OTE Pattern Recognition Series - Vol. 03

Introduction

In this section, the speaker introduces the continuation of the ICT optimal trade entry pattern recognition series, emphasizing its applicability beyond Forex to the futures market.

Exploring Pattern Application in Futures Market

• The speaker discusses identifying a signature in price action that aligns with aiming for the previous day's higher low, highlighting the adaptability of the pattern across different timeframes.

• Emphasis is placed on not restricting oneself based on market movements and focusing on understanding the framework of old lows, highs, retracements, and potential momentum shifts.

• The concept of using Fibonacci levels as a contextual framework rather than strict trading signals is explained, with a focus on targeting liquidity points for trade entries.

• Discussion centers around predicting potential market momentum based on daily chart analysis and anticipating price movements towards previous day highs or other significant levels.

Applying Concepts to Specific Futures Contract

• A practical example using SP Emini futures for June 2020 is introduced, showcasing a naked chart before detailed analysis begins.

• The significance of big figure price levels like 2900 in creating tradable bounces during specific timeframes within the New York session is highlighted.

• Explanation of utilizing ranges instead of pips in futures contracts and establishing consistent patterns within static timeframes like the New York session from 8:30 am to 11:00 am.

Optimal Trade Entry Strategy Implementation

• Detailed explanation of optimal trade entry using Fibonacci levels within specific time windows during trading sessions to identify buying opportunities at key support levels.

• Illustration of entering trades at optimal levels near 70.5 Fibonacci retracement for potential buying positions and subsequent exits based on predefined ranges and price targets.