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on 2021-06-10 10:01
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1 -1
2 -00:00:11,160 ~-~-> 00:00:13,830
3 -ICT: Okay, folks, welcome back. This is part three of the
1 +(% class="hover min" %)
2 +|1 |00:00:11,160 ~-~-> 00:00:20,370 |ICT: Okay, folks, welcome back. This is part three of the continuing series of the ICT optimal trade entry pattern recognition series. And we're a step outside
3 +|2 |00:00:20,370 ~-~-> 00:00:31,020 |of forex. As I mentioned, one of the central tenets of this pattern is it's not limited to forex. So I'm going to show you how you can use it in the futures
4 +|3 |00:00:31,020 ~-~-> 00:00:43,080 |market. This is an index futures. And it's the delivery contract of June 2020. of the s&p e mini futures. Alright, so we want to look for a signature in price
5 +|4 |00:00:43,080 ~-~-> 00:00:54,330 |that would lend well to aiming for a previous day's higher low. And again, it's focusing primarily on a very short term timeframe. But the pattern can be scaled
6 +|5 |00:00:54,510 ~-~-> 00:01:04,440 |to whatever timeframe you really want. So looking at the price action here, you can see that we have a swing low swing high and a retracement here, and price
7 +|6 |00:01:04,440 ~-~-> 00:01:15,810 |was underway going higher. And there's no necessity for you to say, I have to be in this here, or I have to be in this here. Or I can't participate in a market
8 +|7 |00:01:15,810 ~-~-> 00:01:27,900 |like this and be a buyer, which is not true. So I want you to take a look at the framework here. We're presently in a larger daily optimal trade entry price just
9 +|8 |00:01:27,930 ~-~-> 00:01:38,340 |fell short of hitting the 70% retracement level. And again, the magic is not the fib. It's the target of liquidity. That's all I'm doing. The Fed just helps me
10 +|9 |00:01:38,340 ~-~-> 00:01:48,330 |frame an underlying context. It's not that you need these levels, it just gives you a framework. Okay. So the framework is we have an old low old high
11 +|10 |00:01:48,540 ~-~-> 00:02:00,150 |retracement and then starts to move higher. So on a daily chart, where is the likely momentum, it's going higher, okay, great. It could be reaching to this
12 +|11 |00:02:00,240 ~-~-> 00:02:09,420 |old high here, or it could fail to run that high or kick go through it and keep on going higher in this and since we don't care, we just know that the
13 +|12 |00:02:09,420 ~-~-> 00:02:23,430 |likelihood is it's probably going to run a previous day's high. So today's Monday of may 2020, may 11, specifically. So here's Friday, May 8 2020. And
14 +|13 |00:02:23,430 ~-~-> 00:02:30,810 |we're going to denote that high. So that price level is going to be significantly dropped on the lower timeframe. Okay, so here is the s&p e mini
15 +|14 |00:02:30,810 ~-~-> 00:02:40,980 |futures for June 2025 minute chart. And this is a naked chart so that way, you got a chance to take a look at this before I put the lipstick on this particular
16 +|15 |00:02:41,010 ~-~-> 00:02:54,270 |example. And you can pause the video here. Alright, so if you haven't paused the video and studied and looked for what I'm going to cover before actually show it
17 +|16 |00:02:54,270 ~-~-> 00:03:08,880 |to you, you're going to miss that opportunity. Now. The big figure 2900 price trades down into that during the New York session. Whenever I big figure is
18 +|17 |00:03:08,910 ~-~-> 00:03:21,690 |swept either down into it or up into it, it will generally create some kind of a tradable bounce, okay, or retracement. And while it may be there short term and
19 +|18 |00:03:21,690 ~-~-> 00:03:31,230 |short lived, it still gives the opportunity for you a quick snap in marketplace where you can take something out of it. Since this is a futures contract. And
20 +|19 |00:03:31,230 ~-~-> 00:03:40,650 |it's not a foreign exchange pair. We can't talk in terms of pips. So we're going to be using just the range. Now if you look closely, you can see inside of the
21 +|20 |00:03:41,010 ~-~-> 00:03:50,370 |New York session, the idea is the beginning is here at 830. And the end is again 11 o'clock, it's a static time, it doesn't change. So everything that I've shown
22 +|21 |00:03:50,370 ~-~-> 00:04:02,340 |you thus far, we're just doing the same thing every single day. And you'll see this pattern forums every single day. So let's take a look at the fib over top
23 +|22 |00:04:02,370 ~-~-> 00:04:14,370 |this right here. This is the optimal trade entry. The market rallies back above 29 big figure comes back down into bullish order block overlapping with a 2900
24 +|23 |00:04:14,370 ~-~-> 00:04:23,490 |big figure inside of our specific time of day, the New York session. Okay 830 in the morning till 11 o'clock in the morning, New York local time.
25 +|24 |00:04:24,930 ~-~-> 00:04:35,490 |This pattern is seen with the fib to trade down into the 70.5 level, which is the sweet spot by my definition for optimal trade entry. And you could be a
26 +|25 |00:04:35,490 ~-~-> 00:04:44,010 |buyer there. And the market comes back down and does give multiple entries. You can take it on here, which is still inside of the New York session time window
27 +|26 |00:04:44,010 ~-~-> 00:04:55,710 |that we've created for this pattern. And we have really three candles here, here and here where it meets optimal trade entry 62 or less down to 79. And you could
28 +|27 |00:04:55,710 ~-~-> 00:05:03,930 |be a buyer there. We're going to use the range here. Okay, so point five You can take your first scaling their partials, and look how it spends a little bit of
29 +|28 |00:05:03,930 ~-~-> 00:05:15,210 |time consolidating there and then expands up to one to one full standard deviation here at 2922. So being a buyer at around 2900, big figure, and getting
30 +|29 |00:05:15,210 ~-~-> 00:05:29,160 |out with 15 handles in the s&p as a first scalp, or scaling, then your secondary exit for a partial could be at 2922, which is 22 handles in the s&p, then
31 +|30 |00:05:29,190 ~-~-> 00:05:38,430 |ultimately I mentioned in this pattern, this level here on the fib if it gets to that price level and runs a specific price point for liquidity, which is the
32 +|31 |00:05:38,430 ~-~-> 00:05:46,830 |Friday's of high which is we unintended on the daily chart, the market will likely rather want to gravitate towards that old Friday high because the trend
33 +|32 |00:05:46,830 ~-~-> 00:05:54,750 |is bullish, it's going to want to take liquidity out there because a lot of people are short selling in the s&p, the market has taken up above Friday's
34 +|33 |00:05:54,750 ~-~-> 00:06:06,030 |high. And to the fib level 2936. The high comes in on this candle at 2937 only off by one handle on the s&p. And it went up again to another opportunity to do
35 +|34 |00:06:06,030 ~-~-> 00:06:17,400 |so and again 2937. So it's only off by one handle. But you could take this idea here, instead of reaching for the 2936 round down to the nearest five level. So
36 +|35 |00:06:17,400 ~-~-> 00:06:26,760 |that would be 2935. So that's 35 handles with as much as one two and three partials taken out. But at this point here, I would be out for this particular
37 +|36 |00:06:26,760 ~-~-> 00:06:32,280 |pattern in this market as an example. Hope you found this insightful until next time, I wish good luck and good trading
4 4  
5 -2
6 -00:00:13,830 ~-~-> 00:00:17,220
7 -continuing series of the ICT optimal trade entry pattern
8 -
9 -3
10 -00:00:17,220 ~-~-> 00:00:18,150
11 -recognition series.
12 -
13 -4
14 -00:00:19,350 ~-~-> 00:00:22,560
15 -And we're a step outside of forex. As I mentioned, one of
16 -
17 -5
18 -00:00:22,560 ~-~-> 00:00:26,490
19 -the central tenets of this pattern is it's not limited to
20 -
21 -6
22 -00:00:26,520 ~-~-> 00:00:30,240
23 -forex. So I'm going to show you how you can use it in the
24 -
25 -7
26 -00:00:30,540 ~-~-> 00:00:31,350
27 -futures market.
28 -
29 -8
30 -00:00:31,350 ~-~-> 00:00:34,770
31 -This is an index futures. And it's the delivery contract of
32 -
33 -9
34 -00:00:34,830 ~-~-> 00:00:40,440
35 -June 2020 of the s&p emini futures. Alright, so we want to
36 -
37 -10
38 -00:00:40,440 ~-~-> 00:00:45,420
39 -look for a signature in price that would lend well to aiming
40 -
41 -11
42 -00:00:45,420 ~-~-> 00:00:49,620
43 -for a previous day's high or low. And again, it's focusing
44 -
45 -12
46 -00:00:49,620 ~-~-> 00:00:53,400
47 -primarily on a very short term timeframe. But the pattern
48 -
49 -13
50 -00:00:53,400 ~-~-> 00:00:56,490
51 -can be scaled to whatever timeframe you really want. So
52 -
53 -14
54 -00:00:57,450 ~-~-> 00:00:59,880
55 -looking at price action here you can see that we have a
56 -
57 -15
58 -00:00:59,910 ~-~-> 00:01:04,590
59 -Swing low, swing high and a retracement here. And price was
60 -
61 -16
62 -00:01:04,590 ~-~-> 00:01:09,780
63 -underway going higher. And there's no necessity for you to
64 -
65 -17
66 -00:01:09,780 ~-~-> 00:01:13,560
67 -say, I have to be in this here or I have to be in this here,
68 -
69 -18
70 -00:01:13,920 ~-~-> 00:01:17,550
71 -or I can't participate in a market like this and be a buyer,
72 -
73 -19
74 -00:01:17,820 ~-~-> 00:01:21,810
75 -which is not true. So I want you to take a look at the
76 -
77 -20
78 -00:01:21,810 ~-~-> 00:01:25,740
79 -framework here. We're presently in a larger daily optimal
80 -
81 -21
82 -00:01:25,740 ~-~-> 00:01:29,880
83 -trade entry price just fell short of hitting the 78%
84 -
85 -22
86 -00:01:29,880 ~-~-> 00:01:34,440
87 -retracement level. And again, the magic is not the fib. It's
88 -
89 -23
90 -00:01:34,470 ~-~-> 00:01:38,010
91 -the target of liquidity. That's all I'm doing the Fed just
92 -
93 -24
94 -00:01:38,010 ~-~-> 00:01:42,900
95 -helps me frame and underline context. It's not that you need
96 -
97 -25
98 -00:01:42,900 ~-~-> 00:01:45,840
99 -these levels, it just gives you a framework. Okay. So the
100 -
101 -26
102 -00:01:45,840 ~-~-> 00:01:49,500
103 -framework is we have old low, old high retracement and it
104 -
105 -27
106 -00:01:49,500 ~-~-> 00:01:53,460
107 -starts to move higher. So on a daily chart, where is the
108 -
109 -28
110 -00:01:53,460 ~-~-> 00:01:59,190
111 -likely momentum it's going higher. Okay, great. It could be
112 -
113 -29
114 -00:01:59,190 ~-~-> 00:02:02,790
115 -reaching to this Old high here, or it could fail to run that
116 -
117 -30
118 -00:02:02,790 ~-~-> 00:02:06,600
119 -high or go through it and keep on going higher. In this
120 -
121 -31
122 -00:02:06,600 ~-~-> 00:02:10,260
123 -instance, we don't care. We just know that the likelihood is
124 -
125 -32
126 -00:02:10,680 ~-~-> 00:02:13,740
127 -it's probably going to run a previous day's high. So today's
128 -
129 -33
130 -00:02:13,740 ~-~-> 00:02:20,040
131 -Monday of may 2020, may 11, specifically. So here's Friday,
132 -
133 -34
134 -00:02:20,040 ~-~-> 00:02:25,950
135 -May 8 2020. And we're going to denote that high. So that
136 -
137 -35
138 -00:02:25,950 ~-~-> 00:02:28,050
139 -price level is going to be significantly dropped on the
140 -
141 -36
142 -00:02:28,050 ~-~-> 00:02:31,710
143 -lower timeframe. Okay, so here is the s&p e mini futures for
144 -
145 -37
146 -00:02:31,710 ~-~-> 00:02:36,210
147 -June 2025 minute chart. And this is a naked chart so that
148 -
149 -38
150 -00:02:36,210 ~-~-> 00:02:38,820
151 -way you got a chance to take a look at this before I put the
152 -
153 -39
154 -00:02:38,820 ~-~-> 00:02:44,430
155 -lipstick on this particular example. And you can pause the
156 -
157 -40
158 -00:02:44,430 ~-~-> 00:02:50,850
159 -video here Alright, so if you haven't paused the video and
160 -
161 -41
162 -00:02:50,850 ~-~-> 00:02:53,730
163 -studied and looked for what I'm going to cover before
164 -
165 -42
166 -00:02:53,730 ~-~-> 00:02:56,790
167 -actually show it to you, you're going to miss that
168 -
169 -43
170 -00:02:56,790 ~-~-> 00:03:04,230
171 -opportunity now. The Figure 2900 price trades down into that
172 -
173 -44
174 -00:03:04,590 ~-~-> 00:03:08,880
175 -doing during the New York session. Whenever a big figure is
176 -
177 -45
178 -00:03:08,910 ~-~-> 00:03:14,310
179 -swept either down into it or up into it, it will generally
180 -
181 -46
182 -00:03:14,310 ~-~-> 00:03:18,300
183 -create some kind of a tradable bounce, okay, or a
184 -
185 -47
186 -00:03:18,300 ~-~-> 00:03:21,930
187 -retracement. And it while it may be very short term short
188 -
189 -48
190 -00:03:21,930 ~-~-> 00:03:25,980
191 -lived, it still gives the opportunity for, you know, a quick
192 -
193 -49
194 -00:03:25,980 ~-~-> 00:03:28,770
195 -snap in marketplace where you can take something out of it.
196 -
197 -50
198 -00:03:29,160 ~-~-> 00:03:33,270
199 -Since this is a futures contract, and it's not a foreign
200 -
201 -51
202 -00:03:33,270 ~-~-> 00:03:36,240
203 -exchange pair. We can't talk in terms of pips, so we're
204 -
205 -52
206 -00:03:36,240 ~-~-> 00:03:39,360
207 -going to be using just the range. Now, if you look closely,
208 -
209 -53
210 -00:03:39,360 ~-~-> 00:03:43,170
211 -you can see inside of the New York session, the idea is the
212 -
213 -54
214 -00:03:43,170 ~-~-> 00:03:47,280
215 -beginning is here at 830. And the end is, again 11 o'clock.
216 -
217 -55
218 -00:03:47,520 ~-~-> 00:03:50,070
219 -It's a static time, it doesn't change everything that I've
220 -
221 -56
222 -00:03:50,070 ~-~-> 00:03:53,100
223 -shown you thus far. We're just doing the same thing every
224 -
225 -57
226 -00:03:53,100 ~-~-> 00:03:56,580
227 -single day. And you'll see this pattern forms every single
228 -
229 -58
230 -00:03:56,580 ~-~-> 00:04:04,770
231 -day. So let's take a look at the fib over top this right
232 -
233 -59
234 -00:04:04,770 ~-~-> 00:04:08,430
235 -here. This is the optimal trade entry. The market rallies
236 -
237 -60
238 -00:04:08,430 ~-~-> 00:04:12,240
239 -back above 29, big figure comes back down into bullish order
240 -
241 -61
242 -00:04:12,240 ~-~-> 00:04:16,110
243 -block overlapping with the 2900 big figure inside of our
244 -
245 -62
246 -00:04:16,110 ~-~-> 00:04:20,730
247 -specific time of day, the New York session, okay 830 in the
248 -
249 -63
250 -00:04:20,730 ~-~-> 00:04:23,490
251 -morning till 11 o'clock in the morning, New York local time.
252 -
253 -64
254 -00:04:24,930 ~-~-> 00:04:29,310
255 -This pattern is seen with the fib to trade down into the
256 -
257 -65
258 -00:04:29,310 ~-~-> 00:04:32,970
259 -70.5 level, which is the sweet spot by my definition for
260 -
261 -66
262 -00:04:32,970 ~-~-> 00:04:36,780
263 -optimal trade entry. And you could be a buyer there, and the
264 -
265 -67
266 -00:04:36,780 ~-~-> 00:04:40,050
267 -market comes back down and just give multiple entries, you
268 -
269 -68
270 -00:04:40,050 ~-~-> 00:04:42,600
271 -can take it on here, which is still inside of the New York
272 -
273 -69
274 -00:04:42,600 ~-~-> 00:04:46,770
275 -session time window that we've created for this pattern. And
276 -
277 -70
278 -00:04:46,980 ~-~-> 00:04:51,210
279 -we have really three candles here, here and here, where it
280 -
281 -71
282 -00:04:51,210 ~-~-> 00:04:55,710
283 -meets optimal trade entry 62 or less down to 79. And you can
284 -
285 -72
286 -00:04:55,710 ~-~-> 00:04:58,230
287 -be a buyer there. We're going to use the range here. Okay,
288 -
289 -73
290 -00:04:58,230 ~-~-> 00:05:01,950
291 -so point five You could take your first scaling there
292 -
293 -74
294 -00:05:01,980 ~-~-> 00:05:04,140
295 -partials and look how it spends a little bit of time
296 -
297 -75
298 -00:05:04,140 ~-~-> 00:05:07,290
299 -consolidating there and then expands up to one to one full
300 -
301 -76
302 -00:05:07,290 ~-~-> 00:05:12,330
303 -standard deviation here at 2922. So being a buyer at around
304 -
305 -77
306 -00:05:12,420 ~-~-> 00:05:18,750
307 -2900, big figure, and getting out with 15 handles in the SMP
308 -
309 -78
310 -00:05:18,780 ~-~-> 00:05:24,750
311 -as a first scalp or scaling, then your secondary exit for a
312 -
313 -79
314 -00:05:24,750 ~-~-> 00:05:28,350
315 -partial could be at 2922, which is 22 handles in the s&p.
316 -
317 -80
318 -00:05:28,800 ~-~-> 00:05:33,270
319 -then ultimately, as I mentioned in this pattern, this level
320 -
321 -81
322 -00:05:33,270 ~-~-> 00:05:35,700
323 -here on the fib if it gets to that price level and runs a
324 -
325 -82
326 -00:05:35,700 ~-~-> 00:05:38,880
327 -specific price point for liquidity, which is the Friday's
328 -
329 -83
330 -00:05:38,880 ~-~-> 00:05:42,150
331 -high which is we annotate on the daily chart, the market
332 -
333 -84
334 -00:05:42,150 ~-~-> 00:05:45,780
335 -will likely rather want to gravitate towards that old Friday
336 -
337 -85
338 -00:05:45,780 ~-~-> 00:05:48,510
339 -high because the trend is bullish. It's going to want to
340 -
341 -86
342 -00:05:48,510 ~-~-> 00:05:50,940
343 -take liquidity out there because a lot of people are short
344 -
345 -87
346 -00:05:50,970 ~-~-> 00:05:54,750
347 -selling in the SMP the market has taken up above Friday's
348 -
349 -88
350 -00:05:54,750 ~-~-> 00:05:59,850
351 -high and to the fib level 2936 the high comes in on this
352 -
353 -89
354 -00:05:59,850 ~-~-> 00:06:03,810
355 -game Though, at 2937, only off by one handle and the SMP.
356 -
357 -90
358 -00:06:04,110 ~-~-> 00:06:06,450
359 -And it went up again to another opportunity to do so, and
360 -
361 -91
362 -00:06:06,450 ~-~-> 00:06:10,770
363 -again 2937, so it's only off by one handle. But you could
364 -
365 -92
366 -00:06:10,800 ~-~-> 00:06:15,930
367 -take this idea here, instead of reaching for the 2936, round
368 -
369 -93
370 -00:06:15,930 ~-~-> 00:06:18,990
371 -down to the nearest five level, so that would be 2935. So
372 -
373 -94
374 -00:06:18,990 ~-~-> 00:06:22,560
375 -that's 35 handles with as much as one, two and three
376 -
377 -95
378 -00:06:22,560 ~-~-> 00:06:25,710
379 -partials taken out. But at this point here, I would be out
380 -
381 -96
382 -00:06:25,710 ~-~-> 00:06:28,920
383 -for this particular pattern in this market as an example.
384 -
385 -97
386 -00:06:29,250 ~-~-> 00:06:31,230
387 -Hope you found this insightful until next time, I wish you
388 -
389 -98
390 -00:06:31,230 ~-~-> 00:06:32,280
391 -good luck and good trading.