VIDEO
HIGHLIGHT
Log InSign up
ICT Charter Price Action Model 13 - Charter Lecture On 2022 YouTube Model
SummaryTranscriptChat

ICT Charter Price Action Model 13 - Charter Lecture On 2022 YouTube Model

ICT Mentorship Model 13 Overview

Introduction to Model 13

  • The session introduces ICT Mentorship Model 13, part of a free YouTube mentorship series focused on index futures.
  • Emphasizes the importance of prior lessons from the YouTube channel for clarity in understanding this model.

Framework and Trading Logic

  • The model targets intraday market structure with opposing PD array matrix objectives; bearish trades focus on discount arrays while bullish trades target premium arrays.
  • Specific time frames are highlighted: Forex trading occurs between 7:00 a.m. to 10:00 a.m., and index futures from 8:30 a.m. to 11:00 a.m. Eastern Time.

Market Structure and Liquidity Raids

  • Monitoring is done using five down to one-minute charts after liquidity raids and short-term shifts in market structure occur.
  • For bearish setups, look for buy-side liquidity raids followed by rapid market structure shifts below recent lows; for bullish setups, the opposite applies.

Entry Strategies

  • After identifying displacement following liquidity purges, entries are made at specific points within fair value gaps based on market direction (bearish or bullish).
  • A sell limit order is placed at the high of the discount low of the fair value gap when bearish; ensuring fills by placing orders right at that high is emphasized.

Risk Management Techniques

  • Stop losses should be set at strategic points—specifically at the highest point of the fair value gap for bearish trades—to minimize risk while maximizing potential gains.

Stop Loss and Risk Management Strategies

Understanding Stop Loss Placement

  • The stop loss is strategically placed at the high of the discount low of the fair value gap used for the setup.

Risk Management Guidelines

  • A maximum risk of 2% per trade is recommended, ideally reducing to 1% or even 0.5%, especially in frequent trading setups.
  • Even with a hit rate below 70%, maintaining lower risk allows for profitability over time without needing perfection.

Adjusting Leverage After Losses

  • If a trade results in a full 2% loss, subsequent trades should use half the leverage until recovering at least 50% of the previous loss.
  • This approach creates a plateau effect in equity growth rather than experiencing volatile ups and downs.

Market Session Analysis

Afternoon Trading Strategy

  • In bearish conditions, traders look for buy-side liquidity raids on morning session highs or lunch hour highs.
  • If price drops after purging buy-side liquidity, it should create displacement lower with an ideal fair value gap.

Bullish Conditions and Liquidity Raids

  • For bullish scenarios, focus on sell-side liquidity raids during lunch hours (12:00 - 1:00 PM NY local time).
  • Relative equal lows or highs established before lunch are critical indicators to watch for potential trades.

Entry Points and Profit Taking Logic

Entry Orders Based on Market Conditions

  • For bearish positions, place sell limit orders at the high of the discount low within the fair value gap identified on charts from five minutes down to one minute.
  • Conversely, bullish positions require buy limit orders at the low of premium highs within similar chart parameters.

Profit Taking Strategies

  • Profits should be taken at opposing PD arrays; bearish traders aim for discounts while bullish traders target premiums above equilibrium.
  • Multiple targets can be set based on previous session lows or fair value gaps below equilibrium to facilitate partial profit-taking strategies.

Developing Personal Trading Skills

Trading Insights and Strategies

Personal Reflections on Trading Performance

  • The speaker expresses dissatisfaction with their trading exits, indicating a continuous pursuit of improvement despite having 30 years of experience. They emphasize the importance of adhering to rules while seeking better methods for precision in targets.

Targeting Market Positions

  • Discussion on finding shortcuts to achieve consistently precise targets that yield better results. The speaker acknowledges that such methods may not exist universally but encourages traders to aim for them.

Understanding Market Dynamics

  • Explanation of targeting positions above previous session highs and within fair value gaps, emphasizing the need to identify extreme premium levels where significant market activity occurs.
  • The strategy involves analyzing previous days' sessions to anticipate potential breakouts or movements in the current trading day, focusing on buy-side opportunities.

Timing and News Impact

  • Importance of timing trades around key news releases (8:30 AM Eastern Time), which can significantly influence market behavior. The speaker highlights specific times when setups are likely to form.
  • Emphasis on monitoring the market closely during critical time windows (9:30 AM and 10:00 AM), suggesting that traders should remain vigilant for setup formations throughout these periods.

Market Reversal Patterns

  • Notable mention of Thursday and Friday as days conducive to market reversals, advising caution with setups at 11:00 AM unless conditions indicate a reversal opportunity.
  • Discussion about using 11:00 AM setups strategically, particularly when aligned with broader market trends or reversals leading into TGIF conditions.

Final Hour Trading Strategies

  • Overview of trading dynamics during the final hours (2:00 PM - 3:30 PM Eastern Time), highlighting increased volatility and potential for explosive price action in index futures.
  • Insight into how proficient scalpers can capitalize on last-hour trading opportunities by employing high precision strategies tailored for rapid decision-making.

Patience in Trade Setup Formation

  • Encouragement for traders to practice patience throughout the day, waiting for optimal setups rather than forcing trades at every time window presented.

Understanding One-Sidedness in Trading

Key Insights on Trading Setups

  • The speaker emphasizes the importance of recognizing one-sidedness in trading, suggesting that it can lead to high probability setups.
  • Utilizing elements of time effectively is recommended to enhance the selection process for trading setups.
  • The discussion indicates that this approach may not fully satisfy those who lack prior knowledge or experience with the model being referenced.
Channel: The Inner Circle Trader
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.