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ICT YT - 2021-07-23 - Interbank Trading - What Is The Difference Between Scalps and Day Trades.srt

Last modified by Drunk Monkey on 2021-07-23 10:45
1 00:00:00,750 --> 00:00:11,880 ICT: Alright folks hope everyone's doing well. Chad put up a short little video here I got asked, What's the difference between a intraday scalp and day trading
2 00:00:12,240 --> 00:00:24,240 the daily range. So, as I showed here real briefly, at the very beginning of this video, the economic calendar shows that we have heavy news for ECB or euro
3 00:00:24,240 --> 00:00:35,610 dollar. So the monetary policy announcement is slated for this morning. So I'm looking at Euro dollar here 15 minute timeframe on the left a five minute chart
4 00:00:35,610 --> 00:00:43,980 on the right now you'll note that the five minute chart has a little red line there that's going to come in later on when it comes to the day trade. But I
5 00:00:43,980 --> 00:00:53,760 have it there, just so you know that this is something I had already expected. And it's not a knee jerk reaction to something that you'll see in a moment. But
6 00:00:53,760 --> 00:01:08,430 I'm going to go short, as it trades above the 15 minute time frame. Hi. So when it trades above that level, I'm going to do a short term, intraday scalp, I'm
7 00:01:08,430 --> 00:01:18,690 gonna be shorting that. And we're looking for a run below the short term low that's formed around 430 or so this morning.
8 00:01:24,150 --> 00:01:40,260 So I'm just watching price. As it meanders sideways, I'm only interested if it trades above to read those existing buy stops. Now the overnight London sell off
9 00:01:40,260 --> 00:01:49,380 that was short lived, that has caught traders net short. So their stops are going to be just about that high. On the 15 minute time frames, I have a short
10 00:01:49,710 --> 00:01:53,160 term timeframe trend line extended from
11 00:02:02,190 --> 00:02:19,530 okay 745 we have the ECB news. So I'm gonna be selling short. Okay, so I'm short there. And I'm looking forward as I run down below the month in low, that's a
12 00:02:19,530 --> 00:02:31,830 scalp real easy to find setups like this, I can find pretty much every single day a trade like this. And I'm just watching when it trades below that London
13 00:02:31,830 --> 00:02:44,700 low, I will take majority of the trade off. Because we have the ECB conference later in the morning, that I may see volatility that may go against me on this
14 00:02:44,700 --> 00:02:56,610 idea. So I want to at least have the bulk of the trade and profit. And that's what I'm looking for a run down below that low. So I took majority of the trade
15 00:02:56,640 --> 00:03:07,770 off there rolled a stop to better than even. And now at this point, I let it go. And if it wants to take my stop, it's fine, I don't care, because I'm gonna be
16 00:03:08,100 --> 00:03:20,610 taking a day trade, which will be more directed towards the entire daily range, I'm gonna be trying to sell the daily high and aim at taking out the daily low
17 00:03:20,610 --> 00:03:34,170 with a profit partial at least. And you'll understand what I mean as we get to that trade. So at this point here, the trade has been funded, I don't have to
18 00:03:34,170 --> 00:03:45,450 worry about managing it and worrying about it and the lines portion of the move has been captured. So if it rolls back on the stop, that's fine because it gives
19 00:03:45,450 --> 00:03:57,000 me greater Intel about that red level potentially being rated, which is really the day trade setup for my liking. But to answer one of the students I had
20 00:03:57,000 --> 00:04:04,470 asked, What's the difference between a intraday scalp and a day trade. That's what I'm showing you here. This right here is an intraday scalp. There's
21 00:04:04,470 --> 00:04:14,400 multiple setups like this intraday, that, if you understand what you're looking for, you can find them rather easily. Now not easily in the sense that it's so
22 00:04:14,400 --> 00:04:24,150 obvious everyone can do it because you have to be very nimble. But you can find a plethora of these types of setups over the course of a week. And in the right
23 00:04:24,150 --> 00:04:30,720 hands with sound money management. You can parlay that account up to astronomical levels.
24 00:04:38,400 --> 00:04:47,970 Also what I'm highlighting in this video is how interbank traders trade. Okay, so from the central bank, that's the top of the food chain. Below that is
25 00:04:47,970 --> 00:04:59,730 interbank traders. Then you have large institutional traders like UBS, Goldman, that type of level and then you have large commerce players like insurance
26 00:04:59,730 --> 00:05:13,170 company. And such and lower to your banks, and they have large speculators. And then you have the retail street money. interbank traders don't necessarily have
27 00:05:13,200 --> 00:05:25,050 patterns per se. They're trading liquidity to liquidity. And that's all I'm doing here. I'm literally using underlying narratives. That is outside the scope
28 00:05:25,050 --> 00:05:33,120 of this video. Obviously, I know, that's going to annoy some of you, because you want to know everything. But everything is not entitled to you here. But this
29 00:05:33,120 --> 00:05:45,000 stuff is taken here. So now I'm watching it run to that red level. And if we traded that level, I want to be going short, as you see me doing here. And I'm
30 00:05:45,000 --> 00:05:57,510 gonna be targeting the lower low that I took partials that on the New York session. And if we can get down to that blue level, that would be ideal, but I
31 00:05:57,510 --> 00:06:02,190 don't need it to trade it at Blue level, the lower level one for me to be profitable.
32 00:06:08,400 --> 00:06:23,250 Okay, so we have a run up taking any money that's short now out of the marketplace. So the initial shorts were taken, they rally at higher, anyone
33 00:06:23,250 --> 00:06:32,580 that's seen this on a retail level, they think it's gonna go higher. So they're buying all this. They're caught on a breakout above that short term high that
34 00:06:32,580 --> 00:06:43,890 has just been breached on the five minute chart. on net short, looking forward to break down and make a lower low for the day. Now I want to see it really
35 00:06:43,890 --> 00:06:55,050 expand, quickly, not do small little ranges, I want to have a confirmation that I'm on the right side of the marketplace, buying large ranges. And that's what
36 00:06:55,080 --> 00:07:05,820 I'm looking for there. So interbank trader will look for that signify that they are on side and just follow the plan, the plan is attack the short term low,
37 00:07:06,180 --> 00:07:17,070 where sell stops are going to be. And I'm going to buy from those sellers below that short term low. That's all interbank traders do, there is no supply and
38 00:07:17,070 --> 00:07:33,750 demand zones. There is no harmonic patterns. There's no anything. It's just liquidity and understanding what the markets dealing right now. And my job has
39 00:07:33,750 --> 00:07:45,720 been over almost 30 years is to try to communicate the best I can within the scope of legality, the things that some of the interbank setups look like. So I
40 00:07:45,720 --> 00:07:55,680 created a language, which is predominantly like mentorship, and this YouTube channel. And why my things look totally different. Now, they might look similar
41 00:07:55,680 --> 00:08:05,280 to other ideas, because I'm a draw box. Or I may draw a trend line and make reference to a specific thing. But I don't trade with trend lines, and I don't
42 00:08:05,280 --> 00:08:06,750 trade with supply and demand zones.
43 00:08:12,000 --> 00:08:20,790 And I want to see price, start to cascade from here, and attack that short term low. So I can take a partial.
44 00:08:36,600 --> 00:08:42,180 And this is what it looks like when you know what you're doing. And you don't need to talk about something that's already happened in the chart. If you know
45 00:08:42,180 --> 00:08:55,050 what you're doing, you press a button, you execute it, you manage it. That's the testimony of a real mentor. All right, partial has been taken below the short
46 00:08:55,050 --> 00:08:56,520 term low.
47 00:09:03,570 --> 00:09:18,630 And I'd love to take another partial likely trade lower, not needing it to trade below, or even to that lower, thicker blue level. But that's like the ideal
48 00:09:18,900 --> 00:09:27,150 target. But my limit order is down there. As a best case scenario, I teach this to my students, if we were all in a room with my mentorship students, they would
49 00:09:27,450 --> 00:09:35,520 be nodding their head that I always teach a best case scenario because if this thing were to collapse, and completely fall in a bed, it would be nice to
50 00:09:35,520 --> 00:09:45,690 capture that 100 PIP move. But I'm not worrying about that. I'm managing the levels that I'm looking for. And I'm managing the position based on what the
51 00:09:45,690 --> 00:09:59,310 markets showing me at this moment. So there is no optimal trade entries in this trade. There is no order blocks in this trade. It's just simply interbank
52 00:09:59,310 --> 00:10:07,410 trading that It, you're not going to find that on YouTube, you're not going to find out from anybody else teaching it. It isn't going to happen. But it's just
53 00:10:07,410 --> 00:10:17,820 simply what a bank trader does. In look at the candles I'm entering on. And we're I'm taking nonprofits at it's the highs and the lows, not the next candle
54 00:10:17,820 --> 00:10:24,540 after not the candle right before I'm hitting the highs and the lows. Now the partial taken there
55 00:10:29,970 --> 00:10:41,850 and I rolled my stop down and the stop will remain here. And nothing really changes from this point on but the daily range low has been established here and
56 00:10:41,880 --> 00:10:53,460 nothing significantly lower forms as a result. And at the time of this recording, it's 4:53pm July 22 hope you found this insightful until next time,
57 00:10:53,760 --> 00:10:54,840 wish good luck and good trading