ICT YT - 2017-10-26 - Integrating ICT Concepts - ECB Review.srt

Last modified by Drunk Monkey on 2022-12-22 08:36
1 00:00:10,650 --> 00:00:25,800 ICT: Green folks, this is a quick review of the euro dollar. And I'm going to give you some ideas about what I might see in analysis going forward. And it may
2 00:00:25,800 --> 00:00:34,740 or may not be of any value to you, because obviously, the large move has already transpired today. Okay, so I am readily admitting that this is hindsight, did
3 00:00:34,740 --> 00:00:44,580 not participate in this move at all, was enjoying the day away from the market. So I've already made my PIP quota for the week, in this big move of the week
4 00:00:44,670 --> 00:00:56,820 wasn't necessary for me to be a participant for me to do very well this week. Okay, so first thing, first things first, we have a few classic chart patterns
5 00:00:56,820 --> 00:01:14,850 in here and kind of go over that before we go anything else. And all this do this. I use the Oh x here. Alright, so we have this high, we have this high. And
6 00:01:14,850 --> 00:01:27,870 we have this high here. And inside that pattern is a classic head and shoulders pattern. Okay, and nothing terribly exciting about that. But I kind of want to
7 00:01:27,870 --> 00:01:46,980 draw your attention to that. And also on a larger degree. If we go a little bit bigger on that. Not as big of a difference is it? I want you to take a look at
8 00:01:46,980 --> 00:02:04,170 this. Hi. So now we have head and shoulders, and then a larger head and shoulders pattern here. Okay, so we could possibly see a move. Okay, well, let's
9 00:02:04,170 --> 00:02:04,680 use
10 00:02:13,470 --> 00:02:23,070 I'll go with that as our neckline, okay. And the reason why I'm doing that is I'm looking through the wicks, I'm trying to get an idea of how many times I can
11 00:02:23,070 --> 00:02:48,060 get multiple touches. And I'm going to use that 1705 level. So when you 1705, just to round it to a five level. And we're going to do a projection and the
12 00:02:48,060 --> 00:03:03,450 high all the way down to the neckline. Okay, so I have this move here. And now we're going to project it from that break on that neckline right here today. And
13 00:03:03,450 --> 00:03:24,390 it's gonna take us down into about the 1320 level. Okay. So 1320 could be potentially where we go and look at the, the movement on this neckline, we
14 00:03:24,390 --> 00:03:35,070 basically have already fulfilled this head and shoulders pattern, break of the neckline, and we've hit it today. So that's actually been completed. But for
15 00:03:35,130 --> 00:03:45,390 entering a term or a little bit longer term perspective, we could see 1320 I'm not saying how to get there overnight, but I probably shouldn't say that.
16 00:03:46,230 --> 00:03:56,760 probably end up doing it now that said that, but we could see 1312 a little bit longer term basis. Okay. So with that, I'm going to drop down into a little bit
17 00:03:56,760 --> 00:04:07,920 lower timeframe, and kind of look at something today and go over something for you as an example, to run drop into an hourly chart, per euro. Okay, so we have
18 00:04:07,920 --> 00:04:17,340 the 60 minute, euro dollar chart, okay. And I want you to look at this price action here. Obviously, this is very exciting. Everybody wants to trade these
19 00:04:17,340 --> 00:04:29,550 types of things here. Okay, and I'm not going to give you the false sense of expectation that you're going to be able to do these types of trades here. This
20 00:04:29,550 --> 00:04:43,140 could very easily have gone higher on the ECB announcement and press conference today. Okay, so you got to be very, very careful learn. We're ahead of a big
21 00:04:43,650 --> 00:04:55,770 rate announcement. FOMC it's just, it could be very dangerous if you don't know what you're doing. So to be responsible, as a mentor, because I know a lot of
22 00:04:55,770 --> 00:05:04,380 you folks are listening to me and you're gonna do things I'm telling you not to do. Because you're trying to chase money chase pips, I knew if I stayed in front
23 00:05:04,380 --> 00:05:12,240 of the charts today, I would probably make comments about what I thought what's going to happen. And I don't want anyone taking trades on that getting
24 00:05:12,240 --> 00:05:23,220 themselves hurt. So I took great deal Liberty today, give myself at bay. So without making this video too long, I want you to take a look at this, okay, and
25 00:05:23,220 --> 00:05:30,660 consider the pattern I've been teaching you. And that way we can go through price action and see one more example of this occurring, but I'm going to kind
26 00:05:30,660 --> 00:05:40,230 of like supercharge it tonight, I'm going to give you a couple different things to amplify it. Okay, the system itself, the method itself hasn't changed. It's
27 00:05:40,230 --> 00:05:52,080 not morphing into something entirely different. But it's going to start bringing in some other ICT concepts like the orderbox. Okay, and help you get to why I
28 00:05:52,080 --> 00:06:03,240 was looking for certain things to happen. And also, why I failed to get to where I thought was gonna go. But still, it's a good thing. Okay. So, I want you to
29 00:06:03,240 --> 00:06:12,750 look at this chart. And where did we leave it? In terms of a high, we've left it back here. Okay. And I want you to take a look at these last you up close
30 00:06:12,750 --> 00:06:22,590 candles, okay? Because these are like Voodoo. Okay, when I named my candle pattern to help identify institutional
31 00:06:24,480 --> 00:06:34,770 setups and entry points, I came up with just a simple definition called in ICT order block. And reason why I call it the ICT order block. And people are now
32 00:06:34,800 --> 00:06:43,380 using them all over the place, they call them blocks, they want to keep it short, it sounds like it's theirs. But it's the ICT order block. And basically,
33 00:06:43,380 --> 00:06:53,880 it's a, it's the last time we saw a large degree of institutional selling institutions have to sell as price go up. And when prices go down, institutions
34 00:06:53,910 --> 00:07:04,080 have to do their buying. On that basis, they cannot do any other way. Okay, so they have to see it go up, they go short, because they have to reach into a pool
35 00:07:04,080 --> 00:07:15,690 of liquidity or draw in the buyers, as they sell in to that move. Okay, so they fade the high, and they fade the low. So all we have to do is look where price
36 00:07:15,690 --> 00:07:27,300 has shown a willingness to move away with a strong degree of magnitude them at magnitude is how far it moves away. Okay, and then speed also has a definition
37 00:07:27,600 --> 00:07:36,300 that helps find these Hallmark little footprints, if you will, of smart money. So I want you to take a look at the last two up close candles in here. Now,
38 00:07:36,330 --> 00:07:42,900 don't look at these little things in here. Because they're, they're going to be problematic. If you do that, you want to look for these really obvious big bulky
39 00:07:42,900 --> 00:07:52,860 candles, okay, on the upclose. right inside the highs, now it could be the very high, or it could be a candle or two before the very high. Okay, all we're doing
40 00:07:52,860 --> 00:07:59,820 is looking for the last series of appcode upclose candles, because that's going to be the ICT bearish order block, I really should have called them Voodoo
41 00:07:59,820 --> 00:08:06,090 blocks or something like that, because then it probably would have been really cool. And it probably would have been much more intriguing. But a lot of folks
42 00:08:06,090 --> 00:08:14,580 just think that this is not of any value because they look at every closed candle and assume that it should be a block. There's specific definitions and
43 00:08:14,730 --> 00:08:21,900 details that go along with make making the order block what it is. But I'm highlighting this one here, because I'm gonna be mentioning it in future
44 00:08:21,900 --> 00:08:31,080 tutorials. And I want you to see how it was catalyst for today's move over here. Okay. So I also want you to take a look at how price moves up to I was calling
45 00:08:31,080 --> 00:08:41,580 for the next upside objective to be 118 40. And then should 118 40 give way or trade above it. I was looking for a move above these equal highs. And that would
46 00:08:41,580 --> 00:08:50,070 take us around that 118 60 level. Now obviously we didn't get there. We did go to my 118 20 to the PIP yesterday didn't go one PIP above it went right to
47 00:08:50,070 --> 00:09:00,180 118 20. And I'll show you that real quick. Right here, this is a new day. So the highest point comes in at 1820. Right there, then it goes to a new trading day.
48 00:09:00,690 --> 00:09:13,440 Right there. Okay, so precision as it can possibly get. Now, my 1840 failed, it was not arrived. But I'm gonna show you why it doesn't make a difference. Not
49 00:09:13,500 --> 00:09:25,890 that I was trading it. But I want you to see if we look at this price range right here. Okay, this price range here. We're going to use that to forecast if
50 00:09:25,890 --> 00:09:36,990 you will, another important high. Now important high, obviously is going to be this one here. But if we want to find a target, why did it go to 118 36? Because
51 00:09:36,990 --> 00:09:44,760 these are the questions I asked myself as I was coming up as a trader that led me to become focused on such precision because I believe that the markets are
52 00:09:44,760 --> 00:09:54,000 manipulated, if they're manipulated, therefore, there must be someone in control. So if it's in control, then they have an ideal scenario or a template,
53 00:09:54,000 --> 00:10:02,400 if you will, what they think price should do or how it should behave inside a specific timeframe. In this case, we're Going to intraday. So we're going to
54 00:10:02,400 --> 00:10:14,700 take a look at the two areas of price action, okay, and I'm going to draw your attention to this candles body as it matches this one here, okay, cuz the open
55 00:10:14,700 --> 00:10:23,340 on this one, the close of this candle here are the same, and it's going to be 1735. And I want you to look at the highest candles body right in here. This is
56 00:10:23,340 --> 00:10:30,900 our reference points that we use for a fib. When I did the optimal trade entry, OT e primer video on YouTube channel, we're going to look at these two reference
57 00:10:30,900 --> 00:10:39,750 points, this candle here in this candle here. That's defining this trading range. Okay, so these are dealing ranges. So whenever you see price, moving in
58 00:10:39,750 --> 00:10:48,300 specific consolidations, like that, it's going to be rather significant in the future, because at some time that dealing range is going to be breached. So when
59 00:10:48,300 --> 00:10:56,310 we leave that dealing range, where does it reach for what's the next level of dealing, and I'm gonna show you how to do that incorporating the optimal trade
60 00:10:56,310 --> 00:11:01,620 entry and bearish order blocks. So I'm going to make it real quick and save myself a whole lot of time.
61 00:11:03,810 --> 00:11:13,140 And boom, there you go. So now I have this low and this high referenced here, the fib is drawn up on those reference points, specifically. And here's the ICT
62 00:11:13,140 --> 00:11:24,120 bull. bearish order block the last two upclose candles. And you can see here that I have a reason to go crazy with OCD. Got to keep these lines straight,
63 00:11:24,120 --> 00:11:32,610 because otherwise I'll lose my mind. I was looking for 1840. And the reason why I'll say an 1840 books, it was the open on this last upclose candle. Okay, so
64 00:11:32,610 --> 00:11:44,850 1840 was going to be my objective to reach for, okay, should we get past 118 36. Now, why is why 1936 the high, because it's exactly the symmetrical price swing
65 00:11:44,850 --> 00:11:53,910 I taught you with the optimal trade entry primer. That's what makes my fib optimal trade entry, because I'm giving you the optimal levels in terms of how
66 00:11:53,910 --> 00:12:02,490 the banks are going to look for confluences. Now I'm not saying banks are trading with Fibonacci, because they're not. But it has an uncanny ability to
67 00:12:02,490 --> 00:12:11,850 overlap with levels that the banks do, in fact, trade with. And that's these levels back here, because they sold here before. And they went right back to
68 00:12:11,850 --> 00:12:23,580 here. Now look at the bodies of the candles respecting that open on this candle here. It's gonna be 118 28. And this candle is closed comes in at 118 28. This
69 00:12:23,580 --> 00:12:38,610 candle open comes in at 29 this candles closes at 29. And we can see a lot of action around that opening price of the lower of the two upclose candles, two
70 00:12:38,610 --> 00:12:46,530 candles back to back can represent a order block. Okay, and ICT order block. In this case, it's a bearish order block. Why because it was last to close candles
71 00:12:46,530 --> 00:12:53,910 as they sold into that move. And it moved away quickly. And it had a lot of magnitude moving away from that price range. So we know that there was
72 00:12:53,910 --> 00:13:02,700 institutional selling institutions are so vast, and with their orders, they cannot put their whole entire order on up here. So they have to wait for price
73 00:13:02,700 --> 00:13:11,310 to come back up to that level and they sell it again. And they put a larger degree of movement, or orders in the in the marketplace. This level here is
74 00:13:11,310 --> 00:13:23,070 exactly our symmetrical price swing. It doesn't go one PIP less or above it goes right to it too high 118 36. So are symmetrical price swing, it nails that one,
75 00:13:23,100 --> 00:13:34,290 but what I was looking for is maybe it might fluff through that number because of ECB and push into 1840 or spike through run these highs hit 118 60. And then
76 00:13:34,290 --> 00:13:43,500 I would have been expecting a turtle suit or false break above that high and then maybe drop down on the year. As it happens, you know, it only goes to
77 00:13:43,500 --> 00:13:51,630 118 36. And it looks like beautiful cherry picking but you'll see these concepts are being referred to over and over and over again and they're in the same
78 00:13:51,630 --> 00:14:00,330 capacity. I'm not changing rules. I'm not blurring the lines. It's the same thing, folks every single trading day. Now with this real quick I'm going to
79 00:14:00,330 --> 00:14:10,380 drop down into a lower timeframe. game we're looking at a five minute chart of the euro dollar and I told you to start looking at the seven o'clock in the
80 00:14:10,380 --> 00:14:20,520 morning New York time and watching to the bias obviously we can see here the market is making a strong impulse to move lower. Wait for a retracement up about
81 00:14:20,520 --> 00:14:29,580 20 pips. Okay, from this low here, we can clearly see that it does in fact trade up higher than 20 pips, but it goes right back to the 62% retracement level
82 00:14:29,700 --> 00:14:40,440 beautifully sells off. Target one hit target to hit and symmetrical price swing events he hits right here for a day trade a beautiful example that it's all
83 00:14:40,440 --> 00:14:50,220 hindsight I did not trade this, but I'm just showing you again, just to solidify the rules I've already given you. It's not a totally new approach to it. It's
84 00:14:50,220 --> 00:14:57,750 simple rules being applied again. You can see here one more example of it happening for the New York open setup. Hopefully you found this insightful and
85 00:14:57,750 --> 00:14:59,940 until next time, I wish you good luck and good trading