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OTE Pattern Recognition Series - Vol 07.srt

Last modified by Drunk Monkey on 2021-06-10 10:05
1 00:00:10,710 --> 00:00:18,870 ICT: Okay, folks, welcome back. This is video number seven in a continuing series of 20 videos in the inner circle trader optimal trade entry pattern
2 00:00:18,870 --> 00:00:30,510 recognition series. Alright, today's example is the British Pound versus the US dollar. Alright, so here's our daily chart. And we're looking at the price
3 00:00:30,510 --> 00:00:42,600 action from today. And we're gonna reference Thursday's price range using the rules that I've provided for you for this series. And here's Thursdays daily
4 00:00:42,600 --> 00:00:54,600 range. And obviously, Friday is here. The low on this particular day on Thursday comes in at 121 65 and eight pipettes. So our line is showing that and the
5 00:00:54,600 --> 00:01:05,730 question is, is the day that you're sitting down and one of your charts? Okay.  Is it likely to take the previous day's high up or the previous day's low?
6 00:01:07,110 --> 00:01:15,990 What's the market been doing all week? It's been reaching for the previous day's low. previous day's low taking out previous day's low taking the previous day's
7 00:01:15,990 --> 00:01:26,430 low taking the previous day's low taken out. Okay. The classic support resistance crowd in the retail market, they would have seen this low here,
8 00:01:26,430 --> 00:01:35,010 because look what happens pretty obvious, isn't it? I mean, it's the price hop didn't. So this level here was the magic level. This was the real support level.
9 00:01:35,580 --> 00:01:46,530 And when it came back down into it, we had nothing. It is a roll right on into it about this was the real one mistake. It's really what it was it was this low
10 00:01:46,530 --> 00:01:56,790 here. That's the support level that you would look for. Well, that didn't do anything either. You see what I'm going does, right? retail support resistance
11 00:01:56,790 --> 00:02:08,880 theory is not the answer. It's not. Now some of you that are watching this video, probably not privy to my Twitter feed today, I prompted everyone this
12 00:02:08,880 --> 00:02:18,030 morning during the New York session to look at the British pound. And everyone that's been going through this series, and or has been trained by me knows
13 00:02:18,030 --> 00:02:28,530 exactly what the lower timeframe was indicating at the time. So I don't operate as a signal provider, I don't say here, buy here, put a stop here and take your
14 00:02:28,530 --> 00:02:42,060 profits here. Because I'm not licensed to do so. But I am capable of drawing your attention to a specific market a specific time. And I point you shoot. What
15 00:02:42,060 --> 00:02:51,600 does that mean? Well, it gives you the opportunity to practice real time and study the things that I teach. And what am I specifically talking about in this
16 00:02:51,630 --> 00:03:02,400 video, it's the things that I taught in the first video of the series, the pilot episode of the optimal trade entry pattern recognition series. That video lays
17 00:03:02,400 --> 00:03:12,150 the groundwork for this entire discussion on cable. So here's the five minute chart of the British pound. And take a look at the price action here. And if you
18 00:03:12,150 --> 00:03:21,810 have not looked for this yet, I'm going to ask you to pause your video. That way you can have an opportunity to study it and see what you see before I added
19 00:03:21,810 --> 00:03:35,310 lipstick. Okay, so we're gonna add some annotations. So here's that previous day's low, Thursday's daily low, coming in at 121 65 and eight pit baths. And
20 00:03:35,310 --> 00:03:48,930 here's our New York session sets the time when these formations occur. Now obviously you can see ahead of New York is the New York session we're doing at
21 00:03:48,930 --> 00:03:58,470 that at 830. That's what this is here to again 11 o'clock, nothing is changing.  This is static. It is zero swing high to swing low. And retracement back up
22 00:03:58,470 --> 00:04:08,280 inside in New York session 62% retracement level trades to it here. Remember, that's our suggested entry for studying and back testing this and the market
23 00:04:08,280 --> 00:04:16,470 starts to break lower. And there's multiple optimal trade entries in here there's a swing from this high down to this low to this one, you can do your own
24 00:04:16,470 --> 00:04:28,170 projections on that as well. And this one here 123. And again, it's inside the New York session time of day that this outline works well in. First scaling
25 00:04:28,170 --> 00:04:37,200 comes out at 40 pips down here at the range low and then half of the standard deviation that makes up the Fibonacci range.
26 00:04:38,490 --> 00:04:48,660 takes us down to 75 pips for a second scaling. And it's drifted a little bit lower just at the time of this recording. But this is sufficient enough. I look
27 00:04:48,660 --> 00:04:58,950 personally for 50 to 75 pips a week, you can do very, very well with less than that it's not absolutely mandatory that you take that much out of the market
28 00:04:58,950 --> 00:05:08,040 every time you Sit down. This in itself is an opportunity to be short here and take 75 pips out from there. There's nothing wrong with that at all. It's a very
29 00:05:08,040 --> 00:05:18,870 very lucrative way of harvesting pips, if you can find setups to offer and yield this gearing. So if we found this insightful I will continue next week on Monday
30 00:05:18,870 --> 00:05:21,840 when we get to our next example. Until then I wish you good luck and good trading.