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ICT Charter PAM 1 - Intraday Scalping

Last modified by Drunk Monkey on 2024-01-05 06:25

Outline

00:30 - Intraday scalping strategy using previous day's high and low.

- ICT Price Action Model 1: Intraday scalping with previous day high and low.
- ICT sets up optimal trade entries using previous daily range, focusing on intraday New York sessions.

04:29 - Technical analysis and market structure in forex trading.

- Analyzing last 20 days for liquidity pools and low points.
- Analyst anticipates run below lows due to rejection block, despite lack of higher high.
- ICT explains market structure shifts and liquidity pools to mentees.

11:06 - Trading strategies using technical analysis.

- ICT identifies potential trade entry point based on previous price action.
- Trader defines buyer programs based on daily range and liquidity pool.
- Trader looks for retracement level at 62% and enters long position with five pip spread.

16:43 - Trading strategies using price swings.

- ICT advises traders to short only when the daily candle has taken out a swing low in the last 20 days, and to anticipate a parabolic expansion run to reach the equilibrium level.
- ICT defines premium and discount levels based on the last 20 days of data, with red indicating a potential run on liquidity.
- ICT identifies optimal trade entry on the hourly chart for cable, British Pound USD, with a focus on shorter entry process during New York session days (Monday-Wednesday) and keying off 62% retracement level.
- ICT outlines a trading strategy using protective buy stop at high or five pips above it, scaling out 20 pips, and moving stop loss to lock in 5-10 pips after first scaling out, with no reentry if price moves below initial New York session low.

22:02 - Technical analysis and trading strategies.

- Trader discusses scalping strategies in the New York session, highlighting key levels and price swings.
- The speaker uses a reference point from Friday's low to anchor for swing projection, highlighting the importance of reacting to the previous day's low.
- The speaker demonstrates how to use the framework of four quadrants to grade the trade, with scalps likely to occur in between the quadrants, especially if the New York session aligns with the trade.

Transcription

1 00:00:30 --> 00:00:38 ICT: We're looking at the first of 12 price action models and this is going to be specific to dealing with intraday scalping
2 00:00:45 --> 00:00:58 Okay, so ICT Price Action Model number one is an intraday scalping previous day high and low. Now obviously there's a prerequisite to this tutorial, you should
3 00:00:58 --> 00:01:08 have watched the mastering high probability scalping volume one through three tutorial. This was made public as part of my free tutorials on my website and
4 00:01:08 --> 00:01:23 YouTube channel. The trigger profile used for this model is one that we're hypothetically using. And this trader is hypothetically not willing to hold long
5 00:01:23 --> 00:01:36 term or overnight. They make their minds up with ease and are prone to be opinionated prefers frequent setups over waiting for long term setups to form as
6 00:01:36 --> 00:01:46 a basket of markets to sift through on a daily the night before and not out to make huge trades. And they like to limit their focus to select short term
7 00:01:46 --> 00:01:56 strikes. So it's a little bit of a trader psyche or a overview from a hypothetical trader standpoints. If you find yourself aligning yourself with
8 00:01:57 --> 00:02:08 this thought process, or if it fits your personality, or how you'd like to internalize price action, then this might be a good foundation model to work
9 00:02:08 --> 00:02:18 with. Now, it's not meant to be a replacement to everything you think you've learned, and then throw everything out the window, you want to have something as
10 00:02:18 --> 00:02:29 a basis to build on. And that's what the premise is between the first model and the last one of the 12 that only dealing in 2018. So again, it's just a
11 00:02:29 --> 00:02:38 suggestion to work within. So that way you go into the marketplace with your demo account and you engage price action with a rule based idea now, obviously,
12 00:02:38 --> 00:02:50 since it's the first one as the least in terms of rules, but it's still very good. Now I'm hoping to you know, what's shown in the high probability scalping
13 00:02:50 --> 00:02:59 volumes one through three. And this is going to further enhance that with a mentorship perspective. Okay, and the pattern setup that's going to be used for
14 00:02:59 --> 00:03:08 this model is the optimal trade entry and in New York kill zone and we're focusing primarily on previous daily range rates
15 00:03:13 --> 00:03:25 Okay, so, the setup overview. We're gonna be buying intraday New York session bullish optimal trade entries. While anticipating a rally to the previous day's
16 00:03:25 --> 00:03:38 high. We're gonna be shorting intraday New York session bearish optimal trade entries, while anticipating a decline to this previous day's low projecting 1020
17 00:03:38 --> 00:03:49 or 30 pips beyond the previous day's range targeted previous day is not limited to the calendar day before today or whatever the trading day is that you're
18 00:03:49 --> 00:04:05 executing, but rather any previous day inside the current 20 day if the data range. You can see here I have a example of this week's recording, I did some
19 00:04:05 --> 00:04:16 analysis you guys saw that on the form. And this is more or less how I used the if the data ranges to form an opinion about what was going to be attacked and
20 00:04:16 --> 00:04:20 how I numbered those days and how I defined the 20 day look back period
21 00:04:26 --> 00:04:39 Okay, so zoomed in here a little bit. You can see obviously, the highest of the last 20 days is right in here. And the lowest of the last 20 days is right here.
22 00:04:39 --> 00:04:46 Now obviously this is a relatively equal low. So the liquidity pools gonna be resting right below that. Okay
23 00:04:52 --> 00:05:06 now, when we're looking for previous daily ranges, highs and lows Again, it's not simply what was yesterday's high and low, what I'm referring to is the last
24 00:05:06 --> 00:05:17 20 days range in terms of IP to date range, that's going to form a basis of discount, or premium. So when we're looking at the PD arrays inside the last 20
25 00:05:17 --> 00:05:28 days, we're going to go through the list of the pdra matrix from premium to discount. And then also, what we're going to be focusing primarily on is the
26 00:05:28 --> 00:05:40 liquidity that rests below the lows. Okay, so I have all of the key lows from day one. That particular day, it's lowest recorded and extended across the
27 00:05:40 --> 00:05:51 chart. then day two, since it was the previous day, not Sunday, every candle has x above it is a Sunday in here. So we're disregarding all Sundays when we're
28 00:05:51 --> 00:06:04 doing the PDA race. Look back in 20. Day if the date ranges, now it's the same with 40 Day and 60 day, we're ignoring again the Sundays, then day three, we're
29 00:06:04 --> 00:06:14 using that low why that low is because it's a swing low. And on day nine, we're using that low because it was one of the strongest moves, and it's the next
30 00:06:15 --> 00:06:26 previous day's low from day one. Now again, do not be confused by terminology, saying that it's the previous day, it's a previous day inside of the range
31 00:06:26 --> 00:06:37 defined by HIPAA. So in this model, we're only using the last 20 days. And then again, you can see day 13 It's low as well. Okay, so we have a liquidity pool
32 00:06:37 --> 00:06:51 rescue below day 13. And day nine, relatively equal lows. So we're anticipating a run below those lows as a draw on liquidity, disregard the liquidity void to
33 00:06:51 --> 00:07:04 the lower left, we're not drawing any special attention to that right now only dealing with scalping. Okay, so behind that whole price structure. This is what
34 00:07:04 --> 00:07:18 led the analysis. The high was a rejection block ran through, okay, so in other words, the rejection block is here. Price runs through it, making a higher high
35 00:07:18 --> 00:07:27 did not take the wick out, we don't need that. But this is a turtle suit reversal pattern. And if you look at your dollar index, when we look at the
36 00:07:27 --> 00:07:37 bodies like this, okay, you'll see the dollar index was on an unwilling to make a comparable lower low. Okay, so even though we didn't have that higher high,
37 00:07:38 --> 00:07:46 seen here, on cable, we did have it in the form of the rejection block right here. Okay, so the highs up close. That's what we're seeing right now here, then
38 00:07:46 --> 00:07:58 subsequent break down. And we have the market structure shift right here, price breaks down trades back up into the breaker here. And then we have a deeper move
39 00:07:58 --> 00:08:11 back into the breaker here also. And we're moving back into the range of these up close candles here. So this will be one full order block and bear sense. But
40 00:08:11 --> 00:08:20 the gray shaded area is focusing primarily on the bearish order block, price trades up into it and then starts to fall away. And then we come right back up
41 00:08:20 --> 00:08:28 into the bearish order block, what's the last closed candle here inside the breaker as well. So we have some layering effects of all the PD arrays from a
42 00:08:28 --> 00:08:39 premium standpoint, price trades up into it on day one. That's it, this data is here. And this is what I gave you on Sunday night. That means this candle right
43 00:08:39 --> 00:08:52 here. While it was forming, I was telling you that the high was going to be right in here for the week. And we would be looking for a run down below here as
44 00:08:52 --> 00:09:04 a potential run on liquidity. Now for a scalper, it's good to have these ideas because we're working on the daily timeframe. Everything I've taught you in the
45 00:09:04 --> 00:09:16 mentorship is being drawn into this. So I'm taking a great deal of liberty in expecting that you know, the things I'm showing you here. Okay, what a breaker
46 00:09:16 --> 00:09:24 is, what a rejection block is turtle soup market structure shift, you all should know what that mark what market structure shifts are. But then we have the
47 00:09:24 --> 00:09:34 liquidity pool resting below equal lows here and then obviously the bearish order block. So while it's like this, okay, we have ranges in here to work
48 00:09:34 --> 00:09:43 within, we had the highest high, the lowest low and right in here, we're at or above equilibrium. And we're anticipating a move lower
49 00:09:49 --> 00:09:58 to go going back to the IP to data range. You can see how price did in fact, reach through all of these lows. Okay, and then we're going to take a closer
50 00:09:58 --> 00:10:10 look at drop down into a lower timeframe at the same price levels, or these red lines. Okay, so we have an hourly chart here. So you can see how price has
51 00:10:10 --> 00:10:23 gravitated towards moving to and just below these levels, okay, so is seeking liquidity below these known price points. So if we have them on our chart,
52 00:10:23 --> 00:10:31 obviously, we're going to be much more well informed, then the retail minded traders, or, dare I say it some of the pseudo professional traders
53 00:10:37 --> 00:10:50 in case so I shared this chart also in the forum. And I want you to take note of how price did in fact, seek liquidity below previous day's lows, watch what the
54 00:10:50 --> 00:11:00 p d L stands for previous day low. It doesn't mean and it's not defined specifically as yesterday's low. Okay. And what I'm saying is it's a previous
55 00:11:00 --> 00:11:09 daily low, but it's defined as such inside of a range of the last 20 days. In this case here we're looking at just to last Friday from the time of this
56 00:11:09 --> 00:11:23 recording, February 28 2018. So here's Friday's low. Okay, here's Sunday's trading. And I gave you in analysis pre week that this was going to probably be
57 00:11:23 --> 00:11:31 our optimal trade entry sell off for the week. Now, I didn't know if it was going to be on Monday, I don't know always knew that. But that's the area which
58 00:11:31 --> 00:11:40 I was looking for to trade to. So if we know that we're likely to see this scenario unfold, then Monday or Tuesday or potentially Wednesday, the market
59 00:11:40 --> 00:11:51 could have written a rally up to that price point. Now since we saw all of this premium being built in our eye goes immediately to this low right here, because
60 00:11:51 --> 00:12:00 this is our anchor or fulcrum point, the low up to this high. This is going to be used for swing projection and the last slide of this presentation. So this
61 00:12:00 --> 00:12:11 remember that all this build up here from Friday going into Monday's high, that's all being built as a premium and we'll look at that as a tool for grading
62 00:12:11 --> 00:12:14 our price swings and also looking for swing projections for the week
63 00:12:19 --> 00:12:28 Okay, so now let's get into the nuts and bolts about this. We're gonna be defining by programs now buy program is simply when we're looking to be a buyer,
64 00:12:28 --> 00:12:37 what are we defining as what makes it a buyer program and why are we only focusing on one side of the marketplace in this case being a buyer Well, buying
65 00:12:37 --> 00:12:48 only when the daily has taken out a swing high in the last 20 days if the data range and not in a premium buying can be considered at equilibrium of the daily
66 00:12:48 --> 00:12:59 range of the 20 day if the data range and parabolic expansion runs will be above the equilibrium level of the 20 day if the data range as it targets the previous
67 00:12:59 --> 00:13:14 day high and this liquidity pool above it. Okay, so we have our range here. premium and discount we had the lowest low here and the highest high here as
68 00:13:14 --> 00:13:26 price takes out this swing high here right here. Everything moving towards this level here it could still be used for buys this would be a daily timeframe all
69 00:13:26 --> 00:13:28 says these are daily candles
70 00:13:34 --> 00:13:46 Okay, the buy entry process, when in a buy program, Monday through Wednesday is ideal buy days in New York session Thursday can still be considered as a long as
71 00:13:46 --> 00:13:57 liquidity remains for low resistance liquidity runs. In other words, if we haven't blown out the liquidity pool yet, Thursday still can be considered. But
72 00:13:57 --> 00:14:08 if I were trading that day, and it's rare that I do but if I did, my leverage would be dialed way back, I'd probably be doing anywhere between 25% to 40% of
73 00:14:08 --> 00:14:16 what I would normally be trading in terms of leverage, simply because we're so late in the week long in the tooth on the range, so I wouldn't be worrying about
74 00:14:16 --> 00:14:33 too much of a gangbusters result for trying to get big when between 7am to 11am saw New York time. When a five minute chart, we're going to be looking for a
75 00:14:33 --> 00:14:44 retracement lower against the london session momentum of the day using the bullish optimal trade entry pattern and keying off of the 62% level. Notice I
76 00:14:44 --> 00:14:52 refined it just to that level. We're not looking for 70.5 We're not looking for 79% trace on level. We're looking specifically right at this 62% retracement
77 00:14:52 --> 00:15:04 level. But now since we're buying we're going to add five pips for the spread for entry. Can you see the example over here? We have our low right after the
78 00:15:04 --> 00:15:15 7am time period. The market makes an attempt to rally and then we start seeing a retracement soon as we start seeing retracement, we run our fib across the range
79 00:15:15 --> 00:15:26 62% retracement level we're here plus five pips that puts us in around here and price runs up takes out the high here and continues to move higher
80 00:15:32 --> 00:15:45 long stop loss placement process using the low between 7am and 10am New York time as your foundation to the long entry. Place your protective cell stop at
81 00:15:45 --> 00:15:58 the low or five pips below it. That's right here. Do not move the protective stop until 20 pips has been scaled out of the position. Move the stop higher to
82 00:15:58 --> 00:16:09 lock in five to 10 pips after first scaling out or price moves above your New York session initial high. That means where you're anchored your fit prior to
83 00:16:09 --> 00:16:18 the trade entry. If prices run to your stop, do not take a re entry on the trade.
84 00:16:24 --> 00:16:36 Long position targets take first scaling off just before returning to the initial high of the day or the high of the day. Take another scaling off at
85 00:16:36 --> 00:16:48 target one on your fib tool. Take another scaling at Target to when your fib tool. If news is due out late New York, post noon time, again New York time,
86 00:16:49 --> 00:16:58 leave a small portion on to see if a symmetrical price swing can be reached. If it does ever intraday hit a symmetric price swing close all position. Now,
87 00:16:58 --> 00:17:06 there's going to be times when the market will continuously run. And you'll regret having closed everything at this symmetrical price swing. Trust me when I
88 00:17:06 --> 00:17:17 tell you more times than not, it's better to do it because it usually peters out and runs out of steam. Only a few instances out even a year, you're going to see
89 00:17:17 --> 00:17:28 how it just starts to go, you know careening past the symmetrical price line, unless we're in something, obviously, you know, very fast marketplace, it's not
90 00:17:28 --> 00:17:36 going to do that it'll usually respect the symmetrical price swing, at least in terms of capping the daily range, especially if time of day overlaps like London
91 00:17:36 --> 00:17:49 close or two to three o'clock in the afternoon with bonds closing. Okay, so now we're going to define SEL program shorting only when the daily has taken out a
92 00:17:49 --> 00:17:59 swing low in the last 20 days if the data range and not in a discount, shorting can be considered at equilibrium of the daily range of the 20 day, if the data
93 00:17:59 --> 00:18:10 range, parabolic expansion runs will be below the equilibrium level at a 20 day if to daily range as it targets the previous day's low and its liquidity pool
94 00:18:11 --> 00:18:24 below it. Okay, so we're looking at the example here against this cable. The other higher high in terms of the bodies we're defining the last 20 days here,
95 00:18:24 --> 00:18:35 okay, and this is equilibrium. This is the lowest low and the highest high. So right in here, this is day one, for Monday of this week of the recording. This
96 00:18:35 --> 00:18:46 is day one, and we're trading right at and it was above equilibrium, this level was above equilibrium on Sunday before it ever traded there. Okay, so see how
97 00:18:46 --> 00:18:56 these things start to overlap. We're going to anticipate a run on the liquidity relatively low here, once we start moving below equilibrium and we have defined
98 00:18:56 --> 00:19:08 where liquidity may be running right here. Price will have a parabolic expansion run to get to that level. In other words, you're gonna see big candles, a lot of
99 00:19:08 --> 00:19:22 speed, a lot of want to get to that level right in here. Okay. There's our premium and discount levels defined as you seen in the mentorship. Anything in
100 00:19:22 --> 00:19:35 the red, which we saw defined on Sunday right in here. That was that optimal trade entry on the hourly chart for cable, British Pound USD. And we see this
101 00:19:35 --> 00:19:47 was day one, we did have a little little bit of a wick there and then started the whole process of moving lower this week. Shorter entry process when in a
102 00:19:47 --> 00:19:59 sell program, Monday through Wednesday is ideal sell days in New York session. Thursday can be considered as short as liquidity remains for a low resistance,
103 00:19:59 --> 00:20:13 liquidity run It means the liquidity pool has yet to be probed or taken out from the daily timeframe between 7am and 11am on a five minute chart, look for
104 00:20:13 --> 00:20:20 retracement higher against the london session momentum on the day using the bearish optimal trade entry pattern and keying off of the 62% retracement level,
105 00:20:21 --> 00:20:33 minus five pips for the spread for entry. So again, you have another example here. We have our initial New York high today. The market makes it run lower,
106 00:20:34 --> 00:20:44 retraces higher, gets right back to the 63% retracement level, but we don't trade short right there we subtract wherever that 62% level is minus five pips
107 00:20:44 --> 00:20:57 from that and that's what our entry price would be. Okay, and then we would look for a run lower on short stop loss placement process. Using the high between 7am
108 00:20:57 --> 00:21:07 and 10am. New York time as your foundation to the short entry, placed protective buy stop at the high or five pips above it. Do not move the protective stop
109 00:21:07 --> 00:21:18 until 20 pips has been scaled out of the position. Move the stop loss to lock in five to 10 pips after first scaling out or price moves below your initial New
110 00:21:18 --> 00:21:32 York session low after the trade entry. If price moves to your stop, no reentry should be taken. At that initial height of New York, it trades lower and then we
111 00:21:32 --> 00:21:42 have a retracement back to the 62% retracement level that sets up the signal and our protective stop to this right to the high of the New York session or where
112 00:21:42 --> 00:21:45 fib is anchored from or five pips above it
113 00:21:51 --> 00:22:04 short position targets take first scaling off just before the returning to the initial low of the day or at the low of the day. Take another scaling off at
114 00:22:04 --> 00:22:13 target one on your fib tool take something off at target to on your fib tool. And if news is due out late New York it's post noon time New York Time leave a
115 00:22:13 --> 00:22:20 small portion to one to see if it's a symmetrical price swing can be reached close all if this level is hit
116 00:22:26 --> 00:22:38 following the often the days after your buy or sell program begin continue to follow the same protocol given here. This is to be continued until the daily
117 00:22:38 --> 00:22:50 liquidity pool is reached or swept. Avoid trying to fight the order flow on a daily chart banks and large institutions will capitalize all PD arrays that form
118 00:22:50 --> 00:23:00 in the New York kill zone Do not force another trade if you're stopped out. rather wait for another day to enter if the trade stop out it tends to suggest
119 00:23:00 --> 00:23:14 momentum is weakening and it's better to try and another New York session altogether Okay, here's some closer looks on these setups here. And these are
120 00:23:14 --> 00:23:33 from this particular week of recording and this is again cable you can see how they hit this one here hit target two nice little move over here another example
121 00:23:38 --> 00:23:53 price makes it run back up into optimal trade entry. Here's your entry your stop loss here. Nice rundown symmetrical price swing. Okay, symmetrical price swing
122 00:23:53 --> 00:24:09 hit it collapse everything it moves a little bit further. No regrets. Look at the reaction after that though. Okay, another example here. New York. Initial
123 00:24:09 --> 00:24:21 Hi. retracement 60 tubes and tracing level stop losses here or five pips above it. Again symmetrical price swing nails it just by a little bit beyond it and
124 00:24:21 --> 00:24:34 then we have a deeper retracement. Ultimately it goes lower. But look at that nice reaction there. Can't go wrong taking profits like that. Okay, earlier in
125 00:24:34 --> 00:24:45 this model, I mentioned that we saw the initial premium build up from Friday's low all the way up into Monday's high. So this would be our reference point for
126 00:24:45 --> 00:24:56 anchoring for swing projection. Okay, so we're working inside of a higher timeframe for our scalps. So we want to know what the framework is behind it. So
127 00:24:56 --> 00:25:04 we have this low here. Why am I using Friday's low? You know, why not? Just the Here, we had a nice reaction there. And these are actually equal lows. So you
128 00:25:04 --> 00:25:11 don't really want to base anything off of that you want to have a reaction that's back here on Friday. So we use the low, up to the high. And it's all I'm
129 00:25:11 --> 00:25:21 doing is anchoring three here, just for clarity sake. So it's the high and this low is here. And I want you to see what we ended up getting, we have a
130 00:25:21 --> 00:25:32 symmetrical price swing right here. Now this is a known price swing from Monday. So as soon as we start seeing the dive lower case, like right in here, we could
131 00:25:32 --> 00:25:42 see and anticipate rather, this level down here based on the swing projection that's used with the fifth here. Okay, so we have a symmetrical price swing down
132 00:25:42 --> 00:25:55 here. Now, if we know that we have that model, now we have that level, right here. And the high here, we can now grade our swing. So we have our premium
133 00:25:55 --> 00:26:04 built up from Friday into Monday, our anticipated one hour optimal trade entry on cable as given to you on Sunday night. The framework behind all of this is
134 00:26:04 --> 00:26:17 here we have the beginning of the trade, or the range, rather than we have the first grade, look at the reaction there. Then we have equilibrium. Look at that.
135 00:26:18 --> 00:26:32 And then we have the third grade. Look at that. And finally, the fourth grade, or Terminus right in here. So we have all four quadrants, giving us precision.
136 00:26:33 --> 00:26:46 In between these quadrants, there's going to be scalps. And if it lines up with your New York session, it further amplifies and increases exponentially the
137 00:26:46 --> 00:27:00 probabilities of your trade being positive in terms of results. Hope you found this first model as a good foundation if it gives you a context to work within.
138 00:27:01 --> 00:27:11 It's really simple. It complements the mastering high probability scalping tutorials that I've given you now, the mentorship side of things to include with
139 00:27:11 --> 00:27:20 what you saw from a free tutorial standpoint. Our next model is going to be based on short term trading and we're going to be working with the London Open.
140 00:27:20 --> 00:27:23 Until then, I wish you good luck and good trading