OTE Pattern Recognition Series - Vol 03.srt

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ICT: Okay, folks, welcome back. This is part three of the

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continuing series of the ICT optimal trade entry pattern

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recognition series.

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And we're a step outside of forex. As I mentioned, one of

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the central tenets of this pattern is it's not limited to

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forex. So I'm going to show you how you can use it in the

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futures market.

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This is an index futures. And it's the delivery contract of

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June 2020 of the s&p emini futures. Alright, so we want to

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look for a signature in price that would lend well to aiming

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for a previous day's high or low. And again, it's focusing

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primarily on a very short term timeframe. But the pattern

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can be scaled to whatever timeframe you really want. So

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looking at price action here you can see that we have a

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Swing low, swing high and a retracement here. And price was

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underway going higher. And there's no necessity for you to

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say, I have to be in this here or I have to be in this here,

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or I can't participate in a market like this and be a buyer,

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which is not true. So I want you to take a look at the

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framework here. We're presently in a larger daily optimal

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trade entry price just fell short of hitting the 78%

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retracement level. And again, the magic is not the fib. It's

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the target of liquidity. That's all I'm doing the Fed just

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helps me frame and underline context. It's not that you need

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these levels, it just gives you a framework. Okay. So the

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framework is we have old low, old high retracement and it

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starts to move higher. So on a daily chart, where is the

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likely momentum it's going higher. Okay, great. It could be

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reaching to this Old high here, or it could fail to run that

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high or go through it and keep on going higher. In this

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instance, we don't care. We just know that the likelihood is

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it's probably going to run a previous day's high. So today's

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Monday of may 2020, may 11, specifically. So here's Friday,

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May 8 2020. And we're going to denote that high. So that

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price level is going to be significantly dropped on the

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lower timeframe. Okay, so here is the s&p e mini futures for

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June 2025 minute chart. And this is a naked chart so that

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way you got a chance to take a look at this before I put the

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lipstick on this particular example. And you can pause the

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video here Alright, so if you haven't paused the video and

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studied and looked for what I'm going to cover before

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actually show it to you, you're going to miss that

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opportunity now. The Figure 2900 price trades down into that

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doing during the New York session. Whenever a big figure is

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swept either down into it or up into it, it will generally

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create some kind of a tradable bounce, okay, or a

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retracement. And it while it may be very short term short

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lived, it still gives the opportunity for, you know, a quick

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snap in marketplace where you can take something out of it.

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Since this is a futures contract, and it's not a foreign

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exchange pair. We can't talk in terms of pips, so we're

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going to be using just the range. Now, if you look closely,

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you can see inside of the New York session, the idea is the

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beginning is here at 830. And the end is, again 11 o'clock.

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It's a static time, it doesn't change everything that I've

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shown you thus far. We're just doing the same thing every

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single day. And you'll see this pattern forms every single

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day. So let's take a look at the fib over top this right

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here. This is the optimal trade entry. The market rallies

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back above 29, big figure comes back down into bullish order

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block overlapping with the 2900 big figure inside of our

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specific time of day, the New York session, okay 830 in the

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morning till 11 o'clock in the morning, New York local time.

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This pattern is seen with the fib to trade down into the

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70.5 level, which is the sweet spot by my definition for

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optimal trade entry. And you could be a buyer there, and the

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market comes back down and just give multiple entries, you

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can take it on here, which is still inside of the New York

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session time window that we've created for this pattern. And

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we have really three candles here, here and here, where it

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meets optimal trade entry 62 or less down to 79. And you can

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be a buyer there. We're going to use the range here. Okay,

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so point five You could take your first scaling there

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partials and look how it spends a little bit of time

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consolidating there and then expands up to one to one full

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standard deviation here at 2922. So being a buyer at around

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2900, big figure, and getting out with 15 handles in the SMP

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as a first scalp or scaling, then your secondary exit for a

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partial could be at 2922, which is 22 handles in the s&p.

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then ultimately, as I mentioned in this pattern, this level

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here on the fib if it gets to that price level and runs a

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specific price point for liquidity, which is the Friday's

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high which is we annotate on the daily chart, the market

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will likely rather want to gravitate towards that old Friday

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high because the trend is bullish. It's going to want to

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take liquidity out there because a lot of people are short

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selling in the SMP the market has taken up above Friday's

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high and to the fib level 2936 the high comes in on this

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game Though, at 2937, only off by one handle and the SMP.

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And it went up again to another opportunity to do so, and

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again 2937, so it's only off by one handle. But you could

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take this idea here, instead of reaching for the 2936, round

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down to the nearest five level, so that would be 2935. So

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that's 35 handles with as much as one, two and three

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partials taken out. But at this point here, I would be out

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for this particular pattern in this market as an example.

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Hope you found this insightful until next time, I wish you

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good luck and good trading.