ICT YT - 2021-03-27 - ICT Forex Scalping Interactive Study.srt

Last modified by Drunk Monkey on 2021-06-07 05:14
1 00:00:15,599 --> 00:00:23,609 ICT: Alright folks, welcome back. We're going to continue our discussion we had from last week. And we're focusing on intraday scalping in the Forex market.
2 00:00:26,609 --> 00:00:36,719 Real quick, I covered the architecture of the daily range, the open high, low and close mentioned drawn liquidity, and institutional order flow. And we were
3 00:00:36,719 --> 00:00:45,989 focusing on a bearish market environment where the daily range would typically look like this, if it was open, high, low, close, and many of you, like myself,
4 00:00:46,379 --> 00:00:56,369 have transitioned into candlesticks. So your chart would look a little different. In middle more like this, we were focusing in on the euro dollar. And
5 00:00:58,499 --> 00:01:11,579 this is the area at which I was trying to frame the context. The old high, the low, the sell off in here, that would attack the orders below their optimal
6 00:01:11,579 --> 00:01:26,009 trade entry here 60 to 70% retracement levels 17.5. The idea is that this is where we would expect to see it sell off, wait for confirmation here. And this
7 00:01:26,009 --> 00:01:36,389 is the origin of the swing. And we're aiming for this down here. For the sell stops. I had you focus in here from this day, to this day. And I wanted you to
8 00:01:36,389 --> 00:01:50,489 go down into either the 15 minute or the five minute charts. And look at the New York session and or London session optimal trade entries. I gave you the outline
9 00:01:50,489 --> 00:02:03,929 of what it would look like on the lower timeframes. And now I'm going to take you into it here. So this is the first day of six days under study. So this very
10 00:02:04,049 --> 00:02:13,949 day here is the first one, second, third, fourth, fifth and sixth day which is delivered underneath this low. So just make sure that you understand this red
11 00:02:13,949 --> 00:02:25,919 line here denotes this old daily low. This old low here on your own charts, you want to note that draw that out in time. Because if we were up here, and we are
12 00:02:25,919 --> 00:02:37,979 expecting price to be driven to this level here. Is it going to be one candle that gets there? Of course it could be? Is it likely to? Probably not? Is it
13 00:02:37,979 --> 00:02:48,749 going to be all down close candles? It could but will it? Probably not. So you have to learn to anticipate up close days in higher timeframe charts like the
14 00:02:48,749 --> 00:02:57,599 daily. So it isn't always going to be down closed candles you might get these types of environments here with setup instances where you have to sit on your
15 00:02:57,599 --> 00:03:05,729 hands and wait not force trades not forced the issue that you want to be trading and you think it's going to go here. So therefore, every day is an opportunity
16 00:03:05,729 --> 00:03:17,669 to be selling it isn't. But this low here extend out in time. When it starts to trade through that low again after it retraces it's going to accelerate. And as
17 00:03:17,669 --> 00:03:30,389 we get closer to this low, the more likelihood that the speed of the delivery will increase. And it'll rapidly try to reach to this low and blow it. Alright,
18 00:03:30,389 --> 00:03:42,089 so our first day in here. Here's the London high in New York high. If you look at the high to low, the retracement up in I said that we were going to use the
19 00:03:42,089 --> 00:03:53,729 62% retracement level and then five pips above the old high. What are you aiming for? Well, you have a time window you have to be avatrade by 11 o'clock, unless
20 00:03:53,729 --> 00:04:01,109 you get to that point that I outlined on the daily chart when we start to break that old low again because things would accelerate. On the downside should it
21 00:04:01,109 --> 00:04:12,839 break that low again. I'm going to aim for is one PIP below the old low, real simple five pips above the old high for a short, protective stop. One tip below
22 00:04:12,839 --> 00:04:28,769 the old low for a limit, buy order to take profit and or 11 o'clock in here's 11 o'clock. And see, we just make it underneath ahead of that window there. So
23 00:04:28,769 --> 00:04:37,499 what's the short, we're selling short here with a stop there and we're trying to take profit there. That's a nice little scalp framed in the context of risk to
24 00:04:37,499 --> 00:04:46,829 reward if you'd like to hold true to those types of things. I don't necessarily believe in a lot of us. What do you just say? If you go through the charts and
25 00:04:46,829 --> 00:04:54,209 you're trading with higher timeframe order flow, you're going to have a higher strike rate. not perfect but you'll have a higher strike rate. If you look at
26 00:04:54,209 --> 00:05:04,709 time elements like this, and understanding how the market retraces back up in just to go lower that's intraday swing trading so we're going to focus on the
27 00:05:04,709 --> 00:05:14,129 fact that we're working with time based rules and we're looking for logical levels to enter and logical levels to exit and we're not trying to hit homeruns
28 00:05:17,609 --> 00:05:30,809 the next set of in here we have old high trades up into it in london and 63 was treatment level here entry five pips above that this is your target here after
29 00:05:30,809 --> 00:05:41,399 you break this low so when it starts to go lower we have all this time in here that we can hold the trade so yes this is your initial level we can take a
30 00:05:41,399 --> 00:05:49,889 partial profit but then you have this level here and you can aim for but it breaks it here with a lot more time left and london session that you can capture
31 00:05:49,919 --> 00:06:04,049 all this in here will you catch all of it probably not but it gives you the opportunity to do so framing the setup here the staff up to here is taking
32 00:06:05,129 --> 00:06:13,169 considerable amount of the position off here and then leaving something on at your discretion as to how long and where you would take it that's up to you you
33 00:06:13,169 --> 00:06:27,779 can do fibonacci extensions from this high this low up in here what measurements you would have for your fit anything lining up with a 50 level that'd be a good
34 00:06:27,779 --> 00:06:41,219 objective there 3030 could have been a good objective because it's 30 pips below the 2060 level here so 30 pips below that that'd be a nice objective and it
35 00:06:41,219 --> 00:06:55,289 still meets the criteria for the time window you have to be out of the trade for 5am then you have this day here this is that upclose day nothing in here sets
36 00:06:55,289 --> 00:07:04,889 the stage for a sell it's coming off of these lows aggressively and there's nothing to frame this in for optimal trade entry there's nothing in here for the
37 00:07:04,889 --> 00:07:12,629 london session and there's nothing in here for the new york session so what do you do you sit on your hands and wait but this one up close day on the daily
38 00:07:12,629 --> 00:07:22,619 chart sets up another round of selling in the future which could be the next day or the very next day that's how i use counter days within the order flow that
39 00:07:22,619 --> 00:07:30,239 i'm looking at so we have higher timeframe waterflood it's bearish with the benefit of hindsight yes but you weren't with me when i was talking to my
40 00:07:30,239 --> 00:07:38,009 students and i know that you guys don't like to hear things like that but i like to provide the other side of the coin because i catch a lot of flack from
41 00:07:38,459 --> 00:07:47,519 readers and viewers that just think they see this side only and they don't see the other side where i'm calling these types of things before it happens but the
42 00:07:47,519 --> 00:08:00,569 way you learn is by doing these types of lessons no probably not exciting but it's how you learn okay in the very next day we have a run up in here no optimal
43 00:08:00,569 --> 00:08:13,919 trade entry nothing framing that now why wouldn't we trade this because we have this area that's way too clean it runs up breaks down and runs up one more time
44 00:08:14,369 --> 00:08:23,189 you might take this as an optimal trade entry but if you do you have to chalk that up as a loss and there's nothing wrong with that i don't see this as a
45 00:08:23,189 --> 00:08:32,639 trade but but you can use this as a potential losing trade so that way we're not looking at everything perfect in hindsight don't have anything an optimal trade
46 00:08:32,639 --> 00:08:48,539 entry here because on the end of the day of new york at 11 o'clock we don't have the set up forming no trade day and here we have this day where we have the high
47 00:08:49,289 --> 00:09:00,809 the low runs up into new york session this is also one as well but i'm elected to use this one here this is a much nicer price swing and retracement price
48 00:09:00,809 --> 00:09:12,089 breaks down around that 120 25 levels where that old low was and that is how it happens we break below here and we're in close proximity to that old daily low
49 00:09:12,089 --> 00:09:20,879 which we were targeting so yes you can take something off but this is when you anticipate the market to run aggressively or hard and does so here it attacks
50 00:09:20,909 --> 00:09:33,959 that old loan daily and then the next day trades below it from a risk reward standpoint your entry at the 62% retracement level five pips above oh hi nice
51 00:09:33,959 --> 00:09:49,229 numbers here so in summary when you're looking at scalping you want to obviously outline a model with time based rules so what type of trade begins with time a
52 00:09:49,229 --> 00:10:01,799 trade ends what filters are you using it'll help you build a closer narrative to what orderflow is doing and you won't try to jump in impulsively You want to
53 00:10:01,799 --> 00:10:08,009 limit your risk in a uniform way, five pips above old high when you're shorting five pips below an old low when you're going long
54 00:10:09,719 --> 00:10:21,809 and you're taking profits, quote unquote, hypothetically speaking at logical levels, were we looking to take profits at old lows when short at old highs when
55 00:10:21,809 --> 00:10:34,919 long? Understand why there is no setup. So we haven't deep retracements just anticipate that as a closed day in a daily order flow in the context of a
56 00:10:34,949 --> 00:10:45,029 bearish market order flow. Every day in a downswing isn't going to be down closes all the time, you'll have one or two maybe even three up close days, and
57 00:10:45,029 --> 00:10:55,619 then on wash up lower and go continuously to your objective. know when it's likely to run heart, looking at your higher timeframe charts, and seeing where
58 00:10:55,619 --> 00:11:03,689 they're going to reach for for liquidity that helps frame and this is what a lot of my students get fascinated with when they watch me trade. How do I know when
59 00:11:03,689 --> 00:11:12,719 it's going to make a big move? Well, a lot of those things are linked to liquidity and time. But if you're using a daily chart like this showed you here,
60 00:11:12,779 --> 00:11:25,409 it makes it easy to anticipate when these big hard fast runs occur. Your unique model resides in this. This, this is all you need. You think you need indicators
61 00:11:25,409 --> 00:11:34,319 and you think you need all these bells and whistles. Everything I'm showing you here is exactly how you make your own trading plan your own trading model.
62 00:11:36,179 --> 00:11:47,249 Taking small pieces from the things that you learn on this YouTube channel can flesh out this rough skeleton. And believe me, if you put the time in, you can
63 00:11:47,249 --> 00:11:58,799 turn this into something extremely consistent. And what you can do with it beyond that the sky is not the limit and talk to you next time. Good luck and
64 00:11:58,799 --> 00:11:59,249 good trading.