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--ICT: Good morning, folks. We're gonna take a couple examples from last week's
--price action using the scalping method that I taught you. Alright, so before we
++(% class="hover min" %)
++|1 |00:00:12,480 ~-~-> 00:00:23,940 |ICT: Good morning, folks. We're gonna take a couple examples from last week's price action using the scalping method that I taught you. Alright, so before we
++|2 |00:00:23,940 ~-~-> 00:00:45,660 |begin, we go to our daily chart, and we're looking to fiber first. And I'm gonna put my little tools here. So you guys can use this as a means of determining
++|3 |00:00:45,660 ~-~-> 00:00:58,980 |your bias. All right, so I have three tools here. It's a down arrow, and up arrow, and a small little trend line segment. And I'm not gonna be teaching you
++|4 |00:00:58,980 ~-~-> 00:01:11,670 |trend line analysis, okay. But I will be teaching you how to keep your focus on a specific bias. And we go to our daily chart to do that. And if we're bullish,
++|5 |00:01:11,910 ~-~-> 00:01:24,660 |or bearish has to be a method in which to number one, define it in very constant terms that don't deviate it don't change or morph across, in the longer you do
++|6 |00:01:24,660 ~-~-> 00:01:44,490 |it. But we're looking at a condition in the Euro, where we have a swing high, right here, swing high, and that swing high is then broken. Right here. Okay, so
++|7 |00:01:44,490 ~-~-> 00:01:56,190 |once we have a swing high broken, the condition is we wait for swing low to form, it takes patience, I know. But you want to find the most likely conditions
++|8 |00:01:56,190 ~-~-> 00:02:08,310 |or odds in your favor to look for trades. And this is what you do. Okay, so a lot of times, traders are spending, waiting for their condition and setup, not
++|9 |00:02:08,310 ~-~-> 00:02:18,960 |trying to find perfect settings or a new method because they don't have a trade today. If you submit to this idea, I promise you, you will find consistency and
++|10 |00:02:18,960 ~-~-> 00:02:27,660 |you will find all the setups that you'll ever need. But that's where you need to decide and figure out on your own, I can't convince you of it outside of just
++|11 |00:02:27,660 ~-~-> 00:02:36,660 |inviting you to test it. And you'll see for yourself. So now we have our condition here we have a swing high broken, and then we wait for a swing low to
++|12 |00:02:36,660 ~-~-> 00:02:48,720 |form. So now what we've done is we've allowed the market to show willingness to rally or show strength, that retracement swing low forms. Once we have that
++|13 |00:02:48,720 ~-~-> 00:03:02,190 |swing low. Or even here, we go into the marketplace and we look for previous day's highs in old highs. And that's how we frame our setups. Now once you have
++|14 |00:03:02,190 ~-~-> 00:03:13,650 |the line segment on here on Mt four is highlighted, hold down the control button, click and drag it away, you can copy it. Okay, right in there. So now we
++|15 |00:03:13,650 ~-~-> 00:03:25,500 |have our scenario. For a setup. For this past week, this would have been one good setup the look for and I'm not trying to teach you one shot one kill. I'm
++|16 |00:03:25,500 ~-~-> 00:03:33,810 |not teaching you you opening on the week to get to weekly range, I'm not teaching you all those things, I'm not teaching you power three, I'm only
++|17 |00:03:33,810 ~-~-> 00:03:42,510 |teaching you a small little segment of price action to study over and over and over again each week. And you'll find that there are very generic simple setups
++|18 |00:03:42,930 ~-~-> 00:03:53,520 |that form like clockwork, every single week, you'll find them their bread and butter concepts. So now we have our framework in on a daily chart. So we know
++|19 |00:03:54,150 ~-~-> 00:04:05,100 |from this day's close here on the 22nd we're bullish, and we're gonna be looking for a run on the liquidity above this particular high and it's the 15th of
++|20 |00:04:05,100 ~-~-> 00:04:16,680 |November 2017. So now we can take our information that we have here and simply drop down into an hourly chart. Alright, so we have our eurodollar and we're on
++|21 |00:04:16,680 ~-~-> 00:04:28,920 |the hourly chart, not delineations on where the liquidity runs gonna be is here. You know, add the date dividers, hold down Control, tap, why you'll get these
++|22 |00:04:28,980 ~-~-> 00:04:37,440 |vertical lines delineating the individual days of the week when you're on an hourly chart. So that takes us right into this area right here because we're
++|23 |00:04:37,470 ~-~-> 00:04:51,030 |just below this old high. So we're going to zoom in on that. So all in here. That's where the setup would reside for a short term scout that would take us
++|24 |00:04:51,030 ~-~-> 00:05:03,870 |above this old high. Notice also on this day, we have already cleared the previous day's high So we're already above it. So it's going to most likely
++|25 |00:05:03,990 ~-~-> 00:05:07,410 |continue for forward and upward motion,
++|26 |00:05:08,429 ~-~-> 00:05:16,109 |or momentum to take out the high, which actually doesn't do this day. But generally, if you start today above the previous day's high in the New York
++|27 |00:05:16,109 ~-~-> 00:05:28,349 |session, it's going to be a straight run. But when here, I want to give you the context of what we look for, or what I look for, for scalping. And this is one
++|28 |00:05:28,349 ~-~-> 00:05:41,459 |of my earliest forms of scalping. It has evolved over time, but it's a really good foundation. So in this particular day, here, we're going to look at, drag
++|29 |00:05:41,459 ~-~-> 00:05:46,739 |this over here, seconds, zoom into a 15 minute time frame, it'll take you right into that
++|30 |00:05:48,449 ~-~-> 00:05:49,049 |time.
++|31 |00:05:50,070 ~-~-> 00:06:02,970 |Okay, you can see there's really no clear discernible impulse swing. On this particular day, it just goes sideways. So this is a day where we cannot really
++|32 |00:06:02,970 ~-~-> 00:06:14,790 |take a trade, because it doesn't have a clear run, impulse swing and then want to retrace for optimal trade entry. really tight low consolidation range. The
++|33 |00:06:14,790 ~-~-> 00:06:21,780 |very next day, we see price trading.
++|34 |00:06:26,820 ~-~-> 00:06:41,550 |Okay. And I use session highs and session lows, and here is the London session from the previous day. And we have this swing high here to forums during what is
++|35 |00:06:41,550 ~-~-> 00:07:02,070 |that right before midnight, in New York. just so happens to be a swing high. So we're gonna take the low and London Okay, here is that, for Kip, the ICT kill
++|36 |00:07:02,070 ~-~-> 00:07:15,810 |zone for London are drawing it up to the swing high. Now there's a whole lot of price action in here. Okay, so we disregard all this. And on a higher timeframe,
++|37 |00:07:15,810 ~-~-> 00:07:30,390 |this could be just basically one or a few candles, because its entire range is elongated. All of this movement up takes us into looking for a scenario for a
++|38 |00:07:30,420 ~-~-> 00:07:41,160 |scalp. Now this will be an area where we could look for the setup, but this happens to form during the London open kill zone, which is not beneficial for
++|39 |00:07:41,160 ~-~-> 00:07:52,860 |the system. Because the system is designed to look for specific criteria in the New York open kill zone set means we have to be looking for to set up the forum
++|40 |00:07:54,150 ~-~-> 00:08:00,540 |post 7am New York time.
++|41 |00:08:06,779 ~-~-> 00:08:16,859 |Okay. So here we have seven o'clock in the morning on Friday, we have a range, this is where we would originally be hunting. And it doesn't get back down
++|42 |00:08:16,859 ~-~-> 00:08:31,229 |there, it trades back down into an old high. And I'll take this off now. And we go into this price action right here. I already showed you on Twitter, there was
++|43 |00:08:31,229 ~-~-> 00:08:47,999 |a clear optimal trade entry on running the fib from 118 52 this price swing high here. So if we look for, we're going to zoom in. Alright, so we're zoomed in on
++|44 |00:08:47,999 ~-~-> 00:08:58,019 |the five minute chart, because you can't get an impulse swing on a 15 minute time frame. And we have seven o'clock in the morning New York time. So now we
++|45 |00:08:58,019 ~-~-> 00:09:09,569 |can go in and look for swing lows to anchor from that show and energetic movement away or rally. We have a swing low that does that here. Look at the
++|46 |00:09:09,569 ~-~-> 00:09:22,979 |energy away from that level to the lowest body. In that swing low we reference that low up to high here and at seven o'clock it opens at optimal trade entry.
++|47 |00:09:23,429 ~-~-> 00:09:33,389 |We could be a buyer there or anytime prior to this high being taken out on the upside. So anywhere between
++|48 |00:09:39,660 ~-~-> 00:09:56,400 |this high down into this level here. So how's that for logic? We do not need precision entries. Now we can have precision entries, but you don't have to have
++|49 |00:09:56,400 ~-~-> 00:10:11,880 |them. So anywhere in here you can be a buyer will be using The movement above this high for profit. And then also, we will be looking for upside objectives to
++|50 |00:10:11,880 ~-~-> 00:10:20,400 |reach for in terms of liquidity. So where could we reasonably expect this to go to if we're going to be a buyer in the shaded area using optimal trade entry and
++|51 |00:10:20,400 ~-~-> 00:10:31,740 |for a scalp? Where do we take profits? Well, we can take it at symmetrical price swing target to target one is, is off, think about if we bought it in here, with
++|52 |00:10:31,740 ~-~-> 00:10:43,470 |the expectation that we're gonna run these equal highs, it could only go up 10 to 20 pips. So we want to be at least allowing the market to move in our favor,
++|53 |00:10:43,680 ~-~-> 00:10:52,350 |because we're trading a higher timeframe directional bias based on that daily timeframe. So we're working off of a swing low on daily, and it could
++|54 |00:10:52,350 ~-~-> 00:11:01,350 |potentially have a large range today, which happens to be the case on past Friday. But where are we reaching for what's the level that we would reasonably
++|55 |00:11:01,350 ~-~-> 00:11:11,010 |expect to see price reach for, we're gonna go back out to an hourly chart, because we've already framed an area where we would reasonably expect a low risk
++|56 |00:11:11,100 ~-~-> 00:11:22,650 |entry. And you'd have to define the risk with this swing low. So anywhere in here, you'd have to calibrate your leverage and how much you're buying in
++|57 |00:11:22,650 ~-~-> 00:11:31,290 |relative terms to this low because your stop needs to be at that low. So anywhere up here, the higher you go away from optimal trade entry 62 to 79%
++|58 |00:11:31,290 ~-~-> 00:11:39,150 |retracement level, you're gonna have to lower your leverage, because it's going to have a great impact on what you have in terms of stop loss here. Let's go
++|59 |00:11:39,150 ~-~-> 00:11:50,760 |back out to an hourly. Okay, we're on an hourly chart, I'm gonna just drop a horizontal line on this old high back here, because that's where a clear area of
++|60 |00:11:50,760 ~-~-> 00:12:00,960 |liquidity would be. So that would be a very easy logical area to look for, for buy stops. So now we can drop back down into that five minute chart. So now we
++|61 |00:12:00,960 ~-~-> 00:12:19,800 |have our old hourly high right here. And above these equal highs, we would reasonably expect to see a trade 10 to 20 pips. What's the little number on the
++|62 |00:12:19,800 ~-~-> 00:12:33,450 |right hand side? Okay, it's showing 20 right there. So we have 20 pips above these equal highs, it takes us It essentially target to on the Fed. But then we
++|63 |00:12:33,450 ~-~-> 00:12:44,460 |have this old hourly high here. So we're gonna look for a run of 20 pips above that. Okay, that takes us right in here. And in close proximity to the
++|64 |00:12:44,460 ~-~-> 00:12:57,120 |symmetrical price swing, so like, just pure static price action alone could give us a reasonable objective to reach for that. So in terms of profit potential,
++|65 |00:12:57,210 ~-~-> 00:13:09,510 |let's assume that we got in here on an order block. Right here down close candle. You can be a buyer reading here and say we got with the spread. We got
++|66 |00:13:09,510 ~-~-> 00:13:21,960 |in at that point there. To get to the symmetrical price swing, it's 39 pips. If we go to just the 20 pips above, the old hourly, high, it's 35 pips. So that's
++|67 |00:13:21,960 ~-~-> 00:13:34,170 |how we would frame a 30 pips setup for the week, not taught that you only need about 23 pips at 2% risk per week to make 6% compounded a month, which more than
++|68 |00:13:34,170 ~-~-> 00:13:41,970 |doubles your money every single year. And that's all that you need. That is the setup. That's it, that's all that would be necessary. You do not need this
++|69 |00:13:41,970 ~-~-> 00:13:51,240 |entire run all the way for the rest of the day. That's day trading, what I'm showing you and teaching you was a scalping concept, looking for 20 to 30 pips,
++|70 |00:13:51,570 ~-~-> 00:14:03,480 |that to me is a scout. Technically, anything less than a 50 PIP run is a scout for me, but real easy way of framing the condition looking for the setups and
++|71 |00:14:03,480 ~-~-> 00:14:12,900 |looking for the liquidity that the market will reach for. Let's take a look at the cable. Alright, so we're looking at the British Pound versus the US dollar
++|72 |00:14:12,900 ~-~-> 00:14:29,130 |or cable. And the same thing, we're gonna be looking for a swing high right here. And we're going to delineate that with our little trendline.
++|73 |00:14:31,080 ~-~-> 00:14:38,910 |Okay, again, what I've been learning is the fact that we broke through that swing high. So now short term momentum is bullish, okay. It's real easy. We
++|74 |00:14:38,910 ~-~-> 00:14:48,000 |don't need moving averages. We don't need trend lines. Not in sense of diagonal trend lines, but I like to use horizontal lines for noting specific price
++|75 |00:14:48,000 ~-~-> 00:14:58,590 |levels. Okay, so after, after the swing highs broken, it means this candle right here is the first time it breaks through it doesn't need to close above it just
++|76 |00:14:58,590 ~-~-> 00:15:08,520 |needs to trade through it. Well Once that occurs, we start going in and looking for swing lows, that's here. So we have a swing low form here, immediately, as
++|77 |00:15:08,520 ~-~-> 00:15:21,420 |soon as it happens, we start the very next day looking for an opportunity to hunt long positions. Okay, we drag our little toes toll here and drop it right
++|78 |00:15:21,420 ~-~-> 00:15:29,400 |on that candle. So that way when we drop into our lower timeframe, hourly, it'll pick up the price action in our chart right away at that candle. So now at this
++|79 |00:15:29,400 ~-~-> 00:15:44,130 |moment, we're looking for bullishness on the 22nd. Okay? Before we drop into the lower timeframes, I want to delineate the reference points for liquidity, we
++|80 |00:15:44,130 ~-~-> 00:15:53,640 |would probably reach for and we're going to use now this swing high here has been broken, that sets the stage for the bias. So going back a little bit
++|81 |00:15:53,640 ~-~-> 00:16:04,050 |further, we have an old high here, we'll use that one. That's our liquidity run. So that's where the target is. And we're gonna drop down down into a hourly
++|82 |00:16:04,050 ~-~-> 00:16:25,260 |chart. Okay, so we have our cable trade. idea, look for Long's. And on the 22nd, we're hunting optimal trade entry long. And it's going to take us into this low
++|83 |00:16:25,260 ~-~-> 00:16:37,470 |comes in exactly at the New York open. And we're going to be using this low why because in this area here, a price action. This is where the most energetic
++|84 |00:16:37,470 ~-~-> 00:16:46,710 |price action took place on the long side. So there was buying in there. So we take our fib. And again, on referencing is this big move here, plus, it takes
++|85 |00:16:46,710 ~-~-> 00:16:57,810 |out a short term high. So we know for optimal trade entry purposes, we have our market structure shift again, as well. You can see we trade right down into
++|86 |00:16:57,840 ~-~-> 00:17:08,040 |optimal trade entry right here, during the New York open kill zone on the 22nd as the method dictates that we should be looking for, I'm just gonna shade that
++|87 |00:17:08,040 ~-~-> 00:17:22,380 |little area in. And as a cable trader, you would be a buyer on this particular day here. And we can see we're aiming for this old high on hourly for a run on
++|88 |00:17:22,380 ~-~-> 00:17:32,010 |liquidity. And target two is our fifth level. Okay, so we have a confluence above this red level from the hourly, which is an old high, it's also a 20
++|89 |00:17:32,010 ~-~-> 00:17:48,750 |level. So let's calibrate that down to 20. So 3322, okay, look for a 10 to 20 PIP run above 3320. And that would be words of 133 40 or 133 30. Okay, so we
++|90 |00:17:48,750 ~-~-> 00:18:07,170 |have our setup for that. And we're going to drop down in to a continuation of that same theme. This old high previous day on Friday, so we're gonna be looking
++|91 |00:18:07,170 ~-~-> 00:18:24,330 |for a run on this. previous day's high again, in the same vein, of 10 to 20 pips above we're looking for so we have 20 pips above that would be right there.
++|92 |00:18:25,170 ~-~-> 00:18:37,950 |Okay. So that the objective to reach for for liquidity as price starts to drop down here. Okay, we're looking for an opportunity to go long. Now, this is
++|93 |00:18:37,950 ~-~-> 00:18:51,090 |London, so we can't use that price starts to rally again on Friday. Again, we're looking for this momentum movement above 3330. So we're going to look at a 15
++|94 |00:18:51,090 ~-~-> 00:19:02,430 |minute timeframe here on the 24th word continuation of the same theme, looking for bullish scalps. Okay, so we have our chart on Friday for cable, so 15 minute
++|95 |00:19:02,430 ~-~-> 00:19:16,320 |timeframe, and we don't see the New York open until right here. Okay, so on this candle right there, the price has already made a swing low, it's starting to
++|96 |00:19:16,320 ~-~-> 00:19:28,710 |rally up. We could look for a scenario like this. This is still viable, so that most energetic price movement prior to that is here.
++|97 |00:19:30,180 ~-~-> 00:19:40,380 |And we'll use that lowest body reference point right there. And we have the highest reference point so here is our impulsive leg up. Yes, it goes above the
++|98 |00:19:40,380 ~-~-> 00:19:50,040 |old high but again, we're anticipating 10 to 20 pips. So this is a little flirtatious run above the old high on hourly and our previous day's high rather.
++|99 |00:19:51,630 ~-~-> 00:20:11,520 |And this day, on Thursday, we have a new previous day's high, we could take that same element of looking 10 to 20 pips above. We added here right there now have
++|100 |00:20:11,520 ~-~-> 00:20:21,120 |a reference point again. In that case, we don't have Thursday's liquidity ran out at all yet it's fallen short, but the previous day's high. We are seeing
++|101 |00:20:21,120 ~-~-> 00:20:30,300 |that that's why you're seeing a little bit of retracement right in here. This is where you'd be looking to get this set up. But it has to happen during the New
++|102 |00:20:30,300 ~-~-> 00:20:41,730 |York open kill zone. In this case, we're 15 minutes early. This candle here starts it, but we are below the old high. So we could be a buyer in here. Stock
++|103 |00:20:41,730 ~-~-> 00:20:51,780 |would be below this low here. Price runs to target to look at the bodies of the candles, they're respecting that Fibonacci level not because of the magic of
++|104 |00:20:51,780 ~-~-> 00:21:01,200 |Fibonacci, but because we're looking for an algorithmic basis to why price should go up 20 pips above a previous day's high. Don't think that I'm having
++|105 |00:21:01,200 ~-~-> 00:21:13,590 |this rectangle over here. For any relationship to that particular day, it's this, Thursday's high. Okay, so price is going to want to reach up into that 10
++|106 |00:21:13,590 ~-~-> 00:21:35,250 |to 20% range above an old high. And you can see, we have real good respect of that level here. But buying here, essentially around that 3325 level. It's 1020.
++|107 |00:21:36,360 ~-~-> 00:21:48,480 |It's about 20 pepper. You get 20 pips out of that. So it's a nice little scout. So it's not barnburner it's not a earth shattering amount of pips, but it is a
++|108 |00:21:48,480 ~-~-> 00:21:59,340 |bread and butter setup, using the criteria and again, not demanding absolute precision, you can still take the setup as long as we're below the swing high.
++|109 |00:21:59,820 ~-~-> 00:22:10,800 |And the conditions that leads to the draw and price permits enough range to make a profit, it has to do at least 20 pips or more in terms of potential profit.
++|110 |00:22:11,370 ~-~-> 00:22:20,790 |And if it does that, it doesn't matter where you are in reference to where the old low is for the optimal trade entry, or origination. That was where the real
++|111 |00:22:21,150 ~-~-> 00:22:31,230 |lowest risk would be with the entering down here, which was early it was before the New York kill zone, which is seven o'clock in the morning, New York time.
++|112 |00:22:31,950 ~-~-> 00:22:40,590 |With this move already underway here, we can't go back and say, Well, I want to buy out here because it's up here. But nothing's changed with the setup, it just
++|113 |00:22:40,590 ~-~-> 00:22:52,080 |means that you didn't get the good entry point. And this is just as good. And you're below the reference point high as we frame the fit. So it allows you as a
++|114 |00:22:52,080 ~-~-> 00:23:00,630 |developing trader to grow in your precision and grow into your efficiency in terms of using the tools and concepts. And then you can anticipate these better
++|115 |00:23:00,630 ~-~-> 00:23:09,750 |levels here on the basis of a limit order that if it was in place, overnight, it would have filled you at that price level. And then you would have had the
++|116 |00:23:09,960 ~-~-> 00:23:18,870 |better fill and a better exit point using 10 to 20 pips above the previous day's high. Alright, folks. So hopefully you found these two examples insightful, I
++|117 |00:23:19,140 ~-~-> 00:23:27,330 |recommend you go through the price action on all the majors and take a look at the crosses. And you'll see that there are setups that repeat themselves. And
++|118 |00:23:27,330 ~-~-> 00:23:38,190 |notice that while we didn't have a good setup on the eurodollar, every single day or the cable every single day, when the conditions are there, and we
++|119 |00:23:38,190 ~-~-> 00:23:46,350 |understand what we're looking for in the bias of the marketplace, or trying to be a buyer or a seller based on that daily timeframe and a break of swing high.
++|120 |00:23:47,010 ~-~-> 00:23:58,920 |And then a swing low forms. Or if we see a swing low break, and we wait for a swing high to form, those two conditions are setting up our bias. Once that
++|121 |00:23:58,950 ~-~-> 00:24:07,380 |happens, then we go through and look for old highs, previous day's highs and make a run for liquidity. And it repeats itself every single trading week. It
++|122 |00:24:07,380 ~-~-> 00:24:14,970 |doesn't give you a setup every single day. Don't aim for it to happen in your favorite pair like that. But look for one good bread and butter setup premium on
++|123 |00:24:14,970 ~-~-> 00:24:25,170 |the context and create a demo account and practice for about three, six months. And see if you don't find these setups every single week. Try to find just one,
++|124 |00:24:25,800 ~-~-> 00:24:30,090 |risk a maximum of 2% and see if you're not getting 6% every single month.
++|125 |00:24:30,540 ~-~-> 00:24:42,630 |If you can do that consistently for six months. That's, in my opinion. It's the foundation to eventually lead you on your own timing in your own decision to
++|126 |00:24:42,630 ~-~-> 00:24:52,410 |move to live funds. I don't tell anyone what to do that it's a unique personal decision. But when you make that decision, you need to know what you're doing
++|127 |00:24:52,440 ~-~-> 00:25:01,710 |with your Live account because if you haven't made adjustments and develop good habits in a demo account, you're going to discover You can become very reckless
++|128 |00:25:01,740 ~-~-> 00:25:07,860 |and emotional in live trading. So hopefully you found this insightful. Until next time, I wish you good luck and good trading.
--2
--00:00:23,940 ~-~-> 00:00:45,660
--begin, we go to our daily chart, and we're looking to fiber first. And I'm gonna
--put my little tools here. So you guys can use this as a means of determining
--
--3
--00:00:45,660 ~-~-> 00:00:58,980
--your bias. All right, so I have three tools here. It's a down arrow, and up
--arrow, and a small little trend line segment. And I'm not gonna be teaching you
--
--4
--00:00:58,980 ~-~-> 00:01:11,670
--trend line analysis, okay. But I will be teaching you how to keep your focus on
--a specific bias. And we go to our daily chart to do that. And if we're bullish,
--
--5
--00:01:11,910 ~-~-> 00:01:24,660
--or bearish has to be a method in which to number one, define it in very constant
--terms that don't deviate it don't change or morph across, in the longer you do
--
--6
--00:01:24,660 ~-~-> 00:01:44,490
--it. But we're looking at a condition in the Euro, where we have a swing high,
--right here, swing high, and that swing high is then broken. Right here. Okay, so
--
--7
--00:01:44,490 ~-~-> 00:01:56,190
--once we have a swing high broken, the condition is we wait for swing low to
--form, it takes patience, I know. But you want to find the most likely conditions
--
--8
--00:01:56,190 ~-~-> 00:02:08,310
--or odds in your favor to look for trades. And this is what you do. Okay, so a
--lot of times, traders are spending, waiting for their condition and setup, not
--
--9
--00:02:08,310 ~-~-> 00:02:18,960
--trying to find perfect settings or a new method because they don't have a trade
--today. If you submit to this idea, I promise you, you will find consistency and
--
--10
--00:02:18,960 ~-~-> 00:02:27,660
--you will find all the setups that you'll ever need. But that's where you need to
--decide and figure out on your own, I can't convince you of it outside of just
--
--11
--00:02:27,660 ~-~-> 00:02:36,660
--inviting you to test it. And you'll see for yourself. So now we have our
--condition here we have a swing high broken, and then we wait for a swing low to
--
--12
--00:02:36,660 ~-~-> 00:02:48,720
--form. So now what we've done is we've allowed the market to show willingness to
--rally or show strength, that retracement swing low forms. Once we have that
--
--13
--00:02:48,720 ~-~-> 00:03:02,190
--swing low. Or even here, we go into the marketplace and we look for previous
--day's highs in old highs. And that's how we frame our setups. Now once you have
--
--14
--00:03:02,190 ~-~-> 00:03:13,650
--the line segment on here on Mt four is highlighted, hold down the control
--button, click and drag it away, you can copy it. Okay, right in there. So now we
--
--15
--00:03:13,650 ~-~-> 00:03:25,500
--have our scenario. For a setup. For this past week, this would have been one
--good setup the look for and I'm not trying to teach you one shot one kill. I'm
--
--16
--00:03:25,500 ~-~-> 00:03:33,810
--not teaching you you opening on the week to get to weekly range, I'm not
--teaching you all those things, I'm not teaching you power three, I'm only
--
--17
--00:03:33,810 ~-~-> 00:03:42,510
--teaching you a small little segment of price action to study over and over and
--over again each week. And you'll find that there are very generic simple setups
--
--18
--00:03:42,930 ~-~-> 00:03:53,520
--that form like clockwork, every single week, you'll find them their bread and
--butter concepts. So now we have our framework in on a daily chart. So we know
--
--19
--00:03:54,150 ~-~-> 00:04:05,100
--from this day's close here on the 22nd we're bullish, and we're gonna be looking
--for a run on the liquidity above this particular high and it's the 15th of
--
--20
--00:04:05,100 ~-~-> 00:04:16,680
--November 2017. So now we can take our information that we have here and simply
--drop down into an hourly chart. Alright, so we have our eurodollar and we're on
--
--21
--00:04:16,680 ~-~-> 00:04:28,920
--the hourly chart, not delineations on where the liquidity runs gonna be is here.
--You know, add the date dividers, hold down Control, tap, why you'll get these
--
--22
--00:04:28,980 ~-~-> 00:04:37,440
--vertical lines delineating the individual days of the week when you're on an
--hourly chart. So that takes us right into this area right here because we're
--
--23
--00:04:37,470 ~-~-> 00:04:51,030
--just below this old high. So we're going to zoom in on that. So all in here.
--That's where the setup would reside for a short term scout that would take us
--
--24
--00:04:51,030 ~-~-> 00:05:03,870
--above this old high. Notice also on this day, we have already cleared the
--previous day's high So we're already above it. So it's going to most likely
--
--25
--00:05:03,990 ~-~-> 00:05:07,410
--continue for forward and upward motion,
--
--26
--00:05:08,429 ~-~-> 00:05:16,109
--or momentum to take out the high, which actually doesn't do this day. But
--generally, if you start today above the previous day's high in the New York
--
--27
--00:05:16,109 ~-~-> 00:05:28,349
--session, it's going to be a straight run. But when here, I want to give you the
--context of what we look for, or what I look for, for scalping. And this is one
--
--28
--00:05:28,349 ~-~-> 00:05:41,459
--of my earliest forms of scalping. It has evolved over time, but it's a really
--good foundation. So in this particular day, here, we're going to look at, drag
--
--29
--00:05:41,459 ~-~-> 00:05:46,739
--this over here, seconds, zoom into a 15 minute time frame, it'll take you right
--into that
--
--30
--00:05:48,449 ~-~-> 00:05:49,049
--time.
--
--31
--00:05:50,070 ~-~-> 00:06:02,970
--Okay, you can see there's really no clear discernible impulse swing. On this
--particular day, it just goes sideways. So this is a day where we cannot really
--
--32
--00:06:02,970 ~-~-> 00:06:14,790
--take a trade, because it doesn't have a clear run, impulse swing and then want
--to retrace for optimal trade entry. really tight low consolidation range. The
--
--33
--00:06:14,790 ~-~-> 00:06:21,780
--very next day, we see price trading.
--
--34
--00:06:26,820 ~-~-> 00:06:41,550
--Okay. And I use session highs and session lows, and here is the London session
--from the previous day. And we have this swing high here to forums during what is
--
--35
--00:06:41,550 ~-~-> 00:07:02,070
--that right before midnight, in New York. just so happens to be a swing high. So
--we're gonna take the low and London Okay, here is that, for Kip, the ICT kill
--
--36
--00:07:02,070 ~-~-> 00:07:15,810
--zone for London are drawing it up to the swing high. Now there's a whole lot of
--price action in here. Okay, so we disregard all this. And on a higher timeframe,
--
--37
--00:07:15,810 ~-~-> 00:07:30,390
--this could be just basically one or a few candles, because its entire range is
--elongated. All of this movement up takes us into looking for a scenario for a
--
--38
--00:07:30,420 ~-~-> 00:07:41,160
--scalp. Now this will be an area where we could look for the setup, but this
--happens to form during the London open kill zone, which is not beneficial for
--
--39
--00:07:41,160 ~-~-> 00:07:52,860
--the system. Because the system is designed to look for specific criteria in the
--New York open kill zone set means we have to be looking for to set up the forum
--
--40
--00:07:54,150 ~-~-> 00:08:00,540
--post 7am New York time.
--
--41
--00:08:06,779 ~-~-> 00:08:16,859
--Okay. So here we have seven o'clock in the morning on Friday, we have a range,
--this is where we would originally be hunting. And it doesn't get back down
--
--42
--00:08:16,859 ~-~-> 00:08:31,229
--there, it trades back down into an old high. And I'll take this off now. And we
--go into this price action right here. I already showed you on Twitter, there was
--
--43
--00:08:31,229 ~-~-> 00:08:47,999
--a clear optimal trade entry on running the fib from 118 52 this price swing high
--here. So if we look for, we're going to zoom in. Alright, so we're zoomed in on
--
--44
--00:08:47,999 ~-~-> 00:08:58,019
--the five minute chart, because you can't get an impulse swing on a 15 minute
--time frame. And we have seven o'clock in the morning New York time. So now we
--
--45
--00:08:58,019 ~-~-> 00:09:09,569
--can go in and look for swing lows to anchor from that show and energetic
--movement away or rally. We have a swing low that does that here. Look at the
--
--46
--00:09:09,569 ~-~-> 00:09:22,979
--energy away from that level to the lowest body. In that swing low we reference
--that low up to high here and at seven o'clock it opens at optimal trade entry.
--
--47
--00:09:23,429 ~-~-> 00:09:33,389
--We could be a buyer there or anytime prior to this high being taken out on the
--upside. So anywhere between
--
--48
--00:09:39,660 ~-~-> 00:09:56,400
--this high down into this level here. So how's that for logic? We do not need
--precision entries. Now we can have precision entries, but you don't have to have
--
--49
--00:09:56,400 ~-~-> 00:10:11,880
--them. So anywhere in here you can be a buyer will be using The movement above
--this high for profit. And then also, we will be looking for upside objectives to
--
--50
--00:10:11,880 ~-~-> 00:10:20,400
--reach for in terms of liquidity. So where could we reasonably expect this to go
--to if we're going to be a buyer in the shaded area using optimal trade entry and
--
--51
--00:10:20,400 ~-~-> 00:10:31,740
--for a scalp? Where do we take profits? Well, we can take it at symmetrical price
--swing target to target one is, is off, think about if we bought it in here, with
--
--52
--00:10:31,740 ~-~-> 00:10:43,470
--the expectation that we're gonna run these equal highs, it could only go up 10
--to 20 pips. So we want to be at least allowing the market to move in our favor,
--
--53
--00:10:43,680 ~-~-> 00:10:52,350
--because we're trading a higher timeframe directional bias based on that daily
--timeframe. So we're working off of a swing low on daily, and it could
--
--54
--00:10:52,350 ~-~-> 00:11:01,350
--potentially have a large range today, which happens to be the case on past
--Friday. But where are we reaching for what's the level that we would reasonably
--
--55
--00:11:01,350 ~-~-> 00:11:11,010
--expect to see price reach for, we're gonna go back out to an hourly chart,
--because we've already framed an area where we would reasonably expect a low risk
--
--56
--00:11:11,100 ~-~-> 00:11:22,650
--entry. And you'd have to define the risk with this swing low. So anywhere in
--here, you'd have to calibrate your leverage and how much you're buying in
--
--57
--00:11:22,650 ~-~-> 00:11:31,290
--relative terms to this low because your stop needs to be at that low. So
--anywhere up here, the higher you go away from optimal trade entry 62 to 79%
--
--58
--00:11:31,290 ~-~-> 00:11:39,150
--retracement level, you're gonna have to lower your leverage, because it's going
--to have a great impact on what you have in terms of stop loss here. Let's go
--
--59
--00:11:39,150 ~-~-> 00:11:50,760
--back out to an hourly. Okay, we're on an hourly chart, I'm gonna just drop a
--horizontal line on this old high back here, because that's where a clear area of
--
--60
--00:11:50,760 ~-~-> 00:12:00,960
--liquidity would be. So that would be a very easy logical area to look for, for
--buy stops. So now we can drop back down into that five minute chart. So now we
--
--61
--00:12:00,960 ~-~-> 00:12:19,800
--have our old hourly high right here. And above these equal highs, we would
--reasonably expect to see a trade 10 to 20 pips. What's the little number on the
--
--62
--00:12:19,800 ~-~-> 00:12:33,450
--right hand side? Okay, it's showing 20 right there. So we have 20 pips above
--these equal highs, it takes us It essentially target to on the Fed. But then we
--
--63
--00:12:33,450 ~-~-> 00:12:44,460
--have this old hourly high here. So we're gonna look for a run of 20 pips above
--that. Okay, that takes us right in here. And in close proximity to the
--
--64
--00:12:44,460 ~-~-> 00:12:57,120
--symmetrical price swing, so like, just pure static price action alone could give
--us a reasonable objective to reach for that. So in terms of profit potential,
--
--65
--00:12:57,210 ~-~-> 00:13:09,510
--let's assume that we got in here on an order block. Right here down close
--candle. You can be a buyer reading here and say we got with the spread. We got
--
--66
--00:13:09,510 ~-~-> 00:13:21,960
--in at that point there. To get to the symmetrical price swing, it's 39 pips. If
--we go to just the 20 pips above, the old hourly, high, it's 35 pips. So that's
--
--67
--00:13:21,960 ~-~-> 00:13:34,170
--how we would frame a 30 pips setup for the week, not taught that you only need
--about 23 pips at 2% risk per week to make 6% compounded a month, which more than
--
--68
--00:13:34,170 ~-~-> 00:13:41,970
--doubles your money every single year. And that's all that you need. That is the
--setup. That's it, that's all that would be necessary. You do not need this
--
--69
--00:13:41,970 ~-~-> 00:13:51,240
--entire run all the way for the rest of the day. That's day trading, what I'm
--showing you and teaching you was a scalping concept, looking for 20 to 30 pips,
--
--70
--00:13:51,570 ~-~-> 00:14:03,480
--that to me is a scout. Technically, anything less than a 50 PIP run is a scout
--for me, but real easy way of framing the condition looking for the setups and
--
--71
--00:14:03,480 ~-~-> 00:14:12,900
--looking for the liquidity that the market will reach for. Let's take a look at
--the cable. Alright, so we're looking at the British Pound versus the US dollar
--
--72
--00:14:12,900 ~-~-> 00:14:29,130
--or cable. And the same thing, we're gonna be looking for a swing high right
--here. And we're going to delineate that with our little trendline.
--
--73
--00:14:31,080 ~-~-> 00:14:38,910
--Okay, again, what I've been learning is the fact that we broke through that
--swing high. So now short term momentum is bullish, okay. It's real easy. We
--
--74
--00:14:38,910 ~-~-> 00:14:48,000
--don't need moving averages. We don't need trend lines. Not in sense of diagonal
--trend lines, but I like to use horizontal lines for noting specific price
--
--75
--00:14:48,000 ~-~-> 00:14:58,590
--levels. Okay, so after, after the swing highs broken, it means this candle right
--here is the first time it breaks through it doesn't need to close above it just
--
--76
--00:14:58,590 ~-~-> 00:15:08,520
--needs to trade through it. Well Once that occurs, we start going in and looking
--for swing lows, that's here. So we have a swing low form here, immediately, as
--
--77
--00:15:08,520 ~-~-> 00:15:21,420
--soon as it happens, we start the very next day looking for an opportunity to
--hunt long positions. Okay, we drag our little toes toll here and drop it right
--
--78
--00:15:21,420 ~-~-> 00:15:29,400
--on that candle. So that way when we drop into our lower timeframe, hourly, it'll
--pick up the price action in our chart right away at that candle. So now at this
--
--79
--00:15:29,400 ~-~-> 00:15:44,130
--moment, we're looking for bullishness on the 22nd. Okay? Before we drop into the
--lower timeframes, I want to delineate the reference points for liquidity, we
--
--80
--00:15:44,130 ~-~-> 00:15:53,640
--would probably reach for and we're going to use now this swing high here has
--been broken, that sets the stage for the bias. So going back a little bit
--
--81
--00:15:53,640 ~-~-> 00:16:04,050
--further, we have an old high here, we'll use that one. That's our liquidity run.
--So that's where the target is. And we're gonna drop down down into a hourly
--
--82
--00:16:04,050 ~-~-> 00:16:25,260
--chart. Okay, so we have our cable trade. idea, look for Long's. And on the 22nd,
--we're hunting optimal trade entry long. And it's going to take us into this low
--
--83
--00:16:25,260 ~-~-> 00:16:37,470
--comes in exactly at the New York open. And we're going to be using this low why
--because in this area here, a price action. This is where the most energetic
--
--84
--00:16:37,470 ~-~-> 00:16:46,710
--price action took place on the long side. So there was buying in there. So we
--take our fib. And again, on referencing is this big move here, plus, it takes
--
--85
--00:16:46,710 ~-~-> 00:16:57,810
--out a short term high. So we know for optimal trade entry purposes, we have our
--market structure shift again, as well. You can see we trade right down into
--
--86
--00:16:57,840 ~-~-> 00:17:08,040
--optimal trade entry right here, during the New York open kill zone on the 22nd
--as the method dictates that we should be looking for, I'm just gonna shade that
--
--87
--00:17:08,040 ~-~-> 00:17:22,380
--little area in. And as a cable trader, you would be a buyer on this particular
--day here. And we can see we're aiming for this old high on hourly for a run on
--
--88
--00:17:22,380 ~-~-> 00:17:32,010
--liquidity. And target two is our fifth level. Okay, so we have a confluence
--above this red level from the hourly, which is an old high, it's also a 20
--
--89
--00:17:32,010 ~-~-> 00:17:48,750
--level. So let's calibrate that down to 20. So 3322, okay, look for a 10 to 20
--PIP run above 3320. And that would be words of 133 40 or 133 30. Okay, so we
--
--90
--00:17:48,750 ~-~-> 00:18:07,170
--have our setup for that. And we're going to drop down in to a continuation of
--that same theme. This old high previous day on Friday, so we're gonna be looking
--
--91
--00:18:07,170 ~-~-> 00:18:24,330
--for a run on this. previous day's high again, in the same vein, of 10 to 20 pips
--above we're looking for so we have 20 pips above that would be right there.
--
--92
--00:18:25,170 ~-~-> 00:18:37,950
--Okay. So that the objective to reach for for liquidity as price starts to drop
--down here. Okay, we're looking for an opportunity to go long. Now, this is
--
--93
--00:18:37,950 ~-~-> 00:18:51,090
--London, so we can't use that price starts to rally again on Friday. Again, we're
--looking for this momentum movement above 3330. So we're going to look at a 15
--
--94
--00:18:51,090 ~-~-> 00:19:02,430
--minute timeframe here on the 24th word continuation of the same theme, looking
--for bullish scalps. Okay, so we have our chart on Friday for cable, so 15 minute
--
--95
--00:19:02,430 ~-~-> 00:19:16,320
--timeframe, and we don't see the New York open until right here. Okay, so on this
--candle right there, the price has already made a swing low, it's starting to
--
--96
--00:19:16,320 ~-~-> 00:19:28,710
--rally up. We could look for a scenario like this. This is still viable, so that
--most energetic price movement prior to that is here.
--
--97
--00:19:30,180 ~-~-> 00:19:40,380
--And we'll use that lowest body reference point right there. And we have the
--highest reference point so here is our impulsive leg up. Yes, it goes above the
--
--98
--00:19:40,380 ~-~-> 00:19:50,040
--old high but again, we're anticipating 10 to 20 pips. So this is a little
--flirtatious run above the old high on hourly and our previous day's high rather.
--
--99
--00:19:51,630 ~-~-> 00:20:11,520
--And this day, on Thursday, we have a new previous day's high, we could take that
--same element of looking 10 to 20 pips above. We added here right there now have
--
--100
--00:20:11,520 ~-~-> 00:20:21,120
--a reference point again. In that case, we don't have Thursday's liquidity ran
--out at all yet it's fallen short, but the previous day's high. We are seeing
--
--101
--00:20:21,120 ~-~-> 00:20:30,300
--that that's why you're seeing a little bit of retracement right in here. This is
--where you'd be looking to get this set up. But it has to happen during the New
--
--102
--00:20:30,300 ~-~-> 00:20:41,730
--York open kill zone. In this case, we're 15 minutes early. This candle here
--starts it, but we are below the old high. So we could be a buyer in here. Stock
--
--103
--00:20:41,730 ~-~-> 00:20:51,780
--would be below this low here. Price runs to target to look at the bodies of the
--candles, they're respecting that Fibonacci level not because of the magic of
--
--104
--00:20:51,780 ~-~-> 00:21:01,200
--Fibonacci, but because we're looking for an algorithmic basis to why price
--should go up 20 pips above a previous day's high. Don't think that I'm having
--
--105
--00:21:01,200 ~-~-> 00:21:13,590
--this rectangle over here. For any relationship to that particular day, it's
--this, Thursday's high. Okay, so price is going to want to reach up into that 10
--
--106
--00:21:13,590 ~-~-> 00:21:35,250
--to 20% range above an old high. And you can see, we have real good respect of
--that level here. But buying here, essentially around that 3325 level. It's 1020.
--
--107
--00:21:36,360 ~-~-> 00:21:48,480
--It's about 20 pepper. You get 20 pips out of that. So it's a nice little scout.
--So it's not barnburner it's not a earth shattering amount of pips, but it is a
--
--108
--00:21:48,480 ~-~-> 00:21:59,340
--bread and butter setup, using the criteria and again, not demanding absolute
--precision, you can still take the setup as long as we're below the swing high.
--
--109
--00:21:59,820 ~-~-> 00:22:10,800
--And the conditions that leads to the draw and price permits enough range to make
--a profit, it has to do at least 20 pips or more in terms of potential profit.
--
--110
--00:22:11,370 ~-~-> 00:22:20,790
--And if it does that, it doesn't matter where you are in reference to where the
--old low is for the optimal trade entry, or origination. That was where the real
--
--111
--00:22:21,150 ~-~-> 00:22:31,230
--lowest risk would be with the entering down here, which was early it was before
--the New York kill zone, which is seven o'clock in the morning, New York time.
--
--112
--00:22:31,950 ~-~-> 00:22:40,590
--With this move already underway here, we can't go back and say, Well, I want to
--buy out here because it's up here. But nothing's changed with the setup, it just
--
--113
--00:22:40,590 ~-~-> 00:22:52,080
--means that you didn't get the good entry point. And this is just as good. And
--you're below the reference point high as we frame the fit. So it allows you as a
--
--114
--00:22:52,080 ~-~-> 00:23:00,630
--developing trader to grow in your precision and grow into your efficiency in
--terms of using the tools and concepts. And then you can anticipate these better
--
--115
--00:23:00,630 ~-~-> 00:23:09,750
--levels here on the basis of a limit order that if it was in place, overnight, it
--would have filled you at that price level. And then you would have had the
--
--116
--00:23:09,960 ~-~-> 00:23:18,870
--better fill and a better exit point using 10 to 20 pips above the previous day's
--high. Alright, folks. So hopefully you found these two examples insightful, I
--
--117
--00:23:19,140 ~-~-> 00:23:27,330
--recommend you go through the price action on all the majors and take a look at
--the crosses. And you'll see that there are setups that repeat themselves. And
--
--118
--00:23:27,330 ~-~-> 00:23:38,190
--notice that while we didn't have a good setup on the eurodollar, every single
--day or the cable every single day, when the conditions are there, and we
--
--119
--00:23:38,190 ~-~-> 00:23:46,350
--understand what we're looking for in the bias of the marketplace, or trying to
--be a buyer or a seller based on that daily timeframe and a break of swing high.
--
--120
--00:23:47,010 ~-~-> 00:23:58,920
--And then a swing low forms. Or if we see a swing low break, and we wait for a
--swing high to form, those two conditions are setting up our bias. Once that
--
--121
--00:23:58,950 ~-~-> 00:24:07,380
--happens, then we go through and look for old highs, previous day's highs and
--make a run for liquidity. And it repeats itself every single trading week. It
--
--122
--00:24:07,380 ~-~-> 00:24:14,970
--doesn't give you a setup every single day. Don't aim for it to happen in your
--favorite pair like that. But look for one good bread and butter setup premium on
--
--123
--00:24:14,970 ~-~-> 00:24:25,170
--the context and create a demo account and practice for about three, six months.
--And see if you don't find these setups every single week. Try to find just one,
--
--124
--00:24:25,800 ~-~-> 00:24:30,090
--risk a maximum of 2% and see if you're not getting 6% every single month.
--
--125
--00:24:30,540 ~-~-> 00:24:42,630
--If you can do that consistently for six months. That's, in my opinion. It's the
--foundation to eventually lead you on your own timing in your own decision to
--
--126
--00:24:42,630 ~-~-> 00:24:52,410
--move to live funds. I don't tell anyone what to do that it's a unique personal
--decision. But when you make that decision, you need to know what you're doing
--
--127
--00:24:52,440 ~-~-> 00:25:01,710
--with your Live account because if you haven't made adjustments and develop good
--habits in a demo account, you're going to discover You can become very reckless
--
--128
--00:25:01,740 ~-~-> 00:25:07,860
--and emotional in live trading. So hopefully you found this insightful. Until
--next time, I wish you good luck and good trading.

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