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ICT Mentorship Core Content - Month 08 - Central Bank Dealers Range
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ICT Mentorship Core Content - Month 08 - Central Bank Dealers Range

Lesson 3: ICT Mentorship Content - Central Bank Dealers Range Foreign

In this lesson, the instructor teaches about the Central Bank dealers range foreign and how to use it in day trading.

Understanding Ranges

  • To determine a range, we need a central focal point and then it has to deviate above or below it to give us our deviation.
  • The height of the range from high to low based on two different types of parameters can be measured in terms of Pips and can be replicated in the form of standard deviations.
  • One standard deviation above and below would be the same range added to the high and subtracted from the low respectively.

Sell Days vs Buy Days

  • Typically, most sell days will create the high of the day up to three standard deviations while most buy days will create the low of the day down to three standard deviations.
  • Ideally, sell days should create no more than two standard deviations above while buy days should create no less than two standard deviations below.

Specifics with Central Bank Dealers Range

  • The time period that frames Central Bank dealers' range is 2 PM to 8 PM New York time.
  • The ideal range is less than 40 Pips preferably between 20 to 30 Pips in total height from high to low.
  • A range larger than 30 Pips can tend to be unfruitful for projections.

Overall, this lesson provides an overview of how ranges work and how they are used in day trading. It also explains specific details about Central Bank dealers' ranges such as their ideal time period and size.

Finding the High or Low of the Day

In this section, the speaker discusses how to find the highest probable high or low of the day as a day trader. They explain that when markets are bullish, traders should look for the low of the data form predominantly in the London session.

Using Central Bank Dealers Range

  • The Central Bank dealers range is used to help find the high or low of the day in respective bullish repair stays.
  • Traders can use Wicks to study what retail is doing but focusing on bodies will give a clearer picture about what institutional accumulation distribution ranges are going to be.
  • Each blue box represents a Central Bank dealer's range for that respective day.
  • Projecting up one standard deviation from Central Bank dealers range gives us a projected London high.

Projected London High

In this section, we learn how projecting up one standard deviation from Central Bank dealers range gives us a projected London high.

Understanding Standard Deviation

  • One standard deviation and second standard deviation are projections from Central Bank dealers range.
  • It does not mean it's going to call it to the PIP; it might go a little bit above it or fall short of it, but it gives us a range to look for.

Rules for Trading with Central Bank Dealers Range

In this section, we learn about rules for trading with Central Bank Dealers Range.

Ideal Pip Ranges

  • Rules state that we want to have 40 Pips or less ideally 20 to 30 Pips.
  • If the range is too large, we can wait for a better opportunity.

Trading with Central Bank Dealers Range

In this section, we learn how to trade with Central Bank Dealers Range.

Using Stop Loss and Take Profit

  • Traders should use stop loss and take profit when trading with Central Bank Dealers Range.
  • The stop loss should be placed below the low of the day or above the high of the day.
  • The take profit should be placed at one standard deviation from projected London high or low.

Ideal Pip Ranges for Trading

In this section, the speaker discusses the ideal pip ranges for trading using Central Bank dealers range projections highs and lows.

Pip Range Criteria

  • The ideal pip range is 20 to 30 pips high.
  • The criteria is that it has to be less than 40 pips generally.
  • If the average daily range of the candle for the daily chart that you're trading is typically around 100 Pips, one-third of that is around 33 Pips. So, we give about 20 to 30 Pips as an ideal scenario.

Bullish Concept

  • If we're bullish, we're looking for the opening price and then the market to trade down ideally by 20 to 30 Pips.
  • On accumulation days where the low of the day is formed and we have a higher close bullish, we're looking for that 20 to 30 pip drop down.

Using Standard Deviation Projections

In this section, the speaker discusses how standard deviation projections can be used in trading.

One Standard Deviation Projected Below

  • We have one standard deviation projected below it.
  • It takes us right down to the low of the day.

Two Standard Deviations Projected Below

  • We have two standard deviations below the Central Bank dealers range for this particular day.
  • Looking at this, we have to have a bias. What do we think price is going to do? Is it going to go higher or lower over the next two or three days?

Building Ideas for Bullish Scenarios

In this section, the speaker discusses how to build ideas for bullish scenarios.

Using PDA Array Matrix

  • We're looking at discount PD arrays and reasons to suggest buying in a discount range.
  • If we look for those ideas with the Central Bank dealers range in conjunction with those, it'll help us narrow down with time of day London and open.

Seasonal Tendencies

  • Where are we at seasonally? Are we looking for bullish prices or lower prices?
  • If we look at the daily chart and see price trading up at a premium PD array and markets are bearish, we're looking for lower prices.

Conclusion

In this section, the speaker concludes by discussing how institutional order flow moves price and what will be covered in the next lesson.

Institutional Order Flow

  • It draws a closer picture of what institutional order flow is and how ipta moves price.

Next Lesson Preview

  • The next lesson will go into greater detail about how to pick the high and low of the day with this information and with the Asian range.
Playlists: 2017 ICT Private Mentorship Core Content Month 08
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.