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1 -1
2 -00:00:11,010 ~-~-> 00:00:13,920
3 -ICT: Welcome back, folks, this is part four of the
1 +(% class="hover min" %)
2 +|1 |00:00:10,980 ~-~-> 00:00:20,370 |ICT: Welcome back, folks, this is part four of the continuing series of the ICT optimal trade entry pattern recognition series. Alright, so now we're gonna look
3 +|2 |00:00:20,400 ~-~-> 00:00:31,110 |at a forex pair, the British Pound versus the US dollar. And this is going to be an example of a trendless market where it's not really dependent upon a specific
4 +|3 |00:00:31,470 ~-~-> 00:00:41,490 |daily bias. And we're just using intraday volatility, to find that optimal trade entry. But before I get into it, I want you to take a look at this chart. And I
5 +|4 |00:00:41,490 ~-~-> 00:00:53,220 |want you to think about what the neophyte or the new trader, that's just being exposed to what I teach, or someone that thinks they've been around the block a
6 +|5 |00:00:53,220 ~-~-> 00:01:02,580 |few times, and they think it's just something being renamed rehashed reinvented, to try to take credit from some old guy that's buried in a long since been
7 +|6 |00:01:02,580 ~-~-> 00:01:15,600 |forgotten. Look at this chart. Now, classically, people will say, well, it's just support and resistance, and old highs and old lows where the markets turn
8 +|7 |00:01:15,600 ~-~-> 00:01:26,070 |before. That's all you need to do look for those points. And when I first started, I read the same books, these people do, too. And I can tell you that if
9 +|8 |00:01:26,070 ~-~-> 00:01:40,410 |it was just that simple, everyone would be billionaires. Okay. It's not support and resistance that leads to forex riches, I needed to find out what was really
10 +|9 |00:01:40,410 ~-~-> 00:01:52,620 |going on. And when I did, all these ideas of support, resistance levels faded away. And I got to the real heart of what turns the market, and why the market
11 +|10 |00:01:52,620 ~-~-> 00:02:00,510 |should react at specific price levels. So now I want to show you what it is. And it's something that you guys are familiar with, if you've been looking at my
12 +|11 |00:02:00,510 ~-~-> 00:02:11,550 |content for any length of time. But let's go to another chart. Now I'm going to add the perspective that I teach my students. This is the market efficiency
13 +|12 |00:02:11,550 ~-~-> 00:02:22,530 |paradigm. Okay. And what is that? It's basically the narrative of why price goes, where it does, and why it reacts the way it does once it gets there. And
14 +|13 |00:02:22,530 ~-~-> 00:02:33,300 |where is it reaching to next? Okay, so this particular candle here cuts to the whole narrative immediately. And the reason why is you want to look at price.
15 +|14 |00:02:34,200 ~-~-> 00:02:41,850 |And look for areas where they run an old high, because old highs right above that, it's going to be by stops. And so by side liquidity is, by sell liquidity
16 +|15 |00:02:41,850 ~-~-> 00:02:52,830 |could be in the form of buy stops for new entries going long, or it could be by stops protecting existing shorts. The market ramps through that. And this action
17 +|16 |00:02:52,830 ~-~-> 00:03:00,780 |right here is what I teach as a Judas swing and onwards, it's a fake move. It's the low people in the thinking that the market is going to be bullish, it's
18 +|17 |00:03:00,780 ~-~-> 00:03:13,320 |going to go up. But generally, when we see these sharp moves that run previous highs, This to me is highly suspect. And if we get back below, the lowest down
19 +|18 |00:03:13,320 ~-~-> 00:03:25,170 |close candle, once it breaks that, which it does hear the narrative changes to bearish. So all I need to do, and my students do as we go through this candle
20 +|19 |00:03:25,170 ~-~-> 00:03:34,290 |here, draw it out in time, there's your turning point, that's your real support and resistance level, because it's based on the market efficiency paradigm that
21 +|20 |00:03:34,290 ~-~-> 00:03:41,880 |is mine, you're not gonna find that in books, you're not gonna see any of that anywhere outside of what I teach. And there's a lot of things that go along with
22 +|21 |00:03:41,880 ~-~-> 00:03:49,950 |this pattern to me, people go on YouTube now and talk about the ICT breaker or they just remove the ICT and they call it something else, a banker's candle, you
23 +|22 |00:03:49,950 ~-~-> 00:03:59,160 |know, everybody's got a new twist on what I'm teaching, and they don't know what they're talking about. What I'm showing you here is the narrative behind finding
24 +|23 |00:03:59,790 ~-~-> 00:04:07,710 |in optimal trade entry with this structure in place. It's a trendless market environment, it doesn't have to have a bullish or bearish bias on the daily
25 +|24 |00:04:07,710 ~-~-> 00:04:15,030 |chart. So you go into lower timeframes, and this right in here is what we're going to zoom in on. Okay, so we're gonna look at the lower timeframe, five
26 +|25 |00:04:15,030 ~-~-> 00:04:26,730 |minute chart right here. Okay, but before we go into it, since we're on the hourly chart, I want to annotate the previous day's range. Okay, so we have this
27 +|26 |00:04:27,690 ~-~-> 00:04:36,300 |is the beginning of the 11th and the 12th, which is the date of this recording. And if this is going to be a breaker that's bearish, we're gonna be looking at
28 +|27 |00:04:36,300 ~-~-> 00:04:45,450 |previous day's low. That's where we're gonna be targeting. So the liquidity that would burst below that, that's what we're really aiming for. So when it's
29 +|28 |00:04:45,450 ~-~-> 00:04:54,120 |dropped down to a five minute chart in this box here, and get a closer look as where the IoT forums. Okay, so here's the five minute chart on the British Pound
30 +|29 |00:04:54,300 ~-~-> 00:05:04,770 |versus US dollar and five minute chart for May 12 2020. And here's trading up in to that area I outlined on the hourly chart where we can see that breaker price
31 +|30 |00:05:04,770 ~-~-> 00:05:05,880 |trades up into it.
32 +|31 |00:05:06,360 ~-~-> 00:05:19,140 |And this old high returned to it here it hits the same level. Again, it's the breaker. It's not the classic support resistance, it's not supply zone. It's
33 +|32 |00:05:19,140 ~-~-> 00:05:32,250 |none of that stuff. Okay? It's the optimal trade entry. Okay, and projected out in time.
34 +|33 |00:05:38,339 ~-~-> 00:05:47,729 |Okay, so we have high to the low returns back to optimal trade entry. Seven retracement level lays right on top of that level here, your stop will be above
35 +|34 |00:05:47,729 ~-~-> 00:06:04,229 |here, and market raids, and old low here. And the fib levels here. So you could use 123 big figure as your level not reaching for the fib. Because the magic is
36 +|35 |00:06:04,229 ~-~-> 00:06:15,299 |not the fib but reaching below this low for the liquid that resides below here. Now, this is the previous day's range. Okay to the 11th. We also have more time
37 +|36 |00:06:16,349 ~-~-> 00:06:26,789 |here in our New York session to look for another trade if it forms has it taken out previous days Whoa, not here, it starts to retrace on this candle here. what
38 +|37 |00:06:26,789 ~-~-> 00:06:35,249 |time of day is that? 11 o'clock in the morning, that is still time to take another trade if it's still there if it's valid, alright, so we can see the
39 +|38 |00:06:35,249 ~-~-> 00:06:49,499 |optimal trade entry here. low and high retreats back into the New York session and previous day or the 11th of Mays low, we will be targeting that next stop
40 +|39 |00:06:49,499 ~-~-> 00:07:02,759 |would be above here your short would be in here at the 60% retracement level. And again below the level of the previous day's range low at was at 122 83. And
41 +|40 |00:07:02,759 ~-~-> 00:07:13,919 |one bit bet. And then the next fib level would be 122 and 65 and five pipettes. So we will be looking for this as a potential objective. But we can just simply
42 +|41 |00:07:13,919 ~-~-> 00:07:27,029 |use the 122 70 level, it will be below the 11th low and not demand the full fib and you can do that. But in this example, we're sticking to the rules, rounding
43 +|42 |00:07:27,029 ~-~-> 00:07:45,659 |down and being content. And the result of this is here. Mica trades down to the standard deviation of one on the range. And we blow below the 11th love you
44 +|43 |00:07:45,659 ~-~-> 00:07:55,349 |sweep it here work on it here and then expand down. So again, this is another example of the optimal trade entry and this is video number four and a
45 +|44 |00:07:55,349 ~-~-> 00:07:59,819 |continuing series of 20 and I hope you found it insightful until next time, wish good luck and good trading
4 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.