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ICT YT - 2024-08-27 - Premarket NQ -OB To Discount NDOG-summary

Last modified by Drunk Monkey on 2024-08-31 08:28

# Summary

ICT YT - 2024-08-27 - Premarket NQ -OB To Discount NDOG

The conversation revolves around a trading strategy involving the NQ futures contract. ICT discusses managing stop losses, identifying liquidity points, and monitoring volume and price action. They mention using rejection blocks and pyramiding entries, aiming to capitalize on institutional order flow and market movements. The strategy includes selling short when the market rises and buying long when it falls, within specific algorithmic parameters. The goal is to manage orders efficiently, considering commission costs and potential market reversals, while avoiding trend line breaks and bear flag breakouts. The conversation ends with a focus on entry opportunities and managing open positions.

 Action Items

[ ] Add 5 more contracts if price retests opening of current candle.

[ ] Close position to bank profits if price drops without retest.

[ ] Leave small position open and look to profit on further downward move.

 Outline

# Order Block and Stop Loss Adjustment
- ICT discusses the order block and the need to replace the stop loss with a rejection block.
- The minor cell side is identified, and liquidity is targeted.
- A deep premium is noted inside the water block rejection blocks.
- The minor color and volume balance are monitored for breakthroughs and recoveries.

# Stop and Entry Strategy
- ICT mentions that the stop needs to roll just above the wick.
- Half of the wick is used as a reference point for the stop.
- The strategy involves waiting for a potential entry point near the candle open.
- Impatience is expressed as ICT anticipates another chance to tag the open.

# Pyramid of Entry and Market Dynamics
- ICT plans to add five more contracts if the market starts dropping.
- The goal is to close the candle and set the stage for institutional order flow.
- The strategy includes drilling up to the opening on the candle.
- The conversation highlights trading within specific algorithmic PD arrays.

# Order Block and Commission Management
- ICT talks about the order block and the potential for an opening gap.
- The focus is on cutting commission costs and managing the order block effectively.
- The strategy involves rolling to a specific spot to manage costs.
- The conversation concludes with a mention of the magic in the strategy.