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ICT Mentorship Core Content - Month 09 - ICT Day Trade Routine
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ICT Mentorship Core Content - Month 09 - ICT Day Trade Routine

ICT Daily Day Trade Routine

In this section, the speaker discusses the ICT daily day trade routine and how to consider the economic calendar for the next trading day.

Economic Calendar

  • Consider the economic calendar for the next trading day.
  • Look for high impact and medium impact news events for the day.
  • Take a look at the times of those releases respective to the kill zones of London open and New York open.

Euro Dollar Pair

  • Look for pairs in London or New York session to have a medium or high impact news event.
  • On Tuesday, there is a medium impact news event per euro dollar at 3 A.M Tuesday (Spanish flash CPI).
  • Expect manipulation to occur at that three o'clock hour which is the heart of London open Kill Zone.

Dollar Index

  • Look at Dollar Index daily chart.
  • Use last trading day as an anchor point and look back 60 trading days (excluding Sundays).
  • Use this range for Fibonacci retracements.

Conclusion

The speaker concludes by summarizing what was discussed in this lesson.

Summary

  • Consider economic calendar for high and medium impact news events.
  • Focus on pairs with medium or high impact news events during London or New York sessions.
  • Use Dollar Index daily chart with last trading day as an anchor point and look back 60 trading days (excluding Sundays).
  • Use this range for Fibonacci retracements.

Defining Data Ranges

In this section, the speaker explains how to define data ranges and create a box that can be shifted forward dynamically.

Creating a Box for Data Ranges

  • Define data ranges by creating a box.
  • Move the box one day forward each time to keep it up-to-date.
  • Create a new box for the 40-day and 20-day respectively.

Live Trading Platform

In this section, the speaker talks about live trading platforms and how they are not necessary for learning purposes.

Live Trading Platforms

  • The decision to use live trading is an individual choice.
  • The mentorship program does not tell you when to start using live trading.
  • Everything taught in the program is for demo purposes only.

Using Information with Live Account

In this section, the speaker discusses using information learned from the program with a live account.

Using Information with Live Account

  • If you decide to trade with a live account using information from the program, you do so at your own risk.
  • If you don't have selling candles, count yesterday's daily candle as day one and go back 60 days, 40 days, and 20 days.
  • Quarterly shifts may occur in market structure which could lead to potential trend reversals.

Analyzing Last 20 Days of Trading

In this section, the speaker explains how to analyze the last 20 days of trading.

Analyzing Last 20 Days of Trading

  • Look at the last 20 days for day trading and scalping.
  • If everything inside of last 20 days has been exhausted, look into the last 40 trading days.
  • Identify the high and low of the last 20 days.

Identifying Price Trading

In this section, the speaker explains how to identify price trading.

Identifying Price Trading

  • Identify bearish order block mean threshold.
  • Look for a gap with a breaker and go with the lower first.
  • Use down candle as an anchor point.

Fair Value Gap

In this section, the speaker discusses fair value gaps.

Fair Value Gap

  • Identify potential fair value gaps that need to fill.
  • Use last up candle's low as an anchor point.
  • Note that Sunday gaps are less likely to have influence.

Bearish Order Block and Discount Market

The speaker discusses the bearish order block and fair value gap, framing the market as a premium or discount market, and institutional order flow for the dollar index.

Fair Value Gap and Discount Market

  • The fair value gap begins at the last up close, which is where resistance starts.
  • Framing the market involves determining whether it is at a premium or discount. Currently, it is in a discount market.
  • Looking beyond the last 60 trading days shows that we are historically low.

Bullish Order Block and PD Arrays

  • A bullish order block exists at 97.38/39 basis point for discount.
  • All of the PD arrays for the dollar index in the last 20 days are labeled or delineated on The Daily.

Institutional Order Flow

  • Institutional order flow for the dollar index is bearish.
  • Counter Trend trading can be done if ranges are defined in a form of a discount.

Adding Elements to Euro Dollars Daily Chart

The speaker discusses adding elements to Euro dollars daily chart.

Potential Reversal Scenario

  • There's potential reversal scenario that could see some measure of retracement.

Understanding Data Ranges and Institutional Order Flow

In this section, the speaker discusses how to identify data ranges and institutional order flow in the Euro Dollar daily chart. They also explain how to use this information to identify discount arrays and premium arrays.

Identifying Data Ranges and Premium Arrays

  • The speaker explains that they have identified the data ranges for 60, 40, and 20 on the Euro Dollar daily chart.
  • They note that the high of the last 20 days is here, while the low in the last 20 days is here.
  • The speaker notes that they are at a premium referencing the last 20 days.
  • They explain that they will now add up all the discount arrays below them in price.

Identifying Discount Arrays

  • The speaker identifies a bullish order block, an old high, and a fair value gap inside this last 20-day range.
  • They note that there is also a small fair value gap down here as well.
  • The speaker explains how understanding data ranges helps limit focus to what's important at any given time.

Institutional Order Flow on Four Hour Chart

  • The speaker notes that on the four-hour chart, they need to consider longer-term institutional order flow on the daily chart.
  • They explain how price has respected previous bullish order blocks and gaps on recent candles.
  • The speaker notes that there is still potential for price to come down into previous bullish order blocks before rallying higher.

Reasons for Potential Market Movement

In this section, the speaker discusses potential reasons for market movement and how to identify optimal trade entry points.

Optimal Trade Entry Points

  • The lows formed in the market can be used as a reference point for identifying optimal trade entry points.
  • A range from a low to a high can be framed with a Fibonacci retracement tool to identify potential trade entry points.
  • An optimal trade entry point would be below equilibrium, in a discount, and on a bullish order block at 70.5 level.

Daily PD Array and Institutional Order Flow

  • The daily PD array at 109.90 could serve as the basis for a discount reaction on higher time frame bullish institutional overflow for the euro dollar.
  • If price were to drop down, it could take out equal lows and stops, accumulate new long positions, and come back down into an order block relative to the four-hour chart.

Justifying Higher Time Frame Institutional Order Flow

In this section, the speaker discusses how to justify higher time frame institutional order flow.

Identifying Influential Levels

  • If price trades down below an old low or an old high, those levels become influential in identifying potential buy opportunities.

Making Sound Arguments for Entries

  • To justify entries based on higher time frame institutional order flow, one must make sound arguments that support continuing that flow.

Euro Consolidation Week

In this section, the speaker discusses the Euro's consolidation week and how to anticipate bullish institutional overflow on the four-hour chart.

Anticipating Bullish Institutional Overflow

  • The Euro has been in consolidation this week.
  • Anticipate bullish institutional overflow on the four-hour chart and see if it is supported on the daily as well.
  • Look for confluences of PDA Rays to overlap with one another and justify if they're going to take this Market lower or higher.
  • We are looking for probabilities right now, not trying to guess where the market will go.

Fair Value Gap

In this section, the speaker talks about a fair value gap in relation to the Euro's equal lows.

Convergence of Two Discount Arrays

  • There is a fair value gap below two down closed candles that create a bullish order block.
  • If price trades down to that level, we want to be in a 15-minute timeframe and look for our standard deviations.
  • We want to project them above and below the marketplace giving us potential targets to reach for.
  • If price trades down below that opening price, we would expect at this level or very close to it to be a buy for a day trade.

Trading Strategies for Euro

In this section, the speaker discusses trading strategies for the Euro currency.

Power 3 Formation

  • The Power 3 formation is a bullish pattern that can be used for scalping during the London session.
  • If the price gets up to a certain level and shows willingness to go through it, then institutional order flow will kick in and we should look for continuation on the upside.

Daily PD Arrays

  • If price fails at a certain level, consider what daily PD arrays may have an impact.
  • If we lose the opportunity to find a long at a certain level due to bullet order block and fair value gap, anticipate price running below those lows for targeting purposes.

Economic Calendar Analysis

  • Start with liquidity injections or volatility injections by looking at the economic calendar and framing time of day.
  • Consider weekly templates when looking for reasons to justify why longer-term daily institutional overflow could resume by going down to a certain level.

Justifying Long Positions

  • Look for reasons to justify going long as there are large funds and flows going into this currency.
  • Be patient as it may require consolidation or deeper retracement down to allow banks to buy at cheaper levels.

Routine Summary

  • The routine involves analyzing economic calendars, determining baseline on dollar index, considering PD arrays, breaking down pairs with news drivers coming out at that session, anticipating manipulation during medium impact news events.
  • Look for daily institutional overflow as directional bias but also consider times where consolidation or retracement may be necessary.

Trading Strategies

In this section, the speaker discusses his trading strategies and how he incorporates deviations, average daily range (ADR), and PD arrays to identify high probability price movements.

Incorporating Deviations and ADR

  • The speaker uses deviations and ADR to identify high probability price movements.
  • If there is a confluence of standard deviations, ADR, and a PD array on a 15-minute basis or the 60-minute or four-hour PD arrays, there is a high probability for price to expand higher or lower to those respective levels.

Picking Daily Highs and Lows

  • The speaker picks daily highs and lows by looking at the templates provided for the weekly and daily.
  • He looks for evidence to support bullish scenarios by starting from Monday's low of the week. If Monday doesn't give enough evidence, he looks for Tuesday's low in the week to form.
  • If Tuesday starts to trade up, then Wednesday is probably going to be a good buying day to scout longs in.

Institutional Workflow Ideas

  • Once we have confluences of standard deviations, ADR in line with institutional workflow ideas based on that daily four-hour time frame, we use the weekly template to justify what the weekly range may be.
  • This puts the highest probability in our favor once we have that. We go into our daily routine of identifying whether it's going to be an open down low of the day first or consolidation door in London then trades down into New York creating the low for a buying opportunity for Market reversal profile then trades higher.

Staying Within Framework

  • When we have that weekly range for institutional workflow ideas as outlined here in this teaching, we never want to go against that for the framework of high probability.
  • We want to stay inside that framework. In other words, if the daily institutional overflow is bullish, we want to primarily look for reasons to justify going along.

Day Trading and Scalping

  • There's going to be days of retracement or consolidation, and there's nothing wrong with that. Again day trading is not everyday trading and scalping is not every move.
  • You have to see things that justify and frame the idea you're never going to know what weekly template it's going to unfold before Sunday's open.

Trading Routine for Day Traders

In this section, the speaker discusses his trading routine as a day trader and scalper. He explains how he uses standard deviations of the Asian range, Central Bank dealers range, and flout to identify buying opportunities.

Identifying Buying Opportunities

  • Use opening at midnight New York to identify buying opportunities.
  • Look for a move down below that opening price to some measure of standard deviations of the Asian range, Central Bank dealers range or flout.
  • Use 33 pip standard deviation from the opening price when a classic 100 pip a day opening price trades down up to 33 Pips or thereabouts.
  • Look for expansions higher on bullish days with our standard deviations in the Asian range, Central Bank dealers range and/or flout.

Institutional Order Flow Bias

In this section, the speaker talks about institutional order flow bias and how it can be used to predict large-range days.

Predicting Large Range Days

  • If average daily range is smaller than 60 Pips, there's going to be a likelihood of a large-range day eventually for trading institutional order flow in that bias.
  • If average daily range is met before New York or at New York's open we know that we probably caught a tiger by the tail and we need to leave something on for that large-range day to complete itself.
  • Large-range days may go past 10:30 AM or 11 o'clock Monday close let me go deeper into the day at maybe one or two o'clock.

Insight Feedback Empowers Traders

In this section, the speaker emphasizes how traders should view losses as insight feedback rather than defeats.

Viewing Losses as Insight Feedback

  • Smart money investors do not view a loss as a defeat, it's a premium paid for greater insight.
  • Even if you're wrong, that Insight feedback is empowering.
  • View losses monetarily as a loss is detrimental and it's going to kill you because your perspective is retail.

Daily Trading Routine

In this section, the speaker discusses his daily routine for trading and how he breaks down his weekly objectives into smaller pieces to achieve them.

Breaking Down Weekly Objectives

  • Breaks down weekly objectives into small pieces to achieve them.
  • Mitigates loss by breaking down objectives in the same way.
  • Experience level promotes a faster response by looking at price.
  • Watching intraday price action is beneficial even if not day trading.

Weighing Out Scenarios

  • It may take 30-40 minutes to weigh out scenarios every day.
  • Looking for opportunities and weighing them out is necessary work.
  • If we lose a level, expect a reasonable bounce or reasons to expect a bounce at the next level.

Scalping as a Day Trader

  • Switch gears when opportunity arises for scalping as a day trader.
  • Best trades are in sync with higher time frame institutional order flow.
  • Stick to primary conditions of buying on bullish days and selling short on bearish days.

Daily Routine Criteria

  • Use data ranges and PD arrays to break down daily routine criteria.
  • Breaks down how he does it using weekly templates provided

Weekly Template Unfolding

In this section, the speaker discusses how to use weekly templates to predict market movements.

Using Weekly Templates

  • When bullish, focus on specific days where a Wednesday reversal may occur.
  • Look for evidence to support predictions rather than expecting them to happen.

Trading Strategies for the New Week

In this section, the speaker provides trading strategies for the new week.

Trading Strategies

  • Consider that Monday is a U.S holiday and Tuesday becomes what would normally be a Monday. If we're going to see a reversal higher on Euro after going down it could happen on Wednesday.
  • Have these notes in mind when moving into the new trading week and see what happens.

Conclusion

In this section, the speaker concludes by wishing good luck and good trading.

Final Thoughts

  • The next month of June content will cover commodities, stocks index trading for futures, bond trading and all those four asset classes complement moves that we can pick and predict in the currency markets.
  • Until then, good luck and good trading!
Playlists: 2017 ICT Private Mentorship Core Content Month 09
Video description

2017 Premium ICT Mentorship Core Content Video Lectures Audio and visuals are exactly as they were distributed in May 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.