ICT Mentorship Core Content - Month 03 - The Next Setup - Anticipatory Skill Development

ICT Mentorship Core Content - Month 03 - The Next Setup - Anticipatory Skill Development

Understanding Institutional Order Flow in Trading

Introduction to Anticipatory Skill Sets

  • The session focuses on anticipatory skill sets, particularly using the monthly chart for trading.
  • Emphasis is placed on utilizing institutional order flow to identify new trading setups.

Monthly Chart Analysis

  • Monthly charts reflect significant price movements driven by substantial financial backing, primarily from smart money rather than retail traders.
  • Retail traders lack the capacity to influence prices significantly; thus, understanding where large orders are likely placed can lead to profitable trades.

Key Candle Elements

  • Traders should analyze the open, high, low, and close of each monthly candle over the past three months for all relevant currency pairs.
  • This analysis helps delineate reference points that can be transposed onto lower time frames for clarity in trading decisions.

Identifying Ranges on Monthly Charts

  • Identify the most recent down candle and its corresponding up candle above it to establish a trading range.
  • The process involves pinpointing specific highs and lows of these candles to define potential entry and exit points.

Transitioning to Weekly Charts

  • Once ranges are established on monthly charts, they can be transferred to weekly charts for more refined information.
  • A vertical line marks the transition between months, aiding in visualizing price action relative to previous down candles.

Bullish Scenarios and Price Movements

  • Activation of bullish order blocks occurs when price moves through two down candles; this indicates potential upward movement.
  • Observations suggest that price may continue rising towards higher levels based on historical data from monthly candles.

Daily Chart Insights

  • Daily charts provide additional context with vertical lines marking each month’s opening prices; significant responses occur at these levels.
  • Historical analysis reveals objectives based on previous down candles which guide expectations for future price movements.

Conclusion: Defining Trading Ranges

  • To effectively trade using monthly charts, identify current positions within defined ranges by locating recent down and up candles.

Understanding Bullish and Bearish Order Blocks

Identifying Key Candles and Ranges

  • A down candle must be preceded by a higher up candle to establish a bullish order block.
  • The relevant high for the up candle is noted at 104.35, establishing a reference point.
  • The trading range between 106.28 and 103.26 indicates a potential movement of approximately 300 pips once the price trades above the down candle's high.

Analyzing Price Movements on Different Time Frames

  • Price action below 103.26 during significant events (like US elections) suggests testing of bullish order blocks.
  • Observations on daily charts reveal that the body of the last down candle is larger than previous ones, marking it as part of a bullish order block.

Trading Strategies Based on Market Structure

  • The mean threshold of the identified down candle remains unchallenged, indicating strong support levels during market reactions.
  • Following price dips into established bullish order blocks can present buying opportunities as prices rally away.

Monthly Chart Insights

  • Historical highs are referenced to set objectives for future price movements, with expectations of reaching around 300 pips plus in certain pairs like Kiwi Dollar.
  • Recent candles are analyzed to identify bearish order blocks, which help define potential downside targets.

Risk Management and Trade Setups

  • Current price actions suggest potential downside objectives near 69 or even lower towards 67 based on bearish structures observed in daily time frames.
  • Establishing bearish order blocks allows traders to refine their strategies using lower time frames while maintaining awareness of broader market contexts.

Top-down Approach for Trading Decisions

  • Utilizing monthly charts helps define ranges through recent up and down candles, guiding traders in identifying key levels for entry or exit points.
Video description

2016 Premium ICT Mentorship Core Content Video Lectures Audio and visuals are exactly as they were distributed in November 2016. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person’s investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a “limit move.” The placement of contingent orders by you, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.