OTE Pattern Recognition Series - Vol 02.srt

1
00:00:11,190 --> 00:00:14,190
ICT: Welcome back folks, this is the second of a series of

2
00:00:14,190 --> 00:00:19,620
20 videos making up the ICT optimal trade entry pattern

3
00:00:19,620 --> 00:00:23,820
recognition series. And we're looking at the Japanese yen

4
00:00:23,820 --> 00:00:28,770
today or specifically dollar yen. Alright, so this is our

5
00:00:28,770 --> 00:00:31,920
daily chart and I want you to take a look at this chart and

6
00:00:31,980 --> 00:00:37,200
consider what may be unfolding. Why we're getting reactions

7
00:00:37,200 --> 00:00:43,080
or why we would expect to see a reaction right so gonna take

8
00:00:43,830 --> 00:00:48,150
our fit from this low to this high. This is a swing low

9
00:00:49,050 --> 00:00:53,400
swing high, intermediate term reaction price points

10
00:00:56,340 --> 00:00:59,970
low to high

11
00:01:01,770 --> 00:01:09,000
Okay, and all we'll do is continue this out in time and

12
00:01:09,000 --> 00:01:12,960
you'll see how price eventually trades into the optimal

13
00:01:12,960 --> 00:01:20,670
trade entry for the daily timeframe. All right, so if price

14
00:01:20,670 --> 00:01:26,550
were lower than this, on this swing, we would use this low

15
00:01:26,550 --> 00:01:31,260
drug from here, up to here, but you want to work with what

16
00:01:31,260 --> 00:01:35,520
range you have available. So in the end on the daily, we

17
00:01:35,520 --> 00:01:39,810
know that we entered into or below the 60% retracement level

18
00:01:40,860 --> 00:01:46,050
three days ago and yesterday or Thursday's trading, we

19
00:01:46,050 --> 00:01:48,690
pierced the previous day's high or Wednesday's high look at

20
00:01:48,690 --> 00:01:53,910
the high. Here's right here. Look at this number here.

21
00:01:54,630 --> 00:01:59,940
Wednesday's high comes in at 106 point six to nine

22
00:02:00,690 --> 00:02:06,270
Thursday's trading goes to 106 point 657. So we went above

23
00:02:06,450 --> 00:02:11,550
Wednesday's high, we could potentially be seeing a turn or

24
00:02:11,550 --> 00:02:15,330
an expansion on the upside. It's already shown a willingness

25
00:02:15,330 --> 00:02:19,620
to go higher than the previous day's range. So now we're

26
00:02:19,620 --> 00:02:24,930
going to look at Thursday's high, which is 106 point six,

27
00:02:24,930 --> 00:02:28,530
five and seven pipettes. Okay, so that's our level. And

28
00:02:28,530 --> 00:02:31,530
we're going to drop down into a five minute chart and say,

29
00:02:31,530 --> 00:02:34,980
here's our dollar yen five minute chart. And we'll give you

30
00:02:34,980 --> 00:02:39,030
a moment to take a look at this. Pause the video and study

31
00:02:39,060 --> 00:02:43,800
what you think you see here. And when you're ready, just

32
00:02:43,950 --> 00:02:47,820
unpause the video and watch the explanation for the pattern

33
00:02:47,820 --> 00:02:49,200
recognition exam for today.

34
00:02:52,740 --> 00:02:54,570
Okay, so here's what we're gonna do. We're gonna take a look

35
00:02:54,600 --> 00:02:55,020
at

36
00:02:57,690 --> 00:03:02,970
the annotations for today. Here is the previous day's range.

37
00:03:04,589 --> 00:03:07,289
And the previous day's range is defined from here

38
00:03:09,389 --> 00:03:09,959
to here.

39
00:03:11,219 --> 00:03:15,209
So we're expecting a run above the previous day's high. So

40
00:03:15,209 --> 00:03:22,229
here's previous day's high at that 106 point 657 level. And

41
00:03:22,259 --> 00:03:28,169
we're looking for a reason to get long to target this high.

42
00:03:30,929 --> 00:03:35,369
And we can see from the previous day's range, we have this

43
00:03:35,369 --> 00:03:41,429
low, up to this high and then all the way over to our New

44
00:03:41,429 --> 00:03:48,029
York session time. From 8:30am New York time to 11am New

45
00:03:48,029 --> 00:03:51,629
York time. You see the vertical lines as I outlined

46
00:03:51,629 --> 00:03:59,069
yesterday. We'll take these off to keep things clean. You

47
00:03:59,069 --> 00:04:01,799
can see how price drops down into it here, and we're going

48
00:04:01,799 --> 00:04:07,889
to assume that 106314 is that 60% inflation level. So we're

49
00:04:07,889 --> 00:04:11,519
going to just round that to the nearest five hit that so 106

50
00:04:11,519 --> 00:04:16,349
point 315 would be our entry. Below the low our stop will be

51
00:04:16,349 --> 00:04:21,989
at one there 6.215 so it's a 10 PIP stop. Optimal trade

52
00:04:21,989 --> 00:04:29,399
entry. Oh hi. That makes the range of fit comes in at 15

53
00:04:29,399 --> 00:04:32,489
pips, so it meets our minimum criteria for the first scaling

54
00:04:32,549 --> 00:04:36,869
so you could take profits there, second scaling for around

55
00:04:36,869 --> 00:04:41,429
25 pips here and we're still below the previous day's high.

56
00:04:41,879 --> 00:04:45,839
The next level at the fib, which is a 10 level is nice

57
00:04:45,839 --> 00:04:48,539
because it's above the previous day's high and it's a 10

58
00:04:48,539 --> 00:04:51,809
level so you can take a third scaling out there for around

59
00:04:51,809 --> 00:04:55,229
approximately 40 pips. Additionally, you can see this swing

60
00:04:55,229 --> 00:05:02,459
here from this low to this high being one 234 another

61
00:05:02,489 --> 00:05:05,219
optimal trading because you can see the low comes in just at

62
00:05:05,459 --> 00:05:09,929
1055. That's five minutes before the end of our New York

63
00:05:09,929 --> 00:05:17,039
session for limited time. You can see we run this old high

64
00:05:17,039 --> 00:05:21,179
here. So from here to here as another opportunity you can

65
00:05:21,179 --> 00:05:24,449
study on your own and annotate your chart and you can see

66
00:05:24,449 --> 00:05:27,449
where we closed for today. Hope you found this insightful

67
00:05:27,479 --> 00:05:29,399
until next time, I wish you good luck and good trading.