ICT Market Maker Primer Course - 24 - Secrets To Swing Trading.srt

Last modified by Drunk Monkey on 2021-06-10 06:18

00:00:10,950 --> 00:00:16,140 ICT: Hey folks, welcome back, this teachings cannot be specifically dealing with secrets of swing trading.
00:00:23,010 --> 00:00:32,040 Alright, swing trading, okay, the points of focus in this module. Okay, I'm going to teach you how to map by conditions and implementing the optimal trade
00:00:32,040 --> 00:00:46,650 entry. And we teaching you how to map sell conditions, and implement the optimal trade entry. Okay, folks, we're looking at the Aussie dollar. This is a daily
00:00:46,650 --> 00:00:59,730 chart, and I'm gonna be using this currency pair. This works on all currency pairs, all markets, all asset classes, as well. So before we get into it, I
00:00:59,730 --> 00:01:11,940 think one of the most repeating questions I get, by way of folks that follow me on Twitter, Facebook and on YouTube, is they need to know where they feel they
00:01:11,940 --> 00:01:22,950 need to know, the daily bias. You know, what should I do today? If I just knew, ICT, if I just knew what the bias is going to be tomorrow, I knew I would be
00:01:22,950 --> 00:01:36,810 speed, profitable Am I demo Can I know what see the positive return in my time.  And while there's several things that we can do to arrive at daily bias, in my
00:01:36,810 --> 00:01:47,100 mentorship, I teach institutional order flow in great detail. But that's not what I'm teaching you here. But I will give you a real quick approach that it's
00:01:47,100 --> 00:01:57,120 not going to be as time sensitive. And by that, I mean, you won't catch the turning points with it. Okay, you're going to get the meat of the moves. And
10 00:01:57,120 --> 00:02:07,710 that's all that you're really required to find really to do very well. There's other tools and concepts that we can use to warn ourselves, our potential
11 00:02:07,710 --> 00:02:17,760 turning points of the likelihood of a reversal. But before we get into it, I just wanted to make mention of that, because I know there's a lot of folks that
12 00:02:17,760 --> 00:02:27,210 see my videos, and they come away with the understanding that you have to have the bias every single day. And you don't, you don't need to know that you just
13 00:02:27,210 --> 00:02:37,290 need to know, the few times a month, or a couple times a week, when it's really loaded in one direction over the other, and then trade in those conditions. And
14 00:02:37,290 --> 00:02:47,220 I think if you do that your demo account results will be much more encouraging.  And your time spent practicing will be a lot more fruitful. So when we look at
15 00:02:47,220 --> 00:02:55,710 price action, there's a couple things that I want to kind of remind you of.  There are times when the market moves in trending environments where it moves
16 00:02:55,710 --> 00:03:07,680 directionally. Then the market goes into consolidation. And that trends again, well, those two conditions are very easy to see if you just relax and try not to
17 00:03:07,680 --> 00:03:18,810 overcomplicate it. Now, there are specific rules in finding key support resistance levels. And we mentioned a few of those in the higher timeframe
18 00:03:18,810 --> 00:03:32,100 concepts video that you should have watched prior to this one. But I believe that it's easier for me to teach you how to find the bias by teaching you how to
19 00:03:32,100 --> 00:03:46,680 stay on the side of higher timeframe momentum. Okay. And while I am not a supporter, if you will, of indicators, it's going to seem sacrilegious for me to
20 00:03:46,680 --> 00:04:00,060 put an indicator on my chart, like you're gonna see tonight, but I think it's a good crutch. It helps traders find their way if you will, on a directionally, I
21 00:04:00,060 --> 00:04:11,130 guess, trending environment. So the way I use this is I incorporate two moving averages. Okay, now, I don't require using a moving average. But I think the
22 00:04:11,130 --> 00:04:22,140 smoothing effect of the moving average over price action on a higher timeframe daily chart will help at least build an understanding of where you should.
23 00:04:22,650 --> 00:04:30,000 Really quickly just looking at chart real quick with the moving averages, it'll help you stay on one side of the marketplace. Now the benefit of it is only
24 00:04:30,180 --> 00:04:38,850 derived at by having it on a daily chart. As soon as you start applying this to like a five minute chart or a one minute chart, the reliability really goes out
25 00:04:38,850 --> 00:04:47,310 the window in my opinion. So why is there any significance of a moving average or two moving averages placed on a daily chart? Well, because the daily chart
26 00:04:47,310 --> 00:04:59,130 really is the most widely followed chart in the banking sector. So when we're looking for an intermediate term, level of momentum, it's gonna be found on the
27 00:04:59,130 --> 00:05:09,210 daily chart. So if we want to be trading in intermediate term momentum, and it's exactly where the banks are be looking at that timeframe, then it goes without
28 00:05:09,210 --> 00:05:13,110 saying that there should be a high probability of well,
29 00:05:13,800 --> 00:05:24,750 Confluence with that idea. And what we see in price action. So I've taught in the past the nine and 18, and an 18, and 40. But I'm going to give you one, it's
30 00:05:24,750 --> 00:05:46,110 really simple. And it's the 10 and 20. Period. Okay, and the red line here, is going to delineate the 20, period. Okay, and the green level here is going to
31 00:05:46,110 --> 00:06:00,600 delineate the 10 level. Okay, so it's 10, period, and a 20. Period, moving average. Okay. And I'll let you see what these settings are. So that way, you
32 00:06:00,600 --> 00:06:14,610 guys can relax and know what they are, it's exponential moving average 20 period on the close. And the other one is a 10, period exponential on the close. Okay.
33 00:06:15,780 --> 00:06:26,190 So that way, you have everything that's on my chart now. Now on a daily chart, all we're looking for is preferably the market leaving a consolidation. I think
34 00:06:26,190 --> 00:06:35,970 everyone would agree to this is consolidation here. And price has left the consolidation by breaking a swing high here. And also we have the crossover on
35 00:06:35,970 --> 00:06:44,790 the moving average. So right there. This is what I want you to do. This is how you map out your bullish. Well, in this case, it's a bullish condition. And you
36 00:06:44,790 --> 00:06:55,860 drag that rectangle all the way up until the point of which where it crosses below the 20 to an hour 10 drop down below. We can't look for any buys in here,
37 00:06:56,640 --> 00:07:06,510 after this point until we see the daily trade back above, with the 10 period above the 20. Period. Okay, it's a real simple little momentum filter, okay,
38 00:07:06,510 --> 00:07:15,480 it's not to hang everything on it. Okay, but for sake of finding swing trades, I'm going to incorporate a couple things here. And you'll see how fast and easy
39 00:07:15,480 --> 00:07:23,340 you can get to a bias trading on one side of the marketplace only and incorporating some of the things I've already taught you. So we have the bias
40 00:07:23,370 --> 00:07:31,230 shifting to a bullish condition here, with the 10 period going over the 20 period on a daily chart, again, it's important that you only do this on the
41 00:07:31,230 --> 00:07:39,600 daily chart, try not to do this on your five and 15 and one minute charts. But we have this condition, we can drop down into an hourly chart now why an hourly
42 00:07:39,600 --> 00:07:48,840 chart, hourly chart to me is a real good swing trading timeframe. Okay, so you'll be able to see everything that's important from a weekly basis or daily
43 00:07:48,840 --> 00:07:57,930 basis. But to me 60 minutes or more swing trading, ideal scenario. So what we're gonna do is we're going to go over here in the lower left hand corner, there's a
44 00:07:57,930 --> 00:08:10,080 little tiny I guess it's a little half triangle. You drag that over to the beginning of your shaded area that you've delineated where the 10 crosses over
45 00:08:10,530 --> 00:08:22,230 the 20. And we're leaving, okay? A consolidation we have breaking market structure here. So we have potential bullishness, and it's as important the 10
46 00:08:22,230 --> 00:08:31,650 period is pointing higher and 20 periods pointing higher. And the 10 is opening up and spreading away from the 20. Okay, this is called stalking. Okay, so
47 00:08:31,650 --> 00:08:40,620 whenever these two averages are opening up and pointing up, it's stalking when it's bearish, like it is here, when the 10 periods below the 20 period, and it's
48 00:08:40,620 --> 00:08:49,380 opening up and both are pointing down, again is called stalking, that's when the conditions are optimal. Okay, so we have really strong momentum here. Now if we
49 00:08:49,380 --> 00:08:59,820 drop down into a 60 minute chart, it'll take us immediately down into the beginning of this shaded point here. Now, here's where it's important that you
50 00:08:59,820 --> 00:09:17,040 follow along with the optimal trade entry. Once we're in this shaded area, price has to be above the red line and have moved away made a swing high. After an
51 00:09:17,040 --> 00:09:25,740 impulse like moving higher, so there are no words we have to see price moving higher, above the red line. And we're gonna be looking for optimal trade entries
52 00:09:25,740 --> 00:09:39,630 when it retraces back into a previous swing low. Here prices below the red line, we cannot take anything there. So we missed this move here, which is fine. If we
53 00:09:39,630 --> 00:09:49,620 look at this scenario back here, I kind of like want to bring this attention here. If we look at this, move up, if we drop our fib on that, I'm going to show
54 00:09:49,620 --> 00:09:51,600 you what you would have had to sit through
55 00:09:53,850 --> 00:10:04,260 if he did something like this. Okay, here's your swing, impulse leg and optimal trade entries down You have to sift through all of this before, finally, the
56 00:10:04,260 --> 00:10:13,170 move takes place. Okay? I don't want you to do that. Even though this is a scenario that worked out pretty good and and we've gotten a symmetrical price
57 00:10:13,170 --> 00:10:24,870 swing. That's not the setup I want you to see, or at least the hunt. What I want you to look for is when price is above the red 20 period, and it makes an
58 00:10:24,870 --> 00:10:32,910 impulse leg, and it comes back down to an optimal trade entry long. Okay, we don't have it here, I'm going to spare you put into football because I didn't
59 00:10:32,910 --> 00:10:47,730 get down to it. And price has gone below the red line, or below the red line here. Okay, and all through here, we're filtering, we can't take anything here.
60 00:10:49,410 --> 00:11:00,300 And finally, watch what happens, we start seeing impulse swings. And price moves away from the red line comes back to it. But now watch happens. See, we have the
61 00:11:00,300 --> 00:11:11,490 price dip below the 20. But the 10 has not crossed over. So this can happen on the one hour chart. Do not do this when it doesn't on the daily chart price has
62 00:11:11,490 --> 00:11:24,960 to be above both the 20 and 10. But on one, our price can stab below the red line during the retracement only valid when the 10 period has not crossed over
63 00:11:24,960 --> 00:11:34,950 the red though. So as soon as this occurs and the 10 period trades below, or marks below the 20 period moving average, if we get that crossover, we can't
64 00:11:34,950 --> 00:11:44,760 take too long. Okay. So we'll have the Fibonacci here. You're probably thinking, Oh, this has been several days. Now Michael Did you know this isn't give me a
65 00:11:44,760 --> 00:11:53,520 trade every single day, right? This is just that one pair. So we have an impulse lag Here comes back down into optimal trade entry, perfect delivery. And we have
66 00:11:53,520 --> 00:12:04,800 symmetrical price swing here. Okay, really nice little swing trade here. And it started on the 26th ended on the 27th. So basically one day of a hold for a nice
67 00:12:04,800 --> 00:12:23,970 little swing trade. Putting the trade on here at around 7570 and getting out at approximately 7610. So not a bad little move, you can leave a small portion one
68 00:12:23,970 --> 00:12:34,800 as it is a swing trade and leave your stop down here. Okay, do not trail your stop loss, you want to be taking partials, okay. And then once we get a run away
69 00:12:34,800 --> 00:12:43,380 from a consolidation like we have here, price has to show a willingness to want to run me remember inside this green shaded area, we are bullish on the daily.
70 00:12:43,620 --> 00:12:52,650 So we're anticipating this type of move here, we want to see it, you're starting to run higher. So when consolidations occur, if we take that trade, we want to
71 00:12:52,650 --> 00:13:02,820 leave our stop loss in until we start leaving the consolidation. Okay, and then when you start trailing up behind to swing lows from market action, and I'll
72 00:13:02,820 --> 00:13:12,030 explain that in a second. But taking a portion off here, and then letting the remainder go. And you see how we have really nice extensions up here at the
73 00:13:12,030 --> 00:13:26,280 500%. And then price drops down in here. So we can't take a new set up here. But we can hold on to the one we did down here. price starts to run. And now we have
74 00:13:26,280 --> 00:13:45,930 another one right in here. We have a potential swing up and down. And I'll show you that one. Here. They're just the highest body close or open, trades back
75 00:13:45,930 --> 00:13:54,990 down into it not overshoots it a little bit, okay because we are on a one hour chart. And I'm not using the wick. But your stop loss will be below here.
76 00:13:57,150 --> 00:14:05,520 Looking close, but ultimately it spreads like is symmetrical price swing price drops down below the red line. We can't take anything in here, no long trades in
77 00:14:05,520 --> 00:14:14,640 here, we have to stay inside this green shaded area. We're looking for Long's so while price is below the red line. We can't take anything long, we have to wait
78 00:14:14,640 --> 00:14:24,420 until price gets back above the red line as it does here, but then price goes below the red line and so does the 10 period. So we can't take this scenario at
79 00:14:24,420 --> 00:14:35,430 the wait price trades higher this back down not deep enough for optimal trade entry in here. So nothing would have happened their price here gives us a nice
80 00:14:35,430 --> 00:14:45,120 little scenario and again, this is an hourly chart. So there's a little bit more pips in this if you look at a 15 minute time frame or a five minute time frame.
81 00:14:45,870 --> 00:14:53,130 So here we have our impulse leg retraces optimal trade entry, symmetrical price swing,
82 00:14:53,700 --> 00:15:01,950 leave a little portion one Why? Because we are inside that green shaded area and we're anticipating that daily chart to expand on the upside. So this is an area
83 00:15:01,950 --> 00:15:20,160 where we could have taken another long or we could have added more from our original position. Okay. And we can't use this one, even though we have equal
84 00:15:20,160 --> 00:15:30,690 highs, what you know about this would be a run on that week, if we could do a fit from this level here up to this body, you'll see is actually a perfect
85 00:15:30,690 --> 00:15:42,360 optimal trade entry, but the filtering process, we can't take it. So nothing there. Nothing there price trades below the red line can't trade there can trade
86 00:15:42,360 --> 00:15:56,280 there. And price meander sideways and here we get above it, but doesn't give us anything to trade there. And we're still below the red line can't take any
87 00:15:56,280 --> 00:16:03,450 trades, they're long. We're below the red line, we're still filtering. Now, this is something you can go through all the majors with, okay, or if you'd like to
88 00:16:03,450 --> 00:16:13,110 trade exotics, which I don't like to do that in the States, I don't get to tax treatment for anything that's not coupled with $1. So you guys can look for
89 00:16:13,230 --> 00:16:22,680 every to every pair after 20 pairs, you can go through this and find a scenario where a swing trade would be forming with this insight. And again, we're inside
90 00:16:22,680 --> 00:16:33,630 that green shaded area. So there's nothing we can do on terms of a buy one price is below the red line. And we miss all that. Okay, now we go back out to a daily
91 00:16:33,630 --> 00:16:47,700 timeframe. So we had a couple in there for swing trades, not an everyday trade, okay. And this whole movement here was about about a month, in two weeks or so.
92 00:16:48,450 --> 00:16:56,160 So we had a couple of swing trading swing trades or about that one, they're not everyday trades, you want to put them on hold on for him for a while. Now we're
93 00:16:56,160 --> 00:17:08,040 gonna look at when we look for mapping out a bearish condition. Okay, and we're gonna look for the crossover here. And we're gonna drag that down until we get
94 00:17:08,040 --> 00:17:18,360 across over on the upside. And we'll change this to red. So that way, everything inside this red shaded area, we will keep our focus on only looking for optimal
95 00:17:18,360 --> 00:17:30,210 trade entry cells and prices. Whoa, that's a little too much now, isn't it?  Let's do this. Let's go to Yeah, that's a little bit friendlier on the eye. All
96 00:17:30,210 --> 00:17:39,870 right. And, again, we're in consolidation. So we want to see price breakdown on a moving average, yes, and show a willingness to want to leave, the
97 00:17:39,870 --> 00:17:47,640 consolidation that happens here, comes back out retests the consolidation. And now we can start to look for optimal trade entries right in here. So we're gonna
98 00:17:47,640 --> 00:17:57,750 take this little toggle thing here, put it I'll start here, so you guys can see the contrast. But really, when we get down the 11th of October, that's when it
99 00:17:57,750 --> 00:18:04,530 wouldn't be an ideal scenario, because every time you leave consolidation, want to wait for it to potentially retrace back to it much like we saw it here, it
100 00:18:04,530 --> 00:18:14,760 left consolidate came back down, potentially retesting the point at which it left. And then we can start seeing it really start to tear up higher. So we're
101 00:18:14,760 --> 00:18:27,720 going to drop down into an hourly chart now. And we can start looking for price staying below the red line and giving optimal trade entry sells, okay. Now
102 00:18:27,750 --> 00:18:35,820 notice we can spike through it not like we just said before, when the buys. But if we go through it, the 10 period has to remain below at two cannot crossover.
103 00:18:36,450 --> 00:18:49,050 So we have an optimal trade entry. So here and again, this is not an everyday setup, there's swings. So we have optimal trade entry here. body, the body cell
104 00:18:49,770 --> 00:19:01,110 tends below the 20. They're both stacking, this is a cell optimal trade entry.  And target two is hit beautifully. You can see a little portion one with stop up
105 00:19:01,110 --> 00:19:12,300 here. But swing trading, you do not want to aggressively trail your stop, you want to be taking partials and looking to add new positions when you can. Here's
106 00:19:12,300 --> 00:19:17,790 another scenario. Okay, Nope, can't do it. We're above the red line.
107 00:19:22,980 --> 00:19:35,700 And by the red line in here can't do that. Now we're above it for a long period of time. So it can't do anything to get back below it does it here. Price stays
108 00:19:35,700 --> 00:19:47,940 below it and climb back above it again, we're in a sell scenario. So we have to wait for price to get below both the red line and see the 10 and 20 period,
109 00:19:48,870 --> 00:20:05,400 exponential stack stacking lower and we have something in here. Let's take a look at that. We have swing high here, see that indecisive candle here, a
110 00:20:05,400 --> 00:20:16,560 bullish up closed candle and a lower closed candle here, the highest portion is the body on this one, we're gonna drag it down to this lowest body here, trade
111 00:20:16,560 --> 00:20:30,000 off the optimal trade entry. And we get target one falls short of target two, that does give us an optimal trade entry to sell there. And the next ideal one
112 00:20:30,000 --> 00:20:39,450 is here, we have price below both moving averages they're stacking here, it does punch up through it, but we don't get the temporary to cross over. And we have
113 00:20:39,450 --> 00:20:40,020 to
114 00:20:46,800 --> 00:20:59,070 put that down rate on the lowest body portion here comes up next the 260 2% retracement level, there's a sell, we could look for target one, target two
115 00:20:59,100 --> 00:21:10,980 symmetrical to our extension eventually. Here's another one in here, where price trades back up to here, but we cross over. So we're probably not going to take
116 00:21:10,980 --> 00:21:24,660 that one, we had to hold on to the original one we had up here. And another one, we don't get up high enough to get into that one. He didn't retrace deep enough
117 00:21:24,660 --> 00:21:39,360 there. So we would still be holding some portion on that we entered back there.  And we don't have anything here. And price goes back above the red line starts
118 00:21:39,630 --> 00:21:56,160 consolidating. And then we have price really not doing too much. So I think that Fibonacci also, it's clear to see what's going on. And price starts to move back
119 00:21:56,160 --> 00:22:09,120 in our favor here. Again, we're waiting for these scenarios. This is what you'd look for you wait for these types of setups right there, right here. So we have
120 00:22:09,390 --> 00:22:19,200 both the averages moving lower. Even though we spike through the red line, the 10 period has not crossed over the 20. Looking for inside this red shaded area.
121 00:22:19,260 --> 00:22:28,560 Again, we're anticipating that daily chart to expand going lower. So we put our short on here, start we'll be above the high here. And we can see target one,
122 00:22:28,740 --> 00:22:39,270 target two symmetrical price swing, beautifully hit. Eventually later on, we get to our extension hit. We have another scenario. Now even though we spiked
123 00:22:39,270 --> 00:22:52,530 through the 10 period has not crossed over the 20 period. So everything is still valid here. Optimal trade entry sell target one hit target to hit eventually
124 00:22:52,530 --> 00:23:02,280 symmetrical price swing is hit as well. And we can hold on to a portion now we have a consolidation. When price leaves a consolidation, then and only then do
125 00:23:02,280 --> 00:23:14,550 we consider looking to lower our protective stop loss. And I'll just bring it over here a little bit. And we don't go anything more towards an optimal trade
126 00:23:14,550 --> 00:23:25,620 entry until we start seeing price back above the red line. And now we're consolidating again. I think we're probably going to run out a sell condition
127 00:23:25,620 --> 00:23:44,820 before long. Yes, we have another one in here. Here's a nice one. Have a nice swing high here. Price trades down. Right to here. Optimal trade entry sell. And
128 00:23:44,820 --> 00:23:52,890 we can see symmetrical price swing, boom, really nice little swing trade there.  Price trades above the red line. So we're on the sidelines until we get back in
129 00:23:52,890 --> 00:24:07,320 sync. Again, right in here. Another scenario. So what this does is actually gives us a context to work within only use this body here. And we're gonna drag
130 00:24:07,320 --> 00:24:17,370 it down to the lowest open or close which is right there. Optimal trade entry right there sell cell beautiful expense expansion down to set medical price
131 00:24:17,370 --> 00:24:26,670 point and 200 extension. And doesn't give us much more below that before we started going consolidating and back above the red line. So we're neutral, and
132 00:24:26,670 --> 00:24:35,790 then everything has reversed until recent current price action now. So you can see it gives you a context to work within. Now it's not perfect. Nothing's ever
133 00:24:35,790 --> 00:24:45,150 going to be perfect. But it gives you a quick down and dirty way to apply two simple moving averages at 20 and 10 period exponential moving average on a daily
134 00:24:45,540 --> 00:24:54,870 and on an hourly chart and it frames your context of what's on the marketplace should you be waiting to only trade on now. Go back through here and you'll see
135 00:24:54,870 --> 00:25:06,060 obviously there's a few times where if we are in this environment where we're in the red shaded area, the ideal scenario would be to be looking for selling
136 00:25:06,060 --> 00:25:18,960 short. But right away, you can look for like this here the scenario, this is a buy here, and that runs up. What would this be? If it's not a swing trade? What
137 00:25:18,960 --> 00:25:27,030 could this potentially be? Just throw this in here as a bonus. This could be a day trade. Okay, you could be a day trader here because it's counter, what
138 00:25:27,030 --> 00:25:34,620 you're waiting for for swing trade going short. Do you see these scenarios?  Well, you can take a long Why? Because you had equal highs here. Okay, what's,
139 00:25:34,680 --> 00:25:49,680 what's the high on this candle? 7830. So what's 20 that's above that 7850 Okay, so we could look for an area to go up to there.
140 00:25:50,099 --> 00:25:59,909 Okay, so we could be a buyer here and take our profits here. Okay, or we can look over here and take a portion of it off here and leave a small portion and
141 00:25:59,909 --> 00:26:08,999 see if we can get a run about 1020 pips above that, as a day traders mindset, okay, that type of thing. So we can do things both directions, even though we
142 00:26:08,999 --> 00:26:18,959 have a cell model, okay, or cell program that we working inside of with this red shaded area relative to the daily chart, okay? doesn't negate you not being able
143 00:26:18,959 --> 00:26:29,039 to do anything, it just means that for swing trade, you have to wait for price to give you scenarios as we outlined for bearishness, like here, okay, optimal
144 00:26:29,039 --> 00:26:38,759 trade entry. So, and in leaving portions on a lot longer than you would with day trades. So in other words, for a swing trade, you can take off like 50%, leave
145 00:26:38,759 --> 00:26:46,619 the remaining 50% on, whereas a day trade if it goes to your first objective, you wanna think about 75 to 80% off and leave a small portion on because it's a
146 00:26:46,619 --> 00:26:56,489 day trade. So, I think this is going to pretty much do this video here and watch it a couple times. You'll see it's not complicated. It's not, you know,
147 00:26:56,489 --> 00:27:06,269 acrobatics, it's very simple approach to using a retail tool, a moving average, but let me just tell you, moving averages are actually used on large funds and
148 00:27:06,269 --> 00:27:14,279 their trend falling in nature. So the reason why I'm telling you how to use it like this, because this is very close to one of the long term trending models
149 00:27:14,279 --> 00:27:25,739 that a large fund uses that I know of. Okay, folks, hopefully you've enjoyed this presentation. If you'd like to find more, you can visit my website at the
150 00:27:25,739 --> 00:27:27,419 inner circle trader.com