ICT Market Maker Primer Course - 17 - The ICT ATM Method.srt

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ICT: folks welcome back in this teaching terming

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specifically dealing with the ICT ATM method

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okay points of focus in this module we introducing the ICT

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ATM method the ATM and bares conditions with targets and

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stop placement the ATM in bullish conditions, the targets

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and stop placement.

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Okay introducing the ICT ATM method.

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Alright, it's a standalone price action pattern. The pattern

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capitalizes on stop runs to find this pattern on the 60

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minute chart It's relatively easy to spot and you can do it

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quickly and finding it. Because it's pretty much a well,

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it's a rejection level. Okay, and I'll show you what that

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looks like. It's pretty easy to trade. And the wonderful

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thing is it's a complete trading model for setups. Guess

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we're gonna look at the ATM in bearish conditions. Now once

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you take a look at this diagram on the right hand side, okay

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and let the image burn in for a couple of minutes. And as

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I'm talking to you just kind of like study what it's

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depicting. And I want you to think about how when we start

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as traders generally the idea of support resistance is

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rather early in our introduction to technical analysis. And

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the problem I found when I first started as a trader is what

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support resistance levels do I use this? I mean, there's so

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many you could possibly have in your chart, which ones

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should I be focusing on? So, my work has been trying to

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simplifying that so that way I could teach it to my

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children. Because of this, I've been able to make pretty

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detailed tutorials for people around the world to learn

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from. And I've developed a little bit better ability to

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teach over the years doing it. But initially, when I first

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started, I gave a lot of information, and it was overkill.

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So this teaching is going to be rather brief, but it's

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again, very dense in its information. So again, looking at

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this diagram here, I want you to think about what would

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constitute these turning points. And I'm sure if you were to

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go through charts, you could see patterns like this that are

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very similar in different timeframes. The timeframe that I

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teach, defined this pattern on is the hourly chart. The

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reason why I like to look for it on the hourly chart is

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because it gives me flexibility to drill down to a lower

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timeframe to refine risk to a smaller amount, while still

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keeping the maximum reward still in sight. And also, the

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hourly to me is clean enough in terms of a timeframe, it

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promotes a little bit longer term horizon for the setups.

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Now granted, an hourly chart is not long term. But you can

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see a lot of the levels you can see otherwise on a four hour

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or daily if you know you're looking for. So I kind of like

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to ingrain in your mind in this teaching how we can use key

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support resistance levels, and what makes these levels key.

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So the first thing you want to do is you want to take your

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60 minute chart and this can work on any asset class. Okay,

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so I'm going to be using forex for this discussion. Okay.

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The scope is in demo trading only. But you can also do if

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you also do demo accounts with futures contracts, commodity

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stocks, bonds and the like. So, you start with a 60 minute

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chart. Pretty simple, straightforward, you don't do, you

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don't do a whole lot of top down analysis, because the

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pattern is self sufficient. So you've been looking for a 60

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minute chart for a key high to form. And what makes it a key

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high is you want to see it create this initial short term

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high, and then it runs through it. It breaks down, okay,

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it's gonna break a swing low right here. When price trades

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through that, that's when it becomes a valid pattern. It

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does not become a valid pattern until we get below this

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swing low here. Okay? So imagine price action, kind of

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creating a checkmark Okay. Give it little short short term

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high here and it makes a check like that. Okay? When that

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check mark gets surpassed by price action when it trades

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back up to that, that's setup. Okay, that's what we're

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looking for. So ideally, what makes this setup stronger is

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if this whole price swing is part of a two stage move. In

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other words, we have a short term high, that's ran out, and

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we have a short term high here and it runs out. Okay, so

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this move should be ideally the second move up, taking a

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short term high. That means we're pretty much overbought

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from a technical standpoint without the necessity of any

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indicators.

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So we're focusing again on this short term low here and it

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has to break below that. Again, part of a two stage move

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higher And we're gonna be waiting for price to retrace back

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to the swing low that forms prior to the key high forming.

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Now what makes this high key is the fact that we have taken

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out a short term high, but the low immediately after that

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short term high is violated, it's broken down. So, in

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essence, this is a break in market structure here. And all

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we're doing is waiting for a retest of that same old support

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level now becomes resistance. So now when we see this in

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proper context, we can classify and quantify real support

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resistance, because we're incorporating the idea of a stock

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run above this short term high. And then anyone that's long

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here, we're gonna have a stop below this low, so they run

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through those stops. Price comes back up to this level here.

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We've already rejected price above this short term high

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above number two. So this level here should promote selling

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and it should stave off Real buying, because we've broken

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market structure with this swing low with this drop down. So

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this would be a nice area to look for shorts. And then once

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we have that, what we look for on this entry pattern, we

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have to frame obviously, profit and risk. So we first have

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to determine what's our potential profit. What do we hope to

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make? So we look for a swing low, where in this case it

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would be sell stops resting below that short term low. And

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we would target from our entry point at this low down to

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that level just below the old low that's what we are aiming

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for. That's our target, if you will, the risk is going to be

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defined by one or two pips above the key high, okay, or the

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rejection high. Sometimes price can go above this short term

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low a little bit. It's better if it doesn't, but don't be

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afraid. If it goes up by a little bit, your stop loss is up

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here to do its work. It's a demo account, don't lose any

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sleep over. Okay? So we're looking for the framework of this

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entry point to this as our objective and our stop loss

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protecting our overall position. Okay, so let's take a look

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of it in actual price action. Okay, we can see price

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creating a short term high here, price runs through it, no

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short term high here, price runs through that and then it

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rejects being above this short term high and trades down

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below this low in price comes back up and retake retreats to

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it. Okay, so this candle here violates it and then we come

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right back up to it and trades right into that same level.

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As soon as that happens, that is a sell scenario. Okay, or

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shorting opportunity. We're gonna be looking for a move

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below this low. Our risk is defined by the high six Five

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pips risk to make from this entry point down to the stops.

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That's not bad you can take that trade it's not you barn

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burning, okay? If we drop down into a 15 minute timeframe,

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we can take that same insight in here in zero in and use our

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trusty optimal trade entry pattern to reduce some of the

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risk. So now we can reduce that 65 pips stop loss down to 20

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pips. Notice also that we have a Fibonacci extension of

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300%, which takes us right below that low where our sell

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stop target with me. Now we're going to look at an example

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of the bullish condition of an ATM. Again, look at the

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scenario here in this crude depiction. Game we'll be

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scanning the price action on a 60 minute chart key low to

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form and a short term swing high broken to the upside.

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That's gonna be this here. So we're looking for For a low,

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that's violated and then we trade rate back above the short

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term high right here. So in other words, what we're looking

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for, it's kinda like a crooked little number seven. Okay?

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And when that is violated on the upside, when price comes

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back down to it, that's what we're hunting. So ideally, this

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is going to be part of a continued swing lower, we have a

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swing low, that's violated here, and then we have a swing

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low, that's violated here. So it's like a two stage move

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lower of breaking old support old support. Now we're really

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oversold technically without any necessity of needing any

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indication to tell us that. So here's our to scale drop

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down.

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And where are we waiting for price to retrace back to the

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swing high broken prior to the key low forming again, that's

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this here, and we zero in right there. That's our setup for

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a long. So we'll look for our opportunity for creaming our

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potential reward. Again, we're gonna be hunting by stops

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above this swing high here. And stop losses below here. So

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our entry to our stock is our risk and our entry to the buy

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stops above here is our potential profit or reward.

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All right, we'll take a look at an example in the bullish

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condition.

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Alright, so here is price action on an hourly chart, you can

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see we have one support level broken, another area of

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support broken, and then we have an old Whoa, violated

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aggressively, and then price trades back above it right

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here. When we see that this retest of that old high, that's

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where we're hunting along. So if that's our entry, and this

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is our stop loss, we're risking 140 pips, to make 225 pips

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by stops are our target here. Now that may not be an ideal

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scenario for you, it may not be something that fits your

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risk appetite, so we can now drop down into To a 15 minute

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timeframe and try to get that same 225 pips with a little

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bit lower stop loss. So here we are on a 15 minute time

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frame, I've zoomed in here and that same little area of

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looking to be a buyer, we're going to be now removing all

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that risk down to 80 pips, so we have a stop loss just below

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this old low here. Okay, so we have this low to this high

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here, coming back down to that level. So we're trying to

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give ourselves a little bit more of a better risk reward

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model here. Right away, we're almost at three to one that's

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improved, but watch what we do when we zoom in a little bit

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more. We're gonna actually go down to a five minute chart

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now and still see if we can get that 225 pips but with a

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smaller stop loss. Okay, so now we have a five minute chart

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again, that same little area, that green circle resumed in

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here. And now I'm doing this doing an optimal trade entry

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long are in the fifth and the body's lowest open or close to

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the highest open or close and this swing high guess is a

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beautiful little optimal trade entry long. Right at the same

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level, we'd be looking for that scenario to unfold that. And

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now we can reduce that stop down to 20 pips, but still

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looking and hunting to earn 25 pips or in this case becomes

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11 to one reward the risk model. So what we've done is we've

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looked for a key turning point. We've identified the key

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levels relative to runs on liquidity stops, and we use the

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targets in the form of a stock run as well. We can use the

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optimal trade entry to zero in and reduce the risk but still

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keep the possible potential reward, still the same as we

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would have used from an hourly setup. So the 225 pips is

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still available to us with a 20 PIP stop loss. Now granted,

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you have to hold for a while but this is what It looks like

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on a five minute zoomed out and not getting the entire move,

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but it takes a little bit of time to get there. But

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nonetheless, this is how we can use the ATM method to get

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high probability setups, trading key support resistance

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levels. Again 225 pips is available. That's 20 pips stop

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loss. Hope you enjoyed this presentation. If you'd like

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these types of teachings, you can find more at V inner

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circle trader.com