ICT Market Maker Primer Course - 01 - What New Traders Should Focus On.srt

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ICT: Hello folks, welcome back. Alright, so we're embarking

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on a new journey for some of you and for those that have

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gone through my old vintage ICT tutorials, These will

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probably be a little bit more user friendly and concise. I

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did have the aim and goal in mind to make them as short,

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concise, as dense as possible with content but still not be

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so long as the time window. I want the durations to be a

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little bit more manageable. So that was the goal. For this,

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this round of tutorials. We're gonna be talking about what

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should new traders study and practice.

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Okay, so what's going to be covered in this module? Okay,

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the ICT concepts used in this one is going to be the theory

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of liquidity rates or stop runs introduction to liquidity

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pools

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Hello Locate high probability liquidity pools introduction

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of the ICT order block, high accuracy entry points, low draw

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down entry tactics, high probability targeting the benefits

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of scaling profits and how to make money when you are wrong.

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All these concepts and ideas are going to be used in

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practical application. But before we show you that it's

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important to begin with a overview. Okay, so when we look at

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price action, as a new trader, you're going to come into the

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marketplace especially with forex because it's so exciting.

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It's fast paced. It's two wonderful markets a beautiful

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market it gives plenty of opportunities. You can be day

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trading it you can scalp it, you can position trade it, you

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can swing trade it, it's absolutely phenomenal. I love It's

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To me, it's the best asset class today, however, like you,

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when I first got engaged in the study of price action for

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forex, I quickly found myself doing a lot of things I

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shouldn't been doing. And what's worse is I was

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inexperienced trader from other asset classes, stocks,

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bonds, commodities. And I did trade the currency markets by

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way of the futures market. So you would think having a

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decade of, or more really, of experience before getting

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involved in the foreign exchange market that I would have

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had a little bit better grasp on my emotions and my

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excitement, but that didn't happen. Because it's 24 hour

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market, it moved around very liquid. And it was like, it's

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like a candy store for me. So I did a lot of things wrong.

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And I've learned over the years, and these videos are going

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to help you avoid a lot of those pitfalls. So, we're going

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to cover an element of price action that I think is

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essential. And if you have no previous trading experience,

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if you've not corrupted your mind with the retail stuff that

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is promoted in the industry, you're actually at an

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advantage. Okay? folks that have gone through trading

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courses and material are going to have some hardships with

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this. Not just with this teaching, but all the ones I'm

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going to be teaching. The constant theme is I want you to

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think about the marketplace. completely opposite to what

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retail teaches. So retail is like Elliott, wave, supply and

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demand.

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harmonic patterns, animal patterns, all these things that

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you put on your charts, they're all distractions. All you

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need to know is The open high, low and close. Okay, there's

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four reference points that make up price. And we make charts

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based on those four reference points. Now we have an element

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of time. That's a factor that won't be talked about in this

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module, but I will talk about it in coming lessons. But I

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want you to think about when, for instance, we're looking at

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this chart here, now this is happens to be the day of this

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recordings, euro dollar, okay, it's a 15 minute time frame.

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And I want you to look at it, and maybe some things jump

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off. Maybe other things aren't so apparent or obvious to

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you. But I want to kind of like change your perspective on

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price action. And I want you to focus in on areas in price

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action, it doesn't make a difference what timeframe you'd

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look at, okay, because price is fractal, meaning that the

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things that you can see on one timeframe, they can be seen

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on the lower timeframe or the higher timeframe as well. So

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it's a phenomena it's it repeats itself, okay? The same type

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of formation or setup can be seen on every timeframe. So,

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when we look at price or how I teach my students to look at

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price, I want them to first understand what makes the

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markets move. Okay? Without understanding that your

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probabilities of being successful in developing yourself in

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a demo trade is highly unlikely. And you mustn't forget

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about becoming a live fun trader, if you can't do well on a

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demo, you're not going to do well on a Live account.

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Everything that I'm teaching here should be done in the

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medium of a demo. All of my teaching is done in demo. And

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that's the best way to do it. play in the sandbox, it's risk

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free, and you learn to develop good habits this way. So what

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do you do with a demo account? Well, before you even put on

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trades, I think that you should be studying price action

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like this. Okay. I want you to think where Every one else's

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trade idea would fail them. Now think about that, because

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when you read books, they tell you buy here, sell here, your

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stops here. Try to aim for this target. Okay, so they're

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geared towards getting you into a move. And the stop losses

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are pretty generic below an old low above an old high. I

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have started a new wave of free membership followers online,

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and they have shared their enthusiasm with the discovery of

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something so simple. But it evades most traders, even

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traders that have been trading for a long period of time. If

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you look at periods in price action, where there are equal

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highs and equal lows, this is the easiest, most obvious

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price point to see in charts. Every time you see that, I

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want you to note that Put a small little trendline

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horizontal, okay, and that's the only time type of trendline

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I like. We're delineating previous points where it made

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equal highs or slightly higher or lower doesn't make a

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difference if it's exactly.

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Or if it's off by one or two pips. The general theme is, if

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it looks close enough, then it's a double top or a double

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bottom. Now retail circles will teach that these are good

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areas to trade off of as support resistance. Institutional

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minded traders think entirely different. They know what's

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sitting above those equal highs, it's traders buy stops, and

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they know what's residing below the equal lows, traders sell

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stops. So the way institutional mindset is poised about

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looking at price action. They're looking for counterparties

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they're looking for the opposite side of their trade. So

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when everyone else is in the retail world Looking for

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indicators to give them buy and sell points. institutions

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are actually thinking, where are the orders resting right

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now. And the easiest way I have learned to teach traders to

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start with and there's other ways to do this. But as far as

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I'm going to go in the free content, this is the only one

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I'm going to teach. And it's a very simple one, and

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literally a five year old can see it in the chart. So

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anytime you see a double bottom, or a double top, put a

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small little segment or line above it or below it,

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delineating it and putting notation what it is above double

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tops on your chart, make a small little notation that it's

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by stops and below equal lows, sell stops. And I want you to

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study, do not demo trade. Do not try to pick the direction I

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want you to study it for one full month. Do nothing else.

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Pick one or two pairs. literally go through and watch how

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many times this phenomenon takes place. You can look at it

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on any timeframe. But I think a 15 minute timeframe is ideal

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because you'll see a lot of scenarios pan out. Now I traded

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two markets today at the time of this recording, I sold

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short the dollar CAD and also so sold short the euro dollar.

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Okay, both pairs generally do not move in the same

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direction. But I knew there was a strong likelihood that the

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dollar CAD would sell off aggressively, and therefore any

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movement down in the euro dollar would be a suspect decline,

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and it would be reaching for sell stops. So that's going to

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be the context behind what you see me do later on in this

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video that was a recorded trade. So as we're looking at

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price, I want you to take a look at this area right in here.

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Okay, we have equal lows. And price has already went above

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an old high and broke down and it's found an area of

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consolidation and this is the very consolidation that I

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taught you how to trade the New York setup. scalping, I want

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you to think about that.

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If this is a short, where could you reasonably expect to see

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price go? Well, obviously we expect it to go lower. But

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targeting what specifically? Well, we know there's equal

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lows here. And I like to look at old lows and old highs and

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Project 10 to 20 pips beyond those double bottoms and double

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tops. So in this double bottom, folks see that as support,

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price comes down hits it here, retail minded traders are

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going to see this rally up as a buy. I do not want you to

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think that I want you to think the opposite. I want you to

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think that this whole scenario is just the market getting

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ready to sink and go lower and attack. The sell stops that

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are below the marketplace here for those traders that have

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been fortunate enough to be long in all this movement. rode

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up to this high but still did not take profits and have open

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positions. They're protected cell stops are going to be

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trailed up below these lows. So institutional minded

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traders, they're going to see this as liquidity. The market

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will drop down 10 to 20 pips below equal lows and that in

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itself, you need to be determining whether or not that's a

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trade that's viable for you. So what's a viable trade? I

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teach that my students as a new trader should think about 20

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to 30 pips per week to start. And that's a very, very low

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threshold objective. It's easy to get probably doesn't feel

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that way now as a new trader, but I promise you over a few

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lessons, you'll see how very easy it is to find 20 to 30

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pips over the course of a week the problem is going to be

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your ability to refrain from trading once you get it in your

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demo account. You should exercise patience and not do any

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more. Wait to the next week, because this teaches two

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important and crucial elements to longevity and trading

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number one, it teaches patience patient's waiting for the

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next set up. Now there's gonna be a lot of gyrations in the

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chart that's going to draw your attention, you're going to

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want to do something with it. There's nothing wrong with

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paper, trading it in other words, making notations and

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saying, okay, I would hypothetically do this and

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hypothetically do that. But when you practice, practice with

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a demo account, doing one execution, manage it to get 20 to

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30 pips for the week, and then stop, don't do any more

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demonstrating. And it also teaches discipline. So you're

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forcing yourself to follow rules. Everyone else is taught in

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the books to trade your edge. Keep doing the same thing over

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again, while your hands hotplate hard. That's this foolish,

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we're not gambling, we're looking for high probability

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scenarios and setups. So we have to understand what that is.

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So in, in addition to and a compliment to the high

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probability scalping course, I'm using this first video to

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kind of like segue into a little bit more detail. want you

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to think about what makes price move, prices move to levels

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where orders reside. Now orders reside above old highs and

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below old lows. So if we see double tops and double bottoms,

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our chart should be noted like this. Notice there is an

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absence of any kind of indicator except for now the

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application of a Fibonacci. The Fibonacci is what I taught

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to use to get the optimal trade entry. Now what I'm going to

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show you here is the classic ICT optimal trade entry 62 to

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seven times retracement level, get short look for an

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objective going lower. And here you can see how price did

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have several opportunities to get short at the 62%

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retracement level. Then finally expanded down it the first

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scaling objective which is the old low seen here. Then

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target one is hit target To his hit, and then symmetrical

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price swing. Okay? All of these levels are in agreement with

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running below these equal lows. So it's not the fact that

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the magic is done by the Fibonacci. The understanding is, is

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there's traders that have been going long here, double

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bottom is going to have trailers on there by positions,

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bringing their cell stops up. So the market is going to come

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back and grab those orders. The market does in fact, collect

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all the cell stops and then look at the nice vault higher in

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price afterwards. This big response here is post sell stop

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rate alerts after the sell stocks have been gathered up and

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tripped. Anybody that was long now has been knocked out. So

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if they bought here or somewhere in this run up here, okay.

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They have been taken out, they can't capitalize on anything

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going higher.

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But what happens if you Don't have the classic ICT optimal

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trade entry on your chart. So you miss it. What do you do?

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Well, if you don't get into that Fibonacci 62 to seven

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concentration level as that bounce occurs here. What do you

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left to do? Do you just let the trade go? No. Over the

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years, I've shared examples of me getting into a trade. And

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for those individuals that aren't really interested in

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learning from me, they they're quick to point and say, well,

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that's chasing price. And you're going to see, just because

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we're not entering at the 60 to 70%, trade zone level, and

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we're getting in somewhere down in here. That's not chasing

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price. It's absolutely not chasing price. And I'll give you

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a perfect example of it in this recording. But I want you to

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think about what can we do as traders, if we don't get this

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area up here because I first thought that this is where you

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should get in it. The problem is over the years, I've been

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inundated with emails stating that folks don't have the

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courage to get in and they will Want to get in but many

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times they are too afraid to chase price because they heard

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me preach don't chase price don't chase price, my definition

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of chasing price would be once it breaks below the low here,

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then you are chasing price, it's gone too far and you're too

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close to where the targets would be to be able to see a

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profit. Okay, so what do we do? Well, we can focus in above

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that low in this area right in here, I'm gonna take you

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right into that area with a little bit more detail. So this

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is that section of price action. We just zoomed in. And I

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want you to look at this the up candle right in here prior

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to this down move. This is what I refer to as a bearish ICT

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order block. Now every up closed candle and every down

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closed candle does not make a quarter block. Okay, there has

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to be a context or storyline behind why the price should be

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doing what you anticipated doing. In this case, we think

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that the cell stops below the marketplace are going to be

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rated anytime we see an up close candle smart money will be

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in that candle selling short. But how can we use that

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information? Well this very next candle if you read the

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annotations on the chart here, price actually returns back

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to the bearish order block low. Okay know what's the low of

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this candle right here. Price is returning back to it right

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the time of this candle is close. It hits that low. At that

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time, that's a low risk entry. Despite trading lower

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initially, we can wait for price to retrace back to the

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order block to get in if we know what we're looking for. So

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this retrade back to the bearish order block is a low risk

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entry point. Now if the short is valid, this up close candle

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will hold price below it Until the targets are reached or in

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this case the cell stops that would be talking below the

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equal lows. Now notice also in here, as long as price is

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still above this low, this setup is staged properly to reach

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for the liquidity pool below those equal lows I noted a

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moment ago in the recording. Now as long as it's above this

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low right here, the setup is still valid. But now I want you

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to think about this formation right here. This candle

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already starts moving lower it went down to this point here

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and then started trading back up higher at that moment while

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you're watching price right in here that's when you time

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your entry. Notice that the candles retracing right back to

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the ICT bearish order blocks low that's this up close

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candles low. That is exactly when your entries made at the

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market.

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institutional traders will short during up moves. Now when

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price returns back to these up close candles, we can be

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shorting it as well.

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Alright, so now back to our example here. If we see that we

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can find levels that have double tops and double bottoms,

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and the market will want to go through them. Once this

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occurs, chances are the markets going to go the opposite

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direction until it reaches another area of liquidity. So the

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markets always dry reading back and forth back and forth

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seeking liquidity above the marketplace and below the

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marketplace. Below these equal lows, there's a specific

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range that I look for it's 10 to 20 pips, sometimes it can

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be as much as 30 pips but I'd give a working range of 10 to

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20 pips so there's only two levels I'm looking for. It's not

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a zone, exactly. 20 pips below that low at 118 84 it's

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118 64 Okay, really simple, specific price levels, not

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zones, not ambiguous areas to try to figure out what's going

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on. It's exact it's a science we know exactly what we're

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looking for. But the problem is if we are expecting to sell

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short at that bearish order block at the low when it trades

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back to it, does this offer potential for us to take? Well,

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we have an anticipated entry price at 118 91. We have

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anticipated 20 PIP sell stop raid price at 118 64. So in

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other words, we're anticipating getting in at 118 91 up here

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which is the low of this up close candle and we already know

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20 pips below these lows, the lowest of the two equal lows

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is what I use 20 pips below that. That gives us a range low

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of 118 64. So now we have two price points to determine

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whether there's enough of a range to make a profit You take

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these two numbers and you minus them 91 from 64 gives us 27

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pips so we have anticipated range we're profitable movement

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of 27 pips that is enough to take the scalp now what I want

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you to do is I want you to watch me use everything that I

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just used here because this is what was going on in my mind

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before I actually executed and why I took the trade

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Okay folks, we're gonna be doing a short

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I'm waiting for trade repack to the bottom of this candle

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here to the traits to winning team 91. Also short not in a

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hurry if it takes off without me that's fine. trading the

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bearish order block in here

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Alright folks, so

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I'll be looking for that price at 118 91. soon as it hits it

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00:23:10,229 --> 00:23:14,549
at market I will go short. Now my stop has to be above the

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upclose candle or bearish order block, but because of a

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spread in this demo account, it forces you to be 10 pips

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away. So I'm just going to elect to go with 119 15 for my

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00:23:24,209 --> 00:23:33,539
stock. Okay, it's about their fingers on the trigger. All I

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00:23:33,539 --> 00:23:40,079
had to do, boom. Okay, now I'm short. My stop is just below

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119 15. And I'm focusing my attention right below these

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equal lows because I want to see a sell stop raid. So I'm

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going to put my delineations on where that would be in terms

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of targeting. And just in case I have my limit order,

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lowered down to here In case if it goes down that low, and

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00:24:02,159 --> 00:24:06,749
it's not a stop run, I have a limit order to catch any

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accelerated price movement, but I'm really targeting that 20

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00:24:10,409 --> 00:24:15,149
PIP run. So I have three lots short, I'm watching price, I

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want to see it and trade below that short term low that

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we're flirting with and then have a great expansion below

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there. So this recording is actually sped up for time

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purposes. But right now, we're retesting the bodies of the

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candles and the previous short term low and now we're going

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to be looking for expansion on the downside. And it'll reach

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10 pips and hopefully 20 pips. It's about two minutes away

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00:24:38,999 --> 00:24:42,929
from 830 New York time. Usually it's a big volume increase

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for volatility. And I'm setting my order up to collapse two

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00:24:48,089 --> 00:24:52,559
of the three standard lots that I'm short on Europe. And I'm

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00:24:52,559 --> 00:24:55,199
watching waiting to see if price gets down to that second

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00:24:55,649 --> 00:25:01,349
level or 20 pips okay. It's already shown 10 pips of

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decline. As soon as it hits that lower level line, I'm going

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to collapse two of them. There you go and move my stop down

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00:25:07,619 --> 00:25:10,439
to plus one. Now I'm in a situation where I don't really

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00:25:10,439 --> 00:25:15,509
care. But look at the entry points, zero heat, no draw down

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on that entry, no draw down whatsoever, it was not chasing

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price. So I have two of the three standard lots banked and

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now I'm watching price later on. And I'm going to be looking

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to lower the stop loss. And I may get lucky here and see a

362
00:25:35,219 --> 00:25:39,689
run down to that limit order. But always keeping in mind

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that it started to trade with the context of it being just a

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00:25:42,839 --> 00:25:47,039
stop run on sell stops. So I want to be mindful of how much

365
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the price shows a willingness to stall or not want to go

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00:25:50,369 --> 00:25:54,359
lower. And I'm watching price in here to do that. So I've

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00:25:54,419 --> 00:25:59,279
collected a small portion of the position also. Now here's a

368
00:25:59,279 --> 00:26:04,049
second time taking something off a very small portion of the

369
00:26:04,049 --> 00:26:07,979
original three standard lots on now it's a small little

370
00:26:08,699 --> 00:26:12,599
fragment of the position. Price does one more attempt to

371
00:26:12,599 --> 00:26:19,259
break lower again now it's 10 o'clock at time has passed

372
00:26:19,259 --> 00:26:23,249
about an hour and a half has gone by and at this time I'm

373
00:26:23,249 --> 00:26:25,859
watching price I do not want to see it reverse or start to

374
00:26:26,039 --> 00:26:33,089
show a sign of rejection. Stop has been lowered to now I'm

375
00:26:33,089 --> 00:26:38,129
going to be trying to lock in 20 pips with my stop loss as

376
00:26:38,129 --> 00:26:40,409
it breaks down I will lower my stops that way if it does

377
00:26:40,409 --> 00:26:45,089
knock me out. Now I have 20 pips locked in 25 pips is locked

378
00:26:45,089 --> 00:26:49,289
in. Now we're in an area where it could start to reverse, it

379
00:26:49,289 --> 00:26:54,299
could fail to get down to that other limit order. So I'm not

380
00:26:54,299 --> 00:26:56,189
gonna be able to move the stock because the spread won't

381
00:26:56,189 --> 00:27:01,019
permit me to do so. So I have to either allow myself Stop to

382
00:27:01,019 --> 00:27:04,859
be hit, or my limit order to be taken, or I can collapse the

383
00:27:04,859 --> 00:27:07,799
trade. Now, I was away from the computer here at the time,

384
00:27:07,829 --> 00:27:10,049
but had I been there, I would have been collapsing right

385
00:27:10,049 --> 00:27:17,369
now. But ultimately the price comes back up. And it does, in

386
00:27:17,369 --> 00:27:19,379
fact, stop me out eventually, as you'll see.

387
00:27:24,869 --> 00:27:28,649
But I profited along the way, taking out small portions

388
00:27:28,649 --> 00:27:31,139
because you never know. You never know if it's going to go

389
00:27:31,139 --> 00:27:34,079
down to your objective. And if you've taken the risk on

390
00:27:34,079 --> 00:27:38,999
initially, that risk needs to be reduced to a point of which

391
00:27:38,999 --> 00:27:41,339
where it's no longer impactful and there's my stop loss

392
00:27:41,369 --> 00:27:47,249
being tagged. And there is the fruits of that short, very,

393
00:27:47,279 --> 00:27:54,179
very predictable in terms of price action, and not a bad

394
00:27:54,179 --> 00:27:59,249
little scout for a run on stops. The context was there.

395
00:27:59,399 --> 00:28:03,119
Everything was out Wind and you can see the post trade

396
00:28:03,149 --> 00:28:06,689
results. Ultimately their own. You can see as we showed in

397
00:28:06,689 --> 00:28:09,569
the beginning of the video, euro dollar does vault up higher

398
00:28:10,139 --> 00:28:11,909
after running those stops. Hopefully you found this

399
00:28:11,909 --> 00:28:14,159
insightful until next time, I wish you good luck and good

400
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trading.