ICT YT - 2024-09-02 - Calubs Model - Conceptually - Variant 1-summary

# Summary

ICT YT - 2024-09-02 - Calubs Model - Conceptually - Variant 1

The lecture introduces a concise, 10-15 minute YouTube series for teaching technical analysis. The speaker outlines a model for trading, emphasizing the importance of understanding price action and using simple frameworks. The model involves identifying key levels and time frames, particularly between 7 AM and 11 AM EST, and using specific intervals for analysis. Key concepts include understanding liquidity pools, stop loss placement, and Fibonacci extensions. The speaker explains how to identify entry and exit points, manage stop losses, and use swing projections and opening gaps to determine partial and terminal targets. The goal is to provide a practical, easy-to-follow guide for traders.

 Action Items

[ ] Review and implement the trading model on daily charts.

[ ] Identify areas of liquidity and potential entries meeting the criteria.

[ ] Manage trades using the outlined stop loss and take profit levels.

 Outline

# Introduction to the YouTube Channel and Lecture Format
- ICT introduces the first lecture on his son Caleb's YouTube channel, emphasizing that videos will be concise, around 10 to 15 minutes.
- Daily reviews will be uploaded Monday through Friday, focusing on what each time frame chart should look like and reasonable annotations.
- The purpose of the videos is to provide a framework for understanding price action, encouraging viewers to use the models for their own analysis.
- ICT explains that the charts and models should be used as a reference for self-assessment and learning through repetition.

# Homework Assignment and Conceptual Explanation
- ICT mentions a homework assignment given on the community post, which involves a line chart and a conceptual explanation.
- He uses TradingView to create the charts for brevity and simplicity.
- ICT describes a scenario where one explains trading concepts to a friend using a simple model, similar to scribbling on a napkin.
- The model is designed to help Caleb learn and understand the concepts, with multiple variants to be explored.

# Market Liquidity and Bullish Scenario
- ICT explains how the market creates a pool of liquidity by making a high and trading lower, creating a buy side above and a sell side below.
- Bullish scenarios involve a run above the high, taking out the sell side, which results in traders being stopped out.
- The key time frame for trading is between 7 AM and 11 AM Eastern Standard Time, with specific intervals used for analysis.
- ICT outlines the entry and stop loss points for a long position, emphasizing the importance of protecting oneself with a stop loss.

# Fibonacci Extensions and Partial Take Profit
- ICT discusses the use of Fibonacci extensions to identify partial take profit levels and termination points.
- The first partial take profit is identified by a swing projection coupled with a new day or week opening gap.
- The termination point is the lowest level that overlaps with a Fibonacci extension and a new day or week opening gap.
- ICT provides a detailed explanation of how these levels are identified and used in a candlestick formation.

# Bearish Reversal and Termination Points
- ICT explains the reversal of the bullish scenario when the market runs up and then drops, resulting in a bearish move.
- The stop loss is rolled higher to cover costs, and once the partial is taken, the stop loss is left unchanged.
- The termination point is identified by a swing projection coupled with a new day or week opening gap.
- ICT emphasizes the importance of taking the lowest hanging fruit and not aiming for perfection.

# Daily Trading Hours and Chart Closure
- ICT outlines the specific trading hours from 7 AM to 11 AM, with specific intervals used for analysis.
- The model is designed to be flexible, with different time frames and chart closures possible.
- ICT encourages viewers to build on the basic framework and adapt it to their own trading strategies.
- The lecture concludes with a reminder to be safe and a promise to continue exploring the concepts in future lectures.