ICT YT - 2020-10-07 - Blending Price Patterns With Time and Price Theory - Part 1.srt
Last modified by Drunk Monkey on 2021-06-12 06:31
| 1 | 00:00:16,289 --> 00:00:25,439 | ICT: Alright, folks, let's take a look at how we can use the economic calendar to find setups or opportunities to practice in looking at the economic calendar |
| 2 | 00:00:25,439 --> 00:00:41,969 | for October 5 2020. And I want to take your attention till 11pm. And the time is set to Eastern time. Okay, so all of my students have their chart set to this |
| 3 | 00:00:41,969 --> 00:00:44,099 | time setting. |
| 4 | 00:00:51,870 --> 00:01:07,890 | So at 11:30pm, Monday, October 5, RBA rate statement and cash rate was scheduled to be released for the Australian dollar at 11:30pm. Eastern time. I don't care |
| 5 | 00:01:08,310 --> 00:01:18,840 | what the actual is, I don't care what the forecast is, I don't care what the previous is, I'm not concerned about that. I'm looking at the red indication |
| 6 | 00:01:18,840 --> 00:01:29,820 | here. That's a high impact market driver. So regardless of the information or the data that's released, it can have a lot of impact and cause displacement in |
| 7 | 00:01:29,820 --> 00:01:39,780 | price. And that's what we're looking for. So let's go over to the charts and take a look at the Australian dollar. So I have the chart set to October 5. This |
| 8 | 00:01:39,780 --> 00:01:47,790 | is a five minute chart just to illustrate, along the lines what I've taught already on this YouTube channel, but I'm also going to teach you how to blend |
| 9 | 00:01:48,240 --> 00:02:00,540 | two patterns together within a market setup. You can see the market has been trading sideways, in a consolidation leaving relative equal highs along the way. |
| 10 | 00:02:01,230 --> 00:02:14,640 | And at 1130, which is 2330. Here on this setting, you can see here, the time is set to New York time. So if you have your chart set on trading view, with that |
| 11 | 00:02:14,640 --> 00:02:31,980 | timeframe, everything will always match relative to my lectures at 2330, that's 11:30pm, New York time or Eastern time. And this is the run above all of these |
| 12 | 00:02:31,980 --> 00:02:41,640 | relative equal highs. We're not trying to forecast the move, we're waiting to see does it run above that, and will it stay above it? It doesn't, it goes above |
| 13 | 00:02:41,640 --> 00:02:53,130 | it and rejects and breaks down. Your eye should be trained right to here because this high, this low in the higher high. That's a pattern that I teach on this |
| 14 | 00:02:53,130 --> 00:03:02,640 | YouTube channel, which is my ICT, bearish breaker. The idea is that this liquidity that we resting above here would be in the form of buy stops, and we |
| 15 | 00:03:02,640 --> 00:03:12,240 | call it buy side liquidity. Because running above that does two things. It takes traders that are short out by running their stops, that breaks their position |
| 16 | 00:03:12,840 --> 00:03:21,480 | and also puts traders on the long side on a breakout should they have pending orders resting above here. You'd be surprised how many people trade like this. |
| 17 | 00:03:22,260 --> 00:03:32,550 | It breaks above it trips those traders long and their stop loss would be where below here or below here relative to whatever their account size in equity, risk |
| 18 | 00:03:32,550 --> 00:03:47,940 | management would outline. What we're looking for is the narrative. It runs above it, and then it breaks down fine. If it goes below this low here, and it trades |
| 19 | 00:03:47,940 --> 00:03:57,570 | back up to this low. Now notice what I'm teaching you here. I'm not teaching you support and resistance because if that's the case, why not just use this low? Or |
| 20 | 00:03:57,570 --> 00:04:09,360 | these lows or this low? Or these lows here? Why aren't we referring to any of those? It's the narrative behind the specific level that's being referred to. |
| 21 | 00:04:09,660 --> 00:04:23,820 | That's what makes this level as I teach it as an ICT bearish breaker. If this load is taken out, which is taken out here, and trades back up to it during a |
| 22 | 00:04:23,820 --> 00:04:31,740 | specific time of day, what's the specific time of day? Well, I've been teaching 830 to 11 o'clock in the morning, Eastern time. You can find setups, you can |
| 23 | 00:04:31,740 --> 00:04:40,950 | find optimal trade entries there. And you can also blend a breaker pattern with an optimal trade entry. So I'm gonna add some annotations real quick. So here's |
| 24 | 00:04:40,950 --> 00:04:53,760 | the breaker. The buy sell liquidity that gets purged at the rate announcement 11:30pm eastern time it runs this and then we wait. What are we waiting for New |
| 25 | 00:04:53,760 --> 00:05:04,140 | York session. New York session trades back up into the breaker and we can Have a short on two things, the fact that we traded back up to the breaker, which is |
| 26 | 00:05:04,140 --> 00:05:04,830 | this low |
| 27 | 00:05:06,900 --> 00:05:18,900 | and an apple trade entry, using this high here Now, why this high, it's not cherry picked. That's the London kill zone, session high. So we're gonna take |
| 28 | 00:05:18,900 --> 00:05:28,890 | that fib and all we're doing is getting a measurement of overbought, oversold. It's not the fib that's causing the magic here. It's not I'm not trying to sell |
| 29 | 00:05:28,890 --> 00:05:40,350 | the idea that the markets working off of just the fit, it's the the narrative, the narrative is all of this, it runs get there by offset, and then breaks down |
| 30 | 00:05:40,530 --> 00:05:48,300 | all through London, you don't need to be up trading London, you can wait till New York session. And then with the seven times retracement level, carry that |
| 31 | 00:05:48,300 --> 00:05:56,430 | over in time, starting right here at the beginning of our starting exactly at 830, which is our new york session window. It's not the New York kill zone, it's |
| 32 | 00:05:56,490 --> 00:06:05,640 | just the 830 beginning where the news embargo lifts at 830. And it all We told 11 o'clock. Already, you should be able to see the optimal trade entry that |
| 33 | 00:06:05,640 --> 00:06:17,010 | overlaps. With the breaker within the time window 11 o'clock, you have up to 11 o'clock to take the take the trade. So we have an overlap of the breaker and |
| 34 | 00:06:17,700 --> 00:06:27,510 | optimal trade entry. The range from here to here, we're just extending that on time. All of this is just waiting for the New York session, then the volume that |
| 35 | 00:06:27,510 --> 00:06:43,860 | comes in, they'll piles in on this apple trade entry. And we're gonna scrunch this up. And we have an overlap of 79 nine and nine pips let's see that right |
| 36 | 00:06:43,860 --> 00:06:58,680 | there with the standard deviation of negative five. And we have an old level of equal lows. As I teach, again, on this YouTube channel, so there's sell side |
| 37 | 00:06:58,680 --> 00:07:08,610 | liquidity on here. So bank traders take this off, bank traders can go short with this run up here, you don't have to be in the move, wait for this load the |
| 38 | 00:07:08,610 --> 00:07:21,810 | break. Once it trades back up into it during the New York session, then you can target this level down here. We have overlap with the fib for projected low. And |
| 39 | 00:07:22,620 --> 00:07:24,210 | those equal lows that align |
| 40 | 00:07:31,800 --> 00:07:42,060 | in the market sells off and sweeps those relative equal lows and hits our target on the fib. So you have a blending of two of my concepts together within a |
| 41 | 00:07:42,060 --> 00:07:52,080 | narrative using the economic calendar to frame it. So we're not trying to predict this break and continuation. All we're doing is saying okay, what did |
| 42 | 00:07:52,080 --> 00:08:03,030 | they do? overnight, they ran liquidity out here and rejected it, we can get shortened here in one and if we want to, but you don't have to you wait until |
| 43 | 00:08:03,030 --> 00:08:16,470 | the New York session, use the volume that's used in this time of day with the breaker. So they have this low projected in time. It operates on it in London |
| 44 | 00:08:16,470 --> 00:08:32,430 | session at the end of one open going into Asia's clothes, then we have the 830 in the morning, beginning our time winded I've been teaching here on YouTube |
| 45 | 00:08:32,460 --> 00:08:44,250 | with their rate that the high it starts it there. And then one more time, it's there. But it's inside of the optimal trade entry in order to this level to this |
| 46 | 00:08:44,250 --> 00:09:00,810 | level to this level 79 70.5 62. All of this area here is optimal trade entry relative to the London session Hi, and low form here. Ahead of what we teach is |
| 47 | 00:09:00,810 --> 00:09:11,850 | the New York open kill zone. But this is just the 830 to 11 o'clock window of opportunity where you can take trades. And this is an example how you can blend |
| 48 | 00:09:13,140 --> 00:09:26,520 | two patterns with time of day targeting. And it does a pretty good job of doing a run to that level and it says where we're at currently. So not bad. You can |
| 49 | 00:09:26,520 --> 00:09:35,640 | look for this type of setup when there's an economic calendar event that's a medium impact or high impact. And if it's set to release during the London |
| 50 | 00:09:35,640 --> 00:09:48,330 | session, or if it's set to release during Asia. That timeframe, okay, just sets the narrative and then just use the New York 830 to 11 o'clock and frame it with |
| 51 | 00:09:48,330 --> 00:09:56,580 | an optimal trade entry and a breaker and you have a dandy of an opportunity that repeats a couple times a month. Until next time, which Good luck and good |
| 52 | 00:09:56,580 --> 00:09:56,940 | trading |