OTE Pattern Recognition Series - Vol 20.srt

1
00:00:11,580 --> 00:00:15,240
ICT: Okay, folks, welcome back. This is our 20th video and

2
00:00:15,240 --> 00:00:19,110
final in this series. As you know, all good things must come

3
00:00:19,110 --> 00:00:24,060
to an end. So here we have today's example. And it's in the

4
00:00:24,060 --> 00:00:27,480
eurodollar. And we have our charts already trained on a five

5
00:00:27,480 --> 00:00:29,940
minute chart and you knew the drill. you pause the video,

6
00:00:30,450 --> 00:00:33,300
and take a look at this example and see what you see.

7
00:00:39,750 --> 00:00:42,060
And here's the previous day's high and I'll scroll back when

8
00:00:42,060 --> 00:00:46,200
after I go over this portion here but between 830 in the

9
00:00:46,200 --> 00:00:51,210
morning, New York time to 11 o'clock. Right there every

10
00:00:51,210 --> 00:00:56,460
single day. New York time. We have a market run here, above

11
00:00:56,460 --> 00:00:59,940
the previous day's high and it retraces all the way back

12
00:00:59,940 --> 00:01:02,820
down. into the 17.5 level, but for this model for the

13
00:01:02,820 --> 00:01:08,490
YouTube channel, we have a type of entry of one point 1250.

14
00:01:09,180 --> 00:01:12,090
And that position entry would have suffered eight PIP

15
00:01:12,090 --> 00:01:19,500
drawdown. You do 30 PIP stop loss. At the old high, it's a

16
00:01:19,560 --> 00:01:25,410
plus 47. At one half standard deviation is 86 pips.

17
00:01:26,190 --> 00:01:29,700
Ultimately at one standard deviation, it's 124 pips really,

18
00:01:29,700 --> 00:01:33,630
really nice day. Really easy. They actually, you don't get

19
00:01:33,630 --> 00:01:36,390
these every single day of the week, but when they do come,

20
00:01:36,390 --> 00:01:41,610
wow, it's, it's very, very fun to do it. We participated in

21
00:01:41,610 --> 00:01:44,520
an observation today on the British Pound versus the US

22
00:01:44,520 --> 00:01:49,200
dollar. I'll reserve that for my private group. But for now,

23
00:01:49,650 --> 00:01:52,680
this is just a wonderful example of close this series out

24
00:01:53,310 --> 00:01:59,280
the previous day's high. You can see here and we drew that

25
00:01:59,280 --> 00:02:02,100
out in time. And again, as I mentioned earlier in the

26
00:02:02,100 --> 00:02:07,710
series, you're going to see examples of this setup that will

27
00:02:07,710 --> 00:02:11,040
form when it runs the previous day's high or the previous

28
00:02:11,040 --> 00:02:14,430
day's low. And don't think that that's the end of the move.

29
00:02:15,000 --> 00:02:19,530
And many times it just is the very perfect setup actually,

30
00:02:19,530 --> 00:02:22,020
it just shows you that it wants to go higher, and three

31
00:02:22,020 --> 00:02:24,540
tracing lower and this gets a lot of the retail traders

32
00:02:24,540 --> 00:02:28,860
tripped up. They think that the markets reversing or, you

33
00:02:28,860 --> 00:02:31,590
know, something that affect a topping formation. I remember

34
00:02:31,590 --> 00:02:34,200
back in the 90s. When I first started, I thought that

35
00:02:34,200 --> 00:02:37,500
everyone pick tops and everyone pick bottoms. And I quickly

36
00:02:37,500 --> 00:02:40,140
found out that I personally at the time couldn't do that.

37
00:02:40,740 --> 00:02:46,020
And learning how these markets operate initially with

38
00:02:46,020 --> 00:02:50,190
commodities. That market is no different from the foreign

39
00:02:50,190 --> 00:02:52,950
exchange market in a lot of ways, but the foreign exchange

40
00:02:52,950 --> 00:02:56,490
market has a whole lot more subtle nuances that are very

41
00:02:56,490 --> 00:03:00,840
specific to it. Just like the bond market has subtle nuances

42
00:03:01,140 --> 00:03:04,680
that are very unique to it. And I'm sure if I were a crypto

43
00:03:04,680 --> 00:03:08,340
trader, which I'm not, I could probably give a list of

44
00:03:08,340 --> 00:03:12,300
things about that asset class that would be very germane to

45
00:03:12,300 --> 00:03:17,550
just that asset class alone. So when we go through all these

46
00:03:17,550 --> 00:03:20,040
examples, I'm gonna count you to go through them multiple

47
00:03:20,040 --> 00:03:22,830
times. I'm purposely went in and made them as short as I

48
00:03:22,830 --> 00:03:27,030
possibly can right to the point. And it gives you basically

49
00:03:27,060 --> 00:03:30,690
what a one full month or 20 trading days would be like

50
00:03:31,590 --> 00:03:36,120
logging the examples of one market that you find the optimal

51
00:03:36,120 --> 00:03:41,880
trade entry in. And what will happen is, you will assume,

52
00:03:41,940 --> 00:03:43,770
especially if you're new watching this video series that

53
00:03:43,800 --> 00:03:47,760
this pattern should form every single day in the same

54
00:03:48,210 --> 00:03:53,700
market. And that's not true. There is this pattern always,

55
00:03:54,180 --> 00:03:57,600
every single day, but not every single day is the market

56
00:03:57,600 --> 00:04:02,400
that you're following exclusively. Going to make a really

57
00:04:02,400 --> 00:04:05,370
easy run above the previous day's higher below the previous

58
00:04:05,370 --> 00:04:08,790
day's low. So that part you have to work out and build a

59
00:04:08,820 --> 00:04:12,210
watch list and those things. You can learn how to do that in

60
00:04:12,210 --> 00:04:15,840
my free youtube channel videos and other series.

61
00:04:15,990 --> 00:04:18,600
So if you found this insightful, I wish you all good luck

62
00:04:18,660 --> 00:04:19,320
and good trading