ICT YT - 2020-08-25 - ICT Forex Lesson - EurUsd NYO Lecture.srt

Last modified by Drunk Monkey on 2021-06-12 06:33
1 00:00:11,280 --> 00:00:21,930 ICT: Welcome back, folks. So we are looking at the euro dollar, the 15 minute time frame when covered two quick things, and then that'll be pretty much it for
2 00:00:21,930 --> 00:00:30,060 today, I don't want to talk too much about anything that's in the chart here, but mentorship group, we will have an amplified lesson on all of this price
3 00:00:30,060 --> 00:00:38,880 action tomorrow, and our midweek review. Real quick, if you have not been following along on the community tab, if you go to the answer trader YouTube
4 00:00:38,880 --> 00:00:51,270 channel, click on the community tab. And this is my replacement for Instagram and Twitter, which I'm no longer a part of either one of those mediums. And this
5 00:00:51,270 --> 00:01:00,900 is where I'm updating everyone. If there's anything of any importance, or if there's something I'm trying to grab your attention with, you can find that
6 00:01:00,900 --> 00:01:10,590 here, if you subscribe to the channel, hit the Notifications tab and the little bell icon, it should be alerting you whenever I post something on this community
7 00:01:10,590 --> 00:01:21,690 tab. Anyway, with that said, let's go back to the euro. And this is the 15 minute time frame, as I mentioned, and I posted a chart, and I want to kind of
8 00:01:21,690 --> 00:01:33,330 like give you the opportunity again, if you have not done so, go through the chart that's posted on the community tab that's naked doesn't have anything kind
9 00:01:33,330 --> 00:01:46,500 of like this, but it was only showing up to here. Okay, so otherwise, you're gonna, it's just gonna feel like a waste of time, and you want to be able to use
10 00:01:46,500 --> 00:01:56,460 your time, efficiently, and also try to grow your understanding. And that's what this little example is gonna hopefully do for some of you. Alright, so we are
11 00:01:56,460 --> 00:02:08,190 looking at the price action here, we have a high formed on the 24th, which is Monday's trading. We had a low here, low here and low here. So there's multiple
12 00:02:08,190 --> 00:02:18,690 lows in here. Not everyone that's familiar with my content is always now looking for these equal highs and equal lows. Sometimes that's the way to go. And
13 00:02:18,690 --> 00:02:25,350 sometimes you have to wait for it to get back to those levels. So this is where it takes a little bit of understanding and experience to know what the narrative
14 00:02:25,350 --> 00:02:35,010 is. and mentorship, you know, we are in an area of consolidation. So we're not trying to look for exponential breakouts, we're looking for trading inside the
15 00:02:35,010 --> 00:02:47,100 range until a definitive displacement takes place. So with that said, I'm going to give you the YouTube version of what has transpired today. And yes, it is
16 00:02:47,130 --> 00:02:55,950 enough. So if we look at the annotations, I'm just gonna add these on real quick. These are the salient points that we're going to cover, I'm going to have
17 00:02:55,950 --> 00:03:06,660 a link in the description if you click on that a little bit more detail as to what it is I'm annotating here. So right away, you can see that we had the
18 00:03:06,660 --> 00:03:18,000 market trade down. This is the new york session. So it's 830 in the morning to 11. New York time always set your trading view to this regardless of where you
19 00:03:18,000 --> 00:03:27,810 live in the United States. Whether you live in a foreign country outside of the US, set your charts to New York time, if you do that, everything you're looking
20 00:03:27,810 --> 00:03:39,120 at, in terms of my lessons will make perfect sense to you then it just has been very easy transitioning from empty for where everyone would used to ask me, What
21 00:03:39,120 --> 00:03:47,340 is the time zone and kill zone overlap, not that this is a kill zone. But because I gave you a specific time window to trade the New York session. It's
22 00:03:47,340 --> 00:03:58,440 static, it doesn't change. This is the easiest way for me to get all the students on the same page. Just this little tear down here. Scrub and tea get to
23 00:03:58,440 --> 00:04:10,440 New York. Okay, click on that. And then your time is set. Vertical delineation on midnight, New York. And then we have a Judas swing here. In London price
24 00:04:10,440 --> 00:04:23,370 trades up does it trade through Monday's high? No, does not do that. But prior to 830 to 11 o'clock, New York session price is going to most likely reseed
25 00:04:23,640 --> 00:04:33,960 because the market has made a low. And it's already shown a willingness to want to rally. So right away, in my mind, I'm thinking this could be a run to this
26 00:04:33,960 --> 00:04:46,290 high. Not strongly. Am I you forcing that opinion on myself. But I'm looking at the likelihood that that might be where it's reaching for. But nonetheless, even
27 00:04:46,290 --> 00:04:54,780 if it doesn't go there, we can look at the order block that's in that swing high and that's this last upclose candle looking at the middle of that body, which is
28 00:04:54,780 --> 00:05:04,830 the mean threshold and then you have the low Okay, so that's your sweets thought if you will have an order block, not every upclose candle is a bearish order
29 00:05:04,830 --> 00:05:09,630 block. And every bearish order block is not always a short selling opportunity. But
30 00:05:11,099 --> 00:05:22,319 if we look at the likelihood of either one of these two levels, posing an upside objective, we've already got the lower end here. So if we start to recede, what
31 00:05:22,319 --> 00:05:32,009 would it likely recede into? Well, we have a low here, and a low here, which we'll look on a five minute chart, because I do want to show briefly why I went
32 00:05:32,009 --> 00:05:45,119 short. And you saw that in a Live account. I'm showing you examples with the layman's or lay audience perspective. Now I can get on here and trade, you $500
33 00:05:45,119 --> 00:05:55,589 per Pip, and it's gonna mean nothing to you all, you're not going to be able to connect with that, you're not going to be able to get the the perspective that
34 00:05:55,589 --> 00:06:10,169 would be required to trade at that level. So everyone starts with a very humble beginning. And I think $2.50 or $2 per PIP is within the realm of reasonable for
35 00:06:10,259 --> 00:06:19,529 most of the audience on YouTube, I want to speak in terms that are easily accepted across the entire audience. And that way, no one feels feeling needy,
36 00:06:19,529 --> 00:06:32,069 because they're trading with a very small account, and or traders that are not looking to ever risk $500 per Pip. That doesn't alienate those individuals
37 00:06:32,069 --> 00:06:40,169 either. So I'm trying to make it so we're not focused on money. Because that's the number one driver of failure in this industry is because you're starting to
38 00:06:40,169 --> 00:06:52,079 fast worrying about money. So if I can give you examples that will, for a short period of time stay within the realm of reasonable for the beginning rung of
39 00:06:52,109 --> 00:07:01,289 everyone that's developing from this YouTube channel. Obviously, some of you are way beyond that. And you're trading larger leverage, and that's fine. But most
40 00:07:01,289 --> 00:07:09,419 of my audience is new to my concept. So I'm trying not to entice individuals thinking, you can just watch my videos and go out there and start trading with
41 00:07:09,509 --> 00:07:23,009 $50 per Pip, you have to grow into a little bit. So if we look at the context of the day, we have new york session, midnight, the market trades down creates a
42 00:07:23,429 --> 00:07:31,139 low the day in London. And then there's market attraction to the upside, we trade up into the bearish order block here. And then we get that reaction
43 00:07:31,139 --> 00:07:42,509 trading down into the 830 to 11 o'clock New York session. We have relatively equal lows in here, it trades down below those as well into the bullish order
44 00:07:42,509 --> 00:07:54,359 block right here. So we're looking at the high to the candles high and the candles open. Okay, so we have those two specific price levels. And we could
45 00:07:54,839 --> 00:08:06,269 annotate the midpoint of the body, which would be the mean threshold, but that's not required here. Because of the signature that creates this wick and again,
46 00:08:06,269 --> 00:08:14,249 mentorship, you know what that is? And I don't want to sound like I'm teasing, okay, but I'm not here teaching mentorship, folks. So just accept the fact that
47 00:08:14,279 --> 00:08:22,679 I'm willing to share my time here. And it's free. Okay, so take what you get and be happy with it. If you're not happy with it, just leave the thumbs down
48 00:08:22,679 --> 00:08:30,329 button. Don't come back tomorrow. Okay. So we're looking at the monon low in the market trades up to the bearish order block and market protraction to the
49 00:08:30,329 --> 00:08:41,459 downside clear sell side liquidity into a bullish order block. And at the same time, we're looking at it trading into that 838 45 time of day, where we should
50 00:08:41,459 --> 00:08:51,809 see what form an optimal trade entry. So the parameters are this low to this high trades down optimal trade entry overshoots it a little bit again, I don't
51 00:08:51,809 --> 00:09:02,189 trade on the fibs, okay, I'm trading on the logic and what the algorithm is going to reprice to the order block. Blending creates the low of the day. We
52 00:09:02,189 --> 00:09:09,659 have unfinished business up here. So it may make an attempt to trade up into this high. That's my thinking. But I want to get a little bit of juice out of
53 00:09:09,659 --> 00:09:18,599 this before it runs higher. So I went short in here, you saw that trades down into the order block, look at the bodies of the candles respecting the wick, you
54 00:09:18,599 --> 00:09:30,569 see that stops just shorting the wick here. And then we hit it, we hit it trade through it a little bit into the order block. And elevates. We run this short
55 00:09:30,569 --> 00:09:38,189 term high here. That's going to be the first scaling. If you look at the community tab on my YouTube channel, you can see I post pay the trader, that's
56 00:09:38,189 --> 00:09:48,689 what this level was here. And then we traded above the high the day prior to create a new high. So we're taking up the London session high there. Once a
57 00:09:48,689 --> 00:09:58,889 trend above that, that's what I said that 80% should be off position or the original position and then stops roll to 1820. Now if it trades to 1820 then
58 00:09:58,889 --> 00:10:04,379 it's most likely going to make attempt to go back into this swing low. And it doesn't do that as well.
59 00:10:05,819 --> 00:10:16,079 I still favor the idea that we're going to run out these relative equal highs, and clear this short term high as well. So there's liquidity at 1850, I think is
60 00:10:16,439 --> 00:10:24,449 doable. Hopefully, I'll get this video up on YouTube before it posts there. But nonetheless, you can actually see that in the chart that I shared on the
61 00:10:24,449 --> 00:10:35,129 community tab, it's actually annotating this level here. Alright, so let's drop down into a five minute chart and give you a little bit of detail here that
62 00:10:35,489 --> 00:10:45,539 isn't apparent on that 15 minute timeframe. Alright, so I want to shorten here. All these candles here are a bearish order block. And it's also a mitigation
63 00:10:45,539 --> 00:10:54,869 block. No mitigation block is not a breaker, but it's very similar. So when we have price trade up into a level that the algorithm will respect, which is that
64 00:10:54,869 --> 00:11:05,789 order block, I mentioned on that 15 minute time frame, price comes down and runs one more time but fails to go above the swing high here. It breaks down with
65 00:11:05,789 --> 00:11:17,819 this candle right there. Okay, so we broke all this rally up, it trades down and then trades right back up into this last up close candle right there. So when
66 00:11:17,819 --> 00:11:28,349 price hit that in the next candle, I'm going short. Okay, so I'm selling short there, and I'm targeting right below here. Now I can fancy dance and try to get
67 00:11:28,349 --> 00:11:37,919 real real close to the order block that's down in here. Okay, these last two down close candles, it's a specific order block. But I want to just make sure I
68 00:11:37,919 --> 00:11:46,649 get out with a run to the sell side liquidity see this low here. In this low here, there's sell side liquidity for anyone that's long, they're gonna jam
69 00:11:46,649 --> 00:11:56,849 their stop loss rate below, they're not understanding that the daily cycle takes us back down into New York session 830 to 11, there's going to be a high
70 00:11:56,849 --> 00:12:04,169 probability and associate there's news coming out, there really wasn't a whole lot of news coming out until around 10 o'clock. But in here, there was a
71 00:12:04,169 --> 00:12:13,619 likelihood that we would see it pop and go higher bullish order block time of day. And we have this high here that didn't really quite run high enough, in my
72 00:12:13,619 --> 00:12:28,889 opinion. And we're reaching if we go higher, into that 1850 mid figure. So price does in fact, start to rally aggressively. Short term high is going to be by
73 00:12:28,889 --> 00:12:40,829 side liquidity resting above that. So buying here selling to the buy stops on anyone that's going short by selling 40 above this high. And as it trades above
74 00:12:40,829 --> 00:12:50,369 that, that's what I was posting that 80% of the positions should come off now. And and the remaining 20% of the initial position should be rolled to a stop at
75 00:12:50,489 --> 00:12:58,379 1820 right in here. Now, ultimately, it did trade back down into that and that's fine. It's not a big deal. But if you're trading from here, and getting out
76 00:12:58,379 --> 00:13:10,679 here, that's over 40 pips, and then you lock in 2015 to 20 pips of open profit on the balance, if you get stopped out, you didn't take a loss there either. So
77 00:13:10,709 --> 00:13:21,659 in theory, it's a nice example today showing how when we're in an area where it's likely not to create a strong breakout higher or lower and we're trading
78 00:13:21,659 --> 00:13:32,099 inside the range, you want to take the bulk of your position off when it runs into areas like this initial high the day, the market does, in fact, trade lower
79 00:13:32,339 --> 00:13:45,029 into almost one o'clock in the afternoon is 1240 my local time trades down into it, look at the respect of that order. Right there. Bang, body again, slams runs
80 00:13:45,029 --> 00:13:54,479 away. And we are now trading here. So it looks to me as if we might expand on the upside run these highs out and reach in the 1850 level. That's something you
81 00:13:54,479 --> 00:14:02,909 guys can study online. Can you make any money with it? Probably not. But it's an observation and study for you to look at and consider as experience. So I think
82 00:14:02,909 --> 00:14:08,069 that's going to be it for today. I will touch base with you later on in the week. And I'll give you an example. Till then I wish you good luck and good
83 00:14:08,069 --> 00:14:08,399 trading.