the past, nothing is repeating in terms of promised gain. So what
170 00:27:53,940 --> 00:28:02,160 was done in the past is not indicative of the future. So like London close trades, we are looking at the lowest volatile periods of the daily range
171 00:28:02,160 --> 00:28:11,220 formation. So while I'm talking about it here, for completeness sake and set way I'm teaching you a well versed perspective on how daily ranges are formed and
172 00:28:11,220 --> 00:28:23,040 how it engineers to daily ranges using time of day, and the characteristics that go along with them. Asia's opening, and London clothes are the two smallest,
173 00:28:23,460 --> 00:28:31,770 tiny little windows of opportunity. And it doesn't pay out enough, in my opinion, to take on the risk. But if you just want to do observations and study,
174 00:28:32,100 --> 00:28:40,950 and you want to do some crunching of the numbers, caveat it means but just trust me, if you're looking for more bang for your buck, in your study time and seeing
175 00:28:40,950 --> 00:28:49,110 the movement in price, you ought to be focusing on the New York and the modern sessions. Always aim for 15 and 20 pips in this session, as the range can be
176 00:28:49,110 --> 00:28:56,940 limited on the basis that it will be the Asian range formation. Remember, typically, we're looking for a really tight narrow range on Asian range. So if
177 00:28:56,940 --> 00:29:06,030 we're looking to be a bullish buyer of the day, and you're trying to day trade, and we think it's gonna go higher. Yeah, you could discount that. But what
178 00:29:06,030 --> 00:29:14,100 you're asking, actually trying to do is demand that the Asian range pays you when you really hope that it's going to be a small range. So it's it's a
179 00:29:14,100 --> 00:29:23,790 confliction, between the rules. So while you may sometimes get lucky, and you get the expansion in the Asian range, and it gets like a 30, Pip or 35, Pip,
180 00:29:24,300 --> 00:29:31,470 Asian range, you might get something out of it. My question to you is why you're worried about it. And you're probably asking, Well, why am I including it down?
181 00:29:32,010 --> 00:29:39,360 Because I'm going to get questions about trade in Asia. And I'm going to get questions about what about loving clothes used to do a teaching about that?
182 00:29:39,390 --> 00:29:46,350 Yeah. How many times can you see me trading woman clothes? You don't see it in a lot. You don't see we don't unless it's a reversal time of day. If it's
183 00:29:46,350 --> 00:29:54,120 certainly a reversal market profile, then I'm all over London close. Same with Asia. I think it's going to be trading down to a level that will be a high
184 00:29:54,120 --> 00:30:03,510 timeframe, discount array, but it didn't quite get down there in New York. And it just hovering above it, I would look for ages opening to facilitate the
185 00:30:03,510 --> 00:30:12,750 entry. And then that would be the low of the day then and start rallying up. Take full exits on scalps in this time of day. In other words, don't leave
186 00:30:12,750 --> 00:30:26,190 portions on. And again, it's not optimal to expect a second leg in price. Avoid greed here. And if you're fortunate to get 20 pips be content in exit. Asia is
187 00:30:26,190 --> 00:30:26,490 this
188 00:30:27,090 --> 00:30:38,820 weird animal, and it's usually very quiet. So again, my more our understanding about IP just today is that we're forming the initial high and low of the day
189 00:30:38,880 --> 00:30:46,200 during this time. So again, you're really having to be nimble. And I know what's going to happen, you're going to get out here and start monkeying around with
190 00:30:46,200 --> 00:30:54,960 this trade. And you're going to see it shoot up and it's got 27 pips. He didn't put a limit order in, but they all now automatically it shoots up 27 pips, and
191 00:30:54,960 --> 00:31:05,670 your profit, we think is going to happen. You're gonna start thinking, wow, this is the lower day, I'm going to, I'm going to hold this thing. And invariably, it
192 00:31:05,670 --> 00:31:14,340 won't be it'll be a Judas swing later on after midnight, go lower, and it stops you out. And then what happens? It freaks you out, and you get mad and you
193 00:31:14,340 --> 00:31:24,270 missed the actual move, you should have been looking for our one. That means you to swing dropping down to be a buyer. Well, that bullish day. So I've given you
194 00:31:24,270 --> 00:31:33,510 some rules, I've given you some context about how I look at scalps, how the price engine models deliver price, the offset accumulation, and the RE
195 00:31:33,510 --> 00:31:43,290 accumulation models that take place for buying. Bank traders will look for these opportunities to pair up their orders. And that's how we can do the same thing
196 00:31:43,320 --> 00:31:53,400 on scalping. Even if we think that the market is going to be quiet. Many times you can get 1520 pips, you know, in a day a couple times a week. And that's all
197 00:31:53,430 --> 00:32:01,320 it's all it's necessary to do. Well remember we taught that 25 to 30 pips a week, double your money over a year, and we can actually start doing that with
198 00:32:01,320 --> 00:32:05,250 scalping. Until next lesson, I wish you good luck and good trading