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ICT Market Maker Primer Course - 11 - Implementing The Asian Range.srt

Last modified by Drunk Monkey on 2021-06-10 06:21
1 00:00:10,980 --> 00:00:16,200 ICT: Okay, folks, welcome back. This teaching is gonna be specifically dealing with implementing the Asian range.
2 00:00:21,810 --> 00:00:34,080 All right, the Asian range. Notice it does not say ICT Asian range. I did not create this or author this concept. My first introduction to it was from another
3 00:00:34,080 --> 00:00:45,360 trader, which I'll mention later on the presentation, but what ICT concepts we're going to use in this module we'll be introducing the Asian range. Let me
4 00:00:45,360 --> 00:00:59,400 defining what the Asian range is and charts. And we'll teach you how to utilize it in bullish conditions and how to utilize it in bearish conditions. Alright,
5 00:00:59,400 --> 00:01:10,050 introducing the Asian range. Now, what is the Asian range? Well, the price action prior to the Frankfurt open, or London opening can be very indicative of
6 00:01:10,050 --> 00:01:19,320 the future intraday price movement. Now, when we have a directional bias, you can use this Asian range to build or frame a context or storyline to the markets
7 00:01:19,320 --> 00:01:30,510 likely intentions. There's a stillness in price many times right before the intraday directional impulse price swing. Look at the chart here on the right,
8 00:01:30,660 --> 00:01:43,650 this is an Aussie dollar chart, you can see that there is a little shaded area right in here. And it's delineated with the gray shaded box. And I've labeled it
9 00:01:44,640 --> 00:01:58,350 not surprisingly, the Asian range. So this little piece of price action. Okay. I actually learned about this from Chris Loring. And I'll show you what I was
10 00:01:58,350 --> 00:02:07,230 doing before I learned this. So that way, you can see I already had a bead on what price should be doing. But when I first saw him refer to him in his free
11 00:02:07,230 --> 00:02:18,570 teachings. He has a website, Chris Laurie calm. It's changed and morphed a little bit over time. But folks that have gone through his material that know
12 00:02:18,570 --> 00:02:29,190 who I'm referring to, they would not an agreement that they would know what I'm saying is true. He taught about the Asian range many times in free teachings. So
13 00:02:29,190 --> 00:02:37,920 it's not like I'm taking anything away from him. In fact, if you're not happy with what you see in my content, but you do want to take some advice from
14 00:02:37,920 --> 00:02:48,930 someone that has seen a lot of things out there, Chris Laurie has a lot of good price action study and his methods. While they are not mine, there's some
15 00:02:48,930 --> 00:02:57,000 similarities to what Chris does. But I'm going to show you what I took away from him. This is the only thing I really learned from Chris Laurie really. But and
16 00:02:57,000 --> 00:03:04,740 that's not to diminish his importance as a teacher, what he knows, I'm just saying that this is what I gleaned from his material. I liked it because I was
17 00:03:04,740 --> 00:03:15,060 already familiar with using consolidations, in certain periods of trading 24 hour period, if you take certain ranges, you can do some really magical things
18 00:03:15,060 --> 00:03:24,270 with them. And I teach you that in the mentorship. And it goes well beyond what I've done in YouTube videos over the past couple of years. So what I liked about
19 00:03:24,270 --> 00:03:37,260 it was, I seen a lot of context, right away when I seen how that the range is applied to the chart. So I'll give you what I used to do, and how I used entry
20 00:03:37,260 --> 00:03:44,700 techniques to do it so that we have a little bit of a takeaway, not only just talking about the range itself, but what we can do with it. And then I'll show
21 00:03:44,700 --> 00:03:55,200 you what I've done with it to incorporate it. Now I'm not teaching you everything I know about this range. And what I've done with it over the last 10
22 00:03:55,200 --> 00:04:08,490 years or so, the implement tation of it, I think is useful for developing trader. But there has to be some context behind it. The range itself doesn't
23 00:04:08,490 --> 00:04:21,840 produce anything magical. But if you have a storyline behind what price should be doing that particular day, it is unbelievably helpful. Okay, so let's define
24 00:04:21,840 --> 00:04:33,300 the Asian range. What is it that we can do on our charts to make it appear and draw our attention to it? Well, the range begins at 7pm New York time ends at
25 00:04:33,300 --> 00:04:46,770 midnight, New York time now as a special inclusion here. Chris Laurie had his Asian range pushed beyond midnight. If my if memory serves me correct, I believe
26 00:04:46,770 --> 00:05:00,270 he had 12:30am. And to me, the financial markets really begin at midnight New York time and it probably sounds pretty arrogant. If a gank like me, me In the
27 00:05:00,270 --> 00:05:08,100 States, but if you just study what I'm teaching you, folks, you'll see right away what I'm telling you is the gospel as it relates to intraday price action
28 00:05:08,130 --> 00:05:15,660 only. Now everything else might be something different, but as far as intraday price action, I think have cornered the market in intraday price action. So the
29 00:05:15,660 --> 00:05:21,900 height of the range is the highest high between 7pm to midnight, New York time, to the lowest
30 00:05:21,959 --> 00:05:33,089 low between 7pm and midnight, New York time, the width of the range is obviously the duration of 7pm to midnight, New York time. So let's take a look at this
31 00:05:33,089 --> 00:05:45,269 chart here. And we'll get a bit closer and zoom in on it. Okay, we'll cover some points here. Now, right away, when you see this, it probably still doesn't give
32 00:05:45,269 --> 00:05:55,589 you any kind of insight. And that's fine. But I'm going to build on it and show you how useful it is. But we're going to build the model with specific buy and
33 00:05:55,589 --> 00:06:06,209 sell conditions later on in this video. But for now, take a look at what you see here. Okay, and kind of like burness in your mind. Your focus should every
34 00:06:06,209 --> 00:06:18,299 single day be zeroed in on 7pm, New York. And whatever that time is on your broker's platform, whatever your charting platform or package shows, find out
35 00:06:18,299 --> 00:06:26,549 what time it is, it's 7pm, New York time, and then find that same time on your charts. That's where you put a vertical line and that begins the asian session.
36 00:06:26,759 --> 00:06:36,329 And then five hours later, it'll be midnight, New York time, put another vertical line in and there's your Asian range defined by the region, the highest
37 00:06:36,329 --> 00:06:47,549 high and the lowest low, is what we would use to frame out the range. Now, there's a lot of Voodoo that you can do with this range. Okay, and again, not
38 00:06:47,549 --> 00:06:56,129 teaching it here. But believe me, it can take you to the highest and the lowest PIP of the day. There's some things you have to incorporate in that. And I teach
39 00:06:56,129 --> 00:07:04,439 that in the mentorship. But for now, I'm gonna teach you a very simple approach to how to use this. And when you can filter out trades and not do anything, you
40 00:07:04,829 --> 00:07:16,619 may end up taking a loss if you do otherwise. So let's take a closer look. And remove all of the benefit of seeing the price action there. Okay, now we do have
41 00:07:16,619 --> 00:07:24,059 the benefit of hindsight. But nonetheless, I want to kind of build an understanding about what this range does, or at least my interpretation of and
42 00:07:24,059 --> 00:07:35,609 how I was able to see right away the importance of utilizing it in my view on price action. During this range, what's actually happening is there's orders
43 00:07:35,639 --> 00:07:46,949 that are coming in, and you're stacking up above the market and below the market relative to that range. And it's also building up a market sentiment. Now this
44 00:07:46,949 --> 00:07:58,679 compression of market participation starts to build up closer and closer and closer until we get to midnight in New York. Soon as we cross over midnight time
45 00:07:58,679 --> 00:08:12,089 in New York, we are in fertile ground for price movement. We're going to assume that everyone in this listening audience is familiar with channels, okay, or
46 00:08:12,089 --> 00:08:24,989 trading ranges. The idea is above this range, there's going to be buy orders.  Those buy orders are going to act as breakout artists, okay. In other words,
47 00:08:25,019 --> 00:08:36,209 they are not astute and know how to buy when it's a low price or technically oversold without the use of indicators. So they just want to be buying on
48 00:08:36,209 --> 00:08:42,989 strength. And there's really nothing inherently wrong about that if you know what you're looking for. But most traders don't know what they're looking for.
49 00:08:42,989 --> 00:08:50,789 And they just go in and he willy nilly an entry based on breaking out above and behind, they'll buy that and view that as strength and then put a stop loss rate
50 00:08:50,789 --> 00:09:01,739 below the low which would be here. short sellers would do the opposite. They would have their sell orders below this range. So any movement lower, would
51 00:09:01,739 --> 00:09:09,869 hopefully put them in a short position and they would take the other end of that range and put their protective buy stop. So buyers that want to break out above
52 00:09:09,869 --> 00:09:22,499 this consolidation are going to buy on a stop with a protective cell stop below the low. short sellers want to sell on a stock and use a protective buy stop
53 00:09:22,529 --> 00:09:32,819 above the high. Okay, so the storyline is what are we going to do after midnight? Which is this vertical line here? What's the storyline? Where are we
54 00:09:32,819 --> 00:09:45,269 going to go? My whole entire career has been based on understanding this phenomenon. And it's been a more or less a pursuit of excellence. So I want to
55 00:09:45,269 --> 00:09:55,679 know what the highest probability which side are they going to work on. Okay, and what I mean by that is, are they going to try to put a specific party of
56 00:09:55,679 --> 00:10:07,289 traders whether it be bullish or bearish traders in on the wrong side right before or London creates what? The higher low of the day. So the key is, and
57 00:10:07,289 --> 00:10:11,039 this is the takeaway so far, and this is what should be in your notes right now is
58 00:10:11,400 --> 00:10:21,300 what you're looking for. What sets up the opportunity, if you will, for the particular trading day, is if we have a very narrow, consolidated range between
59 00:10:21,300 --> 00:10:33,810 7pm and midnight, or will we be deemed as the Asian range. So if we have a very narrow consolidation there, that sets up a huge possibility of the algorithm
60 00:10:33,810 --> 00:10:43,470 going into a trending model. Okay, so in other words, without going into crypto and teaching anything really about that, the market will seek the liquidity
61 00:10:43,740 --> 00:10:56,670 above or below this range with a premise that it's going to put them in the wrong side. And then it'll go the other way, for the remainder of the trading
62 00:10:56,670 --> 00:10:56,940 day.
63 00:11:03,750 --> 00:11:12,120 case, let's take a look at how we can utilize it in a bullish condition. Now the periods when prices bullish, we can extend the Asian range high and low into the
64 00:11:12,120 --> 00:11:24,570 future. When price returns back to the Asian range high, we can anticipate institutional buying. Just take a look at that. As an example here. We're going
65 00:11:24,570 --> 00:11:33,300 to assume that we had an understanding or expectation, if you will, that the Aussie dollar was bullish for this particular day. Now, if you want to know what
66 00:11:33,300 --> 00:11:42,720 would lend well to coming to that conclusion of being bullish, if you look at the daily chart, you'll see that there was a reason for the Aussie dollar to
67 00:11:42,720 --> 00:11:52,470 reach up to a equal high. Okay, and you go down to a four hour or a one hour chart, you'll see also that it's obvious, you can see it so far, what we've
68 00:11:52,470 --> 00:12:01,200 shown in the teachings in this series, it's been pretty obvious to know where the liquidity is. And that's what this whole day was reaching for the buy stops
69 00:12:01,200 --> 00:12:18,870 above equal high. Now, again, I want to take off the Asian range, and provide just a blank chart. Okay, and assume for a moment, pre my exposure, okay, to
70 00:12:18,870 --> 00:12:32,340 Asian range. This is what I used to do. Okay, this is how I actually traded. And I was doing this since 1994. So your appreciate, hopefully, the evolution, if
71 00:12:32,340 --> 00:12:43,440 you will, of my understanding about how this whole buying below the open when it's bullish or selling above the open, when it's bearish. All those ideas came
72 00:12:43,440 --> 00:12:53,700 from this individual specific element that I'm going to show you now. I would have on my chart, list of all kinds of indicators. Okay, so I'm going to spare
73 00:12:53,700 --> 00:13:08,790 you all that. But if we just look at price actions, there's a naked form of open high, low and close, it can be rather confusing. But if you look for specific
74 00:13:08,790 --> 00:13:18,600 times of the day, and specific generic concepts or characteristics that should manifest themselves, then there's a storyline that'll start to develop. And you
75 00:13:18,600 --> 00:13:28,590 get this over the years. Many times. It's referred to as tape reading many times it's referred to as gut feeling, or just traders intuition, or just last I call
76 00:13:28,590 --> 00:13:38,760 it intuition and experience, if you will, once you know what you're looking for, you wait for that scenario to unfold. So this is what I would have done without
77 00:13:38,760 --> 00:13:49,920 the Asian range. This is how I always traded the s&p, the bond market and currency futures. We get the opening price at midnight. Okay, and that opening
78 00:13:49,920 --> 00:14:00,600 price is seen here, right there. And all I do is draw that opening price out all the way out until 11 o'clock in the morning, New York time. Now, the reason why
79 00:14:00,600 --> 00:14:09,900 I would draw it out till 11 o'clock in the morning, New York time is because that would be the end of the morning trend for the s&p 500. Okay, so that
80 00:14:10,230 --> 00:14:19,800 there's a reason for that hour, it's not that I'm just pulling that number out of the air. It's also very close to what was taught in the previous teaching the
81 00:14:19,830 --> 00:14:30,510 London close. So that's what makes that London close scenario. It's the end of the am trend on the stock market or equities market in the States. Also, it
82 00:14:30,510 --> 00:14:39,630 overlaps conveniently enough with the close of London trading. So there's a little bit of manipulation that goes on in there and some profit taking so it
83 00:14:39,630 --> 00:14:52,530 creates an opportunity, but for opening range concepts. I draw it out to 11 o'clock in the morning New York time. Okay. So if we are looking for a bullish
84 00:14:52,530 --> 00:15:03,120 scenario, and I'm going to just make the case that we would be expecting a higher Aussie dollar here. I want to See price initially dropped down below the
85 00:15:03,120 --> 00:15:11,940 opening price. Because I want to be buying below the opening price. The understanding is I want to figure out what Larry Williams said he couldn't do as
86 00:15:11,940 --> 00:15:19,950 a teacher, I took it as a challenge as a student that I'm going to look for, I'm going to figure that out. And this is what my interpretation of how to do that
87 00:15:20,220 --> 00:15:30,330 very thing was seen in price action, I'll use the opening price. And as it dropped down, I would buy right there. Now, if I either did not have the guts to
88 00:15:30,330 --> 00:15:39,330 do that, or I missed the opportunity, sometimes I would wait for a specific price, it wouldn't get there. And then it would take off. If I saw a reversal,
89 00:15:39,480 --> 00:15:49,830 or potential reversal, I would look at the high rate. But right before the drop down in here, you can see there was a small little segment of price action.
90 00:15:50,250 --> 00:16:00,480 Right before that drop down. I would put a buy stop right there. Now, as I graduated in my understanding, I would look to get
91 00:16:00,510 --> 00:16:14,250 in as price was dropping down. But I'd also have this buy stop in place. Even if I was able to get in many times, price would sometimes snap me in and put me in
92 00:16:14,280 --> 00:16:21,420 on the buy stop and on my market order as price was dropping down. So in other words, what I was doing was, I was waiting for price to drop down below this
93 00:16:21,420 --> 00:16:30,720 horizontal line or trend line segment here. Okay, that's the linnaean, open price at midnight, New York time, the drop down below that I'm hopefully trying
94 00:16:30,720 --> 00:16:41,940 to buy that. Now, as it starts to drop my uygurs rate here, because now we're below the opening price, it may go lower, and give me my ultimate price of
95 00:16:41,940 --> 00:16:51,390 entry, but it may not. So as soon as it starts to break down after midnight, and it goes back down below the opening price, I immediately add a buy stop to half
96 00:16:51,390 --> 00:17:00,690 the position I want to trade at this point here. So in other words, if my full position down here was say 10, standard lots, I would go in with a buy stop at
97 00:17:00,690 --> 00:17:10,770 five standard lots right here. So that way, worst case scenario, if I don't get my fill here and it reverses, if you will, and runs real quick for these ties,
98 00:17:11,100 --> 00:17:18,660 it will put me at least half the position I wanted to get on down here. So half of something is better than nothing. If I were able to put on the full position
99 00:17:18,660 --> 00:17:30,210 down here, I would still try to take this stop off. If I get my full position on down here. Sometimes I wasn't able to do that. Now the problem is in your mind
100 00:17:30,210 --> 00:17:39,720 is okay, what happens if you put your poor position down here, and you're risking 2%? Well, I wasn't risking 2%. So I'm trading at 1%, one and a half
101 00:17:39,720 --> 00:17:48,960 percent. And then this position here, if it feels me I'm not over leveraged, or if I do get one and a half percent on here and this half here, it would
102 00:17:48,990 --> 00:17:56,430 definitely put me over two and a half percent risk. But I'm going to be more aggressive about trailing my initial stop loss up to try to pare that down to
103 00:17:56,430 --> 00:18:07,830 2%. Okay. And that's really what I was doing. Now let's contrast what I just did here with the implementation of the Asian range. And this is exactly where price
104 00:18:07,830 --> 00:18:16,890 would fill you. With that buy stop being tripped. So now I would be long here.  If I didn't get filled down here below the opening price at midnight, this would
105 00:18:16,890 --> 00:18:25,950 be where my bicep was filming in my stop loss would be below the low. You can see I've had to weather this retracement here. And then it cuts the move later
106 00:18:25,950 --> 00:18:37,170 on in the day. Now let's take this discussion back the implementation of the Asian range. And I'll show you how I evolved. And seeing a much clearer view on
107 00:18:37,170 --> 00:18:46,740 price action using the range as I define it here, seven o'clock pm, New York time to midnight 00 level not like 1230 or one o'clock in the morning, all that
108 00:18:46,740 --> 00:18:59,250 stuff exactly at midnight, okay? Because what we're banking on is the midnight opening price. That's what sets the algorithm it goes through. It goes through a
109 00:18:59,250 --> 00:19:07,950 reset if basically, if you if you want to think of it like that. So if we're bullish, it's going to go below that opening price to seek liquidity, and then
110 00:19:09,150 --> 00:19:18,360 go higher, and spend the rest of the day going higher. When it's bearish. It'll go above the opening price at midnight to reach for liquidity and then move
111 00:19:18,360 --> 00:19:28,920 lower for several hours going into London close or New York open. So now let's take a look at what's actually going on with the implementation of the Asian
112 00:19:28,920 --> 00:19:39,120 range. Now we have a tight Asian range in here. Okay, and again, buyers are above the range sellers are below the range. Price right after midnight does
113 00:19:39,120 --> 00:19:50,700 what goes up and taps the Asian range high. Now you're saying okay, well, it didn't go above it. Let your stop, be there. And I guarantee you that broker
114 00:19:50,700 --> 00:20:00,000 spread will open up wide enough to get that and you'll be in long and your stop loss which will be right at that low or just below it will be tagged right
115 00:20:00,000 --> 00:20:10,920 They're, even though it reflects here, your broker and this is what you sign up with. When you open up your account. You are giving them permission to open the
116 00:20:10,920 --> 00:20:20,580 spreads up on you. Everybody makes this big complaint about, Oh, well they did this, they did that you sign it, and you agree to it. So when you see people
117 00:20:20,580 --> 00:20:27,630 online saying they they trade with three pips stop losses. That's not true. It's not accurate and they are not doing it with live accounts. Because believe me,
118 00:20:28,080 --> 00:20:40,320 in house funny money gains with the brokers would eat them up immediately. They would not happen. Okay. I think personally, with a stop loss of anything less
119 00:20:40,320 --> 00:20:51,210 than 10 pips is just ludicrous. It's stupid. Okay, because the ugly is from a retail broker standpoint, you're inviting them to take your stop. It's just the
120 00:20:51,240 --> 00:20:57,960 way it is. You can argue with me and give me all kinds of track history and say, Well, I'm treating with a five PIP stop here and there. That's fine. Do it 10
121 00:20:57,960 --> 00:21:00,420 years and see how many times get burned. The point is,
122 00:21:01,230 --> 00:21:10,980 why offer yourself up on the altar for that sacrifice. When there's better ways of doing it. You don't have to have less than 10 PIP stop losses to do very
123 00:21:10,980 --> 00:21:21,450 well. We have an Asian range in here with the understanding or in this model, we're going to expect bullishness, okay, and price starts to go up initially,
124 00:21:21,990 --> 00:21:34,140 and comes back down and breaks the Asian range down here. So we take out the low one Asian range that's been extended beyond midnight, that trips in sellers and
125 00:21:34,140 --> 00:21:45,030 it also knocks out individuals that would have been pulled in on a buy stop at this level. So long holders are in and now they're out. Short holders are in now
126 00:21:45,030 --> 00:21:56,190 and their stop losses above here or here. So they're taking both sides of the marketplace in and out. And then the market takes off goes higher. What we look
127 00:21:56,190 --> 00:22:07,680 for is this little movement right here. That movement is what sets the tone when we're bullish, we want to be buying there. Or we can do what I showed earlier,
128 00:22:07,920 --> 00:22:19,860 you could put a buy stop right here, that gets filled. A contingent order that would be if I'm filled with your broker, or cancel order. Basically, if we have
129 00:22:19,860 --> 00:22:29,820 a parent contingent order, suggesting they could buy on a stop, if that stock gets filled. If it happens, then we would place a sell stop below this low at
130 00:22:29,820 --> 00:22:38,520 some specific price level. And you can leave that in the marketplace and go to sleep. And don't even worry about watching all this stuff. Okay, there's one way
131 00:22:38,520 --> 00:22:51,180 you can apply a day traders model and or enter with a long term model, but using a day traders approach to trading that whole entry. If you've missed this one,
132 00:22:51,690 --> 00:23:01,860 okay, and price starts to rally away, we have to have the storyline behind this example of being bullish Otherwise, this could be an easy sell, as you'll see
133 00:23:01,860 --> 00:23:11,760 when we talk about when the conditions are bearish. But knowing where the market is most likely trying to go from a higher timeframe standpoint, is significant
134 00:23:11,760 --> 00:23:20,130 and crucial and utilization of the Asian range. Otherwise, you're just going to do things that aren't going to be profitable. So if we're bullish, we, we'd like
135 00:23:20,130 --> 00:23:28,410 to see this element here. And then this year, no problem. We don't need to get that. And we don't need to be a part of this movie or Okay, we will wait for
136 00:23:28,410 --> 00:23:38,820 price to come back down and touch the Asian range high. Now it does. So here that's a little early. And then we do it again in the New York open. So New York
137 00:23:38,820 --> 00:23:47,430 open, we see price trading back to the Asian range high. Right there is where institutional buying is gonna step in. Why are they doing that? Because the
138 00:23:47,430 --> 00:24:01,260 initial range that was set between 7pm and midnight, midnight is when the interbank price delivery algorithm resets. And then it attacks open liquidity,
139 00:24:02,070 --> 00:24:10,110 or the open float, which would be the orders above the Asian range and below the Asian range. I know you're going to know 15 different people that work at a bank
140 00:24:10,110 --> 00:24:16,770 or they know somebody they smoke cigars with on the weekends and they are a market maker, they're going to say what I just said to you is nonsense. But I'm
141 00:24:16,770 --> 00:24:26,580 telling you, they don't know what you're talking about. Because I'm doing this daily to the PIP week after week, day after day. And I'm telling you, it's not
142 00:24:26,580 --> 00:24:35,490 based on anything else except for what I learned. Okay, and some of the things are going to go in the category of tinfoil hat. And I'll just let you wrestle
143 00:24:35,490 --> 00:24:43,920 with that. I don't really care about your opinion. Just know that what I'm suggesting to you here if you look at it in price action, it's there. So we can
144 00:24:43,920 --> 00:24:53,850 see the optimal trade entry. From this low to this high retrace back down New York open overlap with the Asian range high with the storyline is that we're
145 00:24:53,850 --> 00:25:04,530 bullish on the higher timeframe. Beautiful illustration of a Asian range application in bullish country. And then off to the races we go. So we have two
146 00:25:04,530 --> 00:25:16,230 opportunities in here in the New York open, and we have one set up here, that gives us a really, really low end entry point with very little risk in terms of
147 00:25:17,160 --> 00:25:26,790 our entry, and then the subsequent move higher. The other portion would be entering on a stop here, about the Asian range, but you wait, you have to sit
148 00:25:26,790 --> 00:25:34,920 up, and you have to wait for price to drop down below the Asian range, then you buy want to break above the Asian range high, but the conditions have to be
149 00:25:34,920 --> 00:25:44,550 bullish. And we have the first the Asian range low break, then a bias that can be placed at the Asian range high. If you do this before the Asian range low was
150 00:25:44,550 --> 00:25:53,070 taken, you will get burned, you will get stopped out, you will send email saying doesn't work. I'm telling you, there's rules here and if this gave them to you,
151 00:25:53,220 --> 00:25:56,400 rewind the video and read listen to it again, it's very clear.
152 00:26:01,980 --> 00:26:10,440 Alright, so utilization of the Asian range in various conditions. Okay, again, like we said, but when it's Bosch, there's a period, it's quiet, right before
153 00:26:10,440 --> 00:26:18,780 the Frankfurt and London open. And we've been focusing on that and when it's in a tight narrow consolidation, we're going to be looking for some measure of
154 00:26:18,810 --> 00:26:27,510 manipulation, if you will, on price action. So what we're gonna be doing is waiting for a break in the Asian range low and then when price trades back up to
155 00:26:27,510 --> 00:26:36,870 it, we're gonna be anticipating institutional selling. So let's take a closer look at this example here. zoom in here, some more detail. Now let this image
156 00:26:36,870 --> 00:26:51,810 burnin for a minute. Okay. And now we're going to take it off and go to an element of naked price action. And I'm going to show you what I was doing prior
157 00:26:51,810 --> 00:27:05,400 to learning about the Asian range. There's the opening price again, this candle, and I would be looking for bearish price movement. And if we're going to just
158 00:27:05,460 --> 00:27:13,680 suspend your disbelief whether or not I was actually bearish before this day or not, trust me and go through my Twitter, you'll see all kinds of examples of me
159 00:27:13,680 --> 00:27:23,790 doing this very thing. But nonetheless, we're gonna assume for sake of argument that we're bearish on this particular currency that day, okay, we're gonna be
160 00:27:23,790 --> 00:27:32,970 looking for the price movement above the opening price. That's what I'm looking for here. Okay. Now, I learned early on that these levels, these double tops,
161 00:27:33,210 --> 00:27:42,480 they were fake outs. And that's why I loved the turtle soup trading pattern that I learned in a book called street smarts. And if you don't have it, you should
162 00:27:42,480 --> 00:27:50,820 buy it. It's a very, very good book. But that pattern in there resonated with me because I was already doing things similar to that. And I would just look for
163 00:27:50,820 --> 00:27:57,900 those equal highs and equal lows, which I've already taught you in this series.  And right away, there's a large number of you in our community that are just
164 00:27:57,930 --> 00:28:05,340 going through the roof right now with excitement, because now you see something that's always been there. But now you see it, and it's useful to you, you can
165 00:28:05,340 --> 00:28:14,220 see where price is drawn to. Well, if we see this time of day, this is midnight, and we're bearish. We have equal highs in here. Right away, I want to know
166 00:28:14,250 --> 00:28:22,950 there's going to be a rally above the opening price. And I extend that out in time, about five o'clock in the morning, New York time. And anytime price trades
167 00:28:23,010 --> 00:28:35,100 above that opening price, and it's inside of a kill zone, that means the London or New York open kill zone. If it trades above the opening price, I will look to
168 00:28:35,100 --> 00:28:44,970 go short. Now, if we go above it, and this is what I was doing, before I started incorporating the Asian range concept, I would just simply look for this rally
169 00:28:44,970 --> 00:28:54,030 above. If I got this scenario here, I was selling right there. I would sell short, the s&p, I would sell short Deutschmark, I would sell short the Swiss
170 00:28:54,030 --> 00:29:02,790 franc, I would swell, the yen, all those commodity futures contracts. That's what I would that was my entry technique right there. And then I would go to
171 00:29:02,790 --> 00:29:09,180 sleep and wake up around five o'clock in the morning, hopefully I get some profit. And I would take something off, share my stop loss really, really tight
172 00:29:09,180 --> 00:29:19,080 sometimes get stopped out. Other times, it would carry right on over into globex into open outcry in the pits. And then I'd cut some more follow through in the
173 00:29:19,080 --> 00:29:33,990 day session hours in the New York session. But if that's my entry point there, just like anybody else, life may get in the way. I may get sick. My kids may be
174 00:29:34,320 --> 00:29:42,930 complaining about growing pains, and I can't be in front of my charts. You know, that's happens. You know, I'm a dad, I'm a husband and I own two. I'm a pet
175 00:29:42,930 --> 00:29:43,290 parent,
176 00:29:43,380 --> 00:29:51,570 I own two boxers, and anything can happen. Okay, that distract me from actually getting in where I want to get in it. I don't always use limit orders. There are
177 00:29:51,570 --> 00:29:59,760 certain conditions where I want to use a limit order. But mainly I want to be executing right when the markets happening to be trading against my directional
178 00:30:00,930 --> 00:30:08,970 By for the day, I don't mind market orders the folks that say you shouldn't be using market orders and you should be using limit orders. Again, that goes along
179 00:30:08,970 --> 00:30:18,210 with not knowing what I do. I'm actually trading aggressively rate as the market screaming higher. I go marketing selling short right then and there and you seen
180 00:30:18,210 --> 00:30:25,440 my examples I'm getting in there, right the highs and or the very lows, so I don't care what anybody else's opinion is I can do it over and over again. And
181 00:30:25,440 --> 00:30:36,600 I've repeatedly shown it week after week. If you are up in a week looking at London, you can use market orders. But if I am not going to be awake, I will put
182 00:30:36,600 --> 00:30:45,780 a limit order in about two pips above these equal highs, my limit order would be about there and my stop loss would be about 35 to 40 pips and I would go to
183 00:30:45,780 --> 00:30:56,640 sleep and be comfortable with that. Okay, I would have an 80 PIP take profit on the full position that way if I did wake up, and it moved in accelerated pace
184 00:30:56,640 --> 00:31:06,030 and moved 80 pips, that would be five pips over my weekly objective, which is 75 pips. I always aiming for 5075 pips only for a weekly objective. Once I do that,
185 00:31:06,030 --> 00:31:14,640 I'm done trading, I don't do anything else. But I leave myself the opportunity to catch a tiger by the tail. If I wake up and in markets already moved 80 pips,
186 00:31:15,060 --> 00:31:27,600 I'm done for the week. And I didn't do anything but sleep in the whole process.  But if I miss this opportunity, okay, if I miss it, my eyes go right to the low
187 00:31:27,660 --> 00:31:36,630 that form prior to that run above the opening price when I'm bearish. So I'm going to place a sell stop to get me in. Now sell stops, generally you
188 00:31:36,630 --> 00:31:46,530 understand them as a protective basis or mechanism to protect your long position. If there is no long position, and you place a sell stop, it's going to
189 00:31:46,530 --> 00:31:55,590 put you in short, and that's what I'd be expecting to see happen here. So when price drops down, I can be short there and my stop loss would be above the high
190 00:31:55,590 --> 00:32:06,120 of the day. So let's assume for a moment that I missed this opportunity here, and I just can't stay up. Something happens you My wife is getting me have a
191 00:32:06,120 --> 00:32:15,600 meeting and this has happened. I had to take a trade so I mean, I have to trade folks, okay, it is what it is. Okay. And I had to hear about it on the way to
192 00:32:15,600 --> 00:32:26,040 the hospital that day, but nonetheless You know, this is this is real life stuff here, folks. So if I missed the opportunity get in, okay, and and the Swiss
193 00:32:26,040 --> 00:32:34,110 franc is looking to go lower. I'm going to place a sell stop below the swing low right before the rally above the opening price, with the expectation that if
194 00:32:34,110 --> 00:32:44,220 this order fails, it will place a protective buy stop above the high plus three pips. And then again, same scenario, I would have a take profit of 50 pips,
195 00:32:44,250 --> 00:32:53,970 which is a low one of my weekly objective. And that's it, I don't trail my stop.  I do not trail stops, I do not have a mechanism that trails my stop loss lower
196 00:32:53,970 --> 00:33:01,860 because I don't think it should be done. Okay. I teach taking partials is the better way to go. And leave your stop loss where you initially put it, manage
197 00:33:01,860 --> 00:33:09,480 the risk from taking partials, and then slowly move it down after New York trading starts. Because if you're going to get a big range day, like we see
198 00:33:09,480 --> 00:33:18,660 here, you want to trail the stop loss after New York has done its retracement.  If we take the conversation back to the utilization of the Asian range, we can
199 00:33:18,660 --> 00:33:27,900 see here, what's actually happening is we have a tight narrow consolidation. And we're bearish now think we have folks that want to buy a breakout, they get
200 00:33:27,900 --> 00:33:35,100 tripped in with the move above the Asian range high here. So now what are they they're long, where's the stop loss going to be at right below that low, the
201 00:33:35,100 --> 00:33:43,200 market goes right down below there to take their stuff. Notice it doesn't just go a little bit, it goes conveniently 10 pips below it, it's gonna sweep out
202 00:33:43,230 --> 00:33:52,560 anybody that has a stoploss at or just below that low. And using that little tail over here, they think that they're safe. They're not the real move is
203 00:33:52,950 --> 00:34:02,760 running above the Asian range high after the buyers have been put in, then taken out, driven back up again. Why? Because short sellers that were lucky enough to
204 00:34:02,760 --> 00:34:11,370 try to sell short at the top of this channel or trading range. They're making money here, they're not going to be allowed to be profitable. They run on their
205 00:34:11,370 --> 00:34:22,410 stops, which would be a buy stop run above these highs. That's where you're looking to be a seller. This is the lowest risk high probability entry for using
206 00:34:22,410 --> 00:34:33,840 the Asian range. If we wait for the Asian range low to be broken, and then retrace back up to it. That's the other entry point using the Asian range. So we
207 00:34:33,840 --> 00:34:42,810 can see there's two ways of using this range. Selling above the Asian range high when we're bearish. best scenario, especially if you have the scenario that's
208 00:34:42,810 --> 00:34:43,860 been outlined here.
209 00:34:45,090 --> 00:34:56,640 Understand the storyline. You have to have a bias on the day and do not change gears. Based on all this little movement here. You have to stick to what your
210 00:34:56,640 --> 00:35:05,790 analysis is calling for. Our timeframe is going to go lower So we want to be looking for the market to take out the Asian range high. If that happens, we
211 00:35:05,790 --> 00:35:15,000 could sell short there, or the low risk conformation trade is wait for the Asian range low to break, and then trade back up to it, and then we can sell there.
212 00:35:15,840 --> 00:35:25,500 Okay, and if it happens to occur during an ICT kill zone, London open or New York open, that probabilities go through the roof in terms of being well
213 00:35:25,710 --> 00:35:38,070 accurate. And you can see that unfold in your charts, if you go through the charts with this in mind, okay, just put the Asian range on and paint them
214 00:35:38,070 --> 00:35:48,420 manually. I know you all want indicators and pop this up and empty for this and empty for that. Physically draw them in, spend some time in the charts get
215 00:35:48,420 --> 00:35:58,920 intimate with price action, because it's going to teach you a lot more I had to do this stuff with charts that were you draw hand drawn, like I I had, well,
216 00:35:58,950 --> 00:36:06,510 obsession with printed charts. So I would print out chart and I would do all these things by hand and a ruler and a magic marker and highlighter. That's the
217 00:36:06,510 --> 00:36:15,930 stuff I used to do. And then I'm convinced that's what made me good at it. being lazy about this, okay, what you're really saying is, is I don't really have time
218 00:36:15,930 --> 00:36:26,010 to really study it, just give me the lipstick on the chart and and there it is, you will not get the same level of appreciation or understanding. If you
219 00:36:26,010 --> 00:36:36,990 shortcut it, draw the levels on as I taught. So by taking the time to draw this out manually, and reminding yourself, okay, maybe even be worth taking the time
220 00:36:37,380 --> 00:36:52,080 to type out a notation, you know, in this in this area here to not focus on the movements below the age range. Okay, focus primarily on a move above the Asian
221 00:36:52,080 --> 00:37:07,290 range high when we're bearish, and or if we break below the Asian range after midnight, wait for a retest in the form of resistance. Now, think about what
222 00:37:07,290 --> 00:37:18,990 you're seeing here. If we look at price action like this, if What if we don't use the Asian range concept here? As I'm outlining? The question is, why would
223 00:37:18,990 --> 00:37:28,530 this be a selling point? I mean, granted, you know, you can go back to this low here and say, well, that's probably a reason for it. But would you really look
224 00:37:28,530 --> 00:37:38,850 at that, after seeing this, and then this movement through without this insight, chances are, you're probably not going to see this actual scenario. And that's
225 00:37:38,850 --> 00:37:47,970 the difference between understanding, tape reading, and building context behind price. And also sticking with a bias. It's important to know what a trading bias
226 00:37:47,970 --> 00:37:55,590 is for any given day. And anyone who tells you don't trade with a bias, they're the ones that are telling you that because they don't know how to do it, I've
227 00:37:55,590 --> 00:38:02,070 given them many examples on how you can arrive at a daily bias, and you're not gonna get a daily bias as accurate every single day. So don't let me paint that
228 00:38:02,070 --> 00:38:14,700 picture for you. But I can be an upper 90s in terms of my probabilities and directional bias. If you can get just 65 to 70% accuracy with your with your
229 00:38:14,700 --> 00:38:26,340 bias and wait for conditions like I'm showing you here. Adding time of day, kill zones, daily bias, focusing with the Asian range. We've already looked at power
230 00:38:26,340 --> 00:38:35,220 three, it builds the entire model for the daily range. And you are not surprised when certain things happen. In fact, you're anticipating them before they
231 00:38:35,220 --> 00:38:47,460 happen. And by seeing day after day after day of doing this, you become much better at well and terpening price action and forecasting, which is a skill set
232 00:38:47,460 --> 00:38:56,130 that you cannot learn from reading books or watching my videos. You have to spend time in the charts. And if you do that, I promise you, you will glean more
233 00:38:56,130 --> 00:39:07,500 from that than anything else that you would ever study. Hope you enjoyed this presentation. And if you did, you can find more at the inner circle trader.com