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ICT YT - 2017-10-19 - Pattern Recognition - Breakers and Market Structure.srt

Last modified by Drunk Monkey on 2022-12-22 08:36
1 00:00:12,450 --> 00:00:25,050 ICT: Okay, folks, just a little bit of a commentary on euro dollar. And I want to kind of walk forward with this, because one day at a time, see how price
2 00:00:25,350 --> 00:00:33,630 starts to move above this short term high, which will draw
3 00:00:38,670 --> 00:00:59,670 a small trendline offer delineate, horizontal resistance price one. You see price eventually trades through its high. It's a break in market structure. So
4 00:00:59,670 --> 00:01:20,250 we go back down to this low anchor fib on the lowest portion, or have it open or high, I'm sorry, open or close. Or focusing on the bodies, and the highest open
5 00:01:20,250 --> 00:01:34,740 or close in the swing here. Now, if price trades through it, then we'll use the higher body candle to anchor to trail, we're looking at this area in here. Okay,
6 00:01:34,740 --> 00:01:48,030 and price trades down into it right there. At that moment, that would be a buy. And we will be targeting this all high back here. Okay, your first scaling
7 00:01:48,030 --> 00:02:05,070 profit price starts to run in here, and I want to kind of like show you something right in here. Okay, we have a low that's violated here. And price
8 00:02:05,070 --> 00:02:09,120 rallies away. Got a horizontal line
9 00:02:14,430 --> 00:02:25,320 here on the order block. So we'll have a couple different things we can reference in here. The open on this particular candle comes in at 1756, which
10 00:02:25,320 --> 00:02:38,160 you see here. So DVD six, I'm going to drop down into a 15 minute timeframe. Okay, here we are a 15 minute timeframe for the euro dollar. We can see price
11 00:02:38,520 --> 00:02:49,290 starting to rally. Here's a nice entry level here. Now it did violate a little bit in here. But we rally through and showed it breaking market structure even
12 00:02:49,290 --> 00:03:01,800 on a 15 minute time frame right here. Price rallies away, eventually takes out short term high. And then once to do this, it's a deeper retracement and right
13 00:03:01,800 --> 00:03:10,740 into another optimal trade entry. And then as it trades down to the 62% retracement level relative to the Fibonacci that we overlaid on the daily chart.
14 00:03:11,520 --> 00:03:23,880 So it's a hard timeframe daily. But notice also what we can see in reference to this price swing, we see price as an opportunity, an overlapping optimal trade
15 00:03:23,880 --> 00:03:35,250 entry body while using this one, not this one down here. This one has the most dynamic price action away from this low Yes, it was a nice little rally but here
16 00:03:35,280 --> 00:03:48,540 a lot more energy behind it. And using the body hi here and low as a reference point. And we have the 62 and almost a 70%. So he point five rather percent on a
17 00:03:48,540 --> 00:03:58,530 fib retracement right there. Now if we use this low here and use the lowest body of the candles there as well, we can get a really nice overlap as well in
18 00:03:58,530 --> 00:04:06,570 regards to the 79% level
19 00:04:12,060 --> 00:04:26,430 here, your 79% and the 70.5 level. Now move it around again so you guys can see it. Okay. There's a lot of Confluence right there now as price was dropping
20 00:04:26,430 --> 00:04:34,230 down. That would probably be a little scary and a little frightening for someone that would be either bullish or in a long position. They could have stopped you
21 00:04:34,230 --> 00:04:52,710 if you had trailed too tightly on chilled, sell stop. And now what I want to look at is one of the patterns I believe are very, very strong. And it's the
22 00:04:52,710 --> 00:05:03,900 breaker and you'll learn about this also in the tutorials. But in here, I want you to take notice that Lowe's is an hour away Aren't this low here has a bunch
23 00:05:03,900 --> 00:05:14,850 of cell stops below it. How do I know that? Well, it price trades away. And rallies anytime that occurs, we simply assume that there's going to be a
24 00:05:14,850 --> 00:05:25,950 liquidity pool of sell stocks resting below that price trades lower takes up that low, right there, sell stops are gone. And then price rallies. At some
25 00:05:25,950 --> 00:05:35,550 point in the future, when price comes back down into this high, it will be bullish. Okay. And I'll teach you all the reasons why that's the case in the
26 00:05:35,550 --> 00:05:44,940 tutorials. But for now, just noticed that we have if we have a low and then a lower low and price rallies and breaks market structure, when that occurs, go
27 00:05:44,940 --> 00:05:55,380 back to the old high here, if price trades back down into that, as we see here, it's bullish. Now. We also have examples of this in form of bearishness. This is
28 00:05:55,380 --> 00:06:04,410 a bullish market structure pattern. A bearish market structure pattern would be this one here, we have a high price starts decline, what would be above that
29 00:06:04,410 --> 00:06:12,180 high buy stops? Why do we know that because price started to decline. And we had to assume that someone's in there with a position and where were their stop me
30 00:06:12,600 --> 00:06:22,260 right about this high price rallies through that and taking out the stops. And then once that occurs, our attention goes right to the low prior to that run on
31 00:06:22,260 --> 00:06:32,400 the stops. At some point in the future. This is going to be a bearish scenario. If it's trading back up to it, we trade below it here, right there. Price comes
32 00:06:32,400 --> 00:06:36,660 back up trades into it here. So it's similar to this
33 00:06:41,700 --> 00:06:57,210 right there and down to the body there and goes right to the middle of the breaker there and sells off until it gets to a bullish breaker and trade tire.
34 00:06:57,630 --> 00:07:07,320 Okay, up to a bearish order block, nails it beautifully here and now we had some retracement as a result. So you can see how using breakers as you'll learn in
35 00:07:07,320 --> 00:07:17,040 the tutorials. One of the best ways to formulate an understanding of market structure is to incorporate these particular price patterns. Now right away,
36 00:07:18,060 --> 00:07:25,080 you're probably not going to be able to capture this or see this in charts. You have to practice and look for them. I'll give you ways of doing that in the
37 00:07:25,080 --> 00:07:35,970 tutorials but for now. So I just want to share with that idea mine tonight how euro has traded this week. And I have not taken any trades for disclosure sake.
38 00:07:35,970 --> 00:07:45,840 But it's a wonderful example for those that have already gone through my tutorials. It's rare, the notes perfectly delivered in terms of what I outlined
39 00:07:45,840 --> 00:07:55,890 for bullish and bearish breakers. That's gonna be it for tonight. And hope you have a pleasant weekend. Have you enjoyed this week with me and commentary and
40 00:07:55,890 --> 00:07:59,910 examples and until next week, I wish good luck and good trading