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Last modified by Drunk Monkey on 2021-06-10 10:04
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2 |1 |00:00:10,679 ~-~-> 00:00:17,309 |ICT: Welcome back, folks, this is video number 13 in a continuing series of the optimal trade entry pattern recognition series for the inner circle trader
3 |2 |00:00:17,339 ~-~-> 00:00:26,939 |YouTube channel. Alright, Eric example again today is the dollar CAD and our charts already trained in on the five minute chart. And I'm going to counsel you
4 |3 |00:00:26,939 ~-~-> 00:00:37,409 |to take a look at your daily chart and look at their most recent optimal trade entry that formed, which led to this strong breakdown on a daily chart. Now,
5 |4 |00:00:37,949 ~-~-> 00:00:49,709 |when we see big moves like that, the natural assumption is, it's gone down too far. And it's going to have to reverse. And many times that's going to plague
6 |5 |00:00:50,639 ~-~-> 00:01:00,659 |your trust in a pattern like this in the New York session. As you can see, the Mark has been going down. And when we add the annotations to the chart, you'll
7 |6 |00:01:00,659 ~-~-> 00:01:10,769 |see that nothing really has changed, it's still the same logic. And you can't just simply say, the markets oversold, the pattern can't work. That's not how
8 |7 |00:01:10,769 ~-~-> 00:01:18,899 |this works, the markets going to seek liquidity, and it's going to expand and seek that liquidity above or below the marketplace. If you look at the daily
9 |8 |00:01:18,899 ~-~-> 00:01:29,429 |chart, it had a really obvious equal lows. I teach that as Candyland. It's just ripe for the taking sell side liquidity. And couple that with optimal trade
10 |9 |00:01:29,429 ~-~-> 00:01:37,469 |entry on a daily chart and you get beautiful results like this, we're gonna look at the dollar CAD here. And if you haven't already done so pause your video.
11 |10 |00:01:41,579 ~-~-> 00:01:51,689 |Alright, so now I'm going to add the annotations. Alright, so you can see they have the New York session. Again, standard times never changing 8:30am, New York
12 |11 |00:01:51,689 ~-~-> 00:02:02,969 |time to 11am. Okay, the optimal trade entry is here. Now, obviously, you can see the market has been going down. And we have this retracement in here inside the
13 |12 |00:02:02,969 ~-~-> 00:02:11,339 |heart of the New York session trades back to optimal trade entry. Now notice it goes just a little bit above that that's okay, it's fine. It's not a big deal.
14 |13 |00:02:11,999 ~-~-> 00:02:23,939 |You may have looked at this and elected to use this swing high here. I use this one only because it has the direct displacement from this high starting going
15 |14 |00:02:23,939 ~-~-> 00:02:32,069 |lower. It did have a higher high here and I'll show you what that looks like in a moment. But drop down and then consolidation and run more. One more time rally
16 |15 |00:02:32,099 ~-~-> 00:02:42,719 |up to me, I'm going to use this point here. Before I go through this one, I got to take the annotations off for a moment, you can see this one's slightly higher
17 |16 |00:02:43,139 ~-~-> 00:02:57,059 |than this one, but this one's where all the volume is. Then you see that with the bodies of the candles versus this wick. Adding that 60% and tracing level,
18 |17 |00:02:57,149 ~-~-> 00:03:07,259 |that's our standard for this model as that energy pattern, your start with how to be above the short term high, whatever fits your risk appetite if it's 1%
19 |18 |00:03:07,919 ~-~-> 00:03:20,549 |half a percent 2% 20% if you don't want to be in the business too long, and now be in bed. Alright, so the short term low trades to 3811 and a half. So that
20 |19 |00:03:20,549 ~-~-> 00:03:34,589 |gives you about what's at 20 pips or so he about 20 pips just to the old low here, and then you get half a standard deviation at 3993. One full standard
21 |20 |00:03:34,589 ~-~-> 00:03:48,929 |deviation and 3775 and a half in one and a half standard deviations at 137 57 and a half and the low of the day comes in exactly at 1.3757 and a half. So
22 |21 |00:03:48,929 ~-~-> 00:03:58,379 |beautiful, beautiful symmetry in the dollar CAD obvious setup, from the daily chart, using the things that I've taught, obviously on this channel for free,
23 |22 |00:03:58,379 ~-~-> 00:04:07,139 |you can go through all the tutorials and see everything I've shown in those videos coupled with this optimal trade entry pattern recognition series. You can
24 |23 |00:04:07,139 ~-~-> 00:04:16,769 |see how the things that I teach and I look for up here every single market day in this time of day. So this is an example again you can use for your
25 |24 |00:04:16,949 ~-~-> 00:04:20,639 |edification, hope you found insightful until next time, wish good luck and good trading