Skip to Content
Last modified by Drunk Monkey on 2021-06-10 10:04
From version 1.1
edited by Drunk Monkey
on 2020-11-20 16:18
Change comment: There is no comment for this version
To version 2.1
edited by Drunk Monkey
on 2020-11-20 16:22
Change comment: There is no comment for this version

Summary

Details

Page properties
Content
... ... @@ -1,0 +1,459 @@
1 +1
2 +00:00:11,010 ~-~-> 00:00:13,920
3 +ICT: Welcome back, folks, this is part four of the
4 +
5 +2
6 +00:00:13,920 ~-~-> 00:00:17,490
7 +continuing series of the ICT optimal trade entry pattern
8 +
9 +3
10 +00:00:17,490 ~-~-> 00:00:20,700
11 +recognition series. All right, so now we're going to look at
12 +
13 +4
14 +00:00:20,730 ~-~-> 00:00:25,020
15 +a forex pair, the British Pound versus the US dollar. And
16 +
17 +5
18 +00:00:25,020 ~-~-> 00:00:28,410
19 +this is going to be an example of a trend less market where
20 +
21 +6
22 +00:00:28,410 ~-~-> 00:00:33,360
23 +it's not really dependent upon a specific daily bias. And
24 +
25 +7
26 +00:00:33,360 ~-~-> 00:00:36,720
27 +we're just using intraday volatility to find an optimal
28 +
29 +8
30 +00:00:36,720 ~-~-> 00:00:39,180
31 +trade entry. But before I get into it, I want you to take a
32 +
33 +9
34 +00:00:39,180 ~-~-> 00:00:44,910
35 +look at this chart. And I want you to think about what the
36 +
37 +10
38 +00:00:44,940 ~-~-> 00:00:50,040
39 +neophyte or the new trader that's just being exposed to what
40 +
41 +11
42 +00:00:50,040 ~-~-> 00:00:52,920
43 +I teach, or someone that thinks they've been around the
44 +
45 +12
46 +00:00:52,920 ~-~-> 00:00:55,230
47 +block a few times and they think it's just something being
48 +
49 +13
50 +00:00:55,680 ~-~-> 00:01:00,000
51 +renamed rehashed, reinvented to try to take credit from some
52 +
53 +14
54 +00:01:00,000 ~-~-> 00:01:04,860
55 +guidance period and on long since been forgotten. Look at
56 +
57 +15
58 +00:01:04,860 ~-~-> 00:01:11,280
59 +this chart. Now, classically, people will say, well, it's
60 +
61 +16
62 +00:01:11,280 ~-~-> 00:01:14,820
63 +just support and resistance, and old highs and lows where
64 +
65 +17
66 +00:01:14,820 ~-~-> 00:01:17,850
67 +the markets turned before. That's all you need to do look
68 +
69 +18
70 +00:01:17,850 ~-~-> 00:01:22,170
71 +for those points. And when I first started, I read the same
72 +
73 +19
74 +00:01:22,170 ~-~-> 00:01:26,310
75 +books these people do too. And I can tell you that if it was
76 +
77 +20
78 +00:01:26,310 ~-~-> 00:01:32,820
79 +just that simple, everyone would be billionaires. Okay. It's
80 +
81 +21
82 +00:01:32,820 ~-~-> 00:01:39,330
83 +not support resistance that leads to forex riches. I needed
84 +
85 +22
86 +00:01:39,330 ~-~-> 00:01:44,160
87 +to find out what was really going on. And when I did, all
88 +
89 +23
90 +00:01:44,160 ~-~-> 00:01:48,180
91 +these ideas of support resistance levels faded away. And I
92 +
93 +24
94 +00:01:48,180 ~-~-> 00:01:52,320
95 +got to the real heart of what turns the market and why the
96 +
97 +25
98 +00:01:52,320 ~-~-> 00:01:54,990
99 +market should react to a specific price levels. So now I
100 +
101 +26
102 +00:01:54,990 ~-~-> 00:01:58,830
103 +want to kind of show you what it is. And it's something that
104 +
105 +27
106 +00:01:58,830 ~-~-> 00:02:00,510
107 +you guys are familiar with. If you've been Looking at my
108 +
109 +28
110 +00:02:00,510 ~-~-> 00:02:03,960
111 +content for any length of time, but let's go to another
112 +
113 +29
114 +00:02:04,020 ~-~-> 00:02:07,350
115 +chart. Now I'm going to add the perspective that I teach my
116 +
117 +30
118 +00:02:07,350 ~-~-> 00:02:12,870
119 +students. This is the market efficiency paradigm. Okay? And
120 +
121 +31
122 +00:02:12,870 ~-~-> 00:02:17,610
123 +what is that? It's basically the narrative of why price
124 +
125 +32
126 +00:02:17,610 ~-~-> 00:02:21,180
127 +goes, where it does and why it reacts the way it does once
128 +
129 +33
130 +00:02:21,180 ~-~-> 00:02:25,110
131 +it gets there. And where is it reaching to next? Okay, so
132 +
133 +34
134 +00:02:26,010 ~-~-> 00:02:30,510
135 +this particular candle here cuts to the whole narrative
136 +
137 +35
138 +00:02:30,510 ~-~-> 00:02:33,300
139 +immediately. And the reason why is you want to look at price
140 +
141 +36
142 +00:02:34,200 ~-~-> 00:02:37,440
143 +and look for areas where they run an old high because old
144 +
145 +37
146 +00:02:37,440 ~-~-> 00:02:39,840
147 +highs right above that it's going to be by stops and so by
148 +
149 +38
150 +00:02:39,840 ~-~-> 00:02:42,810
151 +side liquidity is by liquidity could be in the form of buy
152 +
153 +39
154 +00:02:42,810 ~-~-> 00:02:46,020
155 +stops for new entries going long, or it could be by stops
156 +
157 +40
158 +00:02:46,230 ~-~-> 00:02:50,880
159 +protecting existing shorts. The market ramps through that.
160 +
161 +41
162 +00:02:51,630 ~-~-> 00:02:55,710
163 +And this action right here is what I teach is a Judas swing.
164 +
165 +42
166 +00:02:55,860 ~-~-> 00:02:59,580
167 +And it's it's a fake move. It's the low people into thinking
168 +
169 +43
170 +00:02:59,580 ~-~-> 00:03:01,500
171 +that the market is going to be bullish, it's going to go up.
172 +
173 +44
174 +00:03:02,010 ~-~-> 00:03:05,010
175 +But generally, when we see these sharp moves that run
176 +
177 +45
178 +00:03:05,010 ~-~-> 00:03:11,250
179 +previous highs, This to me is highly suspect. And if we get
180 +
181 +46
182 +00:03:11,250 ~-~-> 00:03:17,520
183 +back below the lowest down close candle once it breaks that,
184 +
185 +47
186 +00:03:17,820 ~-~-> 00:03:22,230
187 +which it does hear the narrative changes to bearish. So all
188 +
189 +48
190 +00:03:22,230 ~-~-> 00:03:25,170
191 +I need to do, and my students do is we go to this candle
192 +
193 +49
194 +00:03:25,170 ~-~-> 00:03:28,650
195 +here, draw it out in time, there's your turning point,
196 +
197 +50
198 +00:03:28,680 ~-~-> 00:03:31,440
199 +that's your real support and resistance level. Because it's
200 +
201 +51
202 +00:03:31,440 ~-~-> 00:03:34,920
203 +based on the market efficiency paradigm that is mine, you're
204 +
205 +52
206 +00:03:34,950 ~-~-> 00:03:37,110
207 +not going to find that in books, you're not gonna see any of
208 +
209 +53
210 +00:03:37,110 ~-~-> 00:03:40,710
211 +that anywhere outside of what I teach. And there's a lot of
212 +
213 +54
214 +00:03:40,710 ~-~-> 00:03:43,170
215 +things that go along with this pattern to me, people go on
216 +
217 +55
218 +00:03:43,170 ~-~-> 00:03:45,660
219 +YouTube now and talk about the ice breaker or they just
220 +
221 +56
222 +00:03:45,660 ~-~-> 00:03:49,260
223 +remove the ICT and they call it something else. A banker's
224 +
225 +57
226 +00:03:49,260 ~-~-> 00:03:51,930
227 +candle. You know, everybody's got a new twist on what I'm
228 +
229 +58
230 +00:03:51,930 ~-~-> 00:03:55,350
231 +teaching, and they don't know what they're talking about.
232 +
233 +59
234 +00:03:55,470 ~-~-> 00:03:59,160
235 +What I'm showing you here is the narrative behind finding
236 +
237 +60
238 +00:03:59,790 ~-~-> 00:04:03,390
239 +it. optimal trade entry with this structure in place, it's a
240 +
241 +61
242 +00:04:03,390 ~-~-> 00:04:06,150
243 +trend less market environment. It doesn't have to have a
244 +
245 +62
246 +00:04:06,150 ~-~-> 00:04:08,880
247 +bullish or bearish bias when the daily chart so you go into
248 +
249 +63
250 +00:04:08,880 ~-~-> 00:04:12,150
251 +lower timeframes, and this right in here is what we're going
252 +
253 +64
254 +00:04:12,150 ~-~-> 00:04:14,340
255 +to zoom in on. Okay, so we're going to look at the lower
256 +
257 +65
258 +00:04:14,340 ~-~-> 00:04:17,580
259 +timeframe five minute chart right here. Okay, but before we
260 +
261 +66
262 +00:04:17,580 ~-~-> 00:04:19,860
263 +go into it, since we're on an hourly chart, I want to
264 +
265 +67
266 +00:04:19,860 ~-~-> 00:04:27,870
267 +annotate the previous day's range. Okay, so we have this as
268 +
269 +68
270 +00:04:27,870 ~-~-> 00:04:30,540
271 +the beginning of the 11th and the 12th, which is the day of
272 +
273 +69
274 +00:04:30,540 ~-~-> 00:04:34,650
275 +this recording. And if this is going to be a breaker that's
276 +
277 +70
278 +00:04:34,650 ~-~-> 00:04:37,590
279 +bearish, we're gonna be looking at previous day's low.
280 +
281 +71
282 +00:04:38,340 ~-~-> 00:04:42,150
283 +That's where we're going to be targeting. So the liquidity
284 +
285 +72
286 +00:04:42,150 ~-~-> 00:04:44,580
287 +that would burst below that, that's what we're really aiming
288 +
289 +73
290 +00:04:44,580 ~-~-> 00:04:46,590
291 +for. So when it's dropped down to a five minute chart in
292 +
293 +74
294 +00:04:46,590 ~-~-> 00:04:50,610
295 +this box here, and get a closer look as where the OT forms.
296 +
297 +75
298 +00:04:51,720 ~-~-> 00:04:54,120
299 +Okay, so here's the five minute chart on the British Pound
300 +
301 +76
302 +00:04:54,300 ~-~-> 00:04:59,070
303 +versus US dollar and five minute chart for May 12 2020. And
304 +
305 +77
306 +00:04:59,070 ~-~-> 00:05:02,040
307 +here's trading up in to that area I outlined on the hourly
308 +
309 +78
310 +00:05:02,040 ~-~-> 00:05:05,910
311 +chart where we can see that breaker price trades up into it.
312 +
313 +79
314 +00:05:06,360 ~-~-> 00:05:10,350
315 +And this old high, returning to it here hits the same level.
316 +
317 +80
318 +00:05:10,590 ~-~-> 00:05:14,010
319 +Again, it's the breaker. It's not the classic support
320 +
321 +81
322 +00:05:14,010 ~-~-> 00:05:19,920
323 +resistance. It's not a supply zone. It's none of that stuff.
324 +
325 +82
326 +00:05:19,950 ~-~-> 00:05:23,520
327 +Okay? It's the optimal trade entry.
328 +
329 +83
330 +00:05:28,020 ~-~-> 00:05:29,340
331 +Okay, and
332 +
333 +84
334 +00:05:30,630 ~-~-> 00:05:32,250
335 +we'll project this out in time.
336 +
337 +85
338 +00:05:38,340 ~-~-> 00:05:42,960
339 +Okay, so we have high to the low returns back to optimal
340 +
341 +86
342 +00:05:42,960 ~-~-> 00:05:46,020
343 +trade entry. Seven AMS retracement level lays right on top
344 +
345 +87
346 +00:05:46,020 ~-~-> 00:05:49,800
347 +of that level here. Your stop will be above here. And market
348 +
349 +88
350 +00:05:49,800 ~-~-> 00:05:57,360
351 +reads an old low here and the fib levels here, so you could
352 +
353 +89
354 +00:05:57,390 ~-~-> 00:06:03,150
355 +use 123 big figures As your level not reaching for the fib
356 +
357 +90
358 +00:06:03,150 ~-~-> 00:06:06,390
359 +and because the magic is not the fib but reaching below this
360 +
361 +91
362 +00:06:06,390 ~-~-> 00:06:09,690
363 +low for the liquid that resides below here. Now this is the
364 +
365 +92
366 +00:06:09,690 ~-~-> 00:06:15,300
367 +previous day's range okay to the 11th we also have more time
368 +
369 +93
370 +00:06:16,350 ~-~-> 00:06:19,500
371 +here in our New York session to look for another trade if it
372 +
373 +94
374 +00:06:19,500 ~-~-> 00:06:25,140
375 +forms has it taken out previous days Whoa, not here. It
376 +
377 +95
378 +00:06:25,140 ~-~-> 00:06:27,360
379 +starts to retrace on this candle here. what time of day is
380 +
381 +96
382 +00:06:27,360 ~-~-> 00:06:31,260
383 +that? 11 o'clock in the morning. That is still time to take
384 +
385 +97
386 +00:06:31,260 ~-~-> 00:06:34,260
387 +another trade if it's still there if it's valid, alright.
388 +
389 +98
390 +00:06:34,260 ~-~-> 00:06:39,810
391 +So, we can see the optimal trade entry here. low and high
392 +
393 +99
394 +00:06:39,900 ~-~-> 00:06:45,240
395 +retrace back into the New York session and previous day or
396 +
397 +100
398 +00:06:45,240 ~-~-> 00:06:49,470
399 +the 11th of Mays low we will be targeting that next stop
400 +
401 +101
402 +00:06:49,470 ~-~-> 00:06:52,230
403 +will be above here your short would be in here at the 62%
404 +
405 +102
406 +00:06:52,230 ~-~-> 00:06:56,760
407 +retracement level and again below the level of the previous
408 +
409 +103
410 +00:06:56,760 ~-~-> 00:07:04,440
411 +day's range low at Was that 122 83 in one pet, and then the
412 +
413 +104
414 +00:07:04,440 ~-~-> 00:07:10,470
415 +next fib level would be 122 and 65 and five pets. So we will
416 +
417 +105
418 +00:07:10,470 ~-~-> 00:07:13,500
419 +be looking for this as a potential objective, but we can
420 +
421 +106
422 +00:07:13,500 ~-~-> 00:07:18,090
423 +just simply use the 122 70 level, it will be below the 11th
424 +
425 +107
426 +00:07:18,570 ~-~-> 00:07:24,390
427 +low and not demand the full fib. Now you can do that. But in
428 +
429 +108
430 +00:07:24,390 ~-~-> 00:07:27,450
431 +this example, we're sticking to the rules, rounding down and
432 +
433 +109
434 +00:07:27,450 ~-~-> 00:07:36,030
435 +being content. And the result of this is here. Market trades
436 +
437 +110
438 +00:07:36,030 ~-~-> 00:07:43,110
439 +down to the standard deviation of one on the range. And we
440 +
441 +111
442 +00:07:43,110 ~-~-> 00:07:47,670
443 +blow below the 11th love sweet bit here, work on it here and
444 +
445 +112
446 +00:07:47,670 ~-~-> 00:07:51,810
447 +then expand down. So again, this is another example of the
448 +
449 +113
450 +00:07:51,810 ~-~-> 00:07:55,350
451 +optimal trade entry and this is video number four in a
452 +
453 +114
454 +00:07:55,350 ~-~-> 00:07:57,900
455 +continuing series of 20. And hope you found it insightful
456 +
457 +115
458 +00:07:57,900 ~-~-> 00:07:59,790
459 +until next time, wish you good luck and good trading.