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Version 1.1 by Drunk Monkey on 2020-11-20 16:21
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3 ICT: Welcome back folks, this is the second of a series of
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7 20 videos making up the ICT optimal trade entry pattern
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11 recognition series. And we're looking at the Japanese yen
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15 today or specifically dollar yen. Alright, so this is our
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19 daily chart and I want you to take a look at this chart and
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23 consider what may be unfolding. Why we're getting reactions
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27 or why we would expect to see a reaction right so gonna take
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31 our fit from this low to this high. This is a swing low
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35 swing high, intermediate term reaction price points
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39 low to high
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43 Okay, and all we'll do is continue this out in time and
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47 you'll see how price eventually trades into the optimal
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51 trade entry for the daily timeframe. All right, so if price
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55 were lower than this, on this swing, we would use this low
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59 drug from here, up to here, but you want to work with what
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63 range you have available. So in the end on the daily, we
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67 know that we entered into or below the 60% retracement level
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71 three days ago and yesterday or Thursday's trading, we
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75 pierced the previous day's high or Wednesday's high look at
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79 the high. Here's right here. Look at this number here.
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83 Wednesday's high comes in at 106 point six to nine
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87 Thursday's trading goes to 106 point 657. So we went above
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91 Wednesday's high, we could potentially be seeing a turn or
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95 an expansion on the upside. It's already shown a willingness
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99 to go higher than the previous day's range. So now we're
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103 going to look at Thursday's high, which is 106 point six,
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107 five and seven pipettes. Okay, so that's our level. And
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111 we're going to drop down into a five minute chart and say,
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115 here's our dollar yen five minute chart. And we'll give you
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119 a moment to take a look at this. Pause the video and study
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123 what you think you see here. And when you're ready, just
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127 unpause the video and watch the explanation for the pattern
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131 recognition exam for today.
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135 Okay, so here's what we're gonna do. We're gonna take a look
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139 at
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143 the annotations for today. Here is the previous day's range.
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147 And the previous day's range is defined from here
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151 to here.
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155 So we're expecting a run above the previous day's high. So
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159 here's previous day's high at that 106 point 657 level. And
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163 we're looking for a reason to get long to target this high.
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167 And we can see from the previous day's range, we have this
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171 low, up to this high and then all the way over to our New
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175 York session time. From 8:30am New York time to 11am New
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179 York time. You see the vertical lines as I outlined
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183 yesterday. We'll take these off to keep things clean. You
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187 can see how price drops down into it here, and we're going
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191 to assume that 106314 is that 60% inflation level. So we're
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195 going to just round that to the nearest five hit that so 106
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199 point 315 would be our entry. Below the low our stop will be
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203 at one there 6.215 so it's a 10 PIP stop. Optimal trade
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207 entry. Oh hi. That makes the range of fit comes in at 15
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211 pips, so it meets our minimum criteria for the first scaling
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215 so you could take profits there, second scaling for around
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219 25 pips here and we're still below the previous day's high.
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223 The next level at the fib, which is a 10 level is nice
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227 because it's above the previous day's high and it's a 10
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231 level so you can take a third scaling out there for around
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235 approximately 40 pips. Additionally, you can see this swing
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239 here from this low to this high being one 234 another
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243 optimal trading because you can see the low comes in just at
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247 1055. That's five minutes before the end of our New York
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251 session for limited time. You can see we run this old high
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255 here. So from here to here as another opportunity you can
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259 study on your own and annotate your chart and you can see
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263 where we closed for today. Hope you found this insightful
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267 until next time, I wish you good luck and good trading.