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

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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

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starts to move above this short term high, which will draw

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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

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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

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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,

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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

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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

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rallies away. Got a horizontal line

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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regards to the 79% level

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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back up trades into it here. So it's similar to this

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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.

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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

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the tutorials. One of the best ways to formulate an understanding of market
structure is to incorporate these particular price patterns. Now right away,

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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

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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.

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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

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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

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examples and until next week, I wish good luck and good trading