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Version 1.1 by Drunk Monkey on 2020-11-20 16:21
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3 ICT: Okay, folks, welcome back. This is part three of the
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7 continuing series of the ICT optimal trade entry pattern
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11 recognition series.
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15 And we're a step outside of forex. As I mentioned, one of
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19 the central tenets of this pattern is it's not limited to
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23 forex. So I'm going to show you how you can use it in the
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27 futures market.
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31 This is an index futures. And it's the delivery contract of
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35 June 2020 of the s&p emini futures. Alright, so we want to
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39 look for a signature in price that would lend well to aiming
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43 for a previous day's high or low. And again, it's focusing
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47 primarily on a very short term timeframe. But the pattern
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51 can be scaled to whatever timeframe you really want. So
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55 looking at price action here you can see that we have a
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59 Swing low, swing high and a retracement here. And price was
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63 underway going higher. And there's no necessity for you to
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67 say, I have to be in this here or I have to be in this here,
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71 or I can't participate in a market like this and be a buyer,
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75 which is not true. So I want you to take a look at the
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79 framework here. We're presently in a larger daily optimal
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83 trade entry price just fell short of hitting the 78%
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87 retracement level. And again, the magic is not the fib. It's
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91 the target of liquidity. That's all I'm doing the Fed just
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95 helps me frame and underline context. It's not that you need
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99 these levels, it just gives you a framework. Okay. So the
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103 framework is we have old low, old high retracement and it
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107 starts to move higher. So on a daily chart, where is the
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111 likely momentum it's going higher. Okay, great. It could be
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115 reaching to this Old high here, or it could fail to run that
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119 high or go through it and keep on going higher. In this
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123 instance, we don't care. We just know that the likelihood is
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127 it's probably going to run a previous day's high. So today's
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131 Monday of may 2020, may 11, specifically. So here's Friday,
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135 May 8 2020. And we're going to denote that high. So that
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139 price level is going to be significantly dropped on the
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143 lower timeframe. Okay, so here is the s&p e mini futures for
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147 June 2025 minute chart. And this is a naked chart so that
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151 way you got a chance to take a look at this before I put the
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155 lipstick on this particular example. And you can pause the
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159 video here Alright, so if you haven't paused the video and
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163 studied and looked for what I'm going to cover before
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167 actually show it to you, you're going to miss that
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171 opportunity now. The Figure 2900 price trades down into that
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175 doing during the New York session. Whenever a big figure is
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179 swept either down into it or up into it, it will generally
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183 create some kind of a tradable bounce, okay, or a
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187 retracement. And it while it may be very short term short
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191 lived, it still gives the opportunity for, you know, a quick
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195 snap in marketplace where you can take something out of it.
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199 Since this is a futures contract, and it's not a foreign
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203 exchange pair. We can't talk in terms of pips, so we're
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207 going to be using just the range. Now, if you look closely,
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211 you can see inside of the New York session, the idea is the
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215 beginning is here at 830. And the end is, again 11 o'clock.
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219 It's a static time, it doesn't change everything that I've
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223 shown you thus far. We're just doing the same thing every
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227 single day. And you'll see this pattern forms every single
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231 day. So let's take a look at the fib over top this right
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235 here. This is the optimal trade entry. The market rallies
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239 back above 29, big figure comes back down into bullish order
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243 block overlapping with the 2900 big figure inside of our
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247 specific time of day, the New York session, okay 830 in the
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251 morning till 11 o'clock in the morning, New York local time.
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255 This pattern is seen with the fib to trade down into the
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259 70.5 level, which is the sweet spot by my definition for
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263 optimal trade entry. And you could be a buyer there, and the
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267 market comes back down and just give multiple entries, you
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271 can take it on here, which is still inside of the New York
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275 session time window that we've created for this pattern. And
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279 we have really three candles here, here and here, where it
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283 meets optimal trade entry 62 or less down to 79. And you can
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287 be a buyer there. We're going to use the range here. Okay,
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291 so point five You could take your first scaling there
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295 partials and look how it spends a little bit of time
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299 consolidating there and then expands up to one to one full
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303 standard deviation here at 2922. So being a buyer at around
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307 2900, big figure, and getting out with 15 handles in the SMP
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311 as a first scalp or scaling, then your secondary exit for a
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315 partial could be at 2922, which is 22 handles in the s&p.
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319 then ultimately, as I mentioned in this pattern, this level
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323 here on the fib if it gets to that price level and runs a
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327 specific price point for liquidity, which is the Friday's
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331 high which is we annotate on the daily chart, the market
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335 will likely rather want to gravitate towards that old Friday
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339 high because the trend is bullish. It's going to want to
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343 take liquidity out there because a lot of people are short
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347 selling in the SMP the market has taken up above Friday's
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351 high and to the fib level 2936 the high comes in on this
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355 game Though, at 2937, only off by one handle and the SMP.
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359 And it went up again to another opportunity to do so, and
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363 again 2937, so it's only off by one handle. But you could
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367 take this idea here, instead of reaching for the 2936, round
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371 down to the nearest five level, so that would be 2935. So
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375 that's 35 handles with as much as one, two and three
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379 partials taken out. But at this point here, I would be out
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383 for this particular pattern in this market as an example.
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387 Hope you found this insightful until next time, I wish you
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391 good luck and good trading.