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ICT YT - 2020-08-27 - ICT Forex Price Action Lesson - Seek and Destroy Profile.srt

Last modified by Drunk Monkey on 2021-06-12 06:28
1 00:00:11,340 --> 00:00:22,440 ICT: Welcome back, folks, just a quick little video on the market environment for your dollar. And kinda like recap on what I mentioned in the previous
2 00:00:22,500 --> 00:00:37,590 recording for the YouTube channel. So I mentioned on the URL, we would most likely sweep that 118 50 level and directly related to this high these
3 00:00:37,590 --> 00:00:52,500 relatively equal highs, and I said we would likely see it, run those. And we got it on Thursday today, August 27 2020. The economic calendar came with, obviously
4 00:00:52,500 --> 00:01:12,120 the Fed Chairman Powell speaking in New York session. And his comments, were basically in line with allowing the current environment to remain intact. So
5 00:01:13,320 --> 00:01:27,300 that was met with a repricing aggressively higher and lower. Now, in the comments I've been placing on my community tab on the industrial trader YouTube
6 00:01:27,300 --> 00:01:38,940 channel, I mentioned the importance of market profiles. Now, when I say that invariably, people that trade market profile, they will think that I'm referring
7 00:01:38,940 --> 00:01:53,700 to that. And that's not what I'm referring to. Market profiling, by my definition is very specific. Like, templates, okay, how the market should pan
8 00:01:53,700 --> 00:02:06,420 out or delivering price. One of the hardest ones to operate in is Seek and Destroy, as I mentioned, on the community tab this week, and we are looking at
9 00:02:06,510 --> 00:02:21,330 that profile. Okay, so one of the things I get questioned a lot about an email from members that follow this YouTube channel. And my teachings is how to know
10 00:02:21,330 --> 00:02:34,500 when a market environment is a seek and destroy. Because if you can learn those characteristics, those traits, then hopefully, you will avoid demolishing your
11 00:02:34,500 --> 00:02:46,350 account and trading back and forth, you're trying to capture the next big move, because that's generally what this profile will end up enticing traders to do. A
12 00:02:46,350 --> 00:02:57,780 big move will happen on the upside. And they'll think it's either a reversal, or it's a continuation. And it's just back and forth, and just completely grind you
13 00:02:57,780 --> 00:03:09,030 down. So I don't want to speak too much about this. Because obviously, most of you are not going to see value in this because you probably really knew. And you
14 00:03:09,030 --> 00:03:17,910 want to see me point to this is a buy signal. And this is a sell signal. This is a secret order block. This is the secret breaker, all those things. I think if
15 00:03:18,000 --> 00:03:32,370 you were versed enough, or at least seasoned with trading with live funds and have lost money, a discussion like this, even though it may be as brief as it
16 00:03:32,370 --> 00:03:45,360 is, will be more meaningful to you. Now if you're a new trader or student, that idea will go right over your head. Okay, not because of a lack of intelligence.
17 00:03:45,360 --> 00:03:57,480 It's just because your perception and perspective on the marketplace is not yet in line with what would be closely related to someone who has engaged in real
18 00:03:57,480 --> 00:04:14,850 risk. Okay, so one of the main focuses of my channel here is to help you avoid pain and pain. in its purest sense and trading is the removal funds. When you
19 00:04:14,850 --> 00:04:23,040 are no longer solvent, okay, you blow your account. And that's what I'm trying to help you avoid, because if you can avoid doing that, you'll stay in the game
20 00:04:23,040 --> 00:04:37,320 long enough to find your own method and own approach to using the things that I teach. Okay, so right away, you can see that we have had a market that has been
21 00:04:37,380 --> 00:04:48,570 range bound, okay, it's been consolidating. And when you see markets that are stuck like this, right away, my mind says, Okay, try not to expect the whole lot
22 00:04:48,570 --> 00:04:59,100 in terms of big moves higher or lower, and watch how price tends to gravitate back to the middle, okay or equilibrium. There may be quick surges of price
23 00:04:59,100 --> 00:04:59,910 movement higher
24 00:05:00,000 --> 00:05:08,250 That fizzled out quickly, and then it pulls back to the middle. And then there'll be moves at dropped down quickly. It fizzles out and comes right back
25 00:05:08,250 --> 00:05:19,170 to the middle range as well. So if you look at how the market has just moved back and forth all week until today, Thursday, we had this event here once,
26 00:05:19,230 --> 00:05:31,980 which is what I was suggesting at, we would run the 118 50 buyside liquidity. And if you watch the video I put on prior to this one, you'll actually hear me
27 00:05:31,980 --> 00:05:43,800 say that that's what we were doing. And I covered the difference between wycoff and ypt interbank price delivery algorithm. And when you look at price action
28 00:05:43,800 --> 00:05:53,790 like this, it's not hard to understand how it's being controlled, and it's manipulated. So if you look at the annotations I'm going to put here, it's
29 00:05:53,790 --> 00:06:03,660 really simple stuff. We're looking at Monday's high here, and then Wednesday's low, and all the vital liquidity that would be resting above these levels here.
30 00:06:04,140 --> 00:06:13,530 That's what I took your attention to, I said that we would look for this event here. Now this was a lot more than I personally expected. So I didn't expect
31 00:06:13,860 --> 00:06:24,060 this much of a run up. Just today. I didn't expect that. So I'm not gonna sit here and tell you Yeah, I saw this coming. I traded it, I didn't, I didn't have
32 00:06:24,060 --> 00:06:36,720 any participation in any all that. So I didn't see it coming. I wasn't able to capitalize on any of it. And the fact that we have Jackson Hole today, and if
33 00:06:36,720 --> 00:06:49,680 you don't know what that is, it's basically when all the the folks come together to help formulate the next agenda. I'll just say it that way. And they have a
34 00:06:49,680 --> 00:06:58,380 lot of influence in the marketplace and the things that they talk about the things that they're planning, sometimes they get leaked, sometimes they don't.
35 00:06:58,830 --> 00:07:10,260 And again, without trying to sound too tinfoil hat, just know that it can create volatility in the marketplace. Now, introduce that also with the Fed chair
36 00:07:10,290 --> 00:07:24,990 speaking today. And dawn in New York session, and we got this here. Okay, now, this is still an optimal trade entry here. And a run above the 1850 level that I
37 00:07:24,990 --> 00:07:35,970 hinted at, that you should be focusing on this week, expanded 151 pips beyond that, quickly reversed and traded all the way back down and took out Wednesday's
38 00:07:35,970 --> 00:07:44,940 love. So that was the intro week, the lowest low of the week, it took that out. And now we went right back to the middle of the range. Okay, so if you don't
39 00:07:44,940 --> 00:07:55,980 know what a seeking destroy, market profile is, that's what it looks like right here. This is what it looks like. So in your own journals, in your own note
40 00:07:55,980 --> 00:08:06,420 taking, you want to print this out, not necessarily my chart, but you wouldn't do it on your own platform. And then save those charts, and then study how
41 00:08:06,420 --> 00:08:15,420 prices moved back and forth, but gently back into consolidation. So now what does it mean? What do you do with this information? Well, this is why I sit on
42 00:08:15,420 --> 00:08:24,510 my hands and I try not to engage the marketplace. And as I mentioned on my community tab on the YouTube channel, I put levels on and I watch to see if they
43 00:08:24,510 --> 00:08:36,000 get checked. Okay, now when levels checked, I want to see how it trades after it hits it. Obviously, the 118 50 level, we breached it, and then quickly gave up
44 00:08:36,000 --> 00:08:44,700 the ghost in went right back down below Wednesday's low. So this liquidity was also taken as well. So think about what's happened here. We've consolidated the
45 00:08:44,700 --> 00:08:59,100 entire week. Then Powell comes out, gives us a jawboning markets react with a run here and then collapses. And then right back to the middle. So what are we
46 00:08:59,100 --> 00:09:11,310 left with right now? uncertainty, okay, there's no clear indication, at least for me, okay, so I'm kind of like showing you my hand. And I've already
47 00:09:11,580 --> 00:09:22,380 elaborated on it in the community tab in my posts. But when you see a market environment like this, or at least I see it like this, I'm not in a hurry to
48 00:09:22,380 --> 00:09:33,360 take a trade because we haven't had really any displacement. We've had a run on liquidity, both sides and we're back in the middle. There is no clear,
49 00:09:33,840 --> 00:09:44,730 discernible direction as of right now at this moment. Now, there are things that could lead to a directional bias unfolding over the coming days and weeks. But
50 00:09:44,730 --> 00:09:53,910 as for right now, gun to my head, I have to fold my hands and say there's nothing I can do here. There's nothing there's absolutely no, there's no trade
51 00:09:53,940 --> 00:09:57,570 here, for me personally, that I would feel comfortable assuming the risk on
52 00:09:58,620 --> 00:10:11,550 so As I was building up into this discussion, we were looking at market profiles for a point of discussion on the community tab on the YouTube channel. And you
53 00:10:11,550 --> 00:10:21,570 can see the effects of it here. Okay, so again, in summary, when we see market environments that are consolidating, okay, now, this is spread out over the
54 00:10:21,570 --> 00:10:35,610 entire week. So this would be a this will be a Seek and Destroy market profile for a weekly profile. And it can exist in intraday where we have market
55 00:10:35,610 --> 00:10:44,460 environments that have consolidations, and then it has a whipsaw effect, and it goes right back to the middle of the range. So we don't want to operate or
56 00:10:44,460 --> 00:10:54,330 engage the market. When it's like this, we want to wait for the large funds to start building in positions and allow the central bank to provide the liquidity
57 00:10:54,330 --> 00:11:03,900 for that. And then these larger moves when they start, and they become very clear in the charts, then it's easy to ride the coattails. But until we get
58 00:11:03,900 --> 00:11:13,860 those very clear indications and price action, we are sitting on our hands. And there's absolutely no shame in that there's no fear of missing a move. And we're
59 00:11:13,860 --> 00:11:26,430 not feeling impulsive to chase any little minor reaction, if you will, in price. And we're not believing that we can forecast the next big price move higher or
60 00:11:26,430 --> 00:11:35,010 lower when it's in this environment, we let the professionals at the Central Bank level and the large funds do their dance together. Okay, whatever the large
61 00:11:35,010 --> 00:11:45,180 funds started building in, in terms of the next position, the central banks will facilitate that and allow the liquidity for them to do so. Right now, it's not
62 00:11:45,180 --> 00:11:55,500 clear as to what that is yet. And when it starts to develop, it'll be clear, it'll be obvious, we will leave the range that was created today, moving below
63 00:11:55,500 --> 00:12:06,240 this low or above this high in a decisive manner. And then we can watch price for the next month to three months in terms of what the next directional bias
64 00:12:06,240 --> 00:12:18,300 would be. As of right now. If you were trading euro, or really majority of the pairs right now, you're gambling, you're absolutely gambling because there's no
65 00:12:18,300 --> 00:12:29,910 clear discernible direction. For any of them at the moment, we could be in transition where there could be a longer term trend change, which I try not to
66 00:12:29,910 --> 00:12:41,550 forecast and try to pick bottoms and top I don't try to do that. Or we could just be in a long pause that continues higher for euro and lower for dollar. So
67 00:12:42,660 --> 00:12:52,080 because of that 5050 nature, I don't trade with 5050 gearing, I don't like to see those types of setups, I want to know what the bank is most likely going to
68 00:12:52,080 --> 00:13:01,770 reprice to higher or lower. And if it's not one sided, then I'm not engaging. Now I can share my ideas and comments and suggestions about what might take
69 00:13:01,770 --> 00:13:11,970 place. But that's not the same as putting down money in a trade and saying I'm going to assume risk on that. So regardless of where you are in your journey, as
70 00:13:11,970 --> 00:13:23,040 a trader, it's important to understand topics like this because it gives you the confidence and the patience that's required to sit still, and not feel the
71 00:13:23,040 --> 00:13:33,060 impulse to go into the marketplace and trade. Because there's not always a time to be doing something. Okay, many times you're gonna be doing nothing. And
72 00:13:33,060 --> 00:13:44,280 knowing when not to do anything, is wisdom. And when you have that wisdom, it allows you to operate objectively in the marketplace, and you don't feel the
73 00:13:44,310 --> 00:13:53,670 effects of fear and greed or fear of missing out on anything. And if you can conquer that, regardless of where you are in your development. That's one of the
74 00:13:53,670 --> 00:14:05,130 major hurdles, inconsistency. If you can cross that, and understand why you're not looking to take a trade, why are you willing to sit on the sidelines and not
75 00:14:05,160 --> 00:14:13,290 even care too much about what the price is doing? Because eventually, there's going to be some excitement coming to the marketplace. And it'll be more
76 00:14:13,290 --> 00:14:23,490 meaningful than we see here. Okay. So I just want to kind of comment on it a little bit and bring the light a little bit more to what I was saying in the
77 00:14:23,490 --> 00:14:33,150 community tab. And hopefully now you can see with a chart in front of us what Seek and Destroy looks like it's a lot of volatility that goes right to
78 00:14:33,150 --> 00:14:49,620 liquidity and then back to the middle. And while that is in theory, tradable, it has to be done. So in a nimble fashion, and most traders aren't that nimble. So
79 00:14:50,880 --> 00:14:58,230 hopefully you got something out of this. I know it's not an exciting topic, but is one that is necessary for you to have longevity in this industry.
80 00:14:58,500 --> 00:15:01,170 So I'm Todd Talk to you next time. It was Good luck and good trading.