OTE Pattern Recognition Series - Vol 07.srt

1
00:00:10,710 --> 00:00:14,190
ICT: Okay, folks, welcome back. This is video number seven

2
00:00:14,220 --> 00:00:17,340
in a continuing series of 20 videos in the inner circle

3
00:00:17,340 --> 00:00:19,800
trader optimal trade entry pattern recognition series.

4
00:00:20,850 --> 00:00:23,940
Alright, today's example is the British Pound versus the US

5
00:00:23,940 --> 00:00:28,350
dollar. All right, so here's our daily chart. And we're

6
00:00:28,350 --> 00:00:34,110
looking at the price action from today. And we're going to

7
00:00:34,110 --> 00:00:37,620
reference Thursday's price range using the rules that I've

8
00:00:37,680 --> 00:00:42,600
provided for you for this series. And here's Thursdays daily

9
00:00:42,600 --> 00:00:46,710
range, and obviously Friday is here. The low on this

10
00:00:46,740 --> 00:00:50,940
particular day on Thursday comes in at 121 65 and eight

11
00:00:50,940 --> 00:00:55,770
pipettes. So our line is showing that and the question is,

12
00:00:56,130 --> 00:00:59,460
is the day that you're sitting down in front of your charts,

13
00:00:59,730 --> 00:01:04,320
okay. Is it likely to take the previous day's high out or

14
00:01:04,740 --> 00:01:08,610
the previous day's low? What's the market been doing all

15
00:01:08,610 --> 00:01:12,000
week? It's been reaching for the previous day's low.

16
00:01:12,480 --> 00:01:15,390
Previously slow taking out previous day's low taking the

17
00:01:15,420 --> 00:01:17,880
previous day's low taking the previous day's low taking it.

18
00:01:18,270 --> 00:01:23,010
Okay. The classic support resistance crowd in the retail

19
00:01:23,340 --> 00:01:26,940
market. They would have seen this low here because look what

20
00:01:26,940 --> 00:01:29,430
happened. It's pretty obvious, isn't it? I mean, it's the

21
00:01:29,430 --> 00:01:32,820
price up didn't. So this level here was the magic level.

22
00:01:33,420 --> 00:01:36,540
This was the real support level. And when it came back down

23
00:01:36,540 --> 00:01:41,730
into it, we had nothing. It just rolled right on into it.

24
00:01:42,090 --> 00:01:45,630
But this was the real one. Come on mistake. It's really what

25
00:01:45,630 --> 00:01:48,300
it was it was this low here. That's the support level that

26
00:01:48,300 --> 00:01:50,730
you would look for. Well, that didn't do anything either.

27
00:01:52,320 --> 00:01:56,310
You see where I'm going with this right. Retail support

28
00:01:56,310 --> 00:02:01,050
resistance theory is not the answer. It's not Now some of

29
00:02:01,050 --> 00:02:06,120
you that are watching this video, probably not privy to my

30
00:02:06,120 --> 00:02:10,200
Twitter feed today, I prompted everyone this morning during

31
00:02:10,200 --> 00:02:13,950
the New York session to look at the British pound. And

32
00:02:13,950 --> 00:02:16,980
everyone that's been going through this series, and or has

33
00:02:16,980 --> 00:02:20,790
been trained by me knows exactly what the lower timeframe

34
00:02:21,660 --> 00:02:25,050
was indicating at the time. So I don't operate as a signal

35
00:02:25,080 --> 00:02:28,290
provider, I don't say here, buy here, put a stop here and

36
00:02:28,290 --> 00:02:32,220
take your profits here. Because I'm not licensed to do so.

37
00:02:32,610 --> 00:02:37,590
But I am capable of drawing your attention to a specific

38
00:02:37,590 --> 00:02:42,150
market a specific time. And I point you shoot. What does

39
00:02:42,150 --> 00:02:45,180
that mean? Well, it gives you the opportunity to practice

40
00:02:45,180 --> 00:02:49,770
real time and study the things that I teach. And what am I

41
00:02:49,770 --> 00:02:52,830
specifically talking about in this video, it's the things

42
00:02:52,830 --> 00:02:57,270
that I taught in the first video of the series. The pilot

43
00:02:57,270 --> 00:02:59,580
episode of the optimal trade entry pattern recognition

44
00:03:00,000 --> 00:03:04,110
series. That video lays the groundwork for this entire

45
00:03:05,190 --> 00:03:07,800
discussion on cable. So here's the five minute chart of the

46
00:03:07,800 --> 00:03:11,940
British pound. And take a look at the price action here. And

47
00:03:11,940 --> 00:03:16,470
if you have not looked for this yet, I'm going to ask you to

48
00:03:16,470 --> 00:03:19,350
pause your video. That way you can have an opportunity to

49
00:03:19,350 --> 00:03:26,130
study it and see what you see before I added lipstick. Okay,

50
00:03:26,130 --> 00:03:29,700
so we're gonna add some annotations. So here's that previous

51
00:03:29,700 --> 00:03:33,450
day's low, Thursday's daily low, coming in at 121 65 and

52
00:03:33,450 --> 00:03:38,280
eight pet pets. And here's our New York session sets the

53
00:03:38,280 --> 00:03:43,380
time when these formations occur. Now, obviously you can see

54
00:03:44,670 --> 00:03:48,930
head of New Yorkers in the New York session we're doing at

55
00:03:48,930 --> 00:03:52,860
that at 830. That's what this is here to again, 11 o'clock,

56
00:03:52,890 --> 00:03:55,320
nothing is changing. This is static rice. You can see our

57
00:03:55,320 --> 00:03:58,950
swing high to swing low, and the retracement back up inside

58
00:03:58,950 --> 00:04:01,590
the New York session. So you to trace level trades to it

59
00:04:01,590 --> 00:04:06,840
here, remember that's our suggested entry for studying and

60
00:04:06,840 --> 00:04:11,040
back testing this and the market starts to break lower. And

61
00:04:11,040 --> 00:04:13,140
there's multiple optimal trade entries in here, there's a

62
00:04:13,380 --> 00:04:15,960
swing from this high down to this low to this one, you can

63
00:04:15,960 --> 00:04:18,480
do your own projections on that as well. And this one here,

64
00:04:18,480 --> 00:04:23,550
123. And again, it's inside the New York session, time of

65
00:04:23,550 --> 00:04:28,650
day that this outline works well in. First scaling comes out

66
00:04:28,650 --> 00:04:34,170
at 40 pips down here at the range low and then half of the

67
00:04:34,170 --> 00:04:37,200
standard deviation that makes up the Fibonacci range.

68
00:04:38,520 --> 00:04:42,450
takes us down to 75 pips for a second scaling, and it's

69
00:04:42,480 --> 00:04:45,360
drifted a little bit lower, just at the time of this

70
00:04:45,360 --> 00:04:49,110
recording. But this is sufficient enough. I look personally

71
00:04:49,110 --> 00:04:53,850
for 50 to 75 pips a week, you can do very, very well with

72
00:04:53,850 --> 00:04:57,870
less than that it's not absolutely mandatory that you take

73
00:04:57,870 --> 00:05:01,110
that much out of the market. Every time you Sit down. This

74
00:05:01,110 --> 00:05:05,310
in itself is an opportunity to be short here and take 75

75
00:05:05,310 --> 00:05:07,470
pips out from there. There's nothing wrong with that at all.

76
00:05:07,470 --> 00:05:11,880
It's very very lucrative way of harvesting pips, if you can

77
00:05:11,880 --> 00:05:16,590
find setups to offer and yield this gearing. So if we found

78
00:05:16,590 --> 00:05:19,050
this insightful I will continue next week on Monday when we

79
00:05:19,050 --> 00:05:21,300
get to our next example until then I wish you good luck and

80
00:05:21,300 --> 00:05:21,810
good trading.