Skip to Content
Version 1.1 by Drunk Monkey on 2020-11-20 16:00
Show last authors
1 1
2 00:00:07,919 ~-~-> 00:00:10,859
3 ICT: Okay folks, welcome back. This teaching is going to be
4
5 2
6 00:00:10,859 ~-~-> 00:00:14,069
7 specifically dealing with the ICT monitor open kill zone.
8
9 3
10 00:00:21,360 ~-~-> 00:00:26,130
11 Okay, so the London kill zone what ICT concepts are going to
12
13 4
14 00:00:26,130 ~-~-> 00:00:30,690
15 use this module the importance of time and price again
16
17 5
18 00:00:32,460 ~-~-> 00:00:33,330
19 the London open
20
21 6
22 00:00:34,950 ~-~-> 00:00:40,170
23 the London session important characteristics of London.
24
25 7
26 00:00:43,950 ~-~-> 00:00:49,410
27 Okay, folks, this is one of those topics where it's a very
28
29 8
30 00:00:49,410 ~-~-> 00:00:54,510
31 vast subject. So I'm introducing you slowly into one of the
32
33 9
34 00:00:54,510 ~-~-> 00:01:00,000
35 most important timeframes of the 24 hour banking cycle. The
36
37 10
38 00:01:00,000 ~-~-> 00:01:04,080
39 Logging open is typically a time where I like to trade
40
41 11
42 00:01:04,560 ~-~-> 00:01:09,000
43 because it gives me a lot of opportunities. And it's, well,
44
45 12
46 00:01:09,000 ~-~-> 00:01:12,900
47 its magnitude is a lot more favorable for a short term
48
49 13
50 00:01:12,900 ~-~-> 00:01:19,560
51 trader. It comes with it a great deal of responsibility in
52
53 14
54 00:01:19,560 ~-~-> 00:01:22,350
55 terms of knowing what the higher timeframes are doing. A lot
56
57 15
58 00:01:22,350 ~-~-> 00:01:24,990
59 of economic calendar releases come out overnight, and they
60
61 16
62 00:01:24,990 ~-~-> 00:01:29,250
63 can be very volatile. But the euro dollar and the British
64
65 17
66 00:01:29,250 ~-~-> 00:01:32,910
67 Pound pairs are ideal for this time of day. And that's why
68
69 18
70 00:01:32,910 ~-~-> 00:01:36,180
71 I've elected to trade those two pairs. The London open
72
73 19
74 00:01:36,180 ~-~-> 00:01:39,540
75 frequently sets up an optimal trade entry pattern that can
76
77 20
78 00:01:39,540 ~-~-> 00:01:45,840
79 offer 25 to 50 pips, for a scalp. The key times to monitor
80
81 21
82 00:01:45,870 ~-~-> 00:01:53,040
83 are 2am to 5am, New York time center where it's the easiest
84
85 22
86 00:01:53,040 ~-~-> 00:01:57,570
87 way to avoid me confusing you about the time is determined
88
89 23
90 00:01:57,570 ~-~-> 00:02:03,330
91 whatever time it is. in your area relative to what it is in
92
93 24
94 00:02:03,360 ~-~-> 00:02:12,870
95 New York time, okay? And physically wait for 2am to be in
96
97 25
98 00:02:12,870 ~-~-> 00:02:16,800
99 New York, and then calibrate that with your broker and your
100
101 26
102 00:02:16,800 ~-~-> 00:02:20,460
103 local time, and always set a clock for New York. And you'll
104
105 27
106 00:02:20,460 ~-~-> 00:02:22,890
107 know exactly what I'm referring to in terms of time, it's
108
109 28
110 00:02:22,890 ~-~-> 00:02:26,070
111 the easiest way I can overcome that barrier, because it's
112
113 29
114 00:02:26,070 ~-~-> 00:02:29,730
115 been a point of confusion many times, because I don't know
116
117 30
118 00:02:29,730 ~-~-> 00:02:33,330
119 where you are globally, and you're all in different
120
121 31
122 00:02:34,200 ~-~-> 00:02:40,590
123 locations of the globe. I don't know what the translation is
124
125 32
126 00:02:40,590 ~-~-> 00:02:43,680
127 going to be in terms of time, so the conversions are going
128
129 33
130 00:02:43,680 ~-~-> 00:02:49,560
131 to be up to you. But the ideal ICT London kill zone for your
132
133 34
134 00:02:49,560 ~-~-> 00:02:53,610
135 learning is going to be 2am to 5am. And it's relative to New
136
137 35
138 00:02:53,610 ~-~-> 00:02:59,520
139 York time. Now, if you look at this chart here, this is a
140
141 36
142 00:02:59,550 ~-~-> 00:03:03,690
143 euro Dollar chart. And what I'm highlighting here is two
144
145 37
146 00:03:03,690 ~-~-> 00:03:07,710
147 specific trading days. And I want you to take a look at the
148
149 38
150 00:03:09,570 ~-~-> 00:03:13,170
151 red. It's like a deep red vertical line, there's two of them
152
153 39
154 00:03:13,980 ~-~-> 00:03:18,660
155 immediately to the right, of the left most vertical red
156
157 40
158 00:03:18,660 ~-~-> 00:03:26,460
159 line. We see price action drop down initially, and then
160
161 41
162 00:03:26,460 ~-~-> 00:03:30,150
163 rallies up and it creates the very high of the day, the
164
165 42
166 00:03:30,150 ~-~-> 00:03:33,840
167 day's low forms down here. And it comes off the low and
168
169 43
170 00:03:33,870 ~-~-> 00:03:38,640
171 close closes off the low. The next trading day. Again, here
172
173 44
174 00:03:38,640 ~-~-> 00:03:42,120
175 is the vertical red line. And this delineates New York time.
176
177 45
178 00:03:42,630 ~-~-> 00:03:46,560
179 midnight. Okay, so Midnight in New York. That's what this
180
181 46
182 00:03:46,830 ~-~-> 00:03:49,980
183 vertical red line delineates for this particular day. And
184
185 47
186 00:03:50,010 ~-~-> 00:03:54,540
187 this represents Midnight in New York on this trading day. So
188
189 48
190 00:03:55,080 ~-~-> 00:03:57,870
191 we can see that the price rallies again for the euro dollar
192
193 49
194 00:03:57,870 ~-~-> 00:04:03,000
195 up into this smaller little segment of time, and it creates
196
197 50
198 00:04:03,000 ~-~-> 00:04:06,750
199 a high end trades down, crease the low day later on and goes
200
201 51
202 00:04:06,750 ~-~-> 00:04:10,050
203 in consolidation and closes in the middle of the range. The
204
205 52
206 00:04:10,050 ~-~-> 00:04:15,990
207 key takeaway that I want you to more or less be encouraged
208
209 53
210 00:04:15,990 ~-~-> 00:04:20,700
211 to go through your charts and study is that London open
212
213 54
214 00:04:21,300 ~-~-> 00:04:24,930
215 generally has the highest probability of creating the high
216
217 55
218 00:04:25,170 ~-~-> 00:04:30,870
219 or the low the day. So here, we see price trading up to and
220
221 56
222 00:04:30,900 ~-~-> 00:04:34,470
223 this little blue line segment. And this little blue line
224
225 57
226 00:04:34,470 ~-~-> 00:04:38,010
227 segment is just delineating that little pocket of time that
228
229 58
230 00:04:38,010 ~-~-> 00:04:40,710
231 window of opportunity. Between two o'clock in the morning
232
233 59
234 00:04:40,710 ~-~-> 00:04:44,640
235 and 5am New York time, you can see how beautifully goes up.
236
237 60
238 00:04:45,300 ~-~-> 00:04:47,910
239 trades makes the highly day and then trades aggressively
240
241 61
242 00:04:47,910 ~-~-> 00:04:51,840
243 lower. Same thing here on this day, it trades up spikes up,
244
245 62
246 00:04:52,440 ~-~-> 00:04:55,890
247 creates the high the day and then sells off. Okay? This is
248
249 63
250 00:04:55,890 ~-~-> 00:05:01,800
251 one of the biggest things that a lot of students of mine And
252
253 64
254 00:05:01,800 ~-~-> 00:05:04,590
255 people that have just casually looked at my things in terms
256
257 65
258 00:05:04,590 ~-~-> 00:05:09,990
259 of my tutorials. This is one of the biggest wealth. In my
260
261 66
262 00:05:09,990 ~-~-> 00:05:14,250
263 career, it was the biggest discovery because it helps me
264
265 67
266 00:05:15,000 ~-~-> 00:05:19,080
267 determine where when I'm bearish, the actual high the other
268
269 68
270 00:05:19,080 ~-~-> 00:05:23,730
271 day is going to form. And if I can do that, with a
272
273 69
274 00:05:23,730 ~-~-> 00:05:25,740
275 reasonable measure of
276
277 70
278 00:05:26,609 ~-~-> 00:05:30,389
279 accuracy or consistency, just imagine if you could get three
280
281 71
282 00:05:30,389 ~-~-> 00:05:33,779
283 to four opportunities where you can get the high or very
284
285 72
286 00:05:33,779 ~-~-> 00:05:36,749
287 close to the high the day and ride the majority of the daily
288
289 73
290 00:05:36,749 ~-~-> 00:05:39,929
291 range. If you could do that a few times a month, you could
292
293 74
294 00:05:39,929 ~-~-> 00:05:45,689
295 do exceptionally well as an FX trader. Now, it doesn't lend
296
297 75
298 00:05:45,839 ~-~-> 00:05:49,949
299 itself to just forex. This same phenomenon occurs in other
300
301 76
302 00:05:49,949 ~-~-> 00:05:54,359
303 assets. Now I don't trade Bitcoin or cryptocurrencies, but I
304
305 77
306 00:05:54,359 ~-~-> 00:05:57,599
307 have students of mine that swear by this working in that
308
309 78
310 00:05:57,659 ~-~-> 00:06:01,529
311 asset as well. It works income oddities. It works in bonds,
312
313 79
314 00:06:01,529 ~-~-> 00:06:05,129
315 it works in just about everything that trades electronically
316
317 80
318 00:06:05,129 ~-~-> 00:06:11,249
319 overnight. Incidentally, you can anticipate things like this
320
321 81
322 00:06:11,249 ~-~-> 00:06:15,419
323 to occur in index trading. So if you're trading, for
324
325 82
326 00:06:15,419 ~-~-> 00:06:21,719
327 instance, the DAX, the footsie or the s&p 500, or doubt or
328
329 83
330 00:06:21,899 ~-~-> 00:06:25,979
331 NASDAQ futures contracts, overnight trading, you can see the
332
333 84
334 00:06:25,979 ~-~-> 00:06:31,229
335 same phenomenon occur as well. So it really isn't limited to
336
337 85
338 00:06:31,229 ~-~-> 00:06:35,369
339 just forex now. Because I taught it to the trading
340
341 86
342 00:06:35,369 ~-~-> 00:06:41,099
343 community. They assumed that it was limited and only salient
344
345 87
346 00:06:41,099 ~-~-> 00:06:45,659
347 to forex or foreign exchange. I used this same concept as a
348
349 88
350 00:06:45,659 ~-~-> 00:06:50,849
351 commodity trader in the early 90s. So it's not that we have
352
353 89
354 00:06:50,909 ~-~-> 00:06:55,499
355 a asset class that it can only function in with this type of
356
357 90
358 00:06:55,499 ~-~-> 00:06:58,109
359 trading or this type of price action. It's completely
360
361 91
362 00:06:58,109 ~-~-> 00:07:02,189
363 universal. And that's pretty Powerful now if we have a
364
365 92
366 00:07:02,909 ~-~-> 00:07:08,519
367 market that is, let's say, in a strong trending environment,
368
369 93
370 00:07:09,359 ~-~-> 00:07:12,959
371 you want to be really focusing in on London because London
372
373 94
374 00:07:12,959 ~-~-> 00:07:16,649
375 will give you the highest probability of a low risk entry
376
377 95
378 00:07:16,649 ~-~-> 00:07:23,939
379 price point. Okay and conversely we can see when the market
380
381 96
382 00:07:23,939 ~-~-> 00:07:30,959
383 is bullish the tendency is for the market to trade down
384
385 97
386 00:07:31,679 ~-~-> 00:07:35,909
387 creating the low the day in the London open ICT kills them.
388
389 98
390 00:07:37,679 ~-~-> 00:07:41,399
391 Again here, market trades down after midnight New York time
392
393 99
394 00:07:41,729 ~-~-> 00:07:44,669
395 creates the low of the day between two o'clock and five
396
397 100
398 00:07:44,669 ~-~-> 00:07:48,029
399 o'clock in the morning New York time. Low they forms off to
400
401 101
402 00:07:48,029 ~-~-> 00:07:51,899
403 the races we go. So here's to back to back trading days.
404
405 102
406 00:07:52,379 ~-~-> 00:07:56,729
407 Okay. If you could have taken along not even at the low,
408
409 103
410 00:07:56,939 ~-~-> 00:08:02,429
411 okay, say you use some Have an online maybe a buy stop to
412
413 104
414 00:08:02,429 ~-~-> 00:08:06,449
415 get in. Okay if you try to buy stop above these individual
416
417 105
418 00:08:06,449 ~-~-> 00:08:10,559
419 candle highs and events a trip to you and get you long and
420
421 106
422 00:08:10,649 ~-~-> 00:08:16,469
423 held on to it for 3040 pips, each trading day, it adds up
424
425 107
426 00:08:16,469 ~-~-> 00:08:22,799
427 quickly folks. Same thing here. Market creating low takes
428
429 108
430 00:08:22,799 ~-~-> 00:08:27,689
431 off aggressively. Now I want you to take a look at the
432
433 109
434 00:08:27,689 ~-~-> 00:08:33,689
435 relationship between one long and open low and the immediate
436
437 110
438 00:08:34,049 ~-~-> 00:08:39,389
439 day after London open low. Okay, we have a range that's
440
441 111
442 00:08:39,389 ~-~-> 00:08:43,919
443 framed by the low here and this highest high in between the
444
445 112
446 00:08:43,919 ~-~-> 00:08:53,519
447 two London lows. This is your trading range here and this
448
449 113
450 00:08:53,519 ~-~-> 00:08:57,149
451 would be an optimal trade entry long using previous day's
452
453 114
454 00:08:57,509 ~-~-> 00:09:03,329
455 data to today's In setup, she can get an optimal trade entry
456
457 115
458 00:09:03,329 ~-~-> 00:09:09,389
459 on that. And price as an expansion on the upside. And we can
460
461 116
462 00:09:09,389 ~-~-> 00:09:13,409
463 see a very nice opportunity to have a long trade on both
464
465 117
466 00:09:13,769 ~-~-> 00:09:17,879
467 days here, focusing on London open, creating the low the day
468
469 118
470 00:09:18,209 ~-~-> 00:09:26,309
471 when the underlying market is poised to go higher. Okay, so
472
473 119
474 00:09:26,639 ~-~-> 00:09:32,039
475 the London session itself actually trades a little bit
476
477 120
478 00:09:32,039 ~-~-> 00:09:38,189
479 longer than 5am. Okay, but for the sake of my concepts I
480
481 121
482 00:09:38,189 ~-~-> 00:09:44,279
483 want to graduate over time, the significance of five o'clock
484
485 122
486 00:09:44,279 ~-~-> 00:09:46,769
487 in the morning, New York time to seven o'clock in the
488
489 123
490 00:09:46,769 ~-~-> 00:09:52,439
491 morning, New York time, which is classically, like a London
492
493 124
494 00:09:52,439 ~-~-> 00:09:56,459
495 lunch period where it can go quiet. It can have minor little
496
497 125
498 00:09:56,459 ~-~-> 00:10:00,659
499 retracements but I don't like to see any kind of entry
500
501 126
502 00:10:00,659 ~-~-> 00:10:03,059
503 between five o'clock and seven o'clock in the morning, New
504
505 127
506 00:10:03,059 ~-~-> 00:10:07,769
507 York time. Because it can tend to wait for the New York
508
509 128
510 00:10:07,769 ~-~-> 00:10:11,339
511 open, which we'll cover next lesson. But the price action
512
513 129
514 00:10:11,339 ~-~-> 00:10:14,579
515 during the London session sees the highest probability of a
516
517 130
518 00:10:14,579 ~-~-> 00:10:15,359
519 large
520
521 131
522 00:10:15,569 ~-~-> 00:10:19,619
523 directional move in the 24 hour day. So what does that mean?
524
525 132
526 00:10:20,309 ~-~-> 00:10:26,039
527 If we were to look at the entire 24 hour market and pick it
528
529 133
530 00:10:26,279 ~-~-> 00:10:30,929
531 picked up, beginning point and fall around the entire world,
532
533 134
534 00:10:31,229 ~-~-> 00:10:35,279
535 and where it began, it'll end so we have 24 hours of time.
536
537 135
538 00:10:35,669 ~-~-> 00:10:39,329
539 If we were to measure the volume or how much action if you
540
541 136
542 00:10:39,329 ~-~-> 00:10:42,269
543 want to call it any other word, it's it's layman's terms the
544
545 137
546 00:10:42,269 ~-~-> 00:10:46,109
547 most bang for your buck is going to be in the lung and open.
548
549 138
550 00:10:46,589 ~-~-> 00:10:52,139
551 Now that right away draws excitement to younger guys. And if
552
553 139
554 00:10:52,139 ~-~-> 00:10:54,299
555 you don't know what you're doing, you can get really hurt
556
557 140
558 00:10:54,329 ~-~-> 00:10:57,929
559 quick in the London session because it can be extremely
560
561 141
562 00:10:57,929 ~-~-> 00:11:02,009
563 volatile and it can be like a lightning bolt. Okay, if
564
565 142
566 00:11:02,009 ~-~-> 00:11:05,159
567 you're caught on the wrong side of the marketplace, and as a
568
569 143
570 00:11:05,159 ~-~-> 00:11:09,749
571 high impact news event, it's out during that timeframe, you
572
573 144
574 00:11:09,749 ~-~-> 00:11:13,919
575 can get mowed over rather quickly. And if you don't use stop
576
577 145
578 00:11:13,919 ~-~-> 00:11:17,339
579 loss orders, that session is going to treat you very
580
581 146
582 00:11:17,339 ~-~-> 00:11:20,849
583 cruelly, in the form of taking money from you. Because
584
585 147
586 00:11:20,909 ~-~-> 00:11:26,789
587 London can be extremely one sided. And once it takes off,
588
589 148
590 00:11:26,819 ~-~-> 00:11:29,219
591 it's pretty relentless, it doesn't really give you a chance
592
593 149
594 00:11:29,219 ~-~-> 00:11:33,989
595 to get off the hook. And the London trading session actually
596
597 150
598 00:11:34,199 ~-~-> 00:11:40,079
599 extends beyond the 5am hour to 7am New York time. The London
600
601 151
602 00:11:40,079 ~-~-> 00:11:43,259
603 session sees the highest volume of order execution than any
604
605 152
606 00:11:43,259 ~-~-> 00:11:46,889
607 other trading session. We look at the little chart to the
608
609 153
610 00:11:46,889 ~-~-> 00:11:52,529
611 right. And again, all I'm trying to do is show the profile
612
613 154
614 00:11:52,529 ~-~-> 00:11:55,499
615 itself we don't need to zoom in and look at details of wicks
616
617 155
618 00:11:55,499 ~-~-> 00:11:58,499
619 and candle bodies. I just want you to look at it graphically
620
621 156
622 00:11:58,499 ~-~-> 00:12:03,779
623 in terms of The way the range is expand and how it looks
624
625 157
626 00:12:04,409 ~-~-> 00:12:09,089
627 overall. So we have a trading day here of consolidation, it
628
629 158
630 00:12:09,089 ~-~-> 00:12:14,099
631 creates a little bit of a run up, rejects that and trades
632
633 159
634 00:12:14,309 ~-~-> 00:12:21,239
635 aggressively lower and then comes off the low and begins the
636
637 160
638 00:12:21,239 ~-~-> 00:12:28,499
639 New York session. So we have a micro power three formation
640
641 161
642 00:12:29,009 ~-~-> 00:12:30,959
643 in here. So we have the open
644
645 162
646 00:12:31,409 ~-~-> 00:12:32,219
647 the rally up
648
649 163
650 00:12:33,960 ~-~-> 00:12:39,750
651 the expansion, the low off the low closes. Okay, prices
652
653 164
654 00:12:39,750 ~-~-> 00:12:45,000
655 fractal folks, we can anticipate seeing duplicate patterns
656
657 165
658 00:12:45,030 ~-~-> 00:12:48,300
659 that are seen on higher timeframes on a lower timeframe. So
660
661 166
662 00:12:48,300 ~-~-> 00:12:51,060
663 if we understand that the daily range if it's a bearish
664
665 167
666 00:12:51,870 ~-~-> 00:12:55,980
667 market profile or for looking for lower prices, the opening
668
669 168
670 00:12:56,130 ~-~-> 00:12:59,460
671 on the daily range or daily bar it's going to be at or near
672
673 169
674 00:12:59,460 ~-~-> 00:13:03,750
675 the high today. The high is going to be very limited in
676
677 170
678 00:13:03,750 ~-~-> 00:13:06,870
679 terms of how much it goes above the opening price. And then
680
681 171
682 00:13:06,900 ~-~-> 00:13:09,000
683 the largest portion of the range is going to be between the
684
685 172
686 00:13:09,000 ~-~-> 00:13:11,430
687 open and the close. And the close is gonna be near the low
688
689 173
690 00:13:11,430 ~-~-> 00:13:15,390
691 of the day. Well, this is intraday price action between this
692
693 174
694 00:13:15,390 ~-~-> 00:13:18,180
695 vertical line here and this vertical line here. This is
696
697 175
698 00:13:18,180 ~-~-> 00:13:21,870
699 delineating two o'clock in the morning to seven o'clock in
700
701 176
702 00:13:21,870 ~-~-> 00:13:25,170
703 the morning, New York time. Okay, so we're looking at a
704
705 177
706 00:13:25,170 ~-~-> 00:13:32,760
707 window of five hours. So if we understand that price can be
708
709 178
710 00:13:32,760 ~-~-> 00:13:37,710
711 fractal and we're bearish, this could be viewed as a micro
712
713 179
714 00:13:37,710 ~-~-> 00:13:42,810
715 power three formation. Okay. Now, why is that significant?
716
717 180
718 00:13:42,810 ~-~-> 00:13:45,510
719 Why should I be teaching it to you? What's the point of it?
720
721 181
722 00:13:45,930 ~-~-> 00:13:50,820
723 Well, if we see in this trading day here, it creates a
724
725 182
726 00:13:50,820 ~-~-> 00:13:54,210
727 scenario where let's assume for a moment that we were
728
729 183
730 00:13:54,210 ~-~-> 00:13:57,750
731 anticipating a bullish market move. Okay, maybe this
732
733 184
734 00:13:57,750 ~-~-> 00:14:00,450
735 particular day trade down to a level that was Some kind of a
736
737 185
738 00:14:00,450 ~-~-> 00:14:05,550
739 support level, and we came off of it to consolidated, okay,
740
741 186
742 00:14:05,550 ~-~-> 00:14:10,470
743 and then we came down initially, right after the two o'clock
744
745 187
746 00:14:10,500 ~-~-> 00:14:21,750
747 time period. And price drops down into a significant low. If
748
749 188
750 00:14:21,750 ~-~-> 00:14:27,060
751 price doesn't start to run there during the London session,
752
753 189
754 00:14:27,870 ~-~-> 00:14:31,410
755 we could reasonably expect that the real move is going to be
756
757 190
758 00:14:31,560 ~-~-> 00:14:34,470
759 in the next trading session, which would be the new york
760
761 191
762 00:14:34,470 ~-~-> 00:14:37,200
763 session, which is not going to be our teaching here. It's
764
765 192
766 00:14:37,200 ~-~-> 00:14:41,610
767 the next lesson in this series. But you can see the move
768
769 193
770 00:14:41,970 ~-~-> 00:14:47,430
771 ensues after the crossover from the London session and then
772
773 194
774 00:14:47,430 ~-~-> 00:14:51,390
775 the beginning of the new york session. Now, the London
776
777 195
778 00:14:51,390 ~-~-> 00:14:54,390
779 session technically extends even beyond seven o'clock in the
780
781 196
782 00:14:54,390 ~-~-> 00:14:59,040
783 morning, up into 10 to 11 o'clock in the morning, New York
784
785 197
786 00:14:59,040 ~-~-> 00:15:03,750
787 time So basically it's three o'clock in the morning New York
788
789 198
790 00:15:03,750 ~-~-> 00:15:11,430
791 time, to 11am to noon. All relative to New York time. Okay,
792
793 199
794 00:15:11,730 ~-~-> 00:15:16,890
795 so there's an overlap of New York and London trading, which
796
797 200
798 00:15:16,890 ~-~-> 00:15:18,780
799 makes the next teaching a little bit more interesting as
800
801 201
802 00:15:18,780 ~-~-> 00:15:23,490
803 well. But the takeaways I want you to have is that the
804
805 202
806 00:15:23,520 ~-~-> 00:15:27,870
807 London session can create the higher low day. And we can
808
809 203
810 00:15:27,870 ~-~-> 00:15:33,990
811 also study the profile that takes place in between the
812
813 204
814 00:15:33,990 ~-~-> 00:15:38,340
815 beginning and ending of the overnight session. If it's
816
817 205
818 00:15:38,340 ~-~-> 00:15:43,200
819 trending, okay, we have a trending model like this. Chances
820
821 206
822 00:15:43,200 ~-~-> 00:15:47,580
823 are, we could see it rather quiet. New York session doesn't
824
825 207
826 00:15:47,580 ~-~-> 00:15:50,940
827 mean that always but it's one way I like to look for
828
829 208
830 00:15:51,660 ~-~-> 00:15:55,500
831 potentially a slow New York session. Or we could have a
832
833 209
834 00:15:55,500 ~-~-> 00:15:58,980
835 reversal scenario, which is what we saw here. Okay, to the
836
837 210
838 00:15:58,980 ~-~-> 00:16:01,860
839 right of this vertical line. Is the New York session you can
840
841 211
842 00:16:01,860 ~-~-> 00:16:03,630
843 see it did have a little bit reversal, but it went
844
845 212
846 00:16:03,630 ~-~-> 00:16:06,120
847 consolidated, and basically traded in the middle of the
848
849 213
850 00:16:06,120 ~-~-> 00:16:11,010
851 overall range into the close. The very next day, we had a
852
853 214
854 00:16:11,010 ~-~-> 00:16:13,800
855 initial drop down in London, creating the low of the day.
856
857 215
858 00:16:14,340 ~-~-> 00:16:17,340
859 But it closed the session right in the middle. So it didn't
860
861 216
862 00:16:17,340 ~-~-> 00:16:21,360
863 really have much of a trend had a spike low. But if we're
864
865 217
866 00:16:21,360 ~-~-> 00:16:24,360
867 bullish, it didn't really show any kind of indication that
868
869 218
870 00:16:24,420 ~-~-> 00:16:27,870
871 in the London session, but as soon as we crossed over into
872
873 219
874 00:16:27,870 ~-~-> 00:16:32,190
875 the New York session and overlapped with London, then we
876
877 220
878 00:16:32,190 ~-~-> 00:16:37,290
879 have the optimal trade entry. Then we have the dynamic
880
881 221
882 00:16:37,290 ~-~-> 00:16:40,590
883 imbalance where the range expansion occurs for the for the
884
885 222
886 00:16:40,590 ~-~-> 00:16:47,850
887 daily upside and up close. So London, gives us a lot of
888
889 223
890 00:16:47,850 ~-~-> 00:16:51,030
891 things to study. And I want you to go through your charts
892
893 224
894 00:16:51,030 ~-~-> 00:16:53,760
895 and look for examples of the things I just outlined here.
896
897 225
898 00:16:54,450 ~-~-> 00:17:01,200
899 And I think you'll be rather surprised Okay, the one session
900
901 226
902 00:17:01,200 ~-~-> 00:17:05,280
903 characteristics. Now abundant session typically creates the
904
905 227
906 00:17:05,280 ~-~-> 00:17:08,580
907 low the day when the market is primarily bullish. And the
908
909 228
910 00:17:08,580 ~-~-> 00:17:12,210
911 high of the day when bearish. When the market is poised to
912
913 229
914 00:17:12,210 ~-~-> 00:17:15,150
915 trade higher on a daily timeframe, we can focus on the
916
917 230
918 00:17:15,150 ~-~-> 00:17:18,780
919 London session to post a low the trading day. If the daily
920
921 231
922 00:17:18,780 ~-~-> 00:17:21,930
923 is poised to trade lower, we can focus on the London session
924
925 232
926 00:17:22,170 ~-~-> 00:17:24,000
927 to post the highs of the trading day.
928
929 233
930 00:17:33,750 ~-~-> 00:17:37,050
931 Okay, and what I've done is instead of putting the Fibonacci
932
933 234
934 00:17:37,050 ~-~-> 00:17:40,950
935 on the chart, and cluttering it all up, I just basically
936
937 235
938 00:17:41,160 ~-~-> 00:17:44,700
939 drew a line indicating the high I'm using and the low I'm
940
941 236
942 00:17:44,700 ~-~-> 00:17:48,840
943 using. Now I'm not using the body the body reference points
944
945 237
946 00:17:48,840 ~-~-> 00:17:52,080
947 because of the daily timeframe and I want to encapsulate the
948
949 238
950 00:17:52,080 ~-~-> 00:17:57,480
951 entire range with the wicks included. It will not change
952
953 239
954 00:17:57,480 ~-~-> 00:17:59,490
955 what I'm going to show you here so if you have your daily
956
957 240
958 00:17:59,490 ~-~-> 00:18:02,760
959 timeframe On your eurodollar you'll see that it will still
960
961 241
962 00:18:02,760 ~-~-> 00:18:06,720
963 take us up into optimal trade entry, which is basically a
964
965 242
966 00:18:07,380 ~-~-> 00:18:13,320
967 non indicator form of overbought or oversold. Okay. So what
968
969 243
970 00:18:13,320 ~-~-> 00:18:17,160
971 we're seeing here is the market on the Euro, trading up into
972
973 244
974 00:18:17,580 ~-~-> 00:18:21,090
975 the 70.5 level, failing to get to the 79 level and this
976
977 245
978 00:18:21,090 ~-~-> 00:18:25,110
979 candle right here shows a willingness to want to reverse so
980
981 246
982 00:18:25,110 ~-~-> 00:18:29,040
983 the next candle we could potentially see this be a bearish
984
985 247
986 00:18:29,040 ~-~-> 00:18:32,190
987 candle. Now I'm not looking at swing points, I'm just
988
989 248
990 00:18:32,190 ~-~-> 00:18:36,750
991 looking at in terms of where we are in a higher timeframe
992
993 249
994 00:18:36,780 ~-~-> 00:18:41,880
995 and this could be a point of interest for a breakdown. Okay,
996
997 250
998 00:18:42,240 ~-~-> 00:18:45,510
999 so once we have a bearish candle like this, and we're inside
1000
1001 251
1002 00:18:45,510 ~-~-> 00:18:50,040
1003 the area of optimal trade entry, for sell, we would be
1004
1005 252
1006 00:18:50,040 ~-~-> 00:18:53,820
1007 deemed as a potential sell. The very next candle we want to
1008
1009 253
1010 00:18:53,820 ~-~-> 00:18:57,840
1011 study that extend may give us a condition that frames a
1012
1013 254
1014 00:18:59,130 ~-~-> 00:19:03,960
1015 power three form With a down close, relative to the daily
1016
1017 255
1018 00:19:03,960 ~-~-> 00:19:08,820
1019 chart, okay, so we have this particular day here, which is
1020
1021 256
1022 00:19:10,200 ~-~-> 00:19:14,610
1023 the 28th of November. And we have the market trading
1024
1025 257
1026 00:19:14,610 ~-~-> 00:19:19,770
1027 sideways until midnight in New York, and then we have the
1028
1029 258
1030 00:19:19,770 ~-~-> 00:19:25,050
1031 market initially drop down. We do not worry about that. We
1032
1033 259
1034 00:19:25,050 ~-~-> 00:19:27,390
1035 want to see it rally up into
1036
1037 260
1038 00:19:27,780 ~-~-> 00:19:28,680
1039 London open.
1040
1041 261
1042 00:19:29,280 ~-~-> 00:19:33,630
1043 It starts this area right here. It's dropping here we want
1044
1045 262
1046 00:19:33,630 ~-~-> 00:19:36,720
1047 we don't want to see that. We want to see price rally up.
1048
1049 263
1050 00:19:37,260 ~-~-> 00:19:40,770
1051 That's where we'll sell. Notice also that we have equal
1052
1053 264
1054 00:19:40,770 ~-~-> 00:19:44,670
1055 highs in here. Okay, about 10 pips above this short term
1056
1057 265
1058 00:19:44,670 ~-~-> 00:19:48,810
1059 high that gives us the high of the day. At the same time, we
1060
1061 266
1062 00:19:48,810 ~-~-> 00:19:51,600
1063 would reasonably expect to see London open create the high
1064
1065 267
1066 00:19:51,600 ~-~-> 00:19:55,650
1067 of the day. Why should the daily bias be bearish? Because
1068
1069 268
1070 00:19:55,650 ~-~-> 00:19:58,440
1071 it's been going bullish here, while we trade it into an area
1072
1073 269
1074 00:19:58,440 ~-~-> 00:20:02,040
1075 of optimal trade entry and we got one case Though showing a
1076
1077 270
1078 00:20:02,040 ~-~-> 00:20:05,250
1079 willingness to reject and go lower, so we want to look for
1080
1081 271
1082 00:20:05,250 ~-~-> 00:20:08,760
1083 characteristics like we're seeing here the open and then
1084
1085 272
1086 00:20:08,760 ~-~-> 00:20:12,660
1087 rally above we can look to a seller their effort takes equal
1088
1089 273
1090 00:20:12,660 ~-~-> 00:20:18,240
1091 highs out so we have cameleon buy stop liquidity pool, okay,
1092
1093 274
1094 00:20:18,780 ~-~-> 00:20:22,650
1095 runs up, knocks and stops out and then trades aggressively
1096
1097 275
1098 00:20:22,650 ~-~-> 00:20:26,940
1099 lower, creates the low of the day, it comes off the low day
1100
1101 276
1102 00:20:27,120 ~-~-> 00:20:34,050
1103 trades at or near the low. So in relationship to power
1104
1105 277
1106 00:20:34,050 ~-~-> 00:20:37,800
1107 three, if we're looking at this price action here, you can
1108
1109 278
1110 00:20:37,800 ~-~-> 00:20:40,740
1111 see that would be the daily range. So we can see that the
1112
1113 279
1114 00:20:40,740 ~-~-> 00:20:44,820
1115 opening it's a very limited upside movement above the
1116
1117 280
1118 00:20:44,820 ~-~-> 00:20:48,330
1119 opening. That's just a portion of price action here. It
1120
1121 281
1122 00:20:48,330 ~-~-> 00:20:51,450
1123 creates the high of the day during the London open kill zone
1124
1125 282
1126 00:20:51,450 ~-~-> 00:20:54,030
1127 between two o'clock and five o'clock in the morning. Dynamic
1128
1129 283
1130 00:20:54,030 ~-~-> 00:20:57,540
1131 imbalance or range expansion for the daily candle or bar
1132
1133 284
1134 00:20:57,900 ~-~-> 00:21:01,080
1135 creating the low of the day. Right here. Then we come off
1136
1137 285
1138 00:21:01,080 ~-~-> 00:21:05,430
1139 the low trading near the low of the day. In closing, right
1140
1141 286
1142 00:21:05,430 ~-~-> 00:21:11,850
1143 here. So this is this is this whole candle right here. This
1144
1145 287
1146 00:21:11,850 ~-~-> 00:21:15,630
1147 is what it looks like in a open high low close format. So
1148
1149 288
1150 00:21:15,630 ~-~-> 00:21:18,390
1151 hopefully you found this teaching insightful. Until next
1152
1153 289
1154 00:21:18,390 ~-~-> 00:21:20,490
1155 time, I wish you good luck and good trading