ICT - Trading Plan Development 7

New Section

This section introduces the intraday trading plan module for the trading plan development series. The approach discussed is a generic one that can be used as a foundation for demo trading.

Intraday Trading Plan Approach

• The trading style focuses on trading in sync with the market structure.

• Trades are typically held intraday, but some portions may be held overnight.

• Average pip return ranges from 20 to 100 pips per trade.

• Buy signals are sought in bullish market conditions, while sell signals are sought in bearish market conditions.

• Price patterns and confluences around support or resistance levels are considered for trade entries.

• Entry prices are determined using optimal trade entry techniques and fib extensions are used for profit targets.

• Risk management principles are applied, with a maximum risk of 2% per trade.

New Section

This section emphasizes the importance of understanding price action and provides references to foundational information on price action trading.

Key Points and Concepts

• Understanding price action is crucial for successful trading.

• Foundational information on price action can be found in the thread titled "What Every New and/or Aspiring Forex Trader Still Wants to Know" on newbie Island at babytips.com forums.

• Spending time studying price action and avoiding reliance on indicators helps develop a strong foundation for price action trading.

New Section

This section highlights the significance of understanding the Asian range when it comes to intraday trading.

Understanding the Asian Range

• The concept of the Asian range was introduced by Chris Lory, a respected figure in forex industry.

• Trading in line with the direction of both the day and week increases odds of success.

• The first hour's range is important, similar to how we consider the Asian range.

• The midnight timeframe (5 GMT or New York time) is used to identify breaks above or below the range.

• Credit for the Asian range concept should be attributed to Chris Lory.

New Section

This section explains how the speaker transitioned from trading futures markets to forex and adapted the first hour premise to intraday forex trading.

Transitioning to Forex Trading

• The speaker previously traded futures markets, focusing on the first hour's range.

• When transitioning to forex, the same premise was applied using the midnight timeframe (12-1 am).

• Breakouts above or below this range were sought for potential trades.

• The concepts related to trading with the Asian range were learned from Chris Lory.

Timestamps are provided in seconds.

Understanding the Timeframe and Analysis

The speaker discusses the importance of understanding the timeframe and analysis in trading.

Importance of Timeframe and Analysis

• It is crucial to understand the concept of timeframes in trading.

• Different mentors, teachers, and resources may have different perspectives on timeframes.

• The speaker follows a specific timeframe based on their location as an East Coast trader on the North American continent.

• They consider midnight as the start of a new day for their analysis.

• The previous price action from 00:00 to 05:00 GMT (or 5 GMT) is also important to consider in analysis.

• Chris Laurie uses 5:30 GMT (or 12:30 GMT), but either can be used effectively.

• The range created during this timeframe is considered as the accumulation stage for the daily range.

Market Makers and Orders

This section focuses on market makers, orders, and how they impact trading.

Market Makers and Order Accumulation

• Market makers prepare for market movements based on orders that come in and start stacking up during the Asian session.

• There are various types of orders placed at an institutional level during this time.

• Retail traders may not have access to this type of information about order accumulation in Asia.

• As Frankfurt and London open, volatility, liquidity, interest, and action increase significantly around 2 a.m. or 3 a.m. New York time (7 to 8 GMT).

• The range formed between 00:00 GMT and 05:00 GMT contains initial stops and limit orders beyond those points.

Building a Trading Model

In this section, the speaker discusses building a trading model and the importance of having a premise before making trades.

Building a Trading Model

• Before executing trades, it is essential to have a built-in premise rather than simply reacting to market movements.

• The speaker has developed their own trading model, which will be discussed further.

• Understanding price action and utilizing concepts can help traders develop their own approach to trading within specific timeframes or sessions.

London Session and Intraday Trading

This section focuses on the London session and its potential for intraday trading.

London Session for Intraday Trading

• The speaker believes that the London session offers the highest probability for maximum pip gains in intraday trading.

• Despite being intimidating to many traders, it is considered safe if one understands price action.

• Risk-to-reward ratio is favorable due to using a standard 30-pip stop loss based on the average daily range of around 100 pips on major currency pairs.

• Having a higher timeframe directional bias helps identify potential opportunities during the first four hours of the London session.

• The low forming within this timeframe (around 1:00 a.m. Eastern Standard Time or 6:00 GMT) can be significant for capitalizing on bullish moves.

Key Characteristics of the London Session

This section highlights key characteristics of the London session that set it apart from other sessions.

Key Characteristics of the London Session

• The daily high or low often forms within the first four hours of trading during the London session, specifically around 8:00 GMT.

• There is no specific exchange opening; instead, it's when market participants actively engage in trading and orders start stacking up.

• Having a higher timeframe directional bias helps determine whether to expect an upward or downward move within the weekly range.

• The low forming within the first four hours of the London session is crucial for traders with a bullish bias.

• The ideal bracketed kill zone for trading is generally between 7:00 and 9:00 GMT.

For more detailed information on specific times and chart mapping, refer to additional resources provided by the speaker.

New Section

In this section, the speaker discusses the London open and its tendency to see stop raids or false breakouts. They also mention the Asian range trade and how it can create optimal trade entries.

London Open and False Breakouts

• The London open often sees stop raids or false breakouts.

• There is a tendency for the market to rally up initially, fake out, and then drop going into the London close.

• This pattern repeats frequently, especially if there is an expectation of a bearish move for the week or day.

• The Asian range trade is often broken after which price may trade back into the Asian range, creating an optimal trade entry.

New Section

In this section, the speaker introduces the concept of "London Express," which refers to a swing that takes place from London going into a later part of the day. They emphasize that if traders understand what they are doing and do not fear holding positions all day, they can potentially gain a significant number of pips.

London Express and Holding Positions

• The swing from London going into a later part of the day is referred to as "London Express."

• If traders get in the right direction, it can lead to substantial profits.

• Traders should not fear holding positions throughout the day and should develop their understanding of price action.

• Scalpers who only take short-term trades may miss out on potential profits compared to those who hold positions throughout the day.

New Section

In this section, the speaker mentions that additional trade entries can be made in the direction of London Express trends by trading at New York open. They provide references to webinars and resources for learning more about trading during New York session.

Trading at New York Open

• Additional trade entries can be made in the direction of London Express trends by trading at New York open.

• The speaker refers to a recorded webinar on trading during the New York session, which can be found on their YouTube channel and BabyPips thread.

• Time objectives are utilized for profit-taking, with specific time ranges identified for taking profits based on various factors such as support/resistance, swing projections, Fibonacci levels, and old highs/lows.

New Section

In this section, the speaker discusses time objectives for profit-taking and suggests specific time ranges for taking profits. They also mention the importance of capturing intraday action and provide guidance on when to take profits based on market conditions.

Profit-Taking Time Objectives

• Time objectives are used for profit-taking based on various factors such as support/resistance, swing projections, Fibonacci levels, and old highs/lows.

• The speaker suggests taking profits between 1500 to 1600 GMT as it is often a significant turning point in intraday trading.

• If holding positions intraday and the market continues to move in the desired direction, a late New York swing going into 1800 GMT can be captured.

• Traders who only focus on intraday action and do not hold positions overnight should primarily aim to take profits between 1500 to 1600 GMT.

New Section

In this section, the speaker emphasizes that London open provides two high or low points of the daily range. They highlight the significance of these points for maximizing profitability in demo accounts.

Importance of London Open

• London open provides two high or low points of the daily range.

• Taking note of these points (London open and 1500 to 1600 GMT) can significantly increase profitability in demo accounts.

• These concepts work precisely when applied correctly, and traders may be pleasantly surprised by the results.

New Section

In this section, the speaker advises traders to take profits intraday when trading in the anticipated weekly trend direction. They caution against trailing stop-loss too aggressively and highlight the possibility of deep retracements during New York session.

Taking Profits Intraday

• Traders should take profits intraday when trading in the anticipated weekly trend direction.

• However, they should avoid trailing stop-loss too aggressively as there can be deep retracements during New York session.

• It is important to trust the natural ebb and flow of price action and allow the market room to move without prematurely closing positions.

New Section

This section discusses the ICT market profile and how it can be used to identify accumulation and breakout phases in the market. It also mentions the possibility of additional trade entries and the importance of understanding price swings.

Understanding the Market Profile

• The ICT market profile helps identify accumulation and breakout phases in the market.

• There is often a retest after a breakout, providing an additional trade entry opportunity.

• Price swings are engineered to go lower before going higher.

New Section

This section explains how the same premise of price action study repeats itself on an intraday scale. It mentions that concepts from higher time frame models apply to intraday trading as well.

Price Action Study on Intraday Scale

• The same premise of price action study applies to intraday trading.

• Higher time frame models can be applied to intraday price action.

• Intraday trading has some inherent characteristics specific to this type of trading.

New Section

This section discusses the approach taken in teaching about London open sessions using ICT tools and market profiles. It mentions that foundational information is already available on YouTube and BabyPips for further education.

Teaching London Open Sessions with ICT Tools

• Teaching London open sessions with ICT tools provides a better approach.

• Foundational information is already available on YouTube and BabyPips for further education.

New Section

This section explains how price structure unfolds during a rally, accumulation, and sell-off phase. It emphasizes understanding where price is trying to go by analyzing past movements.

Analyzing Price Structure

• Price structure unfolds during a rally, accumulation, and sell-off phase.

• Analyzing past movements helps understand where price is trying to go.

New Section

This section highlights the importance of looking at the left side of the chart to understand where price is trying to go. It mentions that price action concepts hold true across different time frames.

Importance of Looking at the Left Side of the Chart

• Looking at the left side of the chart helps understand where price is trying to go.

• Price action concepts hold true across different time frames.

New Section

This section explains that for day trading purposes, focusing on daily, four-hour, and one-hour charts provides a foundational premise for directional bias.

Focusing on Daily, Four-Hour, and One-Hour Charts

• Daily, four-hour, and one-hour charts are important for day trading.

• These charts provide a foundational premise for directional bias.

New Section

This section addresses common concerns about not knowing where price will go from the right edge of the screen. It emphasizes analyzing past movements to determine future direction.

Analyzing Past Movements

• Analyzing past movements helps determine future direction.

• Understanding market structure and support levels aids in predicting price movement.

New Section

This section discusses an example scenario where price comes down to a support level. It emphasizes that buying solely based on reaching a level may not always be appropriate.

Buying Based on Support Levels

• Buying solely based on reaching a support level may not always be appropriate.

• Understanding market structure and context is crucial before making trading decisions.

Understanding Market Structure and Trade Entries

In this section, the speaker discusses market structure and how to identify optimal trade entries based on price retracements.

Market Structure and Price Retracements

• Market structure refers to the way price moves in the market.

• When price retraces back down after a move up, it should not go below the previous low.

• Optimal trade entries can be found when price retraces but remains above the previous low.

• Higher prices are expected to unfold from this point onwards.

Watching Market Structure

• Intraday trading can utilize similar concepts of market structure as higher time frames.

• Pay attention to how market structure unfolds, including swings and other patterns.

• Anticipate highs and lows forming as market structure shifts towards bullishness.

Optimal Trade Entries

• Look for optimal trade entries when there is a shift in market structure to bullishness.

• A swing down with a new low can present an opportunity for a long trade entry.

• Similar setups can occur during New York open or London open sessions.

Syncing with Market Structure

• To find opportunities, it's important to sync with the current bullish market structure.

• Clean and discernible price legs indicate impulse moves that may lead to retracements.

• Use Fibonacci retracement levels to identify potential trade entry points.

Trading Between Intermediate Term and Higher Time Frame Swings

This section focuses on trading between intermediate term and higher time frame swings for optimal setups.

Sweetest Setups: Intermediate Term and Higher Time Frame Swings

• The easiest and most profitable setups occur when trading between intermediate term and higher time frame swings.

• These swings are represented by blue circles on the chart.

Trading off Intermediate Term Lows

• Trading off intermediate term lows allows for long trades with expectations of Judas swings lower.

• By understanding the overall bullish premise, traders can confidently enter long positions.

Capturing Explosive Price Moves

• Apply the concepts learned in capturing explosive price moves to intraday trading.

• Between Sunday's opening and Tuesday's London open, there is a high probability of the weekly higher low forming.

• If it doesn't form by Tuesday's London open, it will likely establish itself between Tuesday and Wednesday.

Applying Concepts to Intraday Trading

This section explains how to apply concepts learned from higher time frames to intraday trading.

Expecting Buying Opportunities

• Even in a bullish market structure, expect price to provide buying opportunities.

• Look for retracements within the range of previous price legs.

Fibonnaci Retracement Levels

• Use Fibonacci retracement levels to identify optimal trade entries.

• These levels can be based on the low-to-high or high-to-low of previous price swings.

Syncing with Higher Time Frame Premise

• Utilize higher time frame premises in intraday trading.

• Holding long positions overnight may not be ideal due to expectations of deeper retracements.

Trading Between Intermediate and Higher Time Frame Swings

• The best setups occur when trading between intermediate term and higher time frame swings.

• Understanding market structure and utilizing higher time frame analysis are key for successful intraday trading.

New Section

In this section, the speaker discusses the importance of being cautious when taking up buy signals in London. They emphasize the need to analyze previous price swings and market structure to build a premise for trading.

Being Cautious with Buy Signals in London

• Analyzing previous price swings and mapping them out helps in building a premise for trading.

• Building a premise based on market shift and structure increases the probability of successful trades.

• Confirmation of a bullish leg is obtained when the price moves above the previous swing high and starts to retrace. This indicates a bullish market structure.

• Trading becomes easier when market flow on all time frames is going up, allowing traders to wait for setups to unfold.

• At London open, it is expected that price will either drop down out of the Asian range or break out initially and then trade back down into the Asian range. Traders can look for optimal trade entries within this range.

New Section

In this section, the speaker discusses how having a bullish premise can lead to buying opportunities at low points during the week.

Buying Opportunities at Low Points

• Based on the bullish premise, it is expected that by Tuesday, there will be a low point for the week. Traders who can participate in Monday's or Tuesday's London open have a chance to buy at these low points.

• Even if only a small portion of the weekly range is captured, it can still result in significant potential profits ranging from 150 to 300 pips due to the larger weekly average range compared to daily ranges.

• The concepts discussed can be applied to higher time frame trades as well, allowing traders to synchronize their trading with these time frames and avoid exiting trades prematurely.

New Section

In this section, the speaker explains how analyzing smaller swing highs on a one-hour chart can provide insights into market structure shifts.

Analyzing Smaller Swing Highs

• On a one-hour chart, smaller swing highs can indicate a higher time frame support level and market structure shift towards bullishness.

• It is important to consider the perspective provided by different time frames when analyzing price action. A shorter-term perspective may suggest a sell-off, but when considering the higher time frame premise of bullishness, retracements are seen as buying opportunities.

• Various patterns such as ICT Grail or trend following patterns like stingers can also be used in conjunction with the higher time frame premise to identify optimal trade entries.

New Section

In this section, the speaker discusses managing trades based on different time frames and using support/resistance levels for clear price swings.

Managing Trades Based on Time Frames

• Weekly management of price swings should be focused on the one-hour time frame, using support/resistance levels and measuring swings using Fibonacci retracement levels.

• When entering trades and taking action, it is recommended to manage those trades on a 15-minute timeframe. This allows for more precise monitoring and decision-making during active trading periods.

New Section

In this section, the speaker discusses the importance of understanding market structure and using higher time frames for directional trading. They also explain how to manage trades using different time frames.

Understanding Market Structure and Directional Trading

• Market structure breakouts provide a clear directional premise for trading.

• Daily and 4-hour time frames are recommended for determining the overall direction.

• Higher time frames (daily, weekly, monthly) should not be neglected as they offer support and resistance levels.

• For beginners looking to start trading quickly, focusing on daily and 4-hour charts can be sufficient.

Managing Trades with Different Time Frames

• Use the 60-minute chart to identify intraweek swings based on the established directional premise.

• Monitor price swings within the 60-minute chart to understand how price is moving.

• Manage trades on a 15-minute chart by adjusting stop-loss levels based on swing lows or highs.

• For long positions, trail stop-loss 10 pips below the second most recent swing low.

• For short positions, trail stop-loss 10 pips above the second most recent swing high.

New Section

In this section, the speaker explains how to analyze price action during London open and discusses engineered price movements.

Analyzing Price Action during London Open

• During London open, there is typically an initial pop up out of the Asian range as a fake-out before a price move occurs.

• This pop-up targets pending orders from traders who are short or waiting for a breakout system.

• Dealers take advantage of this liquidity pocket by filling those orders before driving prices lower.

Engineered Price Movements

• When prices are falling, they tend to make a low before trading higher again.

• Price engineering occurs when there is a deliberate decline in price to create a buying opportunity.

• Previous lows, support and resistance levels, pivot points, or Fibonacci levels can influence the price action.

• Fib retracement tools can be used to measure the rally from a previous low to the highest high within a day or specific timeframe.

New Section

In this section, the speaker emphasizes that falling prices during London open do not necessarily indicate a bearish market structure. They explain how price action works and how to identify potential reversal points.

Understanding Price Action

• Falling prices during London open do not imply a bearish market structure.

• Price action tends to move lower to establish a low before trading higher again.

• Various factors such as previous day's/week's lows, support/resistance levels, trendlines, or pivots can influence price movements.

Identifying Potential Reversal Points

• To identify potential reversal points:

• Run Fibonacci retracement from a previous low to the highest high within a day or specific timeframe.

• Look for price rallies from these levels as potential buying opportunities.

The transcript is in English.

Understanding Price Swings and Trading Ranges

In this section, the speaker discusses price swings and trading ranges in the context of trading strategies.

Fib from Low to High

• When price starts to retrace within a discernable range (low to high or higher high), it indicates that we are trading inside that range.

• Traders may start selling when they see price trading lower during the London open, assuming a short position on the cable (British Pound USD pair).

Smart Money Accumulation

• Market participants who understand key support and resistance levels and price structure anticipate buying opportunities at significant support levels.

• Smart money refers to large entities that accumulate long positions at these levels.

• The optimal trade entry is when price reaches these accumulation levels during the London open.

Correlated Pair Analysis

• When price is trading down towards an accumulation level, it is recommended to analyze correlated pairs for confirmation.

• Looking at USD X SMT divergence can provide additional confidence in the trade setup.

Upside Objectives

• As price starts moving up after the optimal trade entry, traders should look for previous highs established during the early London open session as potential upside objectives.

• This assumes a bullish market structure with expectations of higher prices.

Analyzing Asian Range Breakouts

In this section, the speaker explains how to analyze breakouts of Asian ranges and identify potential trade setups.

Bullish Market Structure

• Assuming a bullish market structure with expectations of higher prices, traders anticipate that the market will trade down towards a higher-level support level before rallying upwards.

Identifying Support Levels

• The low forming before breaking out of the Asian range could be based on various factors such as previous day's low/high, New York session level, or higher time frame levels.

• Traders may consider the turtle soup sell setup as a scalping opportunity when price rallies up before breaking the Asian range low.

Retesting Support Level

• After breaking the Asian range low, price often retraces and tests that level again, providing an opportunity for short trades targeting the higher time frame support level.

• However, this setup is not suitable for traders expecting higher prices in a bullish market structure.

Optimal Trade Entry

• The optimal trade entry occurs when price reaches an accumulation level after breaking out of the Asian range.

• Traders should look for confirmation through SMT divergence or other correlated pair analysis.

Buying Opportunities in Bullish Market Structures

In this section, the speaker discusses buying opportunities in bullish market structures and how to identify optimal trade entries.

Higher Low Formation

• In a bullish market structure, traders expect higher prices.

• When analyzing price swings within a previous range, identifying a higher low can indicate a potential buying opportunity.

USD SMT Divergence

• While SNT divergence may not be visible in all cases, traders can look for USD SMT divergence to support long positions on currency pairs like cable (GBP/USD).

Timing Trade Entries

• If traders miss the initial optimal trade entry during London open, they can look for additional opportunities to enter long positions before significant price movements occur.

• Average daily ranges can be used as tools to gauge potential profit targets but are typically considered after 10:00 GMT.

The transcript provided does not include timestamps beyond 0:50:10.

Understanding Optimal Trade Entry

In this section, the speaker discusses how to identify optimal trade entry points based on the average daily range and Fibonacci retracement. They emphasize the importance of waiting for the average daily range to be fulfilled before considering a retracement entry.

Identifying Retracement Entry Points

• Wait for the average daily range to be fulfilled before considering a retracement entry in the New York session.

• Use Fibonacci levels based on swings from the London open session to determine potential trade entry points.

Managing Risk and Adding to Winning Trades

The speaker explains a risk management strategy for traders who want to add to winning trades. They also discuss taking profits at certain levels and adjusting stop-loss orders accordingly.

Risk Management Strategy

• If you want to add to winning trades, consider adding positions during retracements or pullbacks in the New York session.

• Take profits at certain levels, such as when reaching for the average daily range or higher.

• Adjust stop-loss orders by moving them progressively closer to breakeven as prices start moving in your favor.

Day Trading Strategies and Stop-Loss Placement

The speaker shares important considerations for day traders trading during the London session. They discuss placing stop-loss orders outside of short-term lows formed in London and taking profits during retracements in anticipation of potential deeper retracements during New York sessions.

Placing Stop-Loss Orders

• Place stop-loss orders below short-term lows formed during the London session.

• Anticipate potential deep retracements during New York sessions and take profits when trading back up above Asian range highs.

• Adjust stop-loss orders progressively as prices move in your favor, but don't rush to move them to breakeven.

Taking Profits and Adjusting Stop-Loss Orders

The speaker explains their approach to taking profits and adjusting stop-loss orders based on the trading premise and price movements. They emphasize the importance of not locking in profits too early and trailing stop-loss orders as prices move.

Taking Profits and Adjusting Stop-Loss Orders

• Take a percentage of profits off at certain levels based on the trading premise:

• If trading against a hard time frame premise, take 70% off.

• If trading with a higher premise in mind, take 30% off.

• If unsure or uncomfortable, take 50% off.

• Keep the initial stop-loss order at breakeven once it goes inside the daily range.

• Trim down stop-loss orders progressively as prices start moving in your favor.

Trailing Stop-Loss Orders and Price Movements

The speaker discusses trailing stop-loss orders and how price movements can impact trade management. They caution against holding onto positions with too much exposure when price reaches higher resistance levels.

Trailing Stop-Loss Orders

• Trail stop-loss orders as prices move in your favor.

• Don't rush to move stop-loss orders to breakeven; instead, trim them down gradually as prices progress.

• Consider that if price rallies up into higher resistance levels, it may set up a market reversal profile. Avoid holding onto positions with excessive exposure.

Market Reversal Profiles and Trade Management

The speaker highlights the possibility of market reversal profiles when price trades up into higher-level key or weekly/daily/monthly resistance levels during New York or London close timeframes. They advise traders not to hold onto positions blindly assuming they will always continue to rise.

Market Reversal Profiles

• When price trades up into higher-level resistance levels during New York or London close timeframes, it may set up a market reversal profile.

• Avoid holding onto positions blindly assuming they will continue to rise.

• Be aware that profits can erode if positions are held with too much exposure.

Trading Based on Daily and Hourly Premises

The speaker explains the importance of trading based on daily and hourly premises. They discuss how syncing the hourly chart with the daily premise can make London open trades easier.

Trading Based on Daily and Hourly Premises

• Look for price swings on an hourly basis that align with the daily or four-hour premise.

• Syncing the hourly chart with the daily premise makes London open trades easier.

• Focus on easy setups but remember that guaranteed profits are not guaranteed. Utilize these strategies in a demo account.

Responsible Use of Information and Demo Account

The speaker emphasizes responsible use of the information provided and encourages traders to utilize demo accounts when applying these strategies.

Responsible Use of Information

• Pay attention to risk disclaimers and utilize these strategies in a demo account.

• The information shared is for informational purposes only, not for guaranteeing profits or losses.

• Be responsible and cautious when applying these strategies in real trading situations.

Intraday Trading Strategies for London Open

This section discusses intraday trading strategies for the London open, focusing on optimal trade entries and key resistance levels.

Optimal Trade Entry for Buy Scenario

• The Asian range sets the initial range for the day.

• There is an initial drop down that triggers pending orders.

• Net sellers are dragged against the coals.

• Look for a deeper range retracement to find an optimal trade entry.

• Higher time frame resistance levels indicate potential trade opportunities.

Optimal Trade Entry for Sell Scenario

• The London open kill zone occurs between 2:00 AM and 4:00 AM New York time (6:00 to 9:00 GMT).

• Look for a high form during this period, which often becomes the high of the day.

• Price may dip back into the Asian range before rallying to a previous higher level support/resistance.

Fading Rallies and Selling High

• When expecting lower prices on our timeframe, sell rallies as part of intraday trading with the London Express strategy.

• Anticipate market structure bearishness and look for setups where price rallies into known key resistance levels.

• Avoid chasing price; focus on being in the market for several hours rather than scalping.

Secondary Optimal Trade Entries

• Once price starts breaking down after an optimal trade entry, there may be opportunities for secondary entries or continuation patterns.

• Around 10:00 GMT, price tends to rally back up into a deep retracement using a London open high as a short-term high.

• Look at 5 or 15-minute time frames to identify these secondary entry points.

Support/Resistance Levels from Asian Range

• Apply Chris Lori's approach of using Asian range highs and lows throughout the entire week as dynamic support/resistance levels.

• Previous week's Friday and current week's Sunday and Monday Asian range levels often act as significant levels.

• These levels can be used to draw support/resistance lines and provide trading opportunities.

Reaching for Average Daily Range

• Assuming a bearish market structure, the initial rally is a Judas move into a known key resistance level.

• Price will reach for the average daily range, which can be seen on a 5 or 15-minute time frame.

• Keep an eye on the daily trend during the New York open session.

Stop-Loss Management

• As short positions are taken, keep the stop-loss at breakeven and avoid trailing it inside the daily range.

• The average daily range indicator should not be loaded until 10:00 GMT (5:00 AM New York time).

The language used in this summary is English.

Trading without the need to be right

The speaker emphasizes the importance of not feeling the need to be right in trading. They suggest that if a trade goes against you, it is not a big deal as long as you haven't lost much. Taking profits or portion of profits can be considered, and even if the trade breaks even, it can still be seen as a profit.

Focus on trading without needing to be right

• It is important to reach a level where you don't feel the need to always be right in trading.

• If trades go against you, it shouldn't bother you too much.

• Consider taking first profits or portion of profits when trades are not going in your favor.

• Even if a trade breaks even, it can still be seen as a profitable outcome.

Considering market reversals during London open

The speaker discusses how London open signals can often lead to market reversals. They highlight the importance of being mindful of classic sell-offs during this time and how they may interact with higher time frame support levels.

Market reversals during London open

• London open signals often result in market reversals.

• Classic sell-offs during this time should be observed closely.

• Trades may move down into higher time frame support levels (monthly, weekly, or daily).

• Consider how intraday trades may relate to higher time frame price legs for potential entry opportunities.

Considering higher time frame price legs

The speaker explains that intraday trades should consider their relationship with higher time frame price legs. They mention that dips in intraday trading could potentially align with higher time frame price movements and present entry opportunities.

Relationship between intraday and higher time frame price legs

• Intraday trades should consider their relationship with higher time frame price legs.

• Dips in intraday trading may be part of a larger price leg on a higher time frame.

• Higher time frame support levels can present potential entry opportunities.

• Consider the concepts discussed in the "inside the range" webinar for more insights.

Inside the range webinar and Fibonacci concepts

The speaker mentions an "inside the range" webinar that provides insights into using Fibonacci and predetermined ranges to anticipate market events. They emphasize the importance of not being blind to these concepts, even during profitable London open sell scenarios.

Inside the range webinar and Fibonacci concepts

• The "inside the range" webinar discusses using Fibonacci and predetermined ranges.

• These concepts help anticipate market events and improve trading strategies.

• Don't overlook these concepts, even during profitable London open sell scenarios.

Factors to consider for avoiding London open trading

The speaker shares factors to consider when avoiding London open trading. These include upcoming interest rate announcements, key speeches or events impacting specific currency pairs, holidays, and weekly range objectives.

Factors to consider for avoiding London open trading

• Avoid London open trading if there are upcoming interest rate announcements.

• Key speeches or events impacting specific currency pairs should also be considered.

• Trading is often avoided on holidays or approaching holidays.

• Unexpected global or economic events can lead to avoidance of trading on certain days.

• If weekly range objectives have already been achieved, there may be no need to trade further.

Asian range criteria for entering trades

The speaker discusses their approach to entering trades based on Asian range criteria. They mention waiting for New York session if the Asian range is greater than 40 pips and considering optimal trade entry back in the Asian range for London open.

Asian range criteria for entering trades

• If the Asian range is greater than 50 pips, wait for the New York session to open.

• Optimal trade entry can be considered back in the Asian range for London open.

• A range of 40 pips or less is seen as a good Asian range.

Waiting for New York session and trading with higher time frame direction

The speaker explains their preference for waiting for the New York session to open if certain conditions are met. They also emphasize trading with the higher time frame direction and letting smarter traders figure out what London is doing.

Waiting for New York session and trading with higher time frame direction

• If the Asian range is greater than 40 pips, waiting for the New York session may be preferred.

• Trading with the higher time frame direction can provide better insights.

• Letting smarter traders figure out what London is doing can be advantageous.

Average daily range vs. higher high of the day

The speaker discusses how average daily range does not always equate to achieving a higher high of the day. They explain that being in sync with higher time frame premises can lead to identifying profitable opportunities.

Average daily range vs. higher high of the day

• Average daily range does not always result in achieving a higher high of the day.

• Being in sync with higher time frame premises is crucial.

• Identifying bullish moves based on intraday action aligned with higher time frames can lead to profitable opportunities.

Utilizing market structure swings and taking profits

The speaker explains how utilizing market structure swings can help identify buy signals and potential profit-taking levels. They emphasize the importance of taking profits based on optimal trade entry rules and considering the higher time frame direction.

Utilizing market structure swings and taking profits

• Market structure swings can be utilized to identify buy signals.

• Consider taking profits based on optimal trade entry rules.

• Taking profits at old highs is acceptable, but don't close the entire position.

• Trade with the higher time frame direction in mind.

Observing trade outcomes

The speaker encourages observing trade outcomes to see how they unfold. They suggest watching what happens after identifying potential profit levels and considering the higher time frame direction.

Observing trade outcomes

• After identifying potential profit levels, observe how trades unfold.

• Watch for price movements in relation to identified profit levels.

• Consider the higher time frame direction when making trading decisions.

Understanding Average Daily Range and Fibonacci

In this section, the speaker discusses the concept of average daily range and its relationship with Fibonacci levels.

Average Daily Range and Its Breakout

• The average daily range indicates the expected range of price movement for a given day.

• When the average daily range is broken, it can lead to a larger price movement, sometimes even twice the average daily range.

• By using Fibonacci retracement tool from the high of the average daily range, one can identify potential profit-taking levels.

• The 200% extension level often overlaps with the high of the day, making it a good objective for taking profits.

Using Fibonacci Expansion Tool

• The Fibonacci expansion tool can also be used to identify profit-taking levels.

• By reversing the tool and using the low of the average daily range, one can find potential sell signals.

• The 200% expansion level can act as a target for taking profits.

Blending Concepts and Confluence

• These concepts of average daily range and Fibonacci levels are generic but effective in trading.

• However, traders should not solely rely on average daily range to determine market movements.

• It is important to look for confluence with other factors such as price patterns or larger price swings to increase confidence in trade setups.

Price Objectives and Symmetry

This section focuses on identifying price objectives using larger time frames and symmetry between different markets.

Zooming Out to Identify Price Objectives

• Zooming out to higher time frames can reveal additional price objectives beyond the average daily range high.

• Looking at a 15-minute chart, there is confluence between swing points and Fibonacci extensions suggesting further upside potential.

Symmetry Between Markets

• Analyzing multiple markets can provide insights into price movements.

• In this case, there is an ascending triangle pattern in the cable (GBP/USD) and a descending triangle pattern in the dollar index.

• The expectation of weakness in the dollar can translate into higher prices for the cable.

Trading with Higher Time Frame Premise

This section emphasizes the importance of trading in alignment with higher time frame premises and not solely relying on average daily range.

Average Daily Range as a Tool, Not a Limitation

• Traders should not assume that the average daily range will prevent further price movement.

• It is just one tool among many to build trading ideas.

• Taking profits at the average daily range is acceptable, but scaling out positions allows for potential continuation beyond that level.

Examining Breakouts of Average Daily Range

• Traders are encouraged to review charts where the average daily range was broken and observe how price continued to move without being halted by it.

By following these principles and considering confluence with other factors, traders can make more informed decisions when trading based on higher time frame premises.