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Version 1.1 by Drunk Monkey on 2020-11-20 17:09
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3 ICT: Alright, folks, let's take a look at how we can use the
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7 economic calendar to find setups and or opportunities to
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11 practice in looking at the economic calendar for October
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15 5 2020. And I want to take your attention to 11pm. And the
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19 time is set to Eastern time. Okay, so all of my students
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23 have their charts set to this time setting.
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27 So at 11:30pm, Monday, October 5, RBA rate statement and
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31 cash rate was scheduled to be released for the Australian
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35 dollar at 11:30pm. Eastern time. I don't care what the
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39 actual is, I don't care what the forecast is, I don't care.
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43 I don't care what the previous is, I'm not concerned about
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47 that. I'm looking at the red indication here. That's a high
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51 impact market driver. So regardless of the information or
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55 the data that's released, it can have a lot of impact and
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59 cause displacement in price. And that's what we're looking
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63 for. So let's go over to the charts and take a look at the
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67 Australian dollar. So I have the chart set to October 5.
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71 This is a five minute chart just to illustrate, along the
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75 lines what I've taught already on this YouTube channel, but
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79 I'm also going to teach you how to blend two patterns
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83 together within a market setup. You can see the market has
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87 been trading sideways, in a consolidation leaving relative
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91 equal highs along the way. And at 1130, which is 2330. Here
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95 on this setting, you can see here, the time is set to New
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99 York time. So if you have your chart set on trading view,
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103 with that timeframe, everything will always match relative
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107 to my lectures at 2330, that's 11:30pm, New York time or
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111 Eastern time. And this is the run above all of these
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115 relative equal highs. We're not trying to forecast a move,
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119 we're waiting to see does it run above that? And will it
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123 stay above it? Well, it doesn't, it goes above it and
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127 rejects and breaks down. Your eye should be trained right to
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131 here, because this high, this low and the higher high.
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135 That's a pattern that I teach on this YouTube channel, which
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139 is my ICT, bearish breaker. The idea is that this liquidity
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143 that we resting above here would be in the form of buy
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147 stops, and we call it buy side liquidity. Because running
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151 above that does two things. It takes traders that are short
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155 out by running their stops, that breaks their position, and
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159 also puts traders on the long side on a breakout should they
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163 have pending orders resting above here. You'd be surprised
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167 how many people trade like this. It breaks above it trips
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171 those traders long and their stop loss would be where below
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175 here or below here relative to whatever their account size
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179 and equity risk management would outline. What we're looking
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183 for is the narrative that runs above it, and then it breaks
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187 down fine. If it goes below this low here, and it trades
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191 back up to this low. Now notice what I'm teaching you here.
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195 I'm not teaching you support and resistance because if
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199 that's the case, why not just use this low? Or these loves?
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203 Or this low? Or these lows here? Why aren't we referring to
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207 any of those? It's the narrative behind the specific level
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211 that's being referred to. That's what makes this level as I
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215 teach it as an ICT bearish breaker. If this loads taken out,
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219 which is taken out here, and trades back up to it during a
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223 specific time of day, what's the specific time of day? Well,
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227 I've been teaching 830 to 11 o'clock in the morning, Eastern
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231 time. You can find setups, you can find optimal trade
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235 entries there. And you can also blend a breaker pattern with
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239 an optimal trade entry. So add some annotations real quick.
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243 So here's the burger, the boss illiquidity that gets purged
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247 at the rate announcement 11:30pm eastern time, it runs this
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251 and then we wait. What are we waiting for New York session.
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255 New York session trades back up into the breaker and we can
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259 Have a short on two things, the fact that we trade it back
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263 up to the breaker, which is this low
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267 and an optimal trade entry using this high here now why this
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271 high, it's not cherry picked. That's the London kill zone,
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275 session high. So we're gonna take that fib and all we're
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279 doing is getting a measurement of overbought oversold. It's
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283 not the fib that's causing the magic here. It's not I'm not
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287 trying to sell the idea that the markets working off of just
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291 to fit the narrative, the narrative is all of this, it runs
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295 gets there by offset, and then breaks down all through
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299 London, you don't need to be up trading London, you can wait
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303 till New York session. And then with the sometimes
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307 retracement level. Okay, that over time, starting right here
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311 at the beginning of our starting exactly at 830, which is
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315 our new york session window. It's not the New York kill
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319 zone, it's just 830 beginning where the news embargo lifts
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323 at 830. And all the way till 11 o'clock. Already, you should
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327 be able to see the optimal trade entry that overlaps with
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331 the breaker within the time window 11 o'clock, you have up
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335 to 11 o'clock to take the take the trade. So we have an
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339 overlap of the breaker and optimal trade entry. The range
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343 from here to here, we're just extending that on time. All of
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347 this is just waiting for the New York session, then the
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351 volume that comes in dog piles in on this optimal trade
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355 entry. And we're scrunch this up. And we have an overlap of
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359 79, nine and nine pets. See that right there with the
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363 standard deviation of negative five. And we have an old
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367 level of equal lows. As I teach, again, on this YouTube
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371 channel, so there's sell side liquidity on here. So bank
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375 traders take this off, bank traders can go short with this
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379 run up here, you don't have to be eliminated. Wait for this
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383 low the break. Once it trades back up into it during the New
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387 York session, then you can target this level down here. We
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391 have an overlap with the fib for projected low. And those
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395 equal lows that align
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399 in the market sells off and sweeps those relatively close
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403 and hits our target on the fib. So you have a blending of
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407 two of my concepts together within a narrative using the
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411 economic calendar to frame it. So we're not trying to
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415 predict this break in continuation. All we're doing is
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419 saying okay, what did they do? overnight, they ran liquidity
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423 out here and rejected it. We can get shortened here in
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427 London if we want to, but you don't have to you wait until
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431 the New York session, use the volume that's used in this
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435 time of day with the breaker. So they have this low
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439 projected in time. It operates on it in London session at
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443 the end of one that open going into Asia's clothes, then we
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447 have the 830 in the morning, beginning our time winded I've
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451 been teaching here on YouTube with their rate that the high
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455 it starts it there. And then one more time, it's it there.
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459 But it's inside of the optimal trade entry. And it's this
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463 level to this level to this level 79 70.5 62. All of this
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467 area here is optimal trade entry relative to the London
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471 session Hi. And low formed here, ahead of what we teach is
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475 the New York open kill zone. But this is just the 830 to 11
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479 o'clock window of opportunity where you can take trades. And
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483 this is an example how you can blend two patterns with time
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487 of day targeting. And it does a pretty good job of doing a
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491 run to that level and it says where we're at currently. So
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495 not bad. You can look for this type of setup when there's an
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499 economic calendar event that's a medium impact or high
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503 impact. And if it's set to release during the London
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507 session, or if it's set to release during Asia. That
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511 timeframe, okay, just sets the narrative and then just use
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515 the New York 830 to 11 o'clock and frame it with an optimal
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519 trade entry and a breaker and you have a dandy of an
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523 opportunity that repeats a couple times a month. So next
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527 time wish good luck and good trading.