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Version 1.1 by Drunk Monkey on 2020-11-20 16:02
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3 ICT: Welcome back folks, this teaching is going to be
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7 specifically dealing with trading the key swing points.
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11 Okay, so what swing points we're gonna be teaching in this
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15 module, we're gonna be revisiting the Asian open. The London
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19 open, the New York open, and the London close. Right, so
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23 engineering the daily range. Now, obviously, I teach with
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27 power three that the general rule of thumb is that Asia is a
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31 consolidation. Then we'll increase the high the low of the
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35 daily range. New York is part of the expansion in London
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39 close creates the higher low today or the opposite end of
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43 the range that's formed in London, but not always is that
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47 the case? In some instances, the Asian open will create the
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51 daily high or low, as seen here in this example, the low the
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55 days formed during the Asian open and then the highest
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59 formed in the London session. Conversely, I as I mentioned
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63 in the beginning, this is a typical power three scenario
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67 where we have consolidation Asia, then when it's bullish, we
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71 create the low of the day and then expand throughout the
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75 rest of the day. Now London open, it can create obviously as
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79 I teach with power three can create the low or high today in
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83 this example here we can see the London session creates a
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87 very low lower than it was at the beginning of the trading
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91 in Asia. Or London can be part of a retracement when the
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95 asian session creates a low the So the way we're going to
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99 use this information is, if Asia creates a low or high today
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103 in this example, creates a low and starts to run and expand
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107 outside of the Asian range. This drop down in London is
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111 typically going to be a retracement of the initial leg or
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115 impulse leg of the intraday move. If we're bullish, we're
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119 going to assume that Asia creates the low and we're
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123 retracing down into what would be optimal trade entry. And
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127 that could be a long so London open can be a part of the
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131 move that occurs and originates from the agent open. Now the
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135 New York open this to create the higher low the daily ranges
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139 well. As you can see, there's an example of the market
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143 staying in a consolidation drops down and we'd have to
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147 assume that we would be bearish this particular day. But
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151 there may be a big news event that comes out and it creates
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155 a long liquidity and we can see that run of all these equal
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159 highs here, creating the New York open rate on liquidity
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163 that makes the high today in the market trades lower as a
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167 result. Equally significant. We can see the New York open
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171 can be part of a retracement from the London open. Here we
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175 see the low formed in London creates an impulse swing.
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179 trades back down into the New York open. creates a nice
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183 retracement and then rallies creating the high today later
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187 on joining New York and overlap of London close. So in both
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191 scenarios, this is the classic scenario. This is what I
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195 teach and have taught for years. This is the easiest setup
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199 when we want to trade the New York open. So the swing point
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203 it takes place here. We have to assume that we're bullish
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207 before and then the low has to be formed ensures a clear
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211 impulse swing during the London session then retraces during
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215 the Loading lunch going into New York open. We can see the
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219 turning point here or swing point that will be traded rather
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223 handsomely. Now this is a bullish scenario it was just as
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227 equally effective if it was London a new high today it
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231 trades lower during the London session, Dan retraces up into
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235 New York session creating a retracement which is a classic
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239 continuation on the bearish idea or down close premise for
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243 the daily range for your particular market and expansion
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247 going towards London close. So everything we're showing here
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251 just can be done in reverse. Okay, the London clothes now
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255 this can be the high or low of the day. Typically we're
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259 bullish and London's grades the low of the day or age has
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263 created a low of the day. London clothes tends to be the
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267 opposite end of the range. Now it doesn't always close to
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271 high end or low end of the range but generally As a rule of
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275 thumb, I believe that it'll serve you well. other instances
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279 it can create the high the day when it's been in range
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283 bound, as you can see here,
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287 market was in large consolidation, we had equal highs,
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291 market runs up during London close, takes those highs and
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295 creates the actual high of the day and trades lower. This
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299 could be done in reverse. This could have easily been equal
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303 lows down here, and it could have eventually drove down to
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307 get equal lows and making the low of the day. And or it can
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311 be a reversal point from a longer term perspective. As we
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315 see here, the market had been trading higher during the
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319 London close time period.
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323 During the London close time period, the market makes a
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327 reversal on Friday, next week. The following link opens,
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331 trades in consolidation and begins to move lower And moves
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335 significant lower on the following weeks Tuesday. So it can
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339 act as a reversal. Now, how do you use these swing points,
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343 you won't be using higher timeframe price levels. And when
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347 these specific key swing points or time of day, overlap with
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351 higher timeframe levels, you can anticipate what would be
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355 otherwise expected on a higher timeframe. For instance, if
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359 we had a key resistance level that we were watching on a
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363 daily timeframe, if we came to this level in mind, and we're
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367 going to speak hypothetically here, because there's so many
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371 examples, I could literally make a five to six hour long
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375 video, and then wouldn't even scratch the surface, which is
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379 the reason I have to have a mentorship because there's so
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383 many types of conditions and setups that are available. Not
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387 that you need to know every single one of them, but it makes
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391 you very versatile as a trader. As you can see things in the
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395 marketplace that aren't going to surprise you. You can
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399 participate them and wait for them. Come in. But if we're
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403 looking for our key resistance level on the daily chart,
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407 that could be the time of day when London trades up to that
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411 key resistance point. And at the time of the day, we're in
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415 the trades there, you could be a seller at London close,
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419 even while the day was bullish, because it's hitting that
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423 higher timeframe, daily resistance price point, that could
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427 be the point in which best to sell short. And that would be
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431 a scenario and the same thing would be applied to all these
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435 key swing points or time of day,
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439 because
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443 we have characteristics have been shown here. And we also
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447 went beyond what was typically taught as my ICT power three,
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451 there's some blending of the rules. And I've given you
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455 generic characteristics, if you will, for each of the four
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459 major key swing points. So I want you to go through your
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463 charts and pull up a 15 minute time frame or it could be a
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467 30 minute time frame. And I want you to look at all the
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471 times that the market turns and create significant daily
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475 highs and lows It makes intra week and weekly highs and lows
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479 and look at the monthly highs and lows, what are they
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483 forming, and you'll be able to see a storyline over time
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487 studying it in reference to the higher timeframe key support
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491 resistance levels that you would otherwise look for. When
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495 these time periods or key swing points trade to them, you
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499 will see significant and high probability turning points.
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503 Hopefully you enjoyed this presentation. Obviously if you
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507 want to find more, you can visit my website at the inner
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511 circle trader.com