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Version 1.1 by Drunk Monkey on 2020-11-20 16:24
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3 ICT: Welcome back, folks, this is video number 13 in a
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7 continuing series of the optimal trade entry pattern
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11 recognition series for the inner circle trader YouTube
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15 channel. Alright Eric example again today is the dollar CAD
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19 and our charts already trained in on the five minute chart.
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23 And I'm going to counsel you to take a look at your daily
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27 chart and look at their most recent optimal trade entry that
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31 formed which led to this strong breakdown on the daily
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35 chart. Now, when we see big moves like that, the natural
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39 assumption is it's gone down too far. And it's going to have
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43 to reverse and many times that's going to plague your trust
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47 in a pattern like this in the New York session. As you can
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51 see, the Mark has been going down and we add the annotations
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55 To the chart, you'll see that nothing really has changed.
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59 It's still the same logic. And you can't just simply say,
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63 the markets oversold, the pattern can't work. That's not how
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67 this works. The markets going to seek liquidity and it's
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71 going to expand and seek that liquidity above or below the
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75 marketplace. We look at the daily chart had a really obvious
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79 equal lows. I teach that as Candyland it's just right for
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83 the taking sell side liquidity. And couple that with optimal
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87 trade entry on the daily chart and you get beautiful results
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91 like this. We're gonna look at the dollar CAD here if you
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95 haven't already done so pause your video. Alright, so now
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99 I'm going to add annotations. Alright, so you can see they
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103 have the New York session. Again standard times never
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107 changing 8:30am New York time to 11am Okay, the optimal
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111 trade entry is here. Now obviously you can see the market
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115 has been going down And we have this retracement in here
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119 inside the heart of the New York session trades back to
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123 optimal trade entry. Now notice it goes just a little bit
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127 above that that's okay. It's fine. It's not a big deal. You
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131 may have looked at this and elected to use this swing high
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135 here. I use this one only because it has the direct
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139 displacement from this high starting going lower. It did
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143 have a higher high here and I'll show you what that looks
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147 like in a moment. But drop down and consolidation and run
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151 more. One more time rally up to me. I'm going to use this
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155 point here, before I go to this one. Again, take the
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159 annotations off for a minute, you can see this one's
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163 slightly higher than this one, but this one's where all the
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167 volume is. And you see that with the bodies of the candles
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171 versus this wick. Adding that six cube centration level.
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175 That's our standard for this model is that anti pattern Your
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179 stock would have to be above the short term high, whatever
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183 fits your risk appetite if it's 1%, half a percent 2% 20% if
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187 you don't want to be in the business too long, and I'll be
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191 in bed. Alright, so the short term low trades to 3811 and a
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195 half. So that gives you about what's that 20 pips or so
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199 about 20 pips just to the old low here, and then you get
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203 half a standard deviation at 3993. One full standard
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207 deviation at 3775 and a half, and one and a half standard
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211 deviations at 137 57 and a half and the low of the day comes
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215 in exactly at 1.3757 and a half. So beautiful, beautiful
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219 symmetry in the dollar CAD obvious setup, from the daily
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223 chart, using the things that I've taught, obviously on this
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227 channel for free, you can go through all the tutorials. See
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231 everything I've shown in those videos coupled with this
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235 optimal trade entry pattern recognition series. You can see
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239 how the things that I teach and I look for up here every
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243 single market day, in this time of day. So this is an
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247 example again, you can use for your edification. I hope you
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251 found insightful until next time, I wish you good luck and
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255 good trading.