VIDEO
HIGHLIGHT
Log InSign up
ICT Charter Price Action Model 5 \ Supplementary Lesson
SummaryTranscriptChat

ICT Charter Price Action Model 5 \ Supplementary Lesson

Day Trading Model Overview

Introduction to Model Number Five

  • The session begins with an overview of Model Number Five, a day trading model, and its upcoming detailed exploration in 2020.
  • A brief mention of the structure for revisiting models, starting with Model One in January 2020, focusing on creating a detailed trading plan.

Understanding Market Movements

  • Emphasis on identifying the inception of market moves and understanding how to piece together fragmented knowledge gained from mentorship.
  • Introduction of a simplified approach to analyzing trades without overwhelming details; encourages self-exploration using core mentorship content.

Analyzing Dollar CAD Pair

  • Focus on the dollar CAD pair for analysis during the week ending June 28th, 2019; anticipation that it will decline based on prior analysis.
  • Importance of supporting evidence for market predictions; establishing criteria such as points of origin and fair value gaps.

Fair Value Gaps as Key Indicators

  • Discussion on fair value gaps as critical indicators in trading setups; they are straightforward to identify compared to other concepts like order blocks.
  • Fair value gaps serve as points of origin for setups within Model Number Five, guiding traders' bias determination.

Determining Market Bias

  • The necessity of consulting higher time frame charts to establish market bias; current focus is on weekly range expansion.
  • The speaker's expertise lies in day trading and short-term strategies rather than long-term predictions; emphasizes personal suitability over universal best practices.

Establishing Bearish Bias for Dollar CAD

  • Explanation of how bearish bias was determined for dollar CAD based on higher time frame analysis and recent candle behavior.
  • Clarification that predicting market closes isn't necessary; instead, focus is placed on directional movement within established ranges.

Liquidity Draw Expectations

  • Anticipation that dollar CAD will drop due to liquidity draw at previous lows; highlights importance of monitoring related markets like gold.

Understanding Dollar CAD Dynamics

Analyzing Market Sentiment and Price Action

  • The discussion begins with a bearish outlook on the dollar, suggesting minimal resistance for the pair as it targets downside objectives.
  • The speaker emphasizes identifying discount arrays in the market, noting that previous down close candles cannot be used as bullish order blocks due to prior consumption.
  • A focus on weekly range expansion indicates expectations for lower market movement based on earlier analysis.

Daily Range and Fair Value Gaps

  • The anticipated daily range is set to expand downward towards an old daily low of approximately 1368, which is rounded from 13677 for simplicity.
  • It’s highlighted that high probability fair value gaps typically form in the lower 50% of the previous day's range when the market is bearish.
  • Conversely, in a bullish scenario, these gaps would appear in the upper 50% of the previous day's range.

Liquidity Targets and Trading Strategy

  • The analysis leads to a directional bias targeting sell-side liquidity below identified lows, reinforcing bearish sentiment towards dollar CAD.
  • Traders are advised to stalk fair value gaps during specific trading sessions (Kill Zones), such as London or New York Kill Zones, for optimal entry points.

Entry Techniques and Backtesting Insights

  • The speaker discusses using institutional order flow entry drills practiced over several weeks to identify numerous setups available in trading.
  • Emphasis is placed on not limiting oneself to one or two pairs; rather, traders should explore multiple assets for setup opportunities based on backtesting results.

Trade Management and Profit Taking Strategies

  • When entering trades based on fair value gaps, traders should aim for low-end entries without expecting full gap fills but rather focusing on strategic profit-taking at around 40 to 50 pips per setup.

Understanding Trading Models and Price Action

Overview of Trading Models

  • The speaker discusses the importance of not being limited to a single trading model, emphasizing that understanding multiple models can enhance overall trading strategy.
  • A 15-minute time frame is introduced, highlighting a specific price action objective of 40 pips as a foundational target for traders.
  • The analysis shows that there was minimal resistance in achieving the 40 pip target on Thursday, indicating favorable market conditions.

Analyzing Price Movements

  • The speaker notes that hindsight analysis reveals opportunities for profit beyond the initial 40 pips, with actual movements reaching up to 50 pips.
  • Emphasis is placed on Tuesday and Wednesday as high probability trading days, suggesting these are optimal times for executing trades.
  • Traders are encouraged to focus on price action rather than strictly adhering to specific models or days.

Precision in Trading Strategies

  • The lesson aims to provide greater detail than previous weekly reviews, focusing on precision within Model Number Five.
  • The speaker removes daily dividers from charts to reduce confusion and emphasizes looking for confluence in intraday standard deviations instead of relying solely on labels.

Calibration of Levels

  • Clarification is provided regarding standard deviations; no strict matching between different day’s standard deviations is necessary, simplifying the approach.
  • Discussion includes calibrating levels based on significant lows and rounding them appropriately for better targeting during trades.

Targeting Liquidity

  • The concept of "low hanging fruit" is introduced, where traders should focus on specific price levels rather than broader zones for more effective trading strategies.

Understanding Calibration Techniques in Trading

The Importance of Consistency in Trading

  • The speaker emphasizes that many supply and demand traders lack consistency, unlike the speaker who utilizes specific calibration techniques to achieve better results.

Price Level Calibration

  • Discusses the significance of identifying precise price levels, such as 13067 or 13068, without rounding down to ensure high probability trades.

Analyzing Big Figures and Liquidity Sweeps

  • Highlights the importance of trading through big figures and how it can lead to liquidity sweeps, referencing a specific example where price reached below a significant level (13060).

Range Parameters and Standard Deviations

  • Introduces the concept of range parameters by identifying range highs and lows using candle bodies rather than wicks for more accurate calibration.

Confluences in Trading Levels

Market Liquidity and Fair Value Gaps

Understanding Market Movements

  • The market often targets liquidity below previous day's lows, with specific levels identified (e.g., 13141). This movement is algorithmic rather than random, indicating a predictable pattern in price behavior.
  • A fair value gap is created within the market structure. Not all gaps are significant; some are less likely to be filled based on their position relative to swing highs and lows.
  • The concept of measuring ranges (low to high) helps identify key levels such as the 50% mark, which can indicate potential trading opportunities when prices return to fill gaps.

Trading Setups and Execution

  • A successful New York setup can yield a 50 pip run from identified low points (e.g., 3141), demonstrating effective entry strategies based on market conditions.
  • The analysis includes identifying bearish order blocks and fair value gaps on lower time frames, providing multiple entry points for traders during sessions like London open.

Detailed Analysis of Price Action

  • Observations show that price action often revisits fair value gaps after reaching equal highs, indicating areas where traders can enter positions effectively.
  • Specific candle formations at critical times (like New York open) serve as entry signals. For instance, an entry point was noted at 13129 with minimal drawdown risk.

Continuation Patterns and Market Dynamics

  • Traders can utilize the London close as a continuation strategy while aiming for liquidity below significant price levels (e.g., 131).
  • During the Friday London session, small imbalances were observed before larger sell-offs occurred, highlighting how minor fluctuations can precede major movements in price.

Learning and Development in Trading

  • The speaker emphasizes the importance of understanding market dynamics through precise patterns rather than ambiguous interpretations. This clarity aids traders in making informed decisions.
  • Numerous trading opportunities were presented throughout the analysis of events from the 27th alone, showcasing various entry points that align with established trading principles.

Understanding the Path to Trading Profitability

The Importance of Foundational Knowledge

  • Emphasizes that learners should not feel limited by their current knowledge; foundational content is crucial before advancing to complex topics.
  • Expresses frustration with requests for advanced material without a solid understanding of core concepts, highlighting that this complicates teaching.
  • Asserts that profitability can be achieved using just the first month's content, indicating that those struggling may lack essential trading skills.

Core Content and Character Development

  • Discusses how initial setups are designed to repeat consistently, providing a clear path for beginners to find success in trading.
  • Warns against the mindset of seeking more trades through advanced techniques; instead, quality over quantity is emphasized for better trading outcomes.

Comprehensive Skill Set Acquisition

  • Once foundational knowledge is mastered, traders possess all necessary tools for long-term profitability including money management and setup identification.
  • Highlights the applicability of learned strategies across various markets (Forex, stocks, bonds), reinforcing the versatility of acquired skills.

Patience in Learning and Application

  • Encourages patience in mastering higher-order analysis; true appreciation for these concepts often comes with time and experience.
  • Advises members to focus on absorbing content rather than rushing into advanced topics; emphasizes relaxation and gradual growth.

Managing Expectations and Emotional Control

  • Stresses the importance of being content with existing knowledge while acknowledging future learning opportunities without overwhelming oneself.
  • Warns against information overload which can lead to confusion and self-doubt; advocates for structured monthly lessons based on previously revealed models.

Practical Trading Techniques

  • Provides an example related to market predictions (dollar CAD), illustrating how specific protocols guide trading decisions effectively.
  • Discusses managing greed in trading by setting realistic entry points based on low-hanging fruit thresholds rather than chasing unattainable profits.

Embracing Drawdown as a Learning Tool

  • Encourages acceptance of minor drawdowns during trades as part of the learning process; highlights upcoming drills designed to help traders experience this firsthand.

Understanding Market Probabilities and Trading Insights

The Nature of Market Predictions

  • The speaker discusses the feeling of being in trades and the confidence that comes from experience, emphasizing that while they have a high degree of probability regarding market movements, certainty is not guaranteed.
  • There is a distinction made between public perception on social media and the reality of trading; the speaker clarifies that they do not possess absolute knowledge about daily price swings.
  • The speaker expresses confidence in predicting market levels, specifically mentioning a target level (13070) and its potential to move 10 pips below it.

Learning Through Experience

  • Emphasis is placed on personal learning journeys in trading; the speaker encourages listeners to be inspired by examples rather than discouraged by their current skill level.
  • Commentary provided by the speaker serves as guidance for learners, who are expected to practice independently based on lessons taught previously.

Role Dynamics in Trading Education

  • The speaker likens their role to that of a scout providing direction while encouraging traders to take action themselves, highlighting the importance of individual initiative in learning.
Playlists: ICT Charter Content
Video description

Government Required Risk Disclaimer and Disclosure Statement 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.