VIDEO
HIGHLIGHT
Log InSign up
ICT Charter Price Action Model 7 - Supplementary Lesson
SummaryTranscriptChat

ICT Charter Price Action Model 7 - Supplementary Lesson

Lesson Overview

The speaker expresses gratitude for the audience's patience and discusses the importance of showcasing efforts in lessons.

Importance of Reading Price and Tape

  • The discussion focuses on reading price and tape in real-time trading to understand chart movements effectively.
  • Explanation of trading a one-minute fractal, detailing entry and exit points based on price action.
  • Introduction to a crucial concept hinted at in a previous video regarding noise versus distortion in intraday charts.

Significance of Tape Reading

  • Reflecting on the speaker's experience with open outcry markets and the process of trading using physical tools like rotary phones.
  • Describing the practicalities of tape reading through personal experiences during trading sessions.

Understanding Market Dynamics

  • Illustrating how traders taught themselves to read the tape before modern technology, akin to monitoring GPS units today.
  • Defining "reading the tape" as a skill set essential for interpreting market movements accurately.

Trading Procedures and Communication

  • Discussing how traders used ticker tapes like CNBC (formerly FNC) to track market updates every 10 minutes.

Understanding Market Dynamics

In this section, the speaker reflects on their early experiences as a trader and how they learned to navigate market movements effectively.

Learning to Exit Trades

  • Initially, as a new trader, the speaker would panic and exit trades quickly when in profit.
  • Over time, they learned the importance of staying in trades to capitalize on favorable market movements and identify liquidity points for optimal exits.

Tape Reading and Real-Time Analysis

  • Through various experiences, including interacting with floor traders, the speaker developed proficiency in tape reading.
  • They emphasize the significance of tape reading in providing clarity amidst market fluctuations and share examples of analyzing market maker models.

Visual Representation for Understanding

  • The speaker uses visual aids like photoshopped images to enhance understanding of market dynamics.
  • By annotating charts and explaining trade setups visually, they aim to simplify complex concepts for viewers.

Interpreting Price Movements

This segment delves into interpreting price actions and identifying key levels for trading decisions.

Utilizing Market Maker Models

  • Discusses using the market maker sell model to determine buying and selling opportunities based on price ranges.
  • Highlights the confusion that arises when drawing distribution cycle boxes and contrasts institutional traders' perspectives with interbank level insights.

Analyzing Price Range Imbalances

  • Emphasizes monitoring price range movements rather than focusing solely on time frames for effective trading decisions.

Understanding Market Dynamics

In this section, the speaker delves into the intricacies of market dynamics, focusing on price ranges, order blocks, and distribution cycles.

Analyzing Price Ranges and Order Blocks

  • The speaker emphasizes the significance of bodies selling off within specific areas to understand market movements.
  • Traders need to adjust their positions as prices fluctuate, offering liquidity for new market participants.
  • Global entities like Microsoft or Adobe may influence market orders based on specific price areas.

Unveiling Distribution Areas and Time Distortion

  • Extended time ranges can distort models, hindering clear market analysis.
  • Identifying skewed price action with multiple distribution areas impacting market movements.

Importance of Time Element in Market Analysis

  • Elongated price ranges due to time distortion can obscure crucial distribution cycles in the market.
  • Emphasizing how time elements influence chart patterns and facilitate trade execution.

Deciphering Market Maker Sell Models

This segment focuses on dissecting market maker sell models through analyzing specific price areas and distribution cycles.

Identifying Key Price Areas

  • Highlighting key range highs and lows to navigate complex one-minute chart patterns effectively.
  • Recognizing distribution cycles within price ranges for strategic decision-making.

Navigating Market Movements

  • Understanding how price breaks below significant levels signal shifts in market dynamics.
  • Advising traders to focus on critical price actions amidst seemingly chaotic candle movements.

Impact of Time Element on Trading Strategies

  • Discussing how prolonged price stagnation influences trading decisions and short position building.

Understanding Trading Strategies

In this section, the speaker discusses the importance of understanding trading strategies and how to identify smart money entry points.

Importance of Smart Money Entry

  • Recognize the significance of smart money entry for successful trading.
  • Emphasize the need to wait for specific market moves before making trading decisions.

Monitoring Price Movements

  • Monitor price movements within specific ranges to make informed trading choices.
  • Focus on gaps and ranges to determine optimal shorting opportunities.

Analyzing Market Dynamics

This part delves into analyzing market dynamics, including reaccumulation, order blocks, and liquidity considerations.

Market Analysis Insights

  • Understand the concept of reaccumulation along with smart money reversal for strategic trading.
  • Identify low-risk selling opportunities through redistribution and sell-side liquidity analysis.

Deciphering Order Flow

The speaker explains the importance of understanding order flow in trading decisions and how it impacts market behavior.

Order Flow Analysis

  • Determine market maker sell models by analyzing order flow dynamics.
  • Highlight the significance of monitoring price fluctuations within predetermined ranges for effective decision-making.

Utilizing One-Minute Charts

This segment focuses on utilizing one-minute charts effectively to gain visibility into market movements and reduce noise.

Chart Interpretation Techniques

  • Demonstrate how to filter out chart noise by focusing on key price levels and order flow patterns.
  • Illustrate the process of simplifying complex chart data for enhanced clarity in decision-making.

Understanding Price Action and Market Dynamics

In this section, the speaker delves into the intricacies of price action and market dynamics, emphasizing the importance of understanding micro dealing ranges and tape reading for successful trading.

Unveiling Price Action Insights

  • The left side of the curve showcases buy areas where each downward close candle sets up the next upward move. This pattern serves as a frame of reference for traders.
  • Traders need to mitigate their buys by going short in certain areas on the chart to target liquidity effectively. Time intervals impact the length and density of candles on charts, influencing trading decisions.
  • The essence lies in comprehending price delivery rather than focusing solely on chart timeframes. Traders track movements from specific areas to fair value gaps, indicating shifts in buying or selling actions.

Tape Reading and Intraday Strategies

  • Tape reading involves understanding micro dealing ranges over time, akin to how floor traders operated with pivot numbers and intraday highs/lows without relying heavily on charts.
  • Historical data awareness is crucial for traders; monitoring previous day's high/low/close/open prices aids in making informed decisions based on fair value gaps and price action trends.

Insights into Trading Strategies and Institutional Dynamics

This segment explores advanced trading strategies, institutional dynamics, and how exposure to interbank pricing can unveil hidden market insights.

Deciphering Market Realities

  • Successful trading transcends mere chart analysis; it requires exposure to specific elements that unlock market nuances invisible to many traders solely reliant on technical indicators.
  • Understanding interbank pricing mechanisms reveals order flow dynamics, shedding light on institutional behaviors above retail levels. Central banks wield significant influence over large investment banks, shaping market movements accordingly.

Institutional vs Retail Perspectives

Understanding Trading Models and Price Analysis

In this section, the speaker discusses trading models, risk management, and price analysis in trading.

Trading Models and Risk Management

  • Traders are usually not allowed to use anything unless a trader has excelled exceptionally with their trading.
  • Institutional traders follow a specific model where they are trained on what to look for in trading and how much risk to allocate.

Price Analysis and Range Understanding

  • Analyzing price involves removing noise from the market by understanding the ranges within which prices operate.
  • Observing candlestick bodies helps identify volume trends in reaccumulation of long positions.

Identifying Imbalances and Fair Value Gaps

  • Displacement in price creates imbalances, indicating the establishment of new short positions after reaccumulation of long positions.
  • Understanding price levels and gaps helps traders identify entry points based on liquidity resting below certain levels.

Utilizing Market Maker Sell Model for Trading Decisions

This section delves into using the market maker sell model for making informed trading decisions.

Applying Tape Reading for Decision Making

  • Demonstrates using tape reading techniques to make decisions based on market movements.
  • Shows how identifying imbalances through range breaks can lead to profitable short-selling opportunities.

Anticipating Market Movements

  • Discusses anticipating market movements based on pricing expectations and market maker behavior.
Playlists: ICT Charter Content, ICT MMXM Lectures
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.