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Version 1.1 by Drunk Monkey on 2020-12-09 05:24
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3 ICT: Okay folks, welcome back
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7 I saw you know that it's not on payroll week. So this Friday, we have non farm
8 payroll coming out. And typically what will happen is, is on Mondays and
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12 Tuesdays are the best trading days. And Wednesday, Thursday and Friday tend to
13 be a little bit iffy. In my experience, I've learned that it's better for me to
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17 be at least active at the beginning of the week, and then come on jets. As we
18 closer to Wednesday's, New York open.
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22 I don't want to promote the idea that you can't take any trades, obviously,
23 because it's just my personal opinion, it's my own personal approach to
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27 analysis. I don't want to sway anyone's opinions or, you know, because in the
28 past, I said, you shouldn't trade on Mondays. And a few of you have taken that
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32 as the gospel and the hardline that and said, You know, I thought it's not
33 profitable to trade on Mondays and show on social media where a Monday's trade
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37 is profitable. Again, I'm not trying to encourage that type of reaction from
38 other people to SEO folks that aren't really interested in what I'm sharing. I'm
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42 just giving you my personal interpretation of price action. I'm not right all
43 the time. And when I am right, I can justify why I was correct. When I'm wrong,
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47 I can also find out why relatively quickly, what went wrong. But that's the
48 distinction between myself and most retail traders, retail traders don't have a
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52 clue what they're looking for. And when they're right or wrong, they really
53 don't know how to attribute to us specifics or details. And you need to have the
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57 details. Okay, but we don't need details to the degree of precision, even though
58 I kind of promote that idea in my analysis, you don't necessarily need it. And
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62 when we talk about optimal trade entry, it's a pattern that is very versatile.
63 And you don't have to have yourself chained in front of the charts all the time.
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67 But you do have to know where the market's most likely reaching for. Okay, so
68 I'm going to give you a little bit of a, a treatise on that. So looking at the
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72 cable last night, Okay, I'm gonna put the date dividers in here you can see. And
73 here's the being a new day, Asia, in the market was dilly dallying around in a
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77 small little tight consolidation. Now, my personal expectation was we would see
78 higher dollar. So therefore, if the dollar is being pressed higher, that's going
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82 to suppress foreign currencies or make them more likely to go lower, doesn't
83 mean all foreign currencies are going to go lower.
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87 It doesn't mean all foreign currencies are going to go lower, but they
88 predominantly should go lower if the dollar is bullish. So what I was looking at
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92 is the tendency for cable to want to drop lower, clear out some liquidity and
93 reach for lower prices that hadn't been seen for a while. And I'll outline that
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97 in a second. But for now, I kinda want to give you the same question. I started
98 the video off with the screen capture of the agent session last night, during
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102 this smaller consolidation after these equal lows in here had been violated,
103 okay, rated it and went back into the middle range. I want you to look at this.
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107 Okay, we all blow here. The markets traded essentially, around this level, above
108 or below back to it hanging around resistance resistance. So I've used that as a
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112 point of equilibrium. Okay, and since I'm bearish, or was bearish last night, I
113 wanted to be a participant of this move. But truth be told, there's a lot of
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117 personal things going on my life. And I'm exhausted, I'm tired. So I didn't want
118 to get up at London. I didn't want to get up at midnight, the check anything,
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122 but I wanted to participate. So what I did was I went short rate, the market
123 rate equilibrium. The expectation is that we would see this big dramatic move
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127 right here. Think about sniper series. If you haven't seen that yet, you will be
128 able to see it. This month, I'm bringing it back on my website. And here's
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132 optimal trade entry. Okay, using the bodies of the candles as referred to in the
133 OTC primer, it's on YouTube with the mindset video. Optimal trade entry right in
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137 here 62% retracement level 70.5 and 79% Okay. There might specific levels how
138 it's set up, and I'll teach you exactly how to put that in your fib or mt four
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142 or whatever platform you're using. So my expectation is, is I knew I wanted to
143 be short. And I knew that the likelihood of upside would should be relatively
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147 limited. And I focused on the approach of my concept of power three. Okay, and
148 what that is, is, my expectation was to see, this is not the scale, folks. So
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152 just so you guys know, I was looking for this formation on the daily, okay, so
153 let's think of this as a daily candle or a daily bar. And the open is right in
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157 here. Here's the opening price. And I wanted to see it rally up, but I didn't
158 want to mess around with missing the move. And I didn't want to worry about
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162 whether or not I'm going to get in it or not, or Miss, you know, miss a real
163 good entry, I don't really care about a real good entry, if I know, the
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167 likelihood is it's going lower. So I want to get in around that opening price.
168 Or if not higher, if I'm going to be shorting so is this ICT power three, um,
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172 got a video teaches that but the, the opening or above it is where I want to be
173 selling short on bearish days. And I want to capture new lines portion of this
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177 move here. I don't care about getting the low, I got tools and techniques that
178 might give me the idea where this price may be. But I don't care to actually
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182 happen as my exit, I do want to exit somewhere below the midpoint of the
183 expected down range. Okay, so in other words, whatever I think the total daily
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187 ranges, my objective is, is I really want to be at 50% or below that for my
188 exits. That's my, my personal model, I want to be doing that type of thing. And
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192 then I'll leave some pieces on the see if I can get these types of prices down
193 here. But mostly, I'm not always getting it. So to be honest, that's really what
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197 it is, and 600. And some of you seen that day by day where if I am right, I'm
198 not always holding that last piece of the pie. I could care less about being
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202 accurate. Besides my portion is so small, it's insignificant at that point. The
203 premise is you want to be profitable, not perfect, because perfect is
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207 unrealistic. And you'll never get that. But profitable is realistic, and it can
208 be obtained. And that's all I'm trying to promote the ideal. And now, I can't
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212 promise you profitability, and I can't promise you what I'm teaching is going to
213 give you profits. But over time, you'll learn what approached it using the
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217 optimal trade entry, you'll like to have, okay, so let's go back to this, I want
218 to be short, above the opening price, which is here. And being short, I wanted
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222 to know how much of a move this power three high would be. So if we look at that
223 in the scope of
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227 I thought that you guys would appreciate this. But this is a 30 PIP range. And
228 I'm going to apply it to the opening price right there. Right there. Okay, so
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232 here's the opening price. 30 pips above that takes us above here, so my stop has
233 to be above here, preferably up to this point here. So around 30 to 6130, to 62
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237 ish, something like that, that's where my stop has to be. So I can be a seller
238 down here right during Asian range. Not give to Spitz about how how far it's
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242 going to go up if it's gonna be a dramatic spike up, or it's going to be a
243 lethargic drag all the way up to that price point. But I don't want to be
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247 worrying about getting stopped out. And I just don't want to be up for London.
248 So I want to get some sleep. So I wanted to participate I did a small little one
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252 standard lot. And I didn't care too much about making much more about that
253 position than that simply. So expectation is I want to see it reached down to a
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257 specific price level. Okay, now here's the myth about trading that I got wrapped
258 up into and not first started the entries The most important thing and it's not
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262 the entry is not the most important thing. Knowing where the price is most
263 likely trying to go to is what's most significant. So if we go out to take this
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267 off here and wrap this video up cuz I don't want to be too long. If we got to a
268 four hour chart
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272 Okay. Do you see this consolidation here? We rally to way smaller consolidation
273 rally away again. And then we climax high retrace Lower, retracement lower,
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277 retracement lower consolidation inside the consolidation over here. And what
278 we'll be resting below here. Self stops. Okay, Southside liquidity. So what we
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282 have here is a market maker,
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286 somehow.
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290 Okay. So what I was using was last night, I knew we were in this area over here
291 with the expectation of targeting the liquidity resting below the consolidation
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295 over here. So one of the parrot my orders with what would be existing in the
296 marketplace, in the form of sell stops, why would there be cell stops resting
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300 here, because this is the last intermediate term below prior to this run up,
301 that trailed stop losses would be placed right underneath. And they're going to
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305 target those individuals. With that run, you can see it's happened here, post
306 trade. But I want to go back into a 15 minute timeframe, and apply what
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310 everything looked like to me, in my mind. Okay, this is what it looked like.
311 This is how I interpreted price at the time of my entry in here. Okay, and I'll
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315 show you what that looks like. Also, we'll just do this, I'll throw on the the
316 last portion of that movie, you see, there's been no other trade since my last
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320 year of trade. So I'm practicing what I preach. I don't want to be trading a lot
321 during the non farm payroll week. So there's my entry right here. And there's my
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325 stop loss being tagged. Okay, it got stopped out right there just got really,
326 really tight, because I didn't believe it would be worth holding any type of
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330 bounce in here, because we had an ADR low. And it's not from payroll week. So it
331 could have easily came down here, hit this and chop back around. And I've given
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335 up a lot of the portion of the move, you can watch in the video. first couple
336 minutes of this video, I was scaling out at logical levels, and trailing my stop
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340 loss tighter and tighter and tighter. And I don't always try to get out at the
341 ideal scenario because ideal scenario doesn't always pan out for me. I live in
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345 the real world. So I've been hurt many times trying to get the absolute best
346 exit. To me, this is favorable. Okay, so now what we're looking at is this is
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350 the four hour market maker sell model liquidity pool, okay, which is that
351 consolidation I showed you on the four hour chart that levels that that low, and
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355 then below that 20 pips or so takes us down into the 3132 level. So in that
356 area, that takes us about 20 pips or so below the low. And depending on your
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360 data feed, you're going to have a slightly different number in terms of what 20
361 pips would be below that, but you can see how Look, they're consolidating around
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365 here. Now it could drop one more time lower, I could care less, I'm already out
366 flat, can't make any more money can't lose any more money long and short is this
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370 is where they're accumulating all the orders that are residing underneath that
371 for our blow. So it's a liquidity pool, where the market maker sell model, okay.
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375 So my expectation was, again, at the open, I was willing to absorb whatever
376 upside would be, but I was willing to allow it to go up to this point, which is
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380 the reason why you'll have one standard one. So shorting here allowing price to
381 go up to this level to be stopped me out. But really, the expectation is, this
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385 is where I thought price would go up to during the London session. This starts
386 the actual London session, which is one o'clock in the morning, New York time
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390 for me, this is the London open kill zone ICT kills and there's a lot of folks
391 using those buzzwords, on YouTube, YouTube, Killzone power three, and they're
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395 not teaching what I teach, okay, I create these own my own names, okay, had to
396 create a vocabulary. So it's, please don't be confused. If you see other people
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400 using those terms. kind of go back to if you're going to be looking at anything
401 I'm teaching kind of go back to what I teach with it because it did become real
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405 buzzwords and institutional institutional that so long and short is it went
406 right to the very beginning of the ICT, London open kill zone 1am in New York
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410 time, nailed it perfectly right at the 62%. And then 70% 70.5%. Rather, the
411 bodies want rate to 62 but the spike up in here on this particular candle and
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415 he's doing a little bit guys can see. Okay, you can see, it went right up into
416 the 70.5 level right in here. Okay, and EDR was hit and asked us where all my
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420 objectives were filled at this low or just below it. Again, I'll show you what
421 they look like again, here you can see it there. And this is a limit order. I
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425 was going to try to add to that short on the euro dollar day and just didn't get
426 trip. So that's why it was cancelled in case you're wondering what that was. And
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430 that's it folks. Optimal trade entry was the idea. It may pan out, but I didn't
431 want to be in there. And honestly, I could have had my orders at 62% retracement
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435 level or just below it to get filled. But it could have just simply rolled right
436 over
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440 and went lower and I would have never gotten filled. So when I have instances
441 where I feel that the most likely going to happen, I just go right into the
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445 Asian range, don't risk a whole lot don't put a whole lot of leverage on
446 determine where the projected high may be based on power three. And you can see,
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450 this is what we're looking at here. Now I'm going to change this to default. So
451 you guys can see a daily candle. And it'll be exactly as I just described to
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455 you. And we'll change it to a bar chart and zoom in. And here's the power three,
456 the opening price smaller rally up Now usually about 30 pips or so. And then it
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460 drops down, creates the low of the day and comes off the low. There it is. And
461 here's the consolidation on daily chart targeted that liquidity right there. So
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465 everything moves algorithmically. And there's a rhyme and reason why price does
466 everything it does. There's nothing ambiguous about it. And there's nothing that
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470 is, you know, mysterious. We can come up with all kinds of clever ways to make
471 it sound mysterious, but it really is as simple as looking for liquidity. So
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475 hopefully you found this teaching in video insightful. If you like what you saw,
476 leave a comment on twitter at I am ICT and till next time, wish you good luck
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480 and good trading.