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OTE Pattern Recognition Series - Vol 02.srt

Last modified by Drunk Monkey on 2021-06-10 10:00
1 00:00:11,190 --> 00:00:22,860 ICT: Welcome back, folks, this is the second of a series of 20 videos making up the ICT optimal trade entry pattern recognition series. And we're looking at the
2 00:00:22,890 --> 00:00:36,210 Japanese yen today or specifically dollar yen. So this is our daily chart and I want you to take a look at this chart and consider what may be unfolding. Why
3 00:00:36,210 --> 00:00:51,300 we're getting reactions why we would expect to see a reaction right? So gonna take our fit from this low to this high is the swing low swing high. It'll be a
4 00:00:51,300 --> 00:01:14,220 term reaction price points low to high. Okay, and I will do is continue this out in time and you'll see how price eventually trades into optimal trade entry for
5 00:01:14,880 --> 00:01:31,290 the daily timeframe. Alright, so if price were lower than this one, this swing, we will use this low drug from here up to here, but you want to work with what
6 00:01:31,290 --> 00:01:44,190 range you have available. Set in the yen on the daily we know that we entered into or below the 60% retracement level three days ago and yesterday or
7 00:01:44,190 --> 00:01:56,310 Thursday's trading. We pierced the previous day's high or Wednesday's high look at the high. Here's right here. Look at this number here. Wednesday's high comes
8 00:01:56,310 --> 00:02:11,670 in at 106. point six to nine. Thursday's trading goes to 106 point 657. So we went above Wednesday's high we could potentially be seeing a turn or an
9 00:02:11,670 --> 00:02:22,410 expansion on the upside. It's already shown a willingness to go higher than the previous day's range. So now we're going to look at Thursday's high, which is
10 00:02:22,830 --> 00:02:33,330 106 point six, five and seven pivots. Okay, so that's our level. Now we're gonna drop down into a five minute chart guide. So here's our dollar yen five minute
11 00:02:33,330 --> 00:02:44,850 chart. And we'll give you a moment to take a look at this, pause the video and study what you think you see here. And when you're ready, just unpause the video
12 00:02:44,850 --> 00:02:58,980 and watch the explanation for the pattern recognition exam for today. Okay, so here's what we're gonna do, we're gonna take a look at the annotations for
13 00:02:58,980 --> 00:03:15,240 today, here is the previous day's range. And the previous day's range is defined from here to here. So we're expecting a run above the previous day's high. So
14 00:03:15,240 --> 00:03:33,870 here's previous day's high at that 106 point 657 level. And we're looking for a reason to get long to target this high. And we could see from the previous day's
15 00:03:33,930 --> 00:03:50,490 range, we have this low, up to this high. And then all the way over to our New York session time. From 8:30am, New York time to 11am New York time. You see the
16 00:03:50,490 --> 00:04:02,280 vertical lines as I outline yesterday, we'll take these off to keep things clean. You can see how price drops down into it here. And we're going to assume
17 00:04:02,310 --> 00:04:15,780 that 106314 is that 16% change in level. So we're going to just round it to the nearest five at that. So 106 point 315 would be our entry below the low our
18 00:04:15,780 --> 00:04:31,080 stock will be at 106 point 215. So it's a 10 PIP stop optimal trade entry, old high that makes the range of the Fed comes in at 15 pips so it meets our minimum
19 00:04:31,080 --> 00:04:42,750 criteria for the first scaling. So if you take profits there, second scaling for around 25 pips here and we're still below previous day's high. The next level at
20 00:04:42,750 --> 00:04:51,810 the fib, which is a 10 level is nice because it's above the previous day's high and it's a 10 level so we could take a third scaling out there for round
21 00:04:51,810 --> 00:05:03,930 approximately 40 pips Additionally you can see this swing here from this low to this high being one 234 another optimal trade entry cuz you can see the low
22 00:05:03,930 --> 00:05:12,810 comes in just at 1055 sets five minutes before the end of our New York session for limited time.
23 00:05:14,610 --> 00:05:24,450 You can see we run this old high here. So from here to here, there's another opportunity you can study on your own and annotate your chart and you can see
24 00:05:24,450 --> 00:05:29,400 where we closed for the day. Hope you found this insightful till next time. I wish you good luck and good trading.