ICT Forex - The Weekly Bias - Excellence In Short Term Trading

Name: ICT Forex - The Weekly Bias - Excellence In Short Term Trading
Uploaded: 2017-12-20T19:28:04.000Z
Duration: 1 h 16 min 15 s

Weekly Bias Excellence in Short Term Trading

In this section, the speaker discusses mapping bullish and bearish weekly profiles and when to anticipate weekly lows and highs to form. The focus is on the weekly SmartMoney view.

Mapping Bullish Weekly Profiles

The weekly low should form between Sunday's opening and Wednesday.

High odds for the weekly low to form before Wednesday's New York open (7:00 a.m. New York time).

Odds further increase between Tuesday and Wednesday focusing on Tuesday's London to Wednesday's New York open.

Mapping Bearish Weekly Profiles

Anticipate weekly highs to form.

Focus on the entire daily range over the spectrum of Sunday's open to Friday's close.

Use hourly and/or 30-minute time frame viewing for the weekly perspective.

Market Gyrations from Day-to-Day

This section explains how markets gyrate from day-to-day in a bullish scenario.

Understanding Bullish Scenarios

Take note of how markets gyrate from day-to-day in a bullish scenario.

Look at charts depicting one week's worth of trading.

When to Anticipate Weekly Lows

This section explains when to anticipate weekly lows forming during bullish conditions.

Anticipating Weekly Lows During Bullish Conditions

The weekly low should form between Sunday's opening and Wednesday.

High odds for the weekly low to form before Wednesday's New York open (7:00 a.m. New York time).

Odds further increase between Tuesday and Wednesday focusing on Tuesday's London to Wednesday's New York open.

Hourly/30-Minute Time Frame Viewing

This section explains how hourly/30-minute time frame viewing can help with the weekly perspective.

Using Hourly/30-Minute Time Frame Viewing

Use hourly and/or 30-minute time frame viewing for the weekly perspective.

This will show the intraday reference points and how the market moves and gyrates.

Higher Time Frame Directional Bias

This section explains how to determine higher time frame directional bias.

Determining Higher Time Frame Directional Bias

Look at higher time frame charts like monthly and weekly charts.

These will aid in determining higher time frame directional bias.

Use hourly and/or 30-minute time frame viewing for the weekly perspective.

Sunday's Opening Price

This section explains why Sunday's opening price is important when trading.

Understanding Sunday's Opening Price

Focus on Sunday's opening price.

If your platform does not have a Sunday candle, seek out whatever the Sunday opening price is using websites that follow foreign exchange markets.

Gaps created by these prices are very indicative of sentiment and can be insightful or exhaustive.

Power of Three Formation

This section explains what a power of three formation is and how it relates to short term trading.

Understanding Power of Three Formation

Look for a power of three formation on the weekly range from a 30-minute chart.

This will give an intraday reference point showing how the market moves and gyrates.

Different Ways to Buy Below the Opening Price

In this section, the speaker discusses different ways to buy below the opening price and how traders' personalities can affect their trading decisions.

Traders' Personalities Affect Trading Decisions

Some traders may find it scary to buy when the market creates a new low, while others see it as an opportunity.

The speaker emphasizes that he does not promote following a specific mold or setup because what works for one trader may not work for another due to personality differences.

Using Opening Price in Trading

The opening price can be used in both day trading and short-term trading.

The weekly range or candle represents the entire week's data from low to high, with Sunday's opening price being representative of fair value at the time of new trading.

Short-term traders can elect to buy at levels below the opening price taught in tutorials.

Anticipating Movement from Open

Traders who are bullish relative to monthly and weekly charts anticipate movement from open and down.

When anticipating a drop down from opening price, oversold conditions are created because of its value.

Judas link is engineered move designed to knock individuals already out long or drive individuals that are not in the marketplace that want to sell short.

Low of Week Between Sunday's Open and Wednesday's New York Open

In this section, the speaker discusses how weekly ranges form between Sunday's open and Wednesday's New York open and encourages traders to go through their trades during this time period.

Low of Week Formation

Weekly ranges form between Sunday's open and Wednesday's New York open.

The odds favor a greater chance of low formation when bullish between London set up and New York set up on Wednesday.

Traders should go through their trades during this time period.

Introduction

The speaker introduces himself and his trading strategy, which he claims only a few individuals around the world have had the opportunity to learn from him.

Speaker's Trading Strategy

The speaker has been teaching his trading strategy for two decades.

Only a few individuals around the world have had the opportunity to learn from him.

Educators have linked onto what he teaches and renamed it, but it is still based on his original teachings.

His trading strategy involves cashing explosive price moves.

Classic Market Structure Goal - Optimal Trade Entry

The speaker explains how to anticipate Tuesday to Wednesday's low forming and find optimal trade entry.

Anticipating Tuesday to Wednesday's Low Forming

The weekly low most likely forms on Tuesdays on an open when we're bullish.

If we are bullish and it does not form on Tuesday, then Wednesday will probably be the low of the week.

If we go lower than the low formed on Wednesdays New York open, you have to nix the trade and go to the sidelines on that day.

Finding Optimal Trade Entry

We find short-term high prior to that new low forming in this case.

For individuals that want to buy on retracements with optimal trade entry, wait for price to break above this short-term high.

Anchor your fib on the lowest close or open in that swing low drag it all the way up.

Use November 21st and 22nd of 2017 data with a 30-minute chart.

Optimal Trade Entry

In this section, the speaker discusses the optimal trade entry and how to identify it.

Practicing in Demo Account

To desensitize yourself to new lows, practice in a demo account repeatedly until you don't care about the outcome.

Trust the process of what you're doing and not worry about the end result.

Optimal Trade Entry

The optimal trade entry is on a day when we look for price to expand above the opening price.

If we make the low of the week on Monday, wait for Tuesday to get a lower low before buying based on some pattern or key level.

Wednesday is de line in the sand if it trades above the opening price one more bullish we do not permit it to come back down to the opening price.

Algorithm for Optimal Trade Entry

The algorithm will want to expand away from this opening price after Wednesday because it only has newer opens time period to Friday's closed and that's why you see this acceleration in movement on weekly range nearly after Wednesday breaks above opening price.

Conclusion

In this section, the speaker concludes by stating that anyone teaching anything is going to be some level of hindsight. He advises traders against trading against his premise as they may lose money.

Trading the Weekly Range

In this section, the speaker discusses his approach to trading the weekly range and shares insights on how to identify ideal entry points for short-term and swing trades.

Waiting for Tuesday

The speaker waits until Tuesday to actively pursue trading opportunities.

He looks for opportunities during London open.

He spends time with family and only glances at charts until around 1:00 PM on Tuesday.

Identifying Entry Points

The speaker looks at the weekly ranges of front currency pairs to identify bullish or bearish turning points that often form on Tuesdays during London open.

For a bullish scenario, he waits for the opening price on Sunday to drop down and trade below it before buying 30 pips below the opening price with a stop loss of 150 pips.

He suggests testing this theory out and giving feedback through Twitter.

Holding for an Event

The portion of the weekly range below the opening price is considered an ideal entry point for all day trades and short-term trading.

The mindset should be focused on holding for an event until Friday's close rather than trying to find small gains.

This approach can be used by swing traders without requiring them to look at hourly or four-hour charts.

Looking in a Marketplace Already in Position

The speaker wants to position himself in a logical area where there is already movement in a longer-term marketplace.

He aims to get in when there is clear upside potential towards an expansion or bullish up close for Friday's close.

Weekly Range Trading Strategy

In this section, the speaker discusses a weekly range trading strategy for the USD/CAD currency pair. The focus is on identifying a bearish week ahead of the open and selling short at or near the weekly high to ride it down to some measure of expansion below the weekly opening price.

Identifying a Bearish Week

The speaker looks at the weekly range for USD/CAD.

Price movement is analyzed from Tuesday's long to Wednesday's New York open.

The speaker reads price action and anticipates a bearish week ahead of the open.

Movements above the opening price are anticipated, but only up to a level that would push price into a technically overbought condition.

Selling Short

The speaker wants to sell short at or near the weekly high and ride it down to some measure of expansion below the weekly opening price.

A predetermined level should be set where one can exit inside of this expansion.

Once Wednesday's New York open occurs, price should always try to expand away from the opening price.

A real good example would be selling short above Monday's high in anticipation of a sell-off on USD/CAD.

Weekly Range Profile

Price sells off and goes below the opening price.

As long as it is before Wednesday's New York open, it is permissible for price to trade back above the opening price.

The ideal scenario is to look for a sell above the opening price as a day trader or use the weekly candle or weekly range to trade entirely off of that as a short-term or swing trader.

Taking Partial Profits

In this section, the speaker emphasizes the importance of taking partial profits when trading. He explains that even if you set a target of 150-300 pips, you may not always achieve it. Therefore, he recommends taking partial profits as soon as you make a profit of 100 pips.

The Value of Taking Partial Profits

Anytime your trades move in 100 pip intervals, take something off.

As a day trader, bank 80% of your position at 100 pips and be at least half out if you're a short-term trader.

Partial profits pay and teach the value of doing so over time.

The market won't take profits for you; you have to do it yourself.

Using Weekly Ranges for Short-Term Trading

In this section, the speaker discusses how to use weekly ranges for short-term trading. He suggests selling short above the opening price by about 30 pips with an expectation to capture between 150 to 300 pips.

How to Use Weekly Ranges for Short-Term Trading

Look for small weekly ranges ahead and sell short above the opening price by about 30 pips.

Expect to capture between 150 to 300 pips but don't expect it every time.

Take your first partial profit at around 100 pips and put your stop at breakeven.

This strategy is useful for those who can't watch intraday price action every day.

Trading Strategy

In this section, the speaker discusses a trading strategy that involves taking a set number of pips above the opening price on Sunday and selling short when bearish. The speaker also suggests avoiding certain trades and reducing exposure while maintaining profit objectives.

Key Points:

Take a set number of pips above the opening price on Sunday and sell short when bearish.

Look for double tops above Monday's high and place buy stops there to reduce exposure.

Place a sell limit order right above Friday or Monday's high to reduce exposure while maintaining profit objectives.

Visit the speaker's website at innercircletrader.com for more information.