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ICT Mentorship Core Content - Month 09 - Bread & Butter Sell Setups
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ICT Mentorship Core Content - Month 09 - Bread & Butter Sell Setups

Lesson 7: Day Trading and Scalping Bread and Butter Setups

In this lesson, we will be discussing day trading opportunities and scalping. We will focus on consistent small price movements for cell program offset distribution redistribution in cell programs.

Offset Distribution Model

  • This model is called offset distribution.
  • Its primary purpose is to offset current short holders and/or induce more buyers at a premium price.
  • Typically, offset distribution models unfold quickly, and you must learn to anticipate them at key highs intraday.

Redistribution Model

  • This model is called redistribution.
  • Its primary purpose is to redistribute new short entries and/or induce more buyers at premium pricing.
  • Typically, redistribution models unfold quickly, and you must learn to anticipate them at key premium arrays intraday.

Cell Setups

  • Everything we saw for the bread butter buy setups just being reversed for cell setups here.
  • All the parameters Pips per trade how many hours the hold time is all statistics here apply the same just reversed for what we saw in the buy setups.
  • We're not looking to scalp outside of the highest volume session times of the day London open New York open.

Daily Range

  • When the market is poised to trade lower based on higher time frame institutional order flow, in essence, we expect the open to be at or near the high of daily range.
  • There can be a small rally above the opening price.
  • The initial leg lower intraday occurs after London open posts.
  • The second leg generally of the daily range unfolds in New York open.
  • If it's a high formed in London, we're seeing a continuation going on in New York until price hits the five-day average daily range.

London Scalps

  • Inside that initial price swing, we'll be looking for or we look for let's say that way um London scalps.
  • Got a small little retracement that takes place between 5 a.m and 7 A.M New York time this is the London lunch it's pre-new York open.

Scalping Strategies for Forex Traders

This section covers different scalping strategies that traders can use during the London and New York sessions.

Scalping the London Session

  • Look for a scalp short during the London session when higher time frame institution order flow is bearish.
  • Protraction phase higher in price can be scalped from the open or just below it prior to 1am New York time.
  • Classic London Judas swing higher can be scalped even easier.
  • Example of scalping the London session using a redistribution price trades up to a fair value level prepared Gap a pair shorter block of that nature price comes down to an old low and you can see the offset positions there all inside of the London open Kill Zone.

Scalping the New York Session

  • When London open confirms institutional sponsorship on the short side and posts daily high, anticipate New York open to continue lower unless a higher time frame discount array has been hit intraday and/or average daily range low is reached.
  • Look for intraday swings lower to determine premium range arrays to go short at in the New York Killzone.
  • Use 8:20 AM New York time for CME open to anticipate New York Judas swing to fade. Targets will be five-day average daily range low and next higher time frame discount array found on four-hour 60 Minute basis if ADR low is reached prior to 10 AM take 80 off and leave small portion on to capture any range expansion that may fail.
  • Example of scalping short the New York session using a redistribution during London closed time period.

Scalping the London Close

  • When New York and London sessions have moved in tandem and five-day average daily range low has been reached, expect a retracement off the daily low between 10:30 AM and 1 PM New York time.
  • Look for a five-minute failure swing at the low and a bullish order block to enter on risking 10 Pips below the daily low and targeting 20 to 30 percent of the total daily range in the retracement higher.
  • Example of scalping the London close trade using a redistribution during London closed time period.

Scalping the Asian Open

  • When market is bearish, enter short at or just above zero GMT opening price and expect an expansion of 15 to 20 Pips lower as Asian range is established.
  • Always aim for 15 to 20 Pips in this session as range can be limited on basis it will be Asian range formation. Take full exit on scalps in this time of day.

Understanding Average Daily Range (ADR)

In this section, the speaker discusses the concept of average daily range (ADR) and how it can be used to formulate a probable objective for the day.

ADR is an Average

  • ADR is the average daily range for a currency pair.
  • It does not have to fill for the day just because we have the indicator on our chart.
  • It's a general rule of thumb, not an absolute range.

Blending ADR with Other Indicators

  • By blending ADR with other indicators like Central bike dealers range, pivots, Asian range projections, and standard deviations, we can formulate a probable objective for the day.
  • This helps in identifying potential scalping opportunities.

ADR Can Act as Half of Actual Daily Range

  • If long-term trends are underway and an intermediate term swing has begun, a large impulse swing can surge the daily range twice the average daily range especially when ADR is under 60 Pips.
  • During such conditions, ADR can be expected to act as one half of the actual average daily range.

Exiting Trades Based on ADR

  • The speaker recommends backing off about 15 Pips from the ADR high or low when exiting trades early.
  • This helps in being profitable without having to demand oneself to be right.

Understanding Average Daily Range (ADR)

In this section, the speaker explains how to use the average daily range (ADR) as an exit strategy and how it can be exceeded if high impact news is due out after equities open.

Using ADR as an Exit Strategy

  • The speaker uses a uniform 15 Pips before ADR as their exit strategy.
  • This strategy is used to exit just a little bit earlier and has been applied in many trades.
  • ADR fills at or before New York open, the average daily range will likely be exceeded especially if high impact news is due out after equities open.

Importance of Time and Price Tools

  • Time and price tools help determine the probable expansion or magnitude of how big that daily range is going to be.
  • These tools help frame ideas on where the market may go for objectives.
  • Scalping model setups are micro setups on five-minute charts outlined on higher time frame charts.

Elements of Time of Day

  • Higher time frame PD arrays draw price, making it essential to understand where they are relative to our time frame.
  • Intraday lower time frame PD arrays provide timing and/or price levels to enter on ideally using scalps to fill in slow periods or enter trades that may have already started.
  • The lowest risk entry has long passed if you spend your time studying whether the higher time frame is moving higher or lower.

Scalping Strategies

In this section, the speaker discusses scalping strategies and how they can be used with small accounts.

Scalping Strategies for Small Accounts

  • If you can scalp, that's one way to build up a small account because you'll be able to get velocity with your money.
  • Not all traders lean towards scalping or short-term price movements in a daily range because the daily range is very limited.
  • The market will reward your patience and supply you at Daily ranges that expand and form clear energy swings perfect for scalping.

Key Trading Times

  • Monday, Tuesday, and Wednesday are the highest probability trading days.
  • The key select times of the day are the kill zones London open in New York open, not so much the money clothes and not so much the Asian session.
  • You can scalp very small short-term positions in London and New York.

Using Scalping as a Tool for Hedging

In this section, the speaker discusses how scalping can be used as a tool for hedging in trading.

Combining Trading Strategies

  • Combining one shot one kill with short-term trading and swing trading can complement each other.
  • Intrday scalps can be used to hedge when margin is being used for one shot one kill.
  • Scalping can be used to capitalize on retracements by trading another pair that's closely correlated to the euro dollar and short it.

Benefits of Scalping

  • Scalping can be used as a tool for hedging or as a save-all if you missed an opportunity to sell at the high of the day.
  • You can look for fair value gaps or bearish order blocks on a five-minute chart and sell short there, then ride out the London session and position yourself for the remainder of the day.

Limitations of Scalping

  • Nimbleness in intraday charts may take you away from larger time frames.
  • If you don't have all the necessary skills, scalping may not be helpful but rather problematic.

Daily Routine for Scouting and Intraday Trading

The speaker explains his daily routine for scouting and intraday trading.

Daily Routine

  • The next lesson will provide a complete outline of what he does on a daily basis from waking up to getting ready for London.
  • The upcoming month's teachings will cover commodities, stocks, index, and bond trading.
Playlists: 2017 ICT Private Mentorship Core Content Month 09
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