ICT January 24, 2018

Analysis of the Dollar Index and Currency Trends

Overview of the Dollar Index

• The speaker discusses the current state of the dollar index, indicating a potential decline towards 88.80 and possibly 87.50 if dollar weakness continues.

• A down close candle on a weekly chart is highlighted as significant, marking it as the only one in a specific range from high to low.

• The open of a bullish order block at 89.36 is noted, with an equilibrium price point set at 88.82 for future objectives.

Daily Chart Insights

• Transitioning to a daily chart reveals a breakdown in the dollar index, with previous lows targeted for retesting.

• The speaker mentions that further downside objectives are anticipated around 87 and 87.50, contingent upon market retracements.

Euro Currency Analysis

• An hourly chart of the Euro is presented; sell stops have been cleared, indicating institutional long positions.

• The speaker emphasizes using Twitter to share insights about trade entries and levels outlined for day trading strategies.

Market Sentiment and Analyst Predictions

• Attention is drawn to how media sentiment can influence market expectations; contrary views often strengthen confidence in analysis.

• A specific example involving an analyst's prediction for the Euro-dollar being labeled as a sell signal is discussed; this was countered by observing actual market behavior.

British Pound Analysis

• Analyzing the British Pound on an hourly chart highlights significance at the level of 138.65, which has been referenced previously as both support and resistance.

• The consolidation range around this level indicates accumulation rather than resistance, suggesting potential upward movement based on historical data.

Optimal Trade Entry and Market Analysis

Understanding Market Dynamics

• The speaker discusses the concept of an optimal trade entry, emphasizing a smaller point for entry as prices move away to target equal highs. The market is predisposed to rise in the British Pound due to bearish sentiment on the dollar index.

• Reference points are highlighted using ICT concepts to support trading ideas. The speaker encourages identifying swings in price movements as critical reference points.

• An optimal trade entry is defined by analyzing the lowest and highest opens or closes within specific price swings, indicating potential long rallies.

Price Objectives and Weekly Range Expansion

• The next price objective is identified between 140.80 and 140.85 based on recent price swings, with daily delineations supporting bullish expectations.

• A classic ICT scenario suggests that the weekly range should expand upwards, indicating a bullish trend expected from Monday through Wednesday's New York open.

Support Levels and Market Context

• A break in market structure is noted where a swing low was violated, leading to aggressive selling aimed at taking out stops before a rally occurs.

• The context behind support levels is explained; after running stops, prices are expected to return for accumulation at these levels before moving higher.

Accumulation Strategies

• Highlighting key ranges of bullish candles provides insight into equilibrium or mean thresholds for potential buying opportunities within an ICT framework.

• A bearish order block is introduced, with further analysis provided on its implications for future price movements based on historical data from weekly charts.

Future Price Projections

• Specific price levels such as 140.191 are discussed as significant targets; if breached, it could lead to further upward movement beyond established figures like 142 big figure.

• Clarification on how current market conditions may confuse new traders but emphasizes that detailed tutorials cover these concepts extensively in mentorship programs.

• Anticipation of continued upside towards 140.380 is expressed based on weaker dollar dynamics and stronger cable markets, reinforcing bullish sentiment derived from previous order blocks.

Conclusion and Mentorship Invitation