Skip to Content

ICT Development Concept - Scalping Exercise.srt

Last modified by Drunk Monkey on 2021-06-11 13:42
1 00:00:11,010 --> 00:00:26,940 ICT: Okay, folks, I give you a trading exercise. And this is something I did to become more consistent as a day trader. And if you put the time in doing this, I
2 00:00:26,940 --> 00:00:36,870 promise you, there's very few things I'm gonna promise. But this is one thing I can promise, your understanding about what the markets going to do on an
3 00:00:36,870 --> 00:00:50,010 intraday basis, a few times a week will drastically improve. Now, does that mean profitability? No, because I cannot promise you profitability, I am promising
4 00:00:50,010 --> 00:00:58,170 you a greater understanding of what price action is going to most likely do a few times a week. And that's all you need to do very, very well, in speculation.
5 00:00:58,320 --> 00:01:11,040 So if I can take your attention back to the concept I gave you, in terms of using the daily chart, whenever we see a swing high, and as what was tweeted,
6 00:01:11,400 --> 00:01:21,720 this evening, on my Twitter account, the swing high, here, we have a high with a lower high to the left of it and a lower high to the right of it. Okay, once
7 00:01:21,720 --> 00:01:31,620 that takes place, we start looking for the lows to be violated. And every time you see the previous day's low, that's an opportunity for trade. Now, it's a
8 00:01:31,620 --> 00:01:46,020 scalping tactic. That means 2030 pips, just about every day, this gives you a setup. Now, it does not give you a setup every single day in the same pair. Now
9 00:01:46,020 --> 00:01:56,700 it can be multiple examples of it in the same pair. But what I stated was, it can give you a set up every single trading day, because some pair across all the
10 00:01:56,700 --> 00:02:06,750 universal pairs, it's available to us in forex, one of them is going to provide this. Now the chances of you being hit may or may not be there, okay. But if you
11 00:02:06,750 --> 00:02:16,920 follow one pair at most two pairs, you will have something to work with every single trading day, it does not mean to execute live funds, it just means that
12 00:02:16,920 --> 00:02:25,500 you can practice with it. Do not discount this exercise. If you're looking at it on the basis of it's only hindsight, because some of you are not going to be
13 00:02:25,500 --> 00:02:35,970 able to do this live, because you're on your job or your life circumstances don't permit the opportunity for you to sit in front of the charts and do it.
14 00:02:36,300 --> 00:02:46,950 But go back through the charts in an end of day capacity, and look and see if what I'm teaching you here tonight is in fact what goes on every single trading
15 00:02:46,950 --> 00:02:57,990 day. Okay. So I want to go back to this reference point here. This is where a swing highs formed. price starts taking down each individual daily low is
16 00:02:57,990 --> 00:03:08,580 violated until we get down to here. Then price reacts, trades up. Now this run here is like a railroad track type pattern. I probably should have already
17 00:03:08,580 --> 00:03:17,100 included that in the presentation, because it's gonna make it seem like I'm a follower of just candlestick patterns. But just understand that this pattern
18 00:03:17,100 --> 00:03:31,680 here did not take out the swing high. Okay. And soon as we traded below, this candles low right here comes in at 117 63. This is Sunday trading. And then
19 00:03:31,740 --> 00:03:41,040 today's trading on Monday, the market opens up it rallies up, forget about getting the high there was not necessary. We're focusing primarily on the New
20 00:03:41,040 --> 00:03:49,710 York session. And what we're going to be dealing is we're gonna be looking for where the market may reach for Well, we've already taken out Sunday's low, we've
21 00:03:49,710 --> 00:03:58,950 already taken out Friday's low. So what would be the next objective? This low right here. So that's our mark. Okay, or target. So if we think in terms of
22 00:03:58,950 --> 00:04:07,560 being a sniper, this is what we're gonna be targeting. Okay, this old low. Now, why am I saying that this is a target? Well think about it in terms of support
23 00:04:07,560 --> 00:04:15,450 resistance. Price in itself, showed a willingness to rally from that level. So we could probably say come back down to that level again, and maybe it might
24 00:04:15,450 --> 00:04:30,330 bounce. Or maybe you'll go through it. No one absolutely knows this. But if price is above it. If price is above that low, and it's also bearish, then we
25 00:04:30,330 --> 00:04:40,830 can look for that low to be traded to as a minimum objective. So how much of a range that allows us is always going to be largely depend upon individual unique
26 00:04:40,830 --> 00:04:52,500 setups, the larger of the ranges, the better the setup. So I'm gonna give you a exercise. And we're going to map this out here with this particular trial and
27 00:04:52,500 --> 00:05:04,710 maximize it. And we're going to go into a 15 minute time frame and what I want you to do is I want you to think about how price was reaching for that level
28 00:05:04,710 --> 00:05:10,860 down here. It's 117 29. That's it that is right there. Okay, that's that old daily low or
29 00:05:10,890 --> 00:05:20,730 Target or as I refer to it as the mark, okay, as a sniper. So we're looking for that low to be retested. In this case, it went through just a little bit, and
30 00:05:20,730 --> 00:05:28,500 that's fine. It could very easily just stop right before hitting it. And then just as well, doesn't have to always go through it. Now, admittedly, I thought
31 00:05:28,500 --> 00:05:37,110 that we could possibly go through that as an objective today. And I was allowing the trade that I took to potentially pay that out to me, should it yield that
32 00:05:37,110 --> 00:05:47,430 much of a move below it? But it didn't. And I actually fell asleep and didn't even have myself alert at the time to take off something at the market. Okay, I
33 00:05:47,430 --> 00:05:59,100 had to collapse a portion of it. Once it had come back above the low over here, allow me to get right at the first objective in our fib for scaling, but other
34 00:05:59,100 --> 00:06:10,650 than that, that was the best I could do. And here it is. So you can see I'm human. But I want you to look at how every day if we're expecting bearishness,
35 00:06:10,710 --> 00:06:22,710 okay, if we're expecting lower prices, what I want you to do is every day that you're bearish rate before seven o'clock in the morning, New York time, okay, I
36 00:06:22,710 --> 00:06:31,620 want you to to kind of like take a look at what the markets doing, if you're bearish. And we'll say that we were bearish here on Friday. Okay. Now in this
37 00:06:31,680 --> 00:06:41,910 regard, I'm speaking specifically in light of hindsight only. Okay, so I have to tell you that this because I'm talking about in hindsight here doesn't mean it's
38 00:06:41,910 --> 00:06:51,000 going to be as it is in this chart, but it's going to be very close to it in theme, okay, it's going to have a lot of similarities to it. And you'll, you'll
39 00:06:51,000 --> 00:07:00,540 see what I mean by that in a minute. Okay, what I've done is, I've added seven o'clock in the morning, my vertical line here on each respective trading day in
40 00:07:00,540 --> 00:07:14,730 the last few days, and also needed the previous day's lows. So now I'm going to do is remove the vertical line delineations that's seen in the chart, and only
41 00:07:14,730 --> 00:07:24,210 leave the seven o'clock in the morning, New York time reference points. Alright, so now what we have here is we have some these trading here, Friday's low right
42 00:07:24,210 --> 00:07:37,410 in here. And here's Thursday's trading over here. So we're going to look at what we have, in terms of a drill or exercise we can do every single trading day. But
43 00:07:37,410 --> 00:07:44,820 you have to first know, what you're looking for in terms of bias now doesn't mean you gotta be right every day, it just means that you have to work in this
44 00:07:44,970 --> 00:07:54,270 framework, know what is most likely going to be the directional bias today, based on what the daily charts shown, is it going to be running to lows or it's
45 00:07:54,270 --> 00:08:02,370 gonna be running the highs if we are bearish and we're gonna assume that today we were bearish. And for folks that are in my mentorship group, we had already
46 00:08:02,370 --> 00:08:12,900 mapped out a probable scenario and in terms of my commentary with them, so they know that this was the most likely scenario going forward for Euro at least
47 00:08:12,900 --> 00:08:24,030 using my concepts, but most of you that are watching don't have that availability. So I'm going to give you a very simple approach using what we have
48 00:08:24,030 --> 00:08:35,610 already arrived that since I've been back on social media and YouTube, the element of looking for optimal trade entries in a day. Okay, am I more bearish I
49 00:08:35,610 --> 00:08:42,870 want you to focus on seven o'clock in the morning then we take the day dividers off now so that we can focus primarily on seven o'clock in the morning each
50 00:08:42,870 --> 00:08:54,240 individual trading day. So here's Friday's trading in here, okay and Friday's trading I want you to notice we came back up to this low right here today
51 00:08:54,270 --> 00:09:08,760 intraday. Now this level many times would not be even considered with standard support resistance ideas. But this level here is important because it's a swing
52 00:09:08,760 --> 00:09:16,800 high to swing low. And we mentioned in the what series whatever we knew and aspiring forex trader wants to know we have to use these reference points
53 00:09:16,800 --> 00:09:33,570 because they may end up becoming reused in the future. Okay, so also want to again, add dividers again. You can see that this is Friday's daily low. Here's
54 00:09:33,570 --> 00:09:42,180 Sunday's trading, we made it a lower low on Sunday and then we started trading on Monday higher and take that back off. And we had a little bit of a gap in
55 00:09:42,180 --> 00:09:50,940 here and you'll learn about that that's this is whiplash and then catapult. Okay, very simple little padding for Sunday. I don't trade it anymore. It's nice
56 00:09:50,940 --> 00:10:04,890 to see when it occurs but it's not that big of a deal. But I want you to see how that seven o'clock in the morning. When is mt four platform is demo account 1100
57 00:10:04,980 --> 00:10:07,200 is seven o'clock in the morning New York time.
58 00:10:08,519 --> 00:10:17,819 I want you to at that moment, wake up, check your your charts, you can do it on your smartphone. And if you're bearish you're gonna be looking for price to
59 00:10:17,819 --> 00:10:30,239 rally up at least 20 pips or more. Okay, if it does this and you're bearish then what you want to do is you want to anchor a previous high to the low prior to
60 00:10:30,239 --> 00:10:41,999 that seven o'clock in the morning rally up at least 20 pips. Okay, when you see that start hunting optimal trade entry shorts. In this case, we can zoom in a
61 00:10:41,999 --> 00:10:53,759 little bit. Here seven o'clock in the morning today, Monday, October 23 2017. The market shows an initial decline. We're not looking for that. We want to see
62 00:10:53,759 --> 00:11:06,479 it start to rally up 20 pips, what is it doing? It's retracing intraday on a day that's primarily bearish. And the high was set during what time of day is this?
63 00:11:07,919 --> 00:11:18,029 It's exactly two o'clock in the morning New York time. What did I say? In my videos regarding pi the day, here's Monday's trading it trades up creates a very
64 00:11:18,029 --> 00:11:24,929 high the day, between two o'clock and four o'clock in the morning, New York time. That's the high of Today. It trades down after seven o'clock in the
65 00:11:24,929 --> 00:11:36,389 morning, you want to see a rally up of 20 pips or more, but not take out the London high. Okay, it has to get close proximity to the high but only up to 79
66 00:11:36,389 --> 00:11:46,859 cent treatment level. So if we look at that, we can see that relationship between the open down to the lowest body candle right here prior to this rally
67 00:11:46,859 --> 00:12:00,179 up. Now this is equal this open and as close as equal 117 35. But price trades right back up to the 70.5 level. And it's also Fridays old Well, with a swing
68 00:12:00,179 --> 00:12:06,929 low. So it's a confluence of things happening right there. Now if you were to use the wicks, I just want to throw this in here for completeness sake, I don't
69 00:12:06,959 --> 00:12:18,329 advise doing this. But for comparison, you can do this and see, we still get exactly right to the 70.5 level precision, okay. Now, I don't require that for
70 00:12:18,329 --> 00:12:26,699 entries. I will allow myself to use the bodies of the candles and it'll get me close enough. But if you want to be nutcase about precision, you can get that
71 00:12:26,699 --> 00:12:34,529 surgical with it. Okay, you're going to miss some setups because your orders won't get filled. And that's going to be problematic for you. But that's the
72 00:12:34,529 --> 00:12:44,999 reason why I use the bulk of the volume with the bodies. Okay, so again, seven o'clock in the morning, which is my platform here for my demo. It's 1100 so when
73 00:12:44,999 --> 00:12:54,929 it rallies up 20 pips? Well, we have 1735. So that would mean to go up to at least 1755 it does that here and it does it here. It has to do that and find an
74 00:12:54,929 --> 00:13:02,699 overlapping of optimal trade entry, which it does here. So at least 62% retracement level and a 23rd rally after seven o'clock in morning New York time
75 00:13:02,729 --> 00:13:14,729 in a bearish day anchor to London high optimal trade entry short What are you targeting intraday low, and then the next daily low? Okay. And you can see, as I
76 00:13:14,729 --> 00:13:32,099 showed on the video earlier 117 25 gets us really close to that level, the actual low here on this platform in the pop up here, low comes in at 117 25.
77 00:13:32,909 --> 00:13:42,569 This fib takes us down to like 117 24. And just for completeness sake, I'll put this back up here like that. And down here like that. So if it's on the wicks,
78 00:13:42,689 --> 00:13:51,689 we are really far away in that target then, but using the bodies, it gets us much closer to the objectives that as I outlined just now. Now everything I've
79 00:13:51,689 --> 00:13:59,549 just said here you would reverse when it's bullish. You would expect a retracement lower after seven o'clock in the morning and expect that run higher.
80 00:13:59,639 --> 00:14:08,459 And again this is a scalping technique. It's for something like 2030 pips type move intraday couple times a week, but that's all you need. Remember 23 pips,
81 00:14:08,489 --> 00:14:17,609 risking 2% of your account can make a double of your account or basically double your account records every year. So if you found this insightful until next
82 00:14:17,609 --> 00:14:19,379 time, I wish you good luck and good trading