ICT YT - 2017-10-30 - ICT Pattern Recognition Drills - October 30 2017.srt
Last modified by Drunk Monkey on 2022-12-22 08:36
| 1 | 00:00:10,620 --> 00:00:20,400 | ICT: Okay, folks, taking a look at the Dollar Index here, and I'll give you a reason why I outlined this morning. And we've done that New York session |
| 2 | 00:00:20,700 --> 00:00:31,590 | timeframe. I felt that cable was a buy. we outlined or at least I drew your attention to studying the formation of it, knowing what you've been taught so |
| 3 | 00:00:31,590 --> 00:00:42,240 | far. But someone give you a little heads up about why I felt it was warranted. And admittedly, I didn't take any trades today. So we're only going on the basis |
| 4 | 00:00:42,240 --> 00:00:51,660 | of me pointing to the cable trade that set up in New York. But I'll show you also how that also builds the case for other foreign currencies being bullish |
| 5 | 00:00:52,080 --> 00:01:03,870 | intraday. Alright, so we had Friday's trading in here, it gave up a lot of the range on Friday from a tie. And we start a new week here, Sunday, really don't |
| 6 | 00:01:03,870 --> 00:01:13,860 | really pay too much attention to it. We had a really nice run on Thursday. So the chances of it continuously going higher, and it could happen sure could, but |
| 7 | 00:01:13,890 --> 00:01:24,270 | most likely, chances are traders are going to sit on the sidelines and wait and see what transpires going forward. And that either results in a consolidation or |
| 8 | 00:01:24,270 --> 00:01:33,270 | sometimes a retracement. Okay. And if we can get some kind of indication that that's bearish on the dollar. If you look at the Dollar index on the London |
| 9 | 00:01:33,270 --> 00:01:42,570 | session, I'll leave that portion to your study. You'll see they had a really nice optimal trade entry for sell for the dollar index. So we're going with that |
| 10 | 00:01:42,570 --> 00:01:50,340 | premise in mind and we'll go through the majors real quick and show you what optimal trade entry patterns formed today Okay, first of all list is the euro |
| 11 | 00:01:50,340 --> 00:02:00,840 | dollar. And I got the ICT kill zones on the chart here you can see clearly it's the London open kill zone and the New York kill zone these are ICT kill zones |
| 12 | 00:02:00,840 --> 00:02:12,120 | these are referencing specific times of the day. They're not areas in the chart like it's been taught on YouTube in other teaching circles if you will. the kill |
| 13 | 00:02:12,120 --> 00:02:24,840 | zone is is specifically a time window in intraday it's all it is. So an ICT kill zone for London is specifically the sweet spot is two o'clock in the morning to |
| 14 | 00:02:24,840 --> 00:02:31,140 | four o'clock in the morning. You see creates the higher low of the day and that's what you're seeing out here. Okay, you see the low for me in here. Now |
| 15 | 00:02:31,140 --> 00:02:38,520 | that's not the lowest of the day. Obviously you can see the low forms over here a little bit earlier in the day during Asia but you know we're going to use that |
| 16 | 00:02:38,520 --> 00:02:50,010 | low infared out this particular move right in here. Okay, so from Asia we have a rally up Why is this one gonna be affected in because we have highs being broken |
| 17 | 00:02:50,280 --> 00:03:04,470 | here and then we have it again breaking. So if we do get a retracement while the dollar is bearish report for optimal trade entry in here. All right, and we'll |
| 18 | 00:03:04,500 --> 00:03:12,630 | drop that radio here and what I'm doing some laying the line right on top these bodies these candles here. And here. Boom right there. Optimal trade entry long |
| 19 | 00:03:12,630 --> 00:03:24,000 | and open rallies up symmetrical price swing. Now look what happens it gets 123 times at least a really clean price level. I've mentioned this many times before |
| 20 | 00:03:24,450 --> 00:03:38,250 | in my group, we refer to this as a Candyland. Okay, this is a sweet spot of liquidity in the market does, in fact, retrace all the way back down into |
| 21 | 00:03:38,250 --> 00:03:47,220 | another one optimal trade entry versus using the same reference points framed off of this range. But right back down to the sweet spot 70.5 level and then |
| 22 | 00:03:47,220 --> 00:03:57,360 | rise all the way back up to do what clear up these buy stops, to even to clean charts don't like this, keep that stuff intact, the markets will come back and |
| 23 | 00:03:57,660 --> 00:04:08,340 | disrupt that perfection. Okay, so that's what that run is here. A beautiful example of that. Two examples autotrader in London open and atrangi and the New |
| 24 | 00:04:08,340 --> 00:04:18,930 | York session Okay, next on the list is euro pound. And you can see here in London open kill zone ICT time window for looking for the London higher load |
| 25 | 00:04:18,930 --> 00:04:31,830 | form. And we're going to put a fit one on use the highest open or close down to the lowest open or closed not the wicks. Okay, is the optimal trade entry in |
| 26 | 00:04:31,830 --> 00:04:43,020 | here. beautiful example of that. sells off rather handsomely all the way back down into the New York ICT kill zone and takes us right down into the |
| 27 | 00:04:43,020 --> 00:04:48,720 | showstopper. This is a 200 extension by the way. This needed to have that little flair there in case you hadn't noticed it yet. |
| 28 | 00:04:49,980 --> 00:05:00,630 | So beautiful example of the euro pound taking a dive. Now notice also that the euro dollar as we mentioned in the previous chart, didn't have a whole lot of |
| 29 | 00:05:00,630 --> 00:05:08,820 | movement, it was kind of like a consolidation day, back and forth, they don't have much of a trend. And euro pound did. And so if you're $1 is being held in |
| 30 | 00:05:08,820 --> 00:05:18,090 | consolidation, and we check out what's going on over in the cable market. This will explain all this move here. Okay, so now we're looking at the cable or |
| 31 | 00:05:18,090 --> 00:05:29,190 | British Pound USD. And before I start marking us all up, obviously, you can see a nice low the day, this is the low of the day on this particular pair during |
| 32 | 00:05:29,190 --> 00:05:37,710 | the ICT, London open kill zone, sweet spot. Now again, at the beginning this red line at the end of this red line, just draw an imaginary vertical line. Okay, |
| 33 | 00:05:38,070 --> 00:05:46,860 | right up from there. And that's how I interpret the price. Okay, in terms of Killzone now, I don't personally look at this line on my chart. Okay, to |
| 34 | 00:05:46,860 --> 00:05:54,120 | qualify, I just know that when I'm up in trading in London, it's usually the time that it's going to perform between two o'clock four o'clock in the morning, |
| 35 | 00:05:54,210 --> 00:06:02,160 | New York time, the higher low of the day forms generally, or an important higher low, let's say like that, because it could be as we saw on another case, earlier |
| 36 | 00:06:02,160 --> 00:06:10,080 | on the pairs that it can create a lower high in the asian session, but 70% of time, you're going to see it forms during two o'clock to four o'clock in the |
| 37 | 00:06:10,080 --> 00:06:22,290 | morning, New York time. Alright, so now, this low, some of you don't have a Sunday candle, okay, and that's fine. Let's go back into Friday's data and find |
| 38 | 00:06:22,290 --> 00:06:31,980 | a short term high, that was broken. The short term high is broken right here. Now we go back to the swing low prior to that, we anchor to the lowest open or |
| 39 | 00:06:31,980 --> 00:06:43,230 | close and drag it up to the highest open or closed prior to the London open kill zone. Boom, right there. Optimal trade entry, really, really nice run, get up |
| 40 | 00:06:43,230 --> 00:06:55,620 | to, again, the show stopper. And then the ultimate setup, which was today this is kind of more of a not so much of a hindsight thing. I was trying to draw your |
| 41 | 00:06:55,620 --> 00:07:05,790 | attention to this one. Let's study this one. In Twitter, or on Twitter, I said, pay attention to this high here. Okay, note this high and the action off of it, |
| 42 | 00:07:06,150 --> 00:07:16,920 | we retrace all the way down into a ball shorter block or ICT or a block we'll learn about that in the ICT sniper series. And let's zoom in just a little bit. |
| 43 | 00:07:17,670 --> 00:07:27,600 | Okay, and you can see the beautiful article trade entry here. And price runs up into target one also. Okay, really, really nice. And some price action on this |
| 44 | 00:07:27,600 --> 00:07:35,640 | pair as well. Okay, now we're looking at the dollar yen. Now, as I mentioned earlier, I told my personal group that I felt that we would see the dollar index |
| 45 | 00:07:35,670 --> 00:07:44,850 | retrace down to the 50 level. Okay, and I'll leave that up to your whether when and believe it or not, but the everyone in my group knows that I was |
| 46 | 00:07:44,850 --> 00:07:54,000 | anticipating some measure of a retracement on the dollar index down to the 50 level. So if that happens that it's going to be bearish for the dollar pairs |
| 47 | 00:07:54,000 --> 00:08:05,850 | that begin with the USD x or Dollar Index before the name and their pair. So dollar yen is most likely going to be heavy today if we see that weakness on |
| 48 | 00:08:05,850 --> 00:08:16,680 | dollar. So again, same scenario, we're looking at the ICT kill zone, or London or New York bring us the highest open or close here on a swing high in Asia. And |
| 49 | 00:08:16,680 --> 00:08:27,840 | we're dragging it all the way down into the lowest body open or close here Okay, so we have this range here and rate during this time window, interpret rate |
| 50 | 00:08:27,840 --> 00:08:36,870 | between these two vertical lines, that's where the higher low or unimportant higher low will form on the intraday okay so the algorithm or price in a |
| 51 | 00:08:36,870 --> 00:08:45,030 | significant higher low at that time. You can see it goes right into optimal trade entry right there beautiful and price sells off. Now, if you had missed |
| 52 | 00:08:45,030 --> 00:08:59,970 | this No problem, no worried go into this swing high here highs open or close down to the lowest open or close right here in price during the New York open |
| 53 | 00:08:59,970 --> 00:09:12,600 | kill zone and ICT in New York open kill zone optimal trade entry sell again price trades off rather handsomely in response to that as well. Additionally, |
| 54 | 00:09:12,600 --> 00:09:27,360 | there is another one in here okay that you can use. And we can use it on the body here of this candle and we drag it down to lowest body candle right here. |
| 55 | 00:09:28,050 --> 00:09:38,820 | And again nice optimal trading trades at 62% tracing level and really nice sharp acceleration away from that and the larger 200 extension of this high and after |
| 56 | 00:09:38,820 --> 00:09:40,080 | this high as you |
| 57 | 00:09:40,080 --> 00:09:53,370 | did earlier, I would have call for more lower prices then just this one here, okay. So Okay, next is the dollar CAD. Now initially, we would be looking for a |
| 58 | 00:09:53,370 --> 00:10:06,000 | selling indication or something to go weak on this currency. Usually that happens on the heels of Run higher. And so before the dollar CAD collapsed lower |
| 59 | 00:10:06,000 --> 00:10:17,490 | today had to go higher first. And initially, this would be the range from Friday, close up to this high here starting on Monday's trading. And you can see |
| 60 | 00:10:17,490 --> 00:10:24,270 | by itself, it gives you a nice optimal trade entry. But we had a little bit slightly higher highs if you're up in watching it, you would use this range |
| 61 | 00:10:24,270 --> 00:10:36,690 | here, right there. So this high on this candle body towards the end of the ICT London open kill zone. So admittedly, it's just outside the range of the times |
| 62 | 00:10:36,690 --> 00:10:46,320 | you can see it 910 that's 10 minutes after five New York time. That's typically when I'm anticipating the close of the morning sessions will be usually taking a |
| 63 | 00:10:46,320 --> 00:10:55,560 | nap at that time. But it does go a little bit deeper than that. But you can see even 62% trades on level it's still well within the time frame that encapsulates |
| 64 | 00:10:55,560 --> 00:11:08,310 | the London open kill zone. Okay, we're looking at the dragon or otherwise known as the beast. This is pound yen. Alright, so I encounter these names hoaxes, |
| 65 | 00:11:08,310 --> 00:11:20,370 | names that other folks have been been doing the column by fiber cable, all those things. A lot of the new traders think that I came up with those nicknames for |
| 66 | 00:11:20,370 --> 00:11:30,780 | these pairs. They're not, they're not mine. Okay, so believe me everything I came up with a moment you'll hear me Jawbone about it enough. But the swing low |
| 67 | 00:11:30,780 --> 00:11:37,710 | here, why am I using this swing low? Michael, why not this one down here? Why did you? Why did you just go here, you'd pick the ones that best fitting? No, |
| 68 | 00:11:38,310 --> 00:11:48,060 | this short term high being broken, we go back to the near short term low right here, lowest body candle, rallies up to the highest body candle. So there's our |
| 69 | 00:11:48,060 --> 00:11:56,910 | range where to look for optimal trade entry is in here. Okay, it does wick through a little bit. Your stop will be at this position here is optimal trade |
| 70 | 00:11:56,910 --> 00:12:05,310 | entry here. And it gives you another bar here and then the buy here, and then boom, explodes up to target two. And that's a break in market structure takes a |
| 71 | 00:12:05,430 --> 00:12:17,400 | really nice dump, lower here. And one of my students shared a video with me today. And this is really what inspired me to look at the beast here. It gave a |
| 72 | 00:12:17,400 --> 00:12:28,110 | nice little optimal trade entry during the New York kill zone. So it did give a buy here in line with what they will be expected for a weak Dollar Index. But we |
| 73 | 00:12:28,110 --> 00:12:41,160 | have a nice little sell off the highest portion of this swing high and the lowest portion here to have this swing here. Optimal trade entry boom at 62% |
| 74 | 00:12:41,160 --> 00:12:53,280 | trades on level lovely sells off down to the 200 extension. What's it doing reaching below the lows over here? Okay, to clean to clean and where we see that |
| 75 | 00:12:53,280 --> 00:13:03,270 | we know there's going to be a run on liquidity for that. Okay. could potentially go one more time deeper lower than NASA cable guys. Be mindful watching Dollar |
| 76 | 00:13:04,500 --> 00:13:13,050 | Index and the relationship between cable and also yen because I think that may be a catalyst for this, which a little bit deeper below here. And it's gonna be |
| 77 | 00:13:13,050 --> 00:13:18,960 | it for today. Hope you had an insightful Monday with me and until tomorrow. wish good luck and good trading. |