ICT Mentorship Core Content - Month 08 - Defining The Daily Range

ICT Mentorship Core Content - Month 08 - Defining The Daily Range

Understanding the ICT Day Trading Model

Introduction to the Daily Range

  • The lesson focuses on defining the daily range within the context of the ICT day trading model, specifically for April 2017.
  • Emphasis is placed on understanding both retail and interbank trading days, highlighting their differences.

Key Timeframes in Trading

  • The instructor explains how to access period separators in MT4 by holding down control and tapping 'Y', which helps visualize time frames.
  • A clear distinction is made between retail trading hours and interbank trading hours, stressing that high probability trades should reference interbank standards.

Understanding Asian Range and Kill Zones

  • The Asian range begins at midnight Eastern Standard Time (EST) and ends at a specified time; this will be elaborated upon later in the course.
  • The London Kill Zone starts at 1 AM EST and concludes at 5 AM EST, with further details promised in future lessons.
  • The New York Kill Zone runs from 7 AM to 10 AM EST, marking critical times for trade setups.

True Day Definition

  • The "true day" for interbank trading starts at midnight EST and ends at 3 PM EST, establishing a framework for analyzing price movements throughout this cycle.
  • Specific examples are provided using a chart from April 3rd, 2017, illustrating how precise timing correlates with market behavior.

Analyzing Price Movements

  • Observations are made about turning points in price during specific time windows, indicating algorithmic patterns related to time rather than randomness.
  • Notable events such as the CME open at 8:20 AM are highlighted as significant moments where price action can be anticipated based on historical data trends.

Understanding the Kill Zones in Trading

Overview of Kill Zones

  • The speaker discusses the significance of specific time windows known as "Kill Zones" for trading, particularly highlighting a window from 1 AM to 5 AM.
  • A notable high forms at 5 AM during the London Kill Zone, which is crucial for traders to observe.

New York Session Insights

  • Within the New York Kill Zone, a short-term high is identified, with a low forming at 8:20 AM coinciding with the CME open.
  • The low established during this session leads into consolidation and trades off this low towards what is referred to as the New York close.

Understanding True Day Close

  • The term "New York close" refers to what the speaker calls "True Day Close," which spans from midnight to 3 PM New York time.
  • This timeframe is significant because it encompasses market influences related to bond closings and interest rate impacts on currency markets.

FOMC Influence on Market Movements

  • The last hour of trading (2 PM - 3 PM NY time) captures movements associated with FOMC events such as interest rate announcements.
  • Generally, major price movements related to these events conclude by 3 PM, framing daily ranges including open, high, low, and close.

Practical Application for Traders

Video description

2017 Premium ICT Mentorship Core Content Video Lectures Audio and visuals are exactly as they were distributed in April 2017. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person’s investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a “limit move.” The placement of contingent orders by you, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.