OTE Pattern Recognition Series - Vol 17.srt

Last modified by Drunk Monkey on 2021-06-10 10:01
1 00:00:10,500 --> 00:00:17,610 ICT: Welcome back, folks, this is volume number 17, and a continuing series of 20 videos, the optimal trade entry pattern recognition series for the inner
2 00:00:17,610 --> 00:00:27,240 circle trader YouTube channel. Our example today is from the British pound, or pound versus dollar. And we're looking at the daily chart here. And I'm going to
3 00:00:27,270 --> 00:00:37,110 save you a lot of time. And to simply state that we have retail resistance up here. And that's going to be likely a draw on liquidity. Now, here's one of the
4 00:00:37,110 --> 00:00:45,030 things that you're going to have in your notes. When you're looking at a daily chart like this, it's not important or even required, that price trades from
5 00:00:45,030 --> 00:00:54,360 this level here all the way up to that level and higher, it just needs to draw towards it. That's the reason why I call it a draw on liquidity. Now, again, the
6 00:00:54,360 --> 00:01:02,430 ideal scenario would be to see price trade up there. But it's not required if especially if we're looking for day trades or intraday trades, which is the
7 00:01:02,430 --> 00:01:19,860 scope of this series, focusing primarily for moves within the 8:30am to 11am New York session. So here is last Friday's daily range, and we expect these highs to
8 00:01:19,890 --> 00:01:29,190 draw price up now again, it's not imperative that it goes all the way up there, but it's more likely to go that direction than it is to go lower. So we want to
9 00:01:29,370 --> 00:01:40,410 put our line on the daily high which comes in at 123 94 and one PIP et and we're going to go over to our five minute chart. Okay, so here's our British Pound
10 00:01:40,410 --> 00:01:43,710 five minute chart and you know the drill. pause your video.
11 00:01:49,980 --> 00:02:02,940 Okay, so let's add the annotations now. And right away you can see we have our optimal trade entry price mu here drops down in after 8:30am Mu drops down into
12 00:02:02,940 --> 00:02:14,580 the 62% retracement level. Our hypothetical entry is 123 and 88. And it suffers three pips, drawdown, stop losses, 15 pips, which puts it just below this low
13 00:02:14,580 --> 00:02:29,700 here at the old high, we have a one to one right away at the old high, plus 15 pips at one half a standard deviation it's up 29 pips 43 pips at one standard
14 00:02:29,700 --> 00:02:40,230 deviation, one and a half standard deviations takes us to plus 56 pips and ultimately at two standard deviations where we would kill the trade at 70 pips
15 00:02:40,230 --> 00:02:50,490 Now obviously, in hindsight, you can see it went a little bit further. But again idling on the fact that the rules for this model says we have to bail on the day
16 00:02:50,490 --> 00:03:01,380 trade at two standard deviations. Again, there's gonna be trades if you follow this model, it's going to leave money on the table, hypothetically. And you're
17 00:03:01,380 --> 00:03:10,080 either going to have to accept that or, again, if you think you're going to go higher than that, leave a leader in other words, a small portion of your
18 00:03:10,080 --> 00:03:17,580 original position to see if you can capture anything especially based on what we showed on that daily chart. So that's gonna do it for today. Hopefully found
19 00:03:17,580 --> 00:03:20,400 this insightful. Until next time, I wish you good luck and good trading.