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

Introduction

In this lesson, the focus is on bread and butter buy setups for daily opportunities in scalping. The goal is to harvest consistent small price movements that can be harvested.

Bread and Butter Buy Setups

  • Consistent small price movements can be harvested almost every day.
  • Two price engine models are used in buy programs: offset accumulation and re-accumulation.
  • Offset accumulation model engineers sellers at a deep discount price to offset current long holders or induce more sellers at discount pricing.
  • Re-accumulation model reaccumulates new long entries and/or induces more sellers at discount pricing.

Realistic Objectives

This section covers realistic objectives when looking for scalps, including trade duration, timing the market, and frequency of setups per week.

Scalp Trade Duration

  • Scalp trade duration is typically one to two hours or less.
  • Pips portrayed usually range from 15 Pips to 30 Pips on average.

Timing the Market

  • The five-minute chart is used to time the market.

Frequency of Setups per Week

  • As many as 15 or more setups can occur per day.
  • Typically, you get about two to three setups per session (London, New York, London close, Asia).
  • Generally, you get about one scalp setup per session across a handful of pairs.

Conclusion

This section concludes the lesson by summarizing that there will always be volatility in one pair over another. It's essential to look at all majors paired with the dollar across different sessions to find scalp setups.

Finding Scalp Setups

  • There will always be volatility in one pair over another.
  • Look at all majors paired with the dollar across different sessions to find scalp setups.

Scalping and Kill Zones

In this section, the speaker discusses scalping and kill zones.

Scalping during ICT Kill Zones

  • Consistent small price movements are specific to kill zones.
  • All scalping should be done during ICT kill zones.
  • Using limit orders for entry may execute outside a Kill Zone.
  • Best to actively follow the market if you're going to be scalping.

Market Orders vs Limit Orders

  • Use Market orders for scalping.
  • Use limit orders for your exits.

Major Sessions and Kill Zones

  • A chart is provided for the major sessions and their overlap with GMT time and Eastern Standard Time.
  • The kill zones aren't completely lined up with this, so use the lesson that gave you in earlier months where I actually give you the specifics about what each killzone's time start and end is.

Institutional Order Flow

In this section, the speaker discusses institutional order flow.

Higher Time Frame Institutional Order Flow

  • Monthly, weekly, daily, 4-hour analysis is needed to determine directional bias studies.
  • Look at IPTO data ranges where is the quarterly shift most recently looking to go higher or lower?
  • Are we recently trading off of daily bullish discount arrays?
  • Are we seeing bullish order block support pricing bearish order blocks breaking away?

Price Action Analysis

  • Trend lines or moving averages are not necessary.
  • Look at price action that tells us what's occurring.
  • Old highs breaking but lows not being broken
  • Lows being broken quickly and price snaps higher right away
  • Price engine model was reaccumulation they took it down took the cell stops announced going higher these are all fingerprints or hallmarks of IPTA showing institutional order flow is bullish.

London Open and New York Open

In this section, the speaker discusses the London open and New York open.

London Open

  • Typically, you'll see that London Open Swing pretty volatile pretty aggressive move one-sided.
  • Usually does about anywhere between 40 and 60 of the daily range before we get to 5 a.m New York time.
  • There's a small period between 5 a.m and 7 A.M which is the London lunch and usually you'll get some.

Market Reversal and Scalping

In this section, the speaker discusses how to scalp in a bullish environment for higher time frame institutional workflow. They provide an indicator that can be used to trade up into the five-day average daily range high.

Bullish Environment and Daily Range High

  • Look for bullish environments for higher time frame institutional workflow.
  • Trade up into the five-day average daily range high using an indicator attached to the forum.
  • Additional instructions about the indicator will be given in cell setup teaching.

London Close Time of Day

  • Expect a big range day where scalping can be done.
  • Price will normally retrace lower and close off of the high of the day between 10 a.m and noon in New York time.
  • While it's typical for daily range to form like this on highly explosive up moves, it doesn't mean every time.

Scalping London Session

  • Anticipate London session low of the day formation when higher time frame institutional overflow is bullish.
  • Classic London Judas swing lower can be scalped even easier if you're looking at midnight candle in New York.
  • Retracement between 5 a.m and 7 A.M New York time can provide long scalp entry once discount array is hit.

#Lunchtime Consolidation

In this section, the speaker talks about what happens during lunchtime consolidation after London Kill Zone closes.

Lunchtime Consolidation

  • After London Kill Zone closes, there's a little quiet period of time where Rockets generally go quiet and it's in consolidation.
  • If the markets are really busy, many times you can get a retracement into the London lunch that creates an early entry and it moves before New York.

London and New York Sessions

In this section, the speaker discusses the London and New York sessions and how to scalp during these times.

Scalping During London Session

  • After a small consolidation period, there is usually a retracement back into New York.
  • Avoid trading between 5 AM and 7 AM as it is generally a quiet period in the marketplace.
  • If the London session is quiet at the beginning but gets active after 3 or 4 PM, there may be opportunities for entry points even after missing the initial Judas swing down.
  • Use a scalping technique with a five-minute chart to get in sync with the market.

Scalping During New York Session

  • Look for intraday swings higher to determine discount range arrays to go long at in the New York Kill Zone.
  • Anticipate the New York Judas swing to fade targets using bullish order blocks, fair value gaps, or liquidity voids.
  • Targets will be the five-day average daily range high and next higher time frame premium array found on a four-hour or 60-minute basis.
  • If ADR high is reached prior to 10 AM, take off 80% of your position but leave a small portion on to capture any range expansion that might fill.

Example Trades

In this section, the speaker provides examples of trades during both London and New York sessions.

London Open Trade

  • Price trades back down for fair value gap for reaccumulation fills in gap in London open trades up.
  • EDR's hit in London open and it's a 30 pip scalp.

New York Open Trade

  • Price comes down fills in fair value gap trades into order block.
  • The price drops down after the CME open, which is the Judas swing for the New York session.
  • Every session has a protectionary market stage if you're bullish in New York you're looking for 8:20 and a due to swing dropping down after 8:20.

London Close Trading Strategy

In this section, the speaker discusses the London close trading strategy and how it can be used to trade Forex.

Understanding the London Close Trading Strategy

  • The London close trading strategy involves looking for a retracement off the day's high between 10:30 AM and 1 PM.
  • Traders should look for a setup where price exceeds the five-day average daily range high and creates a five-minute failure swing at the high.
  • A bearish order block should also be present to enter on.
  • Traders should risk 10 pips above the day's high and target 20 to 30 percent of the total daily range in a retracement lower.
  • This trade can be difficult to see pan out some days as the range can expand far more than the average daily range high.

Trading S&P Futures

In this section, the speaker discusses how to trade S&P futures using a morning trend and an afternoon trend.

Morning Trend and Afternoon Trend

  • When day trading S&P futures, traders are really trading two sessions: a morning trend followed by an afternoon trend.
  • The morning trend usually ends around 10:30 AM to 11 AM New York time, after which traders go to lunch until around 1 PM.
  • The afternoon trend goes into close at four o'clock.

Characteristics of London Close for Forex

In this section, the speaker discusses how characteristics of London close for Forex are similar to what day traders do for S&P futures.

Characteristics of London Close for Forex

  • When New York and London sessions move in tandem in one direction, expect a retracement off the day's high between 10:30 AM and 1 PM.
  • Ideally, price should exceed the five-day average daily range high and be more than what is expected to see in the five-day average daily range.
  • Traders should look for a five-minute failure swing at the high and a bearish order block to enter on.
  • Traders should risk 10 pips above the day's high and target 20 to 30 percent of the total daily range in a retracement lower.

Trading London Close

In this section, the speaker discusses how to trade London close and provides an example of what it looks like.

Trading London Close

  • The speaker used to trade London close but found it fell out of favor with him because he didn't get enough pips out of it or would get stopped out.
  • Ideally, traders should take one-to-one risk-to-reward targets based on required stop and try not to get more than 20 pips.
  • An example of what a London close looks like involves buying it on a failure swing.

Using Fibonacci Levels and Trading the Asian Open

In this section, the speaker discusses how to use Fibonacci levels to project price movements and how to trade during the Asian open.

Using Fibonacci Levels

  • Use daily low or London low to draw FIB up to anchor at five-day average daily range high.
  • 20-30 level on FIB is where close is usually on an up-close day.
  • Focus on New York and London sessions for more movement in price.

Trading the Asian Open

  • Enter long at or just under zero GMT opening price when market is bullish. Expect expansion of 15-20 pips as Asian range is established.
  • Aim for 15-20 pips in this session as range can be limited due to narrow Asian range formation.
  • Avoid greed and take full exits on scalps during this time of day. Don't leave portions on as it's not optimal to expect a second leg in price.

Scalping Rules and Context

In this section, the speaker discusses some rules and context for scalping. He talks about how he looks at scalps, how price engine models deliver price, and the offset accumulation and re-accumulation models that take place for buying Bank Traders.

Key Points

  • Even if the market is quiet, traders can still get 15-20 pips a day a couple of times a week through scalping.
  • 25 to 30 pips per week doubles your money over a year with scalping.
Playlists: 2017 ICT Private Mentorship Core Content Month 09
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