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Version 1.1 by Drunk Monkey on 2020-11-20 16:25
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3 ICT: Welcome back, folks, this is volume number 17, in a
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7 continuing series of 20 videos with the optimal trade entry
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11 pattern recognition series for the initial trader YouTube
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15 channel. Our example today is from the British pound, or
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19 pound versus dollar. And we're looking at the daily chart
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23 here. And I'm gonna save you a lot of time. And to simply
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27 state that we have retail resistance up here. And that's
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31 going to be likely a draw on liquidity. Now, here's one of
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35 the things you're going to have in your notes. When you're
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39 looking at a daily chart like this, it's not important or
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43 even required, that price trades from this level here all
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47 the way up to that level and higher. It just needs to draw
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51 towards it. That's the reason why I call it a draw on
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55 liquidity. Now, again, the ideal scenario would be to see
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59 price trade up there, but it's not required if especially if
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63 we're looking for Day trades are intraday trades, which is
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67 the scope of this series, focusing primarily for moves
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71 within the 8:30am to 11am New York session. So here is last
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75 Friday's daily range, and we expect these highs draw a price
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79 up. Now again, it's not imperative that it goes all the way
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83 up there, but it's more likely to go that direction than it
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87 is to go lower. So we want to put our line on the daily high
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91 which comes in at 123 94 and one PIP at and we're going to
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95 go over to our five minute chart. Okay, so here's our
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99 British Pound five minute chart, and you know the drill.
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103 pause your video.
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107 Okay, so let's add the annotations now. And right away you
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111 can see we have our optimal trade entry price move here
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115 drops down in After 8:30am mood drops down into the 62%
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119 retracement level, or hypothetical entry is 123 and 88 and
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123 it suffers three pips draw down, stop losses 15 pips, which
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127 puts it just below this low here at the old high, we have a
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131 one to one right away at the old high at plus 15 pips at one
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135 half a standard deviation it's up 29 pips 43 pips at one
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139 standard deviation, one and a half standard deviations takes
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143 us to plus 56 pips and ultimately at two standard deviations
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147 where we would kill the trade at 70 pips Now obviously, in
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151 hindsight, you can see it went a little bit further. But
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155 again, I lean on the fact that the rules for this model says
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159 we have to bail on the day trade at two standard deviations.
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163 Again, there's going to be trades if you follow this model.
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167 You're going to leave money on the table hypothetically.
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171 You're gonna either gonna have to accept that or, again, if
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175 you think you're going to go higher than that, leave a
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179 leader in other words, a small portion of your original
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183 position to see if you can capture anything especially based
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187 on what we showed on that daily chart. So that's gonna do it
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191 for today. Hopefully found this insightful. Until next time,
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195 I wish you good luck and good trading.