OTE Pattern Recognition Series - Vol 17.srt

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ICT: Welcome back, folks, this is volume number 17, in a

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continuing series of 20 videos with the optimal trade entry

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pattern recognition series for the initial trader YouTube

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channel. Our example today is from the British pound, or

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pound versus dollar. And we're looking at the daily chart

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here. And I'm gonna save you a lot of time. And to simply

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state that we have retail resistance up here. And that's

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going to be likely a draw on liquidity. Now, here's one of

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the things you're going to have in your notes. When you're

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looking at a daily chart like this, it's not important or

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even required, that price trades from this level here all

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the way up to that level and higher. It just needs to draw

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towards it. That's the reason why I call it a draw on

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liquidity. Now, again, the ideal scenario would be to see

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price trade up there, but it's not required if especially if

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we're looking for Day trades are intraday trades, which is

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the scope of this series, focusing primarily for moves

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within the 8:30am to 11am New York session. So here is last

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Friday's daily range, and we expect these highs draw a price

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up. Now again, it's not imperative that it goes all the way

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up there, but it's more likely to go that direction than it

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is to go lower. So we want to put our line on the daily high

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which comes in at 123 94 and one PIP at and we're going to

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go over to our five minute chart. Okay, so here's our

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British Pound five minute chart, and you know the drill.

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pause your video.

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Okay, so let's add the annotations now. And right away you

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can see we have our optimal trade entry price move here

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drops down in After 8:30am mood drops down into the 62%

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retracement level, or hypothetical entry is 123 and 88 and

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it suffers three pips draw down, stop losses 15 pips, which

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puts it just below this low here at the old high, we have a

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one to one right away at the old high at plus 15 pips at one

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half a standard deviation it's up 29 pips 43 pips at one

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standard deviation, one and a half standard deviations takes

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us to plus 56 pips and ultimately at two standard deviations

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where we would kill the trade at 70 pips Now obviously, in

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hindsight, you can see it went a little bit further. But

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again, I lean on the fact that the rules for this model says

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we have to bail on the day trade at two standard deviations.

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Again, there's going to be trades if you follow this model.

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You're going to leave money on the table hypothetically.

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You're gonna either gonna have to accept that or, again, if

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you think you're going to go higher than that, leave a

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leader in other words, a small portion of your original

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position to see if you can capture anything especially based

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on what we showed on that daily chart. So that's gonna do it

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for today. Hopefully found this insightful. Until next time,

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I wish you good luck and good trading.