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Version 1.1 by Drunk Monkey on 2020-12-09 06:16
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3 ICT: Good evening, folks, it's a Saturday 1pm New York time in January 13 2018,
4 did a couple tweets yesterday on the 12th of January. And this is the one I did
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8 for the cable, and asked what everyone would see in this image. And I did one
9 for the Euro, as well. Okay. And I put a couple things in here to try to draw
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13 your attention to it. But I wanted to see what else everyone else would have,
14 from their independent perspective without me drawing any special attention to
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18 anything. And that's kind of like what I want to go over now. So I'm going to go
19 over to daily FX Archer, welcome to cable, Bridgetown, USD, this is a weekly
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23 chart. And I want to again, draw attention to the order block in here. Right in
24 here is the order block. And we're going to change this to I will use this area
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28 here to be shaded in blue. So I'm going to drop into an hourly chart. Okay, so
29 we have our hourly chart, 60 minute timeframe. And we can see how price dipped
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33 into that weekly order block. Okay, now, it's not necessarily that all this area
34 be concerned with, I'm just drawing a contrast to what other things going to be
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38 highlighting on the chart. One of the lineage specific range of date. Okay, I'm
39 starting here, that's the beginning of January trading is the beginning of the
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43 year. And I'm going to delineate another date reference point. That's here.
44 Okay. We don't see anything over here until there, there's our destination and
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48 time. So we have a range in time. Now we're going to have
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52 a reference point in terms of price, or a range, if you will. Okay, and make
53 this solid. And we'll thicken up a little bit. clone that and then we're going
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57 to drop it right on the low here. Like that. Okay, so now we have a range. Okay,
58 I want you to think about this range, just like I teach as it relates to the
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62 Asian range. Okay, what we're doing is we're actually bracketing and defining
63 the initial week of the year and the first week of trading in January, okay, so
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67 this is the ICT power three applied to a monthly chart and weekly chart and a
68 new year. So, the importance is that we see how the market is going to seek
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72 liquidity, but we have to frame the market in such a way where we can anticipate
73 specific levels or areas or liquidity pools to be rated or probed. So now we
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77 have buy side liquidity before buy stops resting above these highs here. So it
78 buy stops above this high here and sell stops resting below this low here. We
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82 have the same concept. It's applied to a daily range in response to the
83 accumulation, manipulation and distribution cycle that I teach or the ITT power
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87 three concept. When we understand this, and we look for elements of runs on
88 liquidity, we know that resting below this below is going to be cell stops. And
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92 we also know that the dollar index was bearish at the same time. And we know
93 that in the shaded area here. There's a weekly bullish order block So there's a
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97 reason I want to go below this low. It's directly linked to a weekly timeframe
98 that would be deemed bullish. And I want you to think about it in terms of how
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102 price when it drops below this low here,
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106 not picking it up a little bit. Okay, so we have a range price drops down below
107 this initial week. Okay, so this is not some new weekly strategy, okay. It's,
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111 it's something I've taught before many times, on YouTube. Now I have taken the
112 videos down, but there is a army of people that have downloaded everything I've
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116 ever produced. And they have a better cataloguing organization than I do with my
117 content. But this is simply something that I taught with higher timeframe
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121 charts, using a monthly bar, and a weekly bar. And now we have a new year. So
122 the same thing applies here. But I want you to think about how price seeks these
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126 liquidity reference points, or as I call them, liquidity pools. So price drops
127 down here initially, to go into the weekly order block and take out the sell
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131 stops below the market low and leaving this area of consolidation. Once the sell
132 stops have been taken, where they're going to aim for, well, if they go to the
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136 self stops and go down to a weekly bullish order block, they're going down here
137 to do what accumulate. Okay, so they bought here, smart money did, they bought
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141 more, now they're gonna manipulate. So now they're accumulating, Long's
142 accumulating Long's, and then they manipulate those individuals that are already
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146 long out of their positions. By running the stops, their cell stops have been
147 taken for anyone that's already long, their manipulation on price takes those
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151 long holders out. By tripping, their cell stops, their cell stops to become
152 market orders to flood the market, there's buying liquidity counterparties right
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156 there. So smart money can buy more at a cheaper price than they did here. And
157 here, there isn't going to be a large degree of volume here, because it's only
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161 gonna be relative to the stops. So smart money sets the range by buying low,
162 buying low, and then they wait while they do it again here. But right below
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166 here, they just unseat, okay, or manipulate those individuals that are already
167 long out. to knock them off. they accumulate their position by buying, they're
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171 willing sale of their long positions based on their cell stop. So long holders
172 have their cell stops hit, and the person or counterparties to those cell stops
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176 being taken, or going to be smart money, they will buy their stops as it drops
177 down here. And that's why we see this large degree of volatility on the upside.
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181 Because now because they have entered long here, where's a really logical area
182 to get out? Well, you want to find someone that wants to be buying from you at a
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186 higher price. But see, that's the problem. We're trained in the books to buy
187 low, sell high. So if we're trying to buy low and sell high, how can how can
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191 someone? How can we find someone that wants to buy it from us, when we bought it
192 low? How can they want to buy it higher, you have to find liquidity pools in the
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196 form of buy stops. So when the price trades above this level here,
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200 when this occurs, right there, these buy stocks become market orders to buy at
201 the market. Exactly what the long holders want to have here. They want someone
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205 that's willing to buy at a higher price, because now they want to take their
206 profits. Not all of them but the Long's that they accumulate here. They're going
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210 to sell some portion of it to willing buyers at a higher price. And as price
211 starts to expand higher breakout artists, price chasers, they start buying it
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215 too. And that's when all this range here. We're seeing liquidation of
216 participants that bought down here, bought here, here and here. So we're seeing
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220 the power three. The opening price is the opening on this candle here which is
221 134 99. And we see power three formation here where it's small little portion on
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225 the range drops down below the opening price, creating the low of the month, the
226 low of the week and so far below the year. Now I'm not stating this is going to
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230 be the oil of the year and like that, but this is how we look for liquidity
231 runs. If this is all we see in terms of a price move up to 137 40 Is this not a
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235 significant enough range to be profitable for your study in a demo account,
236 obviously, who wouldn't be up to you who would be upset about that. But I want
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240 you to view how the monthly candle or monthly range, the way you interpret that
241 is you want to use the first five days of trading. Now, they are not going to be
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245 always like we just had for January, we look at a calendar can see that it
246 starts on a Monday, in the five days of the first week of January happens to be
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250 Monday through Friday, it won't occur like that. Always, sometimes the month is
251 going to begin on a Wednesday or Tuesday or something like that, you're going to
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255 use the first five trading days of every month, and you define that like this,
256 okay, and what that's going to do is offer you the same concept that I taught
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260 you with the Asian range for power three on a daily candle, you're doing that
261 with a monthly, okay. So once we have these ideas applied to our chart, we can
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265 clearly see what the algorithm is going to be reaching for, why it should be
266 reaching for it, and it provides a great deal of context and detail. And you
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270 dare I say it, X ray view of what price should do in the future, from a logical
271 standpoint. And from an order flow standpoint, it's not guessing we know what it
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275 should be doing, and why it should be doing what it's doing. This is the element
276 behind the cable chart that I wanted to see if you guys would see. And I you
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280 know, so let's go and take a look at the euro dollar now. Okay, so we're looking
281 at the euro dollar, this is a weekly chart. Again, we'll be using the orderbox
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285 on a weekly basis. Here. Alright, so now we can drop down into our one hour
286 chart. Okay, so we're gonna do the same thing we just did with the cable, where
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290 I mark off the beginning of the year, we're gonna get our first week of trading.
291 delayed, this is going to act as our
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295 initial range. And we'll add in, I'm going to use horizontal lines now just cut
296 to the chase. Right here before high and our low. Right there. Okay, so we have
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300 our initial, low and high first week of trading for January and for the first of
301 the year. And we can apply these ideas with the weekly range, I'd approach your
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305 idea using power three. Okay, so what we're looking for, again, is elements of
306 accumulation, manipulation and distribution. We know that this area down here in
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310 the shaded blue area is not a demand zone. It's a ICT bullish order block. So we
311 know what's residing down there. But we have an initial range. We know what's
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315 resting above the high, it's by stops. And what's resting below the lows, it's
316 cell stops. So what we're looking for his we have a study on higher timeframe
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320 looking for a bias, if you will, obviously, we know dollar index was bearish
321 bullish on foreign currency. We can really be bullish when we get down to the
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325 weekly order block, you can see the reactions here they dipped into it dipped
326 into it dipped into it almost got turned to it again, but ultimately took off on
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330 the heels of ECB. All finding great, wonderful. But I want you to take a look at
331 the elements that are seen here because you can see all of the things that I
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335 teach what the Asian range being applied to the power three on a monthly chart.
336 Again, the opening on the month is on this candle Here comes in at 119 99
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340 basically 120 big figure and we have consolidation. And if we're bullish we're
341 gonna be looking for what evidence is that they're buying so they bought here
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345 rally up, he bought here rallied up. They bought more in here. Price dips down
346 into the weekly order block, they accumulate more, but more specifically they
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350 take out these lows. Okay, the lows have been taken out. They reach down to an
351 area of long term bullishness with a weekly bullish or ba and we can see them
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355 working that level. Look at the reaction up to this range is is the same type of
356 thing you would expect to see what the Asian range on a daily chart or a daily
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360 range rather, price drops back down. And for anyone that has my old tutorials
361 where I teach the London open, set up where this would be the Asian range and it
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365 price drops down gets Judas swing, an optimal trade entry failure swing The
366 Daily range runs up. All we're looking at here is the same thing applied to it
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370 on a monthly perspective, we have the monthly, first five trading days of the
371 month. bracket those out, define your range have a bias bullish or bearish and
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375 then use the same concepts that are otherwise taught in the intraday models. And
376 you'll see that we're using not a, again, new weekly or refinement of my ICT
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380 concepts. It's always just this, it's what I've already shared. But you can't
381 put lipstick on this and call it something else, folks, it's something I've
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385 taught years ago, people have an inherent video library. And they know it when
386 they see it. So this is the approach to using power three with a higher
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390 timeframe perspective, and it delivers just as much precision that you would
391 expect. And my examples have shown on an intraday capacity. In terms of market
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395 symmetry, we can see the range that we do like with the Asian range, we do one
396 standard deviation down, boom, hits it as it overlaps and converges with that
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400 weekly order block that will be deemed bullish. And once they deviate from the
401 upside, we can see that the market has thus far with no problem whatsoever, gone
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405 one standard deviation on the upside, and we'll see if there's any more
406 continuation next week as we go into new trading. So I wanted to share this with
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410 you give you one more examples of how we can use not just intraday stuff, but
411 using the same elements of time and price that I teach and using the ICT power
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415 three concept, applying it to a monthly perspective and a weekly perspective, we
416 can see that same thing happening here. Let's take these off.
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420 Okay, so we have the Mondays range in here. Right here, Mondays range. And if we
421 apply that same theory, not on the monthly perspective, but on a weekly basis.
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425 Okay, we have Monday's range here. So here's Monday's trading. And below that we
426 get the run on Tuesday, taking the liquidity out below that low at a weekly
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430 bullish order block, as one would expect that we're going to take this range
431 here, and we're gonna duplicate that. Okay. And again, this is not something
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435 new, no one can take credit for this stuff. This is stuff that I taught for free
436 on YouTube.
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440 Okay, and you can start doing your standard deviations. And you'll see where
441 price will want to reach for.
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445 So we're looking at 122 30. What is that? Let's put a horizontal line on there.
446 So 120 to 38.7. Okay, now remember, I had shared a chart last week with an
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450 objective of 122 32. And should we hit that level? I've already put it out
451 there. So it's not like I can say, Well, you know, I thought it was going to go
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455 here and look like I did in hindsight, it's been out there for several days. So
456 should we see 120 to 32 traded to now 120 38.7, if that's traded to, you know
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460 why? Because this is the mechanics behind me the algorithm is seeking these
461 areas of liquidity. But specifically the 122 32 level, should we hit that level,
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465 I will then outline how I knew that was likely to hit not guaranteeing it, but
466 that's what I'm looking for. So between 120 to 30 to 120 to 40 in that area. I
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470 think it's a reasonable upside objective for next week initially, should we see
471 continuation and erosion on the dollar index, and obviously that's going to
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475 compound and see larger upside objectives for euro dollar and cable and lower
476 objectives on the dollar index. So hopefully you found this video insightful and
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480 I'll talk to you next time. I wish you good luck and good trading.