ICT Market Maker Primer Course - 14 - Trading The Key Swing Points.srt
Last modified by Drunk Monkey on 2021-06-10 06:22
| 1 | 00:00:13,590 --> 00:00:17,730 | ICT: Welcome back, folks, this teaching is going to be specifically dealing with trading the key swing points. |
| 2 | 00:00:23,970 --> 00:00:33,600 | Okay, so what swing points we're gonna be teaching in this module, we're gonna be revisiting the Asian open, the London open, New York open, and the London |
| 3 | 00:00:33,600 --> 00:00:46,470 | close. Right, so engineering the daily range. Now, obviously, I teach with power three that the general rule of thumb is, the agent is a consolidation, then |
| 4 | 00:00:46,530 --> 00:00:55,590 | we'll increase the high the low, the daily range, New York is part of the expansion. And then London close creates higher load, they are the opposite end |
| 5 | 00:00:55,590 --> 00:01:06,120 | of the range that's formed in London, but not always is that the case? In some instances, the Asian open will create the daily high or low, as seen here in |
| 6 | 00:01:06,120 --> 00:01:20,760 | this example, the low the days formed during the Asian open, and then the highest formed in the London session. Conversely, as I mentioned in the |
| 7 | 00:01:20,760 --> 00:01:29,610 | beginning, this is a typical power three scenario where we have consolidation Asia, then when it's bullish, we create the low of the day and then expand |
| 8 | 00:01:29,610 --> 00:01:43,110 | throughout the rest of the day. Now London open, it can create obviously, as I teach with power three, can create the low or high today in this example, here |
| 9 | 00:01:43,110 --> 00:01:58,050 | you can see the London session creates a very low, lower than it was at the beginning of the trading in Asia. Or London can be part of a retracement when |
| 10 | 00:01:58,050 --> 00:02:08,730 | the asian session creates the low of the day. So the way we're going to use this information is if Asia creates a low or high the DNS example creates a low and |
| 11 | 00:02:08,730 --> 00:02:19,410 | starts to run and expands outside of the Asian range. This drop down in London is typically going to be a retracement of the initial leg or impulse leg of the |
| 12 | 00:02:19,410 --> 00:02:29,850 | intraday move. If we're bullish, we're going to assume that Asia creates the low and we're retracing down into what would be optimal trade entry. And that could |
| 13 | 00:02:29,850 --> 00:02:43,710 | be a long so London open can be a part of the move that occurs and originates from the Asian open. Now the New York open, this too can create a higher low the |
| 14 | 00:02:43,710 --> 00:02:53,190 | daily range as well. As you can see, there's an example of the market staying in a consolidation drops down and when you have to assume that we will be bearish |
| 15 | 00:02:53,190 --> 00:03:03,150 | this particular day. But there may be a big news event that comes out and it creates a run on liquidity. And we can see that run of all these equal highs |
| 16 | 00:03:03,150 --> 00:03:14,520 | here, creating the New York open rate on liquidity that makes the high the day in the market trades lower as a result. Equally significant. We can see the New |
| 17 | 00:03:14,520 --> 00:03:26,160 | York open can be part of a retracement from the London open. Here we see the low formed in London creates an impulse swing trades back down into the New York |
| 18 | 00:03:26,160 --> 00:03:39,450 | open creates a nice retracement and then rallies creating the high the day later on going to New York and overlap of London close. So both scenarios, this is the |
| 19 | 00:03:39,480 --> 00:03:47,670 | classic scenario. This is what I teach and have taught for years. This is the easiest setup when we want to trade the New York open. So the swing point it |
| 20 | 00:03:47,670 --> 00:03:57,720 | takes place here, we'd have to assume that we're bullish before and then the low has to be formed ensures a clear impulse swing during the London session then |
| 21 | 00:03:57,720 --> 00:04:11,070 | retraces during the London lunch going into New York open we can see the turning point here or swing point that would be traded rather handsomely. Now this is a |
| 22 | 00:04:11,100 --> 00:04:22,170 | bullish scenario it was just as equally effective if it was London a new high today it trades lower during the London session then retraces up into New York |
| 23 | 00:04:22,170 --> 00:04:33,570 | session creating a retracement which is a classic continuation on the bearish idea or down close premise for the daily range for your particular market. And |
| 24 | 00:04:33,660 --> 00:04:45,300 | expansion going towards London close so everything we're showing here just can be done in reverse. Okay, the London close now this can be the high or low of |
| 25 | 00:04:45,300 --> 00:04:47,460 | the day. Typically if we're bullish |
| 26 | 00:04:47,550 --> 00:04:56,340 | and London's created the low of the day or ages created the low of the day. London clothes tends to be the opposite end of the range. Night doesn't always |
| 27 | 00:04:57,210 --> 00:05:05,400 | close the high end or low end of the range but generally As a rule of thumb, I believe that it'll serve you well. In other instances, it can create the high |
| 28 | 00:05:05,400 --> 00:05:14,040 | the day when it's been an arrangement. As you can see here, the market was in large consolidation, we had equal highs, market runs up during London close, |
| 29 | 00:05:14,310 --> 00:05:24,570 | takes those highs and creates the actual high of the day and trades lower. This can be done in reverse. This could have easily been equal lows down here. And it |
| 30 | 00:05:24,570 --> 00:05:36,480 | could have eventually drove down to get equal lows and making the low of the day. And or it can be a reversal point from a longer term perspective. As we see |
| 31 | 00:05:36,480 --> 00:05:40,350 | here, the market had been trading higher during the London close time period. |
| 32 | 00:05:46,140 --> 00:06:00,300 | During the London close time period, the market makes a reversal on Friday, next week. The following link opens, trades in consolidation and begins to move lower |
| 33 | 00:06:00,660 --> 00:06:12,150 | and lose significant lower on the following week's Tuesday. So it can act as a reversal. Now how do you use these swing points, you won't be using higher |
| 34 | 00:06:12,150 --> 00:06:24,210 | timeframe price levels. And when these specific key swing points or time of day, overlap with higher timeframe levels, you can anticipate what would be otherwise |
| 35 | 00:06:24,210 --> 00:06:35,370 | expected on a higher timeframe. For instance, if we had a key resistance level that we were watching on a daily timeframe, if we came to this level in mind, |
| 36 | 00:06:35,430 --> 00:06:42,270 | and we're going to speak hypothetically here, because there's so many examples, I could literally make a five to six hour long video. And that wouldn't even |
| 37 | 00:06:42,270 --> 00:06:49,470 | scratch the surface, which is the reason I have to have a mentor ship because there's so many types of conditions and setups that are available. Not that you |
| 38 | 00:06:49,470 --> 00:06:58,290 | need to know every single one of them. But it makes you very versatile. As a trader, you can see things in the marketplace that aren't going to surprise you, |
| 39 | 00:06:58,290 --> 00:07:08,220 | you can participate them and wait for them to come in. But if we're looking for our key resistance level on the daily chart, that could be the time of day when |
| 40 | 00:07:08,220 --> 00:07:17,070 | London trades up to that key resistance point. And at the time of the day, where in the trades there, you could be a seller at London close even while the day |
| 41 | 00:07:17,070 --> 00:07:26,940 | was bullish, because it's hitting that higher time frame, daily resistance price point. That could be the point at which the best to sell short. And that would |
| 42 | 00:07:26,940 --> 00:07:35,340 | be a scenario and the same thing would be applied to all these key swing points or time of day, because we have characteristics have been shown here. And we |
| 43 | 00:07:35,340 --> 00:07:44,130 | also went beyond what was typically taught as my ICT power three, there's some blending of the rules. And I've given you generic characteristics if you will, |
| 44 | 00:07:44,490 --> 00:07:53,760 | for each of the four major key swing points. So I want you to go through your charts and pull up a 15 minute time frame or could be a 30 minute time frame. |
| 45 | 00:07:54,150 --> 00:08:02,880 | And I want you to look at all the times that the market turns and creates significant daily highs and lows and when it makes intra week and weekly highs |
| 46 | 00:08:02,880 --> 00:08:11,550 | and lows and look at the monthly highs and lows What are they forming, and you'll be able to see a storyline over time studying it in reference to the |
| 47 | 00:08:11,550 --> 00:08:20,070 | higher timeframe key support resistance levels that you would otherwise look for. When these time periods or key swing points trade to them. You will see |
| 48 | 00:08:20,070 --> 00:08:22,500 | significant and high probability turning points. |
| 49 | 00:08:28,860 --> 00:08:35,910 | Hopefully you enjoyed this presentation. Obviously if you want to find more, you can visit my website at the inner circle trader.com |