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Version 1.1 by Drunk Monkey on 2020-11-20 17:08
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3 ICT: iboxx Welcome back, this is gonna be a very short
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7 lecture promised not to spend too much of your time, it's
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11 going to be a topic I want to kind of like mine a little
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15 bit. So over the coming weeks, I'll be sending examples of
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19 things like this to the YouTube channel. So they'll be very
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23 short, probably like 10 minutes or less like videos. So that
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27 way you guys that like to use the speed up format two times,
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31 because I talk really slow and long. It'll help you get to
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35 like a five minute video. But you've seen me do like
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39 intraday charting, and like one minute chart trading,
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43 trading both directions of the, the daily range, I want to
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47 give you one little piece of that puzzle. And that way you
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51 can go into your chart and start looking for things that
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55 repeat over and over again. And you'll have that epiphany
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59 moment, I'm sure you won't have everything, obviously. And
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63 that's not the point, the point is for you to start getting
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67 closer to these lower timeframes, because it'll give you a
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71 lot of examples and practice that are still transferable by
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75 logic to the higher timeframe. So, you know, for instance,
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79 the daily chart, it takes a whole day 24 hours to make that
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83 candle. Yeah, that's a lot of trades in there you can take,
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87 but you can't really practice a whole lot with that one
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91 particular candle, if your timeframe of trade is the daily
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95 chart. So how do you practice and get a lot of appreciation
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99 and experience using price action concepts using these lower
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103 timeframes, but once you understand them, you can actually
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107 operate in them with highly technical precision and
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111 consistency. But you cannot be convinced to that until you
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115 go in and practice it. Alright, so we are looking at the E
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119 mini s&p, this is the delivery contract month of December.
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123 Okay, so futures, they have expiration dates. And while I'm
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127 not going to go into every facet about futures trading, you
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131 all have been exposed to that over the years with me in my
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135 teachings. But the idea is we're looking at the s&p. And
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139 prior to today's trading, we had yesterday's trading light a
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143 big down day. So right away, whenever we're bearish, this is
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147 something you want to have in your notes. If you're bearish,
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151 you want to be looking for up close candles. All right up
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155 close candles, every time we find price trading into an
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159 upclose candle when it's bearish, you're likely to get some
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163 sensitivity there and a displacement lower. Now inside of
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167 displacement on a one minute chart. There's lots of
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171 opportunity for trades. So you can go in here and practice
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175 with your demo account or paper trade or just back test the
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179 idea. But yesterday was a big down day. So I want you to
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183 consider this candle here. So I know a lot of you are going
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187 to look at this, oh, this is hindsight stuff, whatever, then
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191 the lesson isn't for you is it. So we're happy we're gonna
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195 have this level highlighted. And we're going to go into the
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199 intraday price action of this daily candle, I'm going to
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203 drop all the way down into a one minute chart. Folks, we are
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207 looking at the afternoon trend for equities. And that begins
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211 at one o'clock in the afternoon eastern time and closes at
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215 four o'clock. So four o'clock eastern standard time. And one
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219 o'clock eastern standard time. That is the afternoon trend
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223 for equities. Now if you're a stock trader, I say I don't
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227 know if any of you are actually trading stocks or intraday
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231 trading stocks. You can actually focus on this time of day
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235 and work you can look at 930 in the morning to 11 in the
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239 morning, Eastern Standard Time. That's the morning trend for
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243 equities. The same thing would apply to equity futures or
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247 index futures like NASDAQ futures, and q s for E mini s&p
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251 and the y m for the Dow futures. So no matter what you're
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255 looking at in regards to stocks or the indices themselves.
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259 This particular time of day is a really nice opportunity to
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263 trade especially with these lower timeframe charts and you
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267 can actually practice a lot with like for instance if you
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271 work during these hours, you can come home, pull up the
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275 charts and start studying these because even if you don't
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279 trade them, it gives you a lot of study that is focused
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283 around a specific time of day. So it's time and price and
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287 you can look for specific signatures now this red line I
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291 added relative to that daily upclose candle while the
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295 markets been bearish.
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299 What you want to see is when price between the one o'clock
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303 and four o'clock in the afternoon, Eastern Standard Time,
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307 when it breaks below that not just trades below when it
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311 breaks like that. That is an imbalance. So right away, you
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315 want to look at the last up close candle prior to that drop
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319 down. Now notice what I just did, I gave you context, I gave
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323 you a narrative framework structure, market structure. And
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327 since we're on these lower one minute charts, this is micro
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331 market structure. So we see an imbalance here. And in the
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335 markets one, trade right back up into that now I'm going to
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339 take this level off, but just know that that was the
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343 framework of what we're looking for. That's that little
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347 indication, if you will, without any indicators that the
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351 market wants to go lower. So we can take this off. And then
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355 add right on the body of that candle. Right there. Open on
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359 this candle comes in at Now watch this price right here.
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363 Okay? The open on this candle comes in at 3256. Even the
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367 high on this candle comes in at 3256. Even now, folks,
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371 listen, I don't know what parts of the world you're from, or
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375 what town in the US you're from. But that's perfect. Where I
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379 come from, you can't get any better than that. You can't get
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383 closer. It's just perfect. Okay, so when price trades up
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387 into that, that's a short, go and look at the examples I put
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391 on my charts and my trades when I show my trades and
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395 recordings on this YouTube channel. That's the level of
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399 precision that I show and what constitutes the framework for
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403 those types of trades. So we have optimal trade entry in
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407 here. So if we add a fib to that, just to give you to the
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411 idea of what we're looking for the body stay inside of
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415 optimal trade entry, and the 70 retracement level caps the
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419 top perfect delivery in the market then breaks down. So how
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423 can we get a target? Well, you can get a target with this
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427 fib or you can look at the overall market structure that
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431 sets the set up for the swing. Okay, so if you're intraday
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435 swing trader, or if you want to become an intraday swing
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439 trader, this is what you're going to do. You're gonna look
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443 at the parent price swing, which is here. And if you're
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447 bearish in here, aren't you expecting it to trade below this
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451 low then? Sure. So this parent price swing, we use the Fed
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455 to project down, we're looking for 32 1875. Okay, well,
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459 we're going to put a line on that. There's your market
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463 structure, swing projection, and 32. One 8.75 is your
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467 projected low. And the low in this candle comes in at 3219.
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471 The next candle here 32 18.75, perfect. 3218 seven, five,
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475 perfect, and everything else is higher. Perfect delivery
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479 folks. Low. Hi. Look at my examples in this YouTube channel.
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483 They're very similar to that now I would be taking profits
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487 parsable below here as well. And somewhere as it broke below
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491 here something to the effect of maybe 10 handles or
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495 something like that. But logically, you can go through
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499 intraday charts like this on a micro market structure basis,
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503 and find lots of precision elements that repeat over and
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507 over again. And you can use this model here and find many
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511 things that line up perfectly and on the scrub this as you
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515 can see, that's that half of a standard deviation. And
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519 again, the swing is this one up here. If you see that break
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523 below the bearish order block. That's your indication.
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527 Optimal trade entry. Perfect delivery needs to trade below
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531 that great how far can it go? Perfect delivery at 3218
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535 seven, five, and bam. There you go. Hope you found this
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539 insightful till next time. I wish you good luck and good
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543 trading