ICT Forex - Secrets To Swing Trading

Introduction

The instructor introduces the topic of swing trading and outlines what will be covered in the module.

Points of Focus

• The instructor will teach how to map buy conditions and implement optimal trade entry.

• The instructor will teach how to map sell conditions and implement optimal trade entry.

• This approach works on all currency pairs, markets, and asset classes.

Finding Daily Bias

The instructor discusses how to find daily bias in trading.

Importance of Daily Bias

• Traders often want to know the daily bias for profitable demo account results.

• Knowing the few times a month or week when it's loaded in one direction over the other is enough to find success.

Finding Daily Bias

• Institutional order flow can help find daily bias but is not taught in this module.

• A quick approach involves finding key support/resistance levels and understanding higher timeframe momentum.

Using Moving Averages for Momentum Trading

The instructor explains how moving averages can help traders stay on one side of the marketplace for intermediate-term momentum trading.

Benefits of Moving Averages

• Moving averages provide a smoothing effect over price action on a higher timeframe daily chart.

• They help build an understanding of where traders should look at their charts quickly to stay on one side of the marketplace.

• Applying moving averages to lower timeframes reduces reliability.

Recommended Moving Averages

• Use two moving averages - 10 period and 20 period - placed on a daily chart.

• The red line delineates the 20-period, while the green line delineates the 10-period.

Mapping Out a Bullish Condition

In this section, the speaker explains how to map out a bullish condition using consolidation and moving averages.

Consolidation and Moving Averages

• Identify market consolidation.

• Look for price breaking swing high and crossover on moving average.

• Map out bullish condition by dragging rectangle up until it crosses below 20.

• Wait for daily trade back above with 10 period of 20 period.

Swing Trading Time Frame

In this section, the speaker explains why an hourly chart is ideal for swing trading.

Hourly Chart

• Hourly chart is ideal for swing trading.

• Drop down into an hourly chart after identifying bullish condition in daily chart.

• Drag little triangle over to beginning of shaded area where 10 crosses over 20.

• Follow optimal trade entry once in shaded area.

Optimal Trade Entry

In this section, the speaker explains what to look for when entering a trade.

Optimal Trade Entry

• Price has to be above red line and have moved away made a swing high after an impulse like moving higher.

• Look for awesome trade entries when it reaches back into previous swing low here prices below the red line we cannot take anything there.

• Do not do this when it doesn't on the daily chart price has to be above both the 20 and 10 but on the one-hour price can stab below the red line during the retracement only violet when the 10 period has not crossed over.

Swing Trading Strategy

In this section, the speaker discusses a swing trading strategy using symmetrical price swings and optimal trade entry points.

Swing Trade Example

• The speaker shows an example of a swing trade that started on the 26th and ended on the 27th.

• The trade was entered at around 75.70 and exited at approximately 76.10 for a nice little move.

• A small portion of the trade can be left as it is a swing trade, but stop-loss should not be trailed.

• Partial profits can be taken while letting the remainder go.

Consolidation and Price Movement

• When consolidations occur, stop-loss should be left in until leaving consolidation before trailing it up behind to swing lows from market action.

• Symmetrical price swings can give really nice extensions up to 500% before dropping down again.

• No new setups can be taken when price drops below the red line or inside the green shaded area where we are bullish on daily charts.

Filtering Trades

• Equal highs cannot always be used due to filtering processes.

• Traders need to wait until prices get back above the red line before taking trades.

• Traders need to filter out long trades when prices are below the red line.

Swing Trade Length

• Swing trades last about one month and two weeks or so.

• They are not every day trades but rather longer-term positions.

Mapping Out Bearish Conditions

In this section, the speaker discusses mapping out bearish conditions in trading.

Bearish Condition Mapping

• Traders need to map out bearish conditions by looking for lower lows and lower highs in price movement.

• This helps traders anticipate potential short positions.

Overall, this video provides insights into swing trading strategies and mapping out bearish conditions in trading. The speaker emphasizes the importance of optimal trade entry points, symmetrical price swings, and filtering trades to ensure profitable positions.

Trading Strategies for Consolidation

In this section, the speaker discusses trading strategies for consolidation and how to identify optimal trade entries.

Identifying Optimal Trade Entries

• Wait for price to breakdown on the moving average and show willingness to leave the consolidation.

• Look for optimal trade entries after price retests the consolidation.

Hourly Chart Analysis

• Price should stay below the red line and give optimal trade entry cells.

• If price spikes through it, wait for the 10 period to remain below it - cannot cross over.

• Optimal trade entry is when both moving averages are stacking lower and body cell tends below 220.

Swing Trading Strategies

• Take partials instead of aggressively trailing your stop-loss.

• Hold onto original trades if there are no new scenarios that meet criteria.

Identifying Sell Scenarios

In this section, the speaker discusses identifying sell scenarios using moving averages.

Moving Average Analysis

• Wait for price to get below both the red line and see the 10 and 20 period exponential stacking lower before entering a sell scenario.

• Drag down to lowest body portion to identify optimal trade entry points.

Symmetrical Price Swings

• Target one hit target two symmetrical price swing as hit as well, hold onto a portion of trades in these scenarios.

[t=N/A] Protective Stop-Loss Strategies

In this section, the speaker discusses protective stop-loss strategies when dealing with consolidations.

Protective Stop-Loss Strategies

• Only consider lowering protective stop-loss when price leaves the consolidation.

Using Moving Averages for Swing Trading

In this section, the speaker explains how to use moving averages for swing trading and provides a context to work within.

Context for Swing Trading

• The red line represents the 20-period simple moving average.

• Use the body of the candlestick chart to drag it down to the lowest open or close.

• This gives a context to work within and helps determine what side of the marketplace one should be waiting to trade on.

Identifying Trade Opportunities

• Equal highs indicate a potential buy opportunity.

• Counter-trend moves can be used as day trading opportunities.

• For swing trades, take off 50% of profits and leave remaining 50% on. For day trades, take off 75%-80% of profits and leave a small portion on.

Benefits of Using Moving Averages

• Moving averages are trend-following in nature and are used by large funds.

• Provides a quick way to apply two simple moving averages (20-period SMA and 10-period EMA) on daily and hourly charts.

Conclusion

In this section, the speaker concludes by summarizing that using moving averages is a simple approach to using retail tools that can be applied for both swing trading and day trading.

Key Takeaways

• Using moving averages is not complicated but provides an effective way to identify trade opportunities.

• Large funds also use moving averages as part of their long-term trending models.

• Visit innercircletrader.com for more information.