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

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ICT: folks, welcome back, this teachings coming up

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specifically dealing with secrets of swing trading.

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All right swing trading, okay, the points of focus in this

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module will teach you how to map by conditions and

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implementing the optimal trade entry. And we teaching you

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how to map sell conditions and implement the optimal trade

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entry. Okay, folks, we're looking at the Aussie dollar. This

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is a daily chart. I'm going to be using this currency pair.

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This works on all currency pairs, all markets, all asset

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classes as well. So before we get into it, I think One of

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the most repeating questions I get, by way of folks that are

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following me on Twitter, Facebook and on YouTube is they

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need to know or they feel they need to know, the daily bias.

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What should I do today, if I just knew, ICT, if I just knew

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what the bias is going to be tomorrow, I knew I would be

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speed profitable in my demo account, I knew I'd see the

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positive return in my time. And while there's several things

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that we can do to arrive at daily bias, in my mentorship, I

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teach institutional order flow in great detail. But that's

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not what I'm teaching you here. But I will give you a real

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quick approach that it's not going to be as time sensitive.

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And by that, I mean, you won't catch the turning points with

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it. Okay. You're going to get the meat of the moves. And

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that's all that's you're really required. Really they do

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very well. There's other tools and concepts that we can use

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to warn ourselves of potential turning points of the

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likelihood of a reversal. But before we get into it, I just

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wanted to make mention of that, because I know there's a lot

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of folks that see my videos, and they come away with the

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understanding that you have to have the bias every single

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day. And you don't, you don't need to know that you just

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need to know the few times a month, or a couple times a

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week, when it's really loaded in one direction over the

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other, and in trading those conditions. And I think if you

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do that your demo account results would be much more

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encouraging. And your time spent practicing will be a lot

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more fruitful. So when we look at price action, there's a

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couple things that I want to kind of remind you of. There

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are times when the market moves in trending environments

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where it moves directionally. Then the market goes into

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consolidation and then it trends again, Well, those two

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conditions are very easy to see if you just relax and try

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not to overcomplicate it. Now, there are specific rules in

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finding key support resistance levels. And we mentioned a

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few of those in the higher timeframe concepts video that you

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should have watched prior to this one. But I believe that

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it's easier for me to teach you how to find the bias by

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teaching you how to stay on the side of higher timeframe

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momentum. Okay. And while I am not a supporter, if you will,

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of indicators, it's gonna seem sacrilegious for me to put an

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indicator on my chart, like you're gonna see tonight, but I

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think it's a good crutch. It helps traders find their way if

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you will, on a directionally Guess, trending environment. So

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the way I use this is I incorporate two moving averages.

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Okay, now I don't require using a moving average. But I

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think the smoothing effect

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of the moving average over price action on a higher time

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frame daily chart will help at least build an understanding

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of where you should. Really quickly just looking at chart

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real quick with the moving averages, it'll help you stay on

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one side of the marketplace. Now the benefit of it is only

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derived at by having it on a daily chart. As soon as you

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start applying this to like a five minute chart or a one

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minute chart, the reliability really goes out the window in

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my opinion. So why is there any significance of a moving

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average or two moving averages placed on a daily chart?

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Well, because the daily chart really is the most widely

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followed chart in the banking sector. So when we're looking

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for an intermediate term, level of momentum is going to be

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found on the daily chart. So if we want to be trading in

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intermediate term momentum, and it's exactly where the banks

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are be looking at that timeframe, then it goes without

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saying that there should be a high probability of well,

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Confluence with that idea. And what we see in price action.

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So, I've taught in the past the nine and 18, and an 18 and

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40. But I'm going to give you one, it's really simple. And

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it's the 10 and 20 period. Okay, and the red line here, is

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going to delineate the 20 period.

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Okay, and

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the green level here is going to delineate the 10 level.

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Okay, so it's 10 period, and a 20, period, moving average.

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Okay. And I'll let you see what these settings are. So you

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guys can relax and know what they are. It's exponential

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moving average 20 period on the close. And the other one is

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a 10 period exponential on the close. Okay. So that way, you

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have everything that's on my chart now. Now on a daily

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chart, all we're looking for is preferably the market

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leaving a consolidation. I think everyone would agree that

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this is consolidation here. And price has left the

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consolidation by breaking a swing high here, and also we

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have the crossover on the moving average. So right there.

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This is what I want you to do. This is how you map out your

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bullish. Well in this case, it's a bullish condition, and

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you drag that rectangle all the way up until a point of

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which where it crosses below the 2010 or 10 drops down

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below. We can't look for any buys in here after this point

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until we see the daily trade back above With the 10 period

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above the 20, period, okay, it's a real simple little

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momentum filter, okay? It's not to hang everything on it.

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Okay, but for sake of finding swing trades, I'm going to

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incorporate a couple things here and you'll see how fast and

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easy you can get to a bias trading on one side of the

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marketplace only, and incorporating some of the things I've

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already taught you. So we have the bias shifting to a

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bullish condition here, with the 10 period going over the 20

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period on the daily chart, again, it's important that you

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only do this on the daily chart, try not to do this on your

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five and 15 in one minute charts. But we have this

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condition, we can drop down into an hourly chart now why an

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hourly chart, hourly chart to me is a real good swing

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trading timeframe. Okay, so you'll be able to see everything

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that's important from a weekly basis or daily basis. But to

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me 60 minutes or more swing trading, ideal scenario. So what

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we're gonna do is we're going to go over here in the lower

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left hand corner,

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there's a little tiny

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I guess it's a little half triangle. You drag that over to

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the beginning of your shaded area that you've delineated, or

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the 10 crosses over the 20. And we're leaving, okay? A

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consolidation we have breaking market structure here. So we

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have potential bullishness, and it's as important the 10

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period is pointing higher and 20 periods pointing higher.

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And the 10 is opening up and spreading away from the 20.

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Okay, this is called stalking. Okay, so whenever these two

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averages are opening up and pointing up, it's stalking. When

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it's bearish, like it is over here, when the 10 periods

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below the 20 period, and it's opening up and both are

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pointing down, again is called stalking, that's when the

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conditions are optimal. Okay. So we have really strong

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momentum here. Now if we drop down into a 60 minute chart,

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it'll take us immediately down into the beginning of this

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shaded point here. Now here's where it's important that you

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Along with the optimal trade entry, once we're in this

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shaded area, price has to be above the red line and have

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moved away made a swing high. After an impulse leg moving

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higher, so there's no words we have to see price moving

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higher, above the red line. And we're gonna be looking for

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optimal trade entries when it retraces back into a previous

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swing low. Here prices below the red line, we cannot take

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anything there. So we missed this move here, which is fine.

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If we look at this scenario back here, I kind of like want

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to bring your attention here. If we look at this, move up,

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if we drop our fib on that, I'm going to show you what you

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would have had to sit through if you did something like

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this. Okay, here's your swing, impulse leg and optimal trade

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entries down You have to sift through all of this before the

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finally the move takes place. Okay? I don't want you doing

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that. Even though this is a scenario that worked out pretty

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good and we've gotten a symmetrical price swing. That's not

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the setup I want you to see, or at least hunt. What I want

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you to look for is when price is above the red 20 period,

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and it makes an impulse leg and it comes back down to an

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optimal trade entry long. Okay, we don't have it here. I'm

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going to spare you putting a fib on because this didn't get

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down to it. And price has gone below the red line or below

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the red line here.

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Okay, and

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all through here, we're filtering we can't take anything

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here. And finally, watch what happens. We start seeing

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impulse swings. And price moves away from the red line comes

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back to it. But now watch what happens. See we Have the

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price dip below the 20. But the 10 has not crossed over. So

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this can happen on the one hour chart. Do not do this when

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it doesn't on the daily chart price has to be above both the

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20 and 10. But on the one hour price can stab below the red

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line during the retracement only valid when the 10 period

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has not crossed over the red though. So as soon as this

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occurs and the 10 period trades below, or marks below the 20

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period moving average, if we get that crossover, we can't

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take too long. Okay. So we'll have the Fibonacci here.

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You're probably thinking, well, this has been several days

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now Michael Did you know it doesn't give me a trade every

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single day, right? This is just that one pair. So we have an

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impulse like here comes back down into optimal trade entry,

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perfect delivery. And we have symmetrical price swing here.

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Okay, really nice little swing trade here. And it started on

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the 26th ends On the 27th so basically one day of a hold for

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a nice little swing trade putting the trade on here at

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around 7570 and getting out at approximately 7610. So not a

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bad little move. You can leave a small portion one as it is

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swing trade and leave your stop down here. Okay? Do not

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trail your stop loss. You want to be taking partials, okay.

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And then once we get a run away from a consolidation like we

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have here, price has to show a willingness to want to run.

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me remember inside this green shaded area, we are bullish on

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the daily. So we're anticipating this type of move here. We

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want to see it, you're starting to run higher. So when

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consolidations occur, if we take that trade, we want to

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leave our stop loss in until we start leaving the

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consolidation. Okay, and then we can start trailing up

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behind to swing lows from Mark action, and I'll explain that

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in a second. But taking a portion off here and then letting

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the remainder go, you can see how we have really nice

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extensions up here at the 500%. And then price drops down in

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here so we can't take a new set up here but we can hold on

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to the when we did down here starts to run. And now we have

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another one right in here. We have a potential swing up and

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down. I'll show you that one. Hear me they're just the

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highest body close or open trades back down into it not

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overshoots it a little bit. Okay cuz we are on a one hour

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chart, and I'm not using the wick, but your stop loss would

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be below here. Looking close, but ultimately spreads I guess

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is symmetric Price when price drops down below the red line,

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we can't take anything in here, no long trades in here. At

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the statement inside this green shaded area, we're looking

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for Long's so while price is below the red line, we can't

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take anything along, we have to wait until price gets back

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above the red line as it does here, but then price goes

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below the red line and so does the 10 period. So we can't

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take this scenario at the wait price trades higher this back

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down. not deep enough for optimal trade entry in here so

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nothing would have happened there. Price here gives us a

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nice little scenario and again, this is an hourly chart. So

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there's a little bit more pips in this if you look at a 15

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minute time frame or a five minute time frame. So here we

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have our impulse leg retraces optimal trade entry.

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symmetrical price when leave a little portion one Why?

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Because we are inside that green shaded area and we're

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anticipating that daily chart to expand on upside. So this

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is an area where we could have taken another loan or we

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could have added more from our original position. Okay? And

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we can't use this one even though we have equal highs what

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you know about this would be a run on that we could do a fit

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from this level here up to this body, you'll see is actually

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a perfect optimal trade entry but the filtering process, we

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can't take it. So nothing there. Nothing there price trades

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below the red line can't trade there can't trade there.

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And price meander sideways and here. We get above it but

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doesn't give us anything to trade there. And we're still

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below the red line can't take any trades. They're long.

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We're below the red line. We're still filtering out this

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Something you can go through all the majors with, okay, or

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if you'd like to trade exotics, which I don't like to do

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that in the States, I don't get to tax treatment for

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anything that's not coupled with $1. So you guys can look

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for every tool, every pair out there 20 pairs, you can go

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through this and find a scenario where a swing trade will be

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forming with this insight. And again, we're inside the green

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shaded area. So there's nothing we can do on terms of buy

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what prices below the red line. And we miss all that. Okay.

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Now we go back out to a daily timeframe. So we have a couple

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in there for swing trades, not an everyday trade. Okay. And

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this whole movement here was about a bet a month in two

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weeks or so. So we had a couple swing trading swing trades

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are about that length. They're not everyday trades. You want

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to put them on hold on for a while. Now we're gonna look at

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when we look for mapping out a bearish condition. Okay, and

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we're going to look for the crossover here. And we're gonna

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drag that down until we get across over on the upside. And

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we'll change this to red. So that way everything inside this

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red shaded area, we will keep our focus on only looking for

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optimal trade entry sells, and prices. Whoa, that's a little

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too much now, isn't it? Let's do this. Let's go to Yeah,

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that's a little bit friendlier on the eye. All right. And,

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again, we're in consolidation. So we want to see price

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breakdown on a moving average, yes, and show willingness to

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want to leave the consolidation that happens here comes back

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up, retest the consolidation. And now we can start to look

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for optimal trade entries right in here. So we're going to

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take this little toggle thing here, put it I'll start here

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so you guys can see the contrast. But really, when we get

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about the 11th of October, that's when it wouldn't be an

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ideal scenario because every time you leave Want to wait for

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it to potentially retrace back to it much like we saw here,

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it left the consolidate came back down, potentially

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retesting the point at which it left and then we can start

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seeing it really start to tear up higher. So we're going to

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drop down to an hourly chart now.

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And

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we can start looking for price staying below the red line

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and giving optimal trade entry sells, okay. Now notice we

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can spike through it not like we just said before, when the

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buys but if we go through it, the 10 period has to remain

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below it to cannot cross over. So we have an optimal trade

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entry. So here and again, this is not an everyday setup,

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there's swings. So we have optimal trade entry here. body,

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the body, sell 10s below the 20. You're both stacking. This

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is a seller optimal trade entry. And target two is hit

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beautifully. Gonna leave a little portion on Stop up here.

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With swing trading, you do not want to aggressively trail

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your stop, you want to be taking partials and looking to add

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new positions when you can. Here's another scenario. Okay,

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Nope, can't do it. We're above the red line.

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And by the red line in here can't do that. Now we're above

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it for a long period of time. So it can't do anything till

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we get back below. It does it here. Price stays below it

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climbed back above it. Again, we're in a sell scenario. So

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we have to wait for price to get below both the red line and

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see the 10 and 20 period, exponential stacking lower and we

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have something in here. Let's take a look at that. We have

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swing high here, see that indecisive candle here and a

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bullish up close candle and a lower close candle here. The

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highest portion is the body on this one, we're gonna drag it

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down to this lowest body here trades at the optimal trade

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entry and we get target one falls short of target two. That

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does give us an optimal trade entry to sell there.

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And

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the next ideal one is here. We have price below both moving

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averages they're stacking here. It does punch up through it

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but we don't get the temporary to cross over. And we have to

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put that down right on the lowest body portion here comes up

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next to 260 2% retracement level. There's a sell, we could

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look for. Target one, target two symmetrical To our

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extension eventually. Here's another one in here, where

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price trades back up to here, but we cross over, so we're

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probably not going to take that one, we had to hold on to

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the original one we had up here. And another one. We don't

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get up high enough to get into that one. It didn't retrace

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deep enough there. So we would still be holding some portion

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one that we entered back there. And we don't have anything

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here. And price goes back above the red line starts

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consolidating. And then we have price really not doing too

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much. So I think that Fibonacci also it's clear to see

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what's going on. And price starts to move back in our favor

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here. Again, we're waiting for the scenario. This is what

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you'd look for you wait for these types of setups here, so

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we have both the averages moving lower, even though we spike

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through the red line, the 10 period has not crossed over the

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20. Looking for inside this red shaded area again we're

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anticipating that daily chart to expand going lower. So we

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put our short on here, stop will be above the high here and

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we can see target one, target two symmetrical price swing

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beautifully hit. Eventually later on, we get to our

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extension hit. We have another scenario. Now even though we

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spiked through the 10 period has not crossed over the 20

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period. So everything is still valid here.

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Awesome trade entry sell.

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Target one hit target to hit. Eventually symmetrical price

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swing is hit as well. And we can hold on to a portion now we

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have a consolidation and pricing leaves a consolidation,

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then and only then do we consider looking to lower

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protective stop loss. And I'll just bring it over here a

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little bit. And we don't go anything more towards an optimal

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trade entry until we start seeing price back above the red

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line. And now we're consolidating again. I think we're

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probably gonna run a sell condition before. Long. Yes, we

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have another one in here. Here's a nice one. We have a nice

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swing high here. Price trades down.

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Right to here.

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Optimal trade entry sell. And we can see some metal price

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swing, boom, really nice little swing trade there. Price

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trades above the red line. So we're on the sidelines until

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we get back in sync. Again, right in here. Another scenario.

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So what this does is actually gives us a context to work

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within only use this

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body here.

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And we're going to drag it down to the lowest open or close,

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which is right there. Optimal trade entry right there sell

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beautiful expense expansion down to set magical price one

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and 200 extension. And doesn't give us much more below that

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before we started on consolidating and back above the red

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line. So we're in neutral, and then everything has reversed

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until recent current price action now. So you can see it

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gives you a context to work within. Now it's not perfect,

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nothing's ever gonna be perfect, but it gives you a quick

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down and dirty way to apply two simple moving averages a 20

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and 10 period exponential moving average on a daily and on

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an hourly chart. And it frames your context of what's of the

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marketplace should you be waiting to only trade on now. Go

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back through here and you'll see obviously there's a few

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times where if we are innocent environment where we're in

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the red shaded area. The ideal scenario would be to be

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looking for selling short. But right away, you can look for

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like this here this scenario, this is a buy here and that

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runs up. What would this be? If it's not a swing trade? What

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could this potentially be? Just throw this in here as a

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bonus. This could be a day trade. Okay, you could be a day

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trader here because it's counter what you're waiting for for

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swing trade going short. You see these scenarios? Well, you

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can take along Why? Because you have equal highs here. Okay,

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what's, what's the high on this candle? 7830. So what's 20

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pips above that? 7850 Okay, so we could look for an area to

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go up to there. Okay, so we could be a buyer here and take

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our profits here. Okay, or we can look over here and take a

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portion of it off here and leave a small portion on the

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scene. get around about 1020 pips above that as a day

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traders mindset, okay that type of thing. So we can do

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things both directions even though we have a cell model,

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okay or a cell program that we working inside of with this

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red shaded area relative to the daily chart, okay? doesn't

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negate you not being able to do anything it just means it

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for a swing trade, you have to wait for price to give you

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00:26:22,920 --> 00:26:29,040
scenarios as we outlined for bearishness here, okay, optimal

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00:26:29,040 --> 00:26:33,930
trade entry So, and then leaving portions on a lot longer

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00:26:33,930 --> 00:26:36,300
than you would with day trades. So in other words, for a

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00:26:36,300 --> 00:26:39,150
swing trade, you can take off like 50% leave the remaining

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00:26:39,150 --> 00:26:41,820
50% on one or two day trade if it goes to your first

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00:26:41,820 --> 00:26:45,000
objective. You want to take about 75 to 80% off and leave a

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00:26:45,000 --> 00:26:49,680
small portion on because it's a day trade. So I think this

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00:26:49,680 --> 00:26:52,770
is going to pretty much do this video here and watch it a

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00:26:52,770 --> 00:26:56,340
couple times. You'll see it's not complicated. It's not, you

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00:26:56,340 --> 00:27:00,150
know, acrobatics, it's very simple approach to using A

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00:27:00,150 --> 00:27:03,210
retail tool, a moving average. But let me just tell you,

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00:27:03,600 --> 00:27:06,360
moving averages are actually used on large funds and they're

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trend falling in nature. So the reason why I'm telling you

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00:27:09,570 --> 00:27:12,840
how to use it like this, because this is very close to one

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00:27:12,840 --> 00:27:16,470
of the long term trending models that a large fund uses that

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I know. Okay, folks, hopefully you've enjoyed this

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presentation. If you'd like to find more, you can visit my

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website at the inner circle trader.com