OTE Pattern Recognition Series - Vol 05.srt

Last modified by Drunk Monkey on 2021-06-10 10:04
1 00:00:11,040 --> 00:00:21,300 ICT: Okay, folks, welcome back. This is volume five in a series of 20 videos from the ICT optimal trade entry pattern recognition series. Alright, so we're
2 00:00:21,300 --> 00:00:35,100 looking at the E mini s&p, the June contract for 2020. And I've already given you an example with the s&p recently in this series, it was revolving around the
3 00:00:35,100 --> 00:00:46,230 previous week's Friday's high. And we put that on here now. So we projected that out that was an opportunity here and then later on, came back and gave an
4 00:00:46,230 --> 00:00:54,660 opportunity to trade into that level. Again, I said it once it got up into that level, I'd be done with that idea, that trade idea. And it has moved over 130
5 00:00:54,840 --> 00:01:05,100 handles for the s&p, which is pretty significant. But the framework is obviously it's bearish leading up into this setup we're outlining here, for our example
6 00:01:05,100 --> 00:01:15,630 for May 13 2020. So the previous day's low is here, the 12th of may 2020. That's what we will be targeting, we're going to drop down into the five minute chart
7 00:01:15,630 --> 00:01:26,130 case, here's the five minute chart. And we're going to put our lipstick on this pig here. Here is the previous day or the 12th. Low below that would be sellside
8 00:01:26,130 --> 00:01:36,900 liquidity. And we've already outlined the fact on that hourly chart the bearish market structure and seeking liquidity below the previous day's low. Here's our
9 00:01:36,900 --> 00:01:48,660 New York session. So inside of this area here. Okay, we're looking for a setup.  And here's the high, we trade down to this low and start retracing inside the
10 00:01:48,660 --> 00:01:59,370 New York session, trading up into the bearish order block, which is that last upclose candle right here trades into the end of that. And your entry would be
11 00:01:59,550 --> 00:02:09,360 2865. In theory, stock would be above the high here, trading down to the low of the optimal trade entry. Since we're dealing with the s&p. We're not talking
12 00:02:09,360 --> 00:02:21,780 about pips, so we're dealing specifically with the range. So the range low, that would offer over 30 handles on the s&p, and then a second partial at plus 50
13 00:02:21,780 --> 00:02:31,920 handles at half of the projected standard deviation, no words, the range is here. Okay, so we have this high to this low, half of that range is this level,
14 00:02:32,040 --> 00:02:43,290 that's what this is all about. And then one full standard deviation of this range or projection down would send us into that 2788 and three quarters for
15 00:02:43,290 --> 00:02:52,500 plus 75 handles for your third partial and look the beautiful response at that.  Now this is all again, based on the liquidity below the previous day's low. It's
16 00:02:52,500 --> 00:03:00,660 not the magic of the fib fib has absolutely nothing to do with the reasons why price is going down. And the reason why it's going down there is there's
17 00:03:00,660 --> 00:03:08,610 liquidity resting below this low markets gonna seek that liquidity not always in a single run down into it and I take several passes to get down to it as it does
18 00:03:08,610 --> 00:03:17,220 here and then we had a nice little retracement there. And we'll probably look forward to gravitate back to the 12th or the low of the 12th rather. So that's
19 00:03:17,220 --> 00:03:21,930 going to be it for this example. I hope you found it insightful until next time, I wish you good luck and good trading