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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