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ICT Mentorship Core Content - Month 07 - Intraweek Market Reversals & Overlapping Models
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ICT Mentorship Core Content - Month 07 - Intraweek Market Reversals & Overlapping Models

Intra-Week Reversals and Overlapping Models

This teaching is about intra-week reversals and overlapping models. The instructor reminds us that we are working with time and price, and shares specific weekly profiles for market reversal profiles.

Market Reversal Profiles

  • Short-term trading has intra-week market reversal profiles that can catch traders off guard.
  • These events can completely reverse a profitable trade midweek, causing the trader to hope it will get back in sync with their expectations.
  • It's important to cover this topic early on because eventually every trader will experience it.
  • Teaching market profiling is difficult because it requires knowledge of multiple approaches such as swing trading, short-term trading, day trading or position trading.

Characteristics of Intra-Week Market Reversal Profile

  • The market was in a premium range classified by the large trading range outlined in lesson five.
  • The market traded up into the weekly rejection block or traded up into Old bearish order block on The Daily charts.
  • The market trades down into a lower level PD array in the discount over 24 hours.
  • When we see a fast Market, we have to immediately assume that they're reaching for an institutional order flow that is highly critical for efficiency on the interbank level.

Understanding Price Action in Trading

In this section, the speaker emphasizes the importance of having a well-rounded approach to trading and understanding price action across multiple time frames and disciplines. He also introduces a range that will be analyzed in more detail later on.

Importance of a Well-Rounded Approach

  • The speaker stresses the importance of understanding multiple dimensions of trading, including position trading, short-term trading, swing trading, day trading, and scalping.
  • Having a well-rounded approach to price action across all disciplines gives traders an advantage over those who only focus on one format or discipline.
  • Traders who have experience working within different disciplines are better equipped to succeed in their chosen career path.

Analyzing a Decline into Daily Bullish Order Block Mean Threshold

  • The speaker introduces a range that will be analyzed in more detail later on.
  • Price is unwilling to leave the premium and is in the upper portion of the larger trading range defined by lesson five.
  • Understanding PD array Matrix discount arrays can prevent traders from expecting markets to keep on trading lower when they shouldn't.
  • The length of Wednesday's candle is extraordinary compared to other candles during that week.
  • Speed at which it moved down into specific institutional order flow reference point was significant.
  • A closer look at this decline will help traders understand why there was an anticipated bounce.

Identifying Market Reversal Profiles

In this section, the speaker discusses how to identify market reversal profiles by analyzing price movements and identifying potential higher time frame PD arrays.

Characteristics of a Potential Market Reversal Profile

  • A large decline from the beginning of the week is a classic telltale sign of a potential market reversal profile.
  • When the market quickly starts trading aggressively and speedily on Monday or Tuesday, it's usually in a hurry to make a weekly range or reach an institutional order flow reference point.
  • Speed in price is indicative of them getting to a valuation point. Whenever that happens, you should immediately start looking for higher time frame PD arrays that may cause or be a catalyst for intra-week market reversal profiles.

Analyzing Price Movements

  • By refining down to an hourly chart, you can see that Monday starts as a potential high of the week profile rallies initially right from Sunday's opening declines.
  • The speed at which and magnitude of which price moves is the telltale sign that leads you to identify potential market reversal profiles.
  • When there is no central bank involvement and price is just aggressively and speedily moving, it's based on evaluation through speculation. They're taking the market down through ipta in this case down to a daily premium-to-discount range.

Focus on Premium PD Arrays

  • While we are in a premium market longer term, short term it can continuously move higher and keep making higher highs. The same element takes place when we're looking at just price action alone.
  • If it's not going to go lower and it wants to go higher, we focus on premium PD arrays.

Understanding Market Reversals

In this section, the speaker discusses how to identify market reversals and the importance of understanding higher time frame PD arrays.

Identifying Market Reversals

  • A market reversal occurs when prices quickly surge away from a price balance range or exceed it.
  • Intra-week reversals often look to return to the previous balanced price range or exceed it.
  • If sudden quick movement in price covers a lot of distance beyond the average daily range for the last five days, chances are you're probably going to see a market reversal profile.

Importance of Higher Time Frame PD Arrays

  • Knowing higher time frame PD arrays will aid in failures.
  • It's important to understand that opinions can change, directives can be changed, and fundamentals may change that we're not aware of.
  • Understanding higher time frame PD arrays will help traders anticipate potential changes in direction and make better trading decisions.

The Importance of Being Mindful When Trading

In this section, the speaker emphasizes the importance of being mindful when trading and understanding that setups may not always pan out as expected.

Being Mindful When Trading

  • It's important to be mindful that setups may not pan out as expected.
  • The beginning of the week is generally characterized by new hopes and aspirations to make money in exchange and commerce.
  • Central banks and banks themselves can make policy changes or fundamentals may change that we're not aware of.
  • Knowing when to exit a trade is crucial for success.

Understanding Price Action Study

In this section, the speaker discusses how understanding price action study can help traders make better trading decisions.

Understanding Price Action Study

  • Knowing how to read price action is crucial for making better trading decisions.
  • Understanding the higher time frame PD arrays will help traders anticipate potential changes in direction.
  • It's important to see the evidences of price changes rather than knowing what causes them at the Central Bank level.
  • When going through price action study, it's important to consider failures and look for another entry point if a trade doesn't seem like it's working out.

Intra-Week Market Reversals

This section discusses the concept of intra-week market reversals and how to identify them. It also covers swing trading model overlap possibilities.

Characteristics of Intra-Week Market Reversals

  • Wednesday or Thursday reversals generally form every month.
  • The classic telltale signs are the magnitude at which the price moves on Monday and Tuesday.
  • If there is a lot of movement in your favor on Monday and Tuesday, it's likely that the market will reverse later in the week.
  • Consider higher time frame PDA race when this happens because it's probably going down to evaluation or a higher level valuation point.

Swing Trading Model Overlap Possibilities

  • Swing trade entry can be identified by looking at daily bullish order block.
  • One should not limit themselves to only one type of trading discipline (e.g., short-term trading).
  • Intra-week market reversals occur in overlapping models, where two types of trading disciplines are at odds with one another.
  • Anything less than a four-hour chart is all day trading stuff and not high probability setups.

Daily Swing Model Overlap Example

  • Every market reversal that happens intra-week will be an overlapping of two types of trading disciplines that are at odds with one another.
  • Higher time frame discipline will always win, so focus on monthly, weekly, and daily PD arrays.
  • By blending different elements together (short-term, swing, position), you can gain a greater understanding of price action.
  • When you see an opposing view, chances are your weekly range phenomenon that you're trying to trade is going to have opposition to the degree where it will cause a reversal.

Understanding Price Action and Intra-Week Reversals

In this section, the speaker discusses price action and intra-week reversals, as well as blending and overlapping trading models.

Price Action and Intra-Week Reversals

  • The speaker introduces the concept of price action and how it can be used to identify trends in the market.
  • He explains that intra-week reversals occur when a trend changes direction within a week.
  • The speaker emphasizes the importance of understanding price action in order to identify potential reversals.

Blending and Overlapping Trading Models

  • The speaker discusses how traders can use multiple trading models simultaneously to improve their chances of success.
  • He explains that blending different models can help reduce risk by diversifying strategies.
  • The speaker also suggests overlapping trading models to increase confidence in trades.

Overall, this section provides an introduction to price action and intra-week reversals, as well as tips for blending and overlapping trading models.

Playlists: 2017 ICT Private Mentorship Core Content Month 07
Video description

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