ICT - Trading Plan Development 6

New Section

This section introduces the topic of short-term trading and highlights the importance of understanding market structure. The speaker recommends referring to previous teaching modules for a deeper understanding of the concepts discussed.

Short-Term Trading Plan Development

• Short-term trading involves trading in sync with market structure.

• Market structure is different from market flow, and the speaker prefers trading with market structure.

• The duration of short-term trades can range from intraday to a few days, with an average target profit of 50 to 150 pips per trade.

• Buy signals are identified by observing a bullish market maker profile (fractal) and looking for price patterns and confluences that support trades in the direction of the market maker profile and market structure.

• Sell signals follow a similar approach but in reverse, focusing on bearish market maker profiles and utilizing fib extensions for profit targets.

• Risk management is crucial, with a recommended maximum risk per trade of 2% (ideally 1%) to avoid significant equity erosion. It is advised to start with smaller risk percentages when new to trading.

New Section

In this section, the speaker emphasizes the importance of managing risk effectively and learning from past mistakes. They also discuss the mindset required for successful trading.

Effective Risk Management

• Keeping risk small is essential, especially for beginners. It is recommended to risk no more than 2% per trade or even less (e.g., 1%).

• Learning from losses is crucial, but losing money quickly can be overwhelming emotionally. Losing money slowly allows for objective analysis and learning from mistakes.

• Building a trading portfolio requires considering risk management as a priority.

• Professional traders focus on minimizing risk, reaching break-even quickly, and then seeking profitable opportunities without rushing into trades.

Timestamps have been associated with the corresponding bullet points to facilitate studying the transcript.

Handling Losing Streaks in Trading

In this section, the speaker discusses the importance of having a strategy to handle losing streaks in trading.

Importance of Having a Strategy for Losing Streaks

• It is essential to have a plan to deal with losing streaks as they are inevitable in trading.

• The speaker acknowledges that even they have experienced losing streaks.

• Having a strategy for handling losing streaks should be part of every trader's arsenal.

Understanding Trade Entry and Price Patterns

This section provides an explanation for viewers who may be new to the speaker's videos and concepts related to trade entry and price patterns.

Explanation for New Viewers

• For those who are new to the speaker's videos, it may be challenging to understand the content without prior knowledge.

• Previous videos have covered trade entry techniques, specific price patterns, and confluences.

• The speaker briefly introduces the concept of fractals in trade entries but does not delve into intricate details.

• The reason for not providing an exhaustive breakdown is that each trader has their own personality and framework for trading.

Market Maker Profile and Personal Trading Framework

This section emphasizes the uniqueness of each trader's personal trading framework and how it relates to understanding market maker profiles.

Ambiguity of Market Maker Profiles

• Market maker profiles can be viewed differently by different traders based on their individual perspectives.

• While the presenter presents a bullish market profile, traders may identify opportunities for both buying and selling within that profile.

• Traders should focus on finding their niche within the market rather than trying to impress others or prove themselves.

Finding Profitability in a Small Segment of the Market

This section highlights the importance of finding profitability in a small segment of the market and prioritizing profitability over ego.

Prioritizing Profitability

• Traders should focus on finding a small segment of the market where they can be profitable.

• The goal is not to impress others or prove one's intelligence but to prioritize profitability.

• Ego should be kept out of trading decisions, and the focus should solely be on making profits.

Understanding the Market Maker Profile for Buy Model

This section introduces the market maker profile for the buy model and its significance in anticipating price action.

Significance of Market Maker Profile

• The presented diagram represents the basis for anticipating price action, targets, reversals, continuations, and retesting previous support and resistance levels.

• The concept revolves around identifying resistance levels and consolidation patterns within higher time frames.

• Traders using pattern trading would look for climax reversal patterns such as MACD divergence, bearish hammer candlesticks, or ICT reflection optimal trade entry cells.

Anticipating Price Action within Consolidation

This section explains how traders anticipate price action within consolidations based on market structure.

Identifying Resistance Levels and Confluences

• Traders identify resistance levels within consolidations and look for confluences with specific price patterns like bearish hammers or other candlestick patterns.

• Additionally, traders may consider indicators like ICT reflection or other supporting indicators to confirm their analysis.

• Overbought readings in short-term oscillators can also provide insights into current market sentiment.

Breakdown of Market Structure

This section discusses what happens when market structure breaks down and trades below the range low.

Breakdown of Market Structure

• When market structure breaks down, traders observe price trading below the range low.

• Further details about market structure will be covered in subsequent sections.

The transcript provided does not contain any further sections or timestamps.

Understanding the Fractal Pattern in Price

The speaker discusses a red alert type segment of the market profile or fractal pattern in price. This pattern indicates a potential buying opportunity and can be observed on a one-minute chart.

Fractal Pattern Analysis

• The speaker looks for this pattern on various timeframes such as 5 minutes, 15 minutes, 1 hour, 4 hours, and daily charts.

• Understanding support and resistance levels and having knowledge of different timeframes helps in identifying this pattern.

• Anticipating specific price movements is crucial for traders, but there are no guarantees. Hence, stop losses are used to manage risk.

Retesting Support Level after Breakout

The speaker explains why the red box represents a retest of a specific support level after breaking out of consolidation. Various trading patterns can be utilized within this range.

Trading Patterns within the Red Box

• Turtle Soup Sell Pattern, ICT Reflection Pattern, and Type 2 Trend Following (higher stochastic overbought reading) can be used for trading within this range.

• Type 1 Bearish Divergence or ICT Grail (optimal strategy from high to low with retracement) are other possible patterns.

• These patterns are explained in detail in previous course videos on high probability price patterns.

Potential Trade Signals within the Red Box

The speaker discusses additional trade signals that could occur within the red box area based on different types of divergences and optimal trade entries.

Additional Trade Signals

• An ICT Stinger Cell Signal (type 2 trend following with bearish divergence) could provide an optimal trade entry at an implied resistance level.

• It is important to note that the retest of the support level within the red box is not always necessary, as strong markets may continue lower without retesting.

• These trade signals can be observed on shorter timeframes and may result in significant price movements.

Short-Term Selling Opportunity

The speaker explains how traders can take advantage of short-term selling opportunities based on the pattern unfolding on hourly charts.

Short-Term Selling Opportunity

• If the pattern indicates a downward movement but there is not enough confidence to buy at support levels, traders can consider selling during pullbacks or after breakouts and retests.

• This approach focuses on higher timeframe swing movements engineered to go lower into key support levels.

• Traders should be cautious about buying in the gray area (uncertain support level) and consider taking profits at specific points.

Focus on Higher Timeframe Swing Movement

The speaker emphasizes focusing on higher timeframe swing movements and expecting price bounces from key support levels.

Focusing on Higher Timeframe Swing Movement

• The market is being engineered to go lower into a key support level, which is expected to provide a bounce for price movement higher.

• Traders should consider buying at this anticipated support level based on higher timeframe analysis (monthly, weekly, daily, 4-hour, 1-hour).

• However, it is important to note that there is uncertainty in the gray area where the actual support level's effectiveness is unknown.

Taking Profits and Assessing Support Levels

The speaker discusses taking profits at certain points and assessing the effectiveness of support levels.

Taking Profits and Assessing Support Levels

• Traders who buy at anticipated support levels should consider taking profits in the gray area where the support level's effectiveness is uncertain.

• The blue color represents this area where traders may need to exit their positions and reassess the situation.

• The range between highs and lows can provide insights into potential support levels.

The transcript provided does not include any non-English content.

Trend Following and Optimal Trade Entry

In this section, the speaker discusses trend following and optimal trade entry points.

Identifying Patterns for Buy Entries

• Look for tight two trends following an optimal trade entry for an additional buy.

• Pay attention to bold flags, rallies, and lows.

• ICT singer buys and ICT grails can indicate a type two trend following pattern.

Anticipating Patterns on Impulse Moves

This section focuses on anticipating patterns forming on impulse moves away from higher time frame support levels.

Taking Profits at Previous Range Highs

• Take profits at previous range highs when pulling up international trade entries based on the previous range.

• Leave the stop below until breaking out of the current area to cancel out the optimal trade entry.

Continuation Patterns and Trend Following

The speaker explains how certain patterns can transform into continuation patterns in trend following strategies.

Identifying Continuation Opportunities

• The second blue box represents a potential continuation pattern.

• It may mutate into a trend following move lower.

• Further details will be discussed later.

Allowing Price Retracement for Higher Time Frame Traders

This section highlights how higher time frame traders allow price retracement before lowering their stop-loss orders.

Logical Areas to Take Profits

• Higher time frame position traders are not in a rush to lower stops above previous highs.

• Look for logical areas of stops such as previous highs to take profits on short-term trades.

Taking Profits and Managing Drawdown

The speaker emphasizes the importance of taking profits and managing drawdown in trading.

Reasons to Take Profits

• Take majority, if not all, of the position off at logical areas of stops.

• Price could reverse and trade deep into the range between previous lows and highs.

• Avoid sitting through unnecessary drawdown without taking profit.

Being Profitable Rather Than Right

This section discusses the importance of being profitable rather than focusing on being right in trading.

Potential Reversals and Drawdown

• It is possible for a position to come all the way down and reverse completely against you.

• Focus on profitability rather than being right.

Market Maker Sell Model

The speaker introduces the market maker sell model as an alternative pattern for trading.

Consolidation at Support Level

• Look for consolidation at a support level followed by an impulse move up.

• Old resistance becomes new support, forming bull flags.

• Type 2 trend following signals like ICT stingers and grails can be observed.

Trend Following Signals for Lower Prices

This section focuses on identifying trend following signals that imply lower prices after market structure breaks.

Capitalizing on Stops Below Resistance Level

• Anticipate lower prices when market structure breaks above resistance levels.

• Look for type 2 ICT stingers, grails, bear flags, or other continuation patterns.

• Capitalize on pockets of stops resting below resistance levels.

Trading Based on Resistance Levels

This section emphasizes trading based on resistance levels and anticipating swings lower.

Swing Lower Opportunities

• Look for swing lower opportunities based on resistance levels observed on higher time frames.

• Capitalize on stops resting in previous consolidation areas.

Conceptual Trading Plan

The speaker discusses a conceptual trading plan for taking profits and entering trades based on resistance levels.

Potential Trade Scenarios

• Consider buying in consolidation areas, taking profits at resistance levels, and anticipating further upward movement.

• Look for confirmation signals such as ICT reflections or bullish divergences.

• Trade with the expectation of higher prices but be prepared to exit if the market reverses.

New Section

The speaker discusses a trading strategy involving scalping and resistance levels on higher time frames. They explain how to identify price swings and use Fibonacci extensions for taking profits.

Scalping Strategy

• The speaker suggests using higher time frame resistance levels for scalping.

• They recommend taking profits at logical areas using Fibonacci extensions.

• This strategy can be applied once a day, making small gains of 10-20 pips.

New Section

The speaker emphasizes the universal applicability of the discussed pattern to various trading styles. They highlight the importance of selling into higher time frame resistance levels.

Selling into Resistance

• The speaker mentions that the pattern can be used to sell into higher time frame resistance levels.

• This pattern is applicable to different trading styles.

• The area between the high and low points is crucial for identifying profitable trades.

New Section

The speaker refers to a previous video about London open trading tactics and explains that this section highlights the central concept of that module. They discuss the significance of the larger leg in price movements.

Importance of Larger Leg

• The larger leg in price movement, from high to low, indicates a significant move.

• This leg breaks out of previous consolidation patterns.

• This concept is central to their London open trading tactics module.

New Section

The speaker provides an overview of market structure within the discussed pattern. They mention revising their London open trading video and highlight the lion's portion of the move within this pattern.

Market Structure Analysis

• Inside red boxes, there are type two trend filings and continuation patterns.

• Optimal trade entries can be found from previous highs retracing.

• Profits should be taken at logical areas where stop-loss orders would be placed.

• The lion's portion of the move is between the high and low points.

New Section

The speaker discusses market structure further, emphasizing the importance of price swings. They explain how they transitioned from paper charting to computer charting for better analysis.

Importance of Price Swings

• Market structure may not be perfect but can still serve its purpose.

• Price swings are easier to analyze on a computer screen compared to paper charts.

• The speaker initially used vertical bars with open and close ticks for commodity trading.

• Being too zoomed in on shorter time frames hindered their understanding of price swings.

New Section

The speaker shares their experience as a commodity trader and explains how taking a step back helped them see price swings more clearly. They encourage viewers to try observing charts from a distance.

Observing Price Swings

• Viewing charts from across the room helps identify price swings easily.

• The speaker realized they were always too zoomed in on shorter time frames.

• By mentally breaking down small segments of the market, consistent analysis became possible.

New Section

The speaker presents a hand-drawn diagram illustrating short-term highs and lows in the marketplace. They introduce the concept of ring highs and ring lows learned from Larry Williams.

Ring Highs and Ring Lows

• Short-term highs or lows are marked as ring highs or ring lows respectively.

• A ring high consists of two higher lows on both sides, forming a three-bar pattern.

• These levels help discern the overall trend without relying on trend lines or moving averages.

New Section

The speaker continues discussing ring highs and ring lows, emphasizing their preference for swing trading and analyzing price swings.

Analyzing Price Swings

• Ring highs and ring lows help map out levels and determine the overall trend.

• The speaker finds this approach more sensible than relying on trend lines or moving averages.

• Trends do not last indefinitely, so focusing on price swings aids in consistent analysis.

New Section

The speaker explains how to identify short-term highs and lows using circles. They discuss the significance of these levels in understanding market trends.

Short-Term Highs and Lows

• Circles are used to mark short-term highs and lows on daily charts.

• These levels provide insights into the overall trend of the marketplace.

• Price alone can indicate the trend without additional indicators or tools.

New Section

The speaker shares their perspective as a swing trader, highlighting the importance of breaking down market segments for consistent analysis.

Consistent Analysis as a Swing Trader

• Taking small segments of the market and mentally breaking them down aids in consistent analysis.

• Focusing on price swings helps identify specific up and down movements.

• Trend lines or perfect trends are not reliable indicators as they change quickly.

New Section

The speaker concludes by pointing out other highs and lows present in the chart, reinforcing the importance of identifying price swings for successful trading.

Identifying Price Swings

• Apart from short-term highs and lows, there are other significant peaks and troughs in the chart.

• Recognizing price swings is crucial for successful trading.

New Section

In this section, the speaker discusses the concept of market structure and its importance in trading. They emphasize that understanding market structure can help identify specific swings in the marketplace and determine whether the overall trend is bullish or bearish.

Understanding Market Structure

• The speaker mentions that many traders talk about market structure, but they may not fully utilize it in their trading strategies.

• They attribute their knowledge of market structure to Larry Williams, a renowned trader known for his expertise in price action and market structure.

• Market structure refers to the pattern of highs and lows in a chart, which can be categorized as short-term, intermediate-term, or long-term highs and lows.

• Short-term highs and lows are identified by comparing them to previous short-term highs and lows. If a high has lower highs on both sides of it, it is considered an intermediate-term high. Similarly, if an intermediate-term high has lower intermediate-term highs on both sides of it, it becomes a long-term high.

• By noting all the swing highs and lows on a short-term basis, one can start identifying specific highs that are higher than two previous short-term highs. This indicates an intermediate or long-term high.

New Section

In this section, the speaker explains how to analyze market structure based on swing highs and lows. They discuss how breaking short-term highs or lows can indicate changes in market structure.

Analyzing Market Structure

• When price breaks down from a previous high and forms lower swing lows, it signifies a bearish market structure.

• Conversely, when price breaks above a previous high and maintains higher swing lows, it indicates a bullish market structure.

• The speaker emphasizes that analyzing market flow (bullish or bearish) is more important than focusing on short-term fluctuations.

• Trend lines or moving averages are not necessary to determine market structure. Instead, one should focus on identifying swing highs and lows.

New Section

In this section, the speaker discusses how to anticipate price movements based on market structure and use them for optimal trade entries.

Anticipating Price Movements

• The speaker explains that once market structure is determined as bullish or bearish, one can anticipate future price movements.

• They suggest using a measured move analysis by measuring the range from a previous low to high and applying it to future lows.

• When price retraces down to an optimal trade entry point after breaking a previous high, it presents an opportunity for buying in a bullish market structure.

• By understanding market structure and anticipating fractal patterns, traders can identify potential buy and sell opportunities.

New Section

In this section, the speaker concludes by emphasizing the importance of understanding market structure in trading decisions. They explain that price action is engineered to go up before going down and vice versa.

Importance of Market Structure

• The speaker reiterates that professional traders rely on technical analysis and price action to understand market behavior.

• They emphasize that price tends to go up before going down (bearish) or go down before going up (bullish).

• Understanding market structure helps traders make informed decisions about whether to go long or short in different market conditions.

Understanding Support and Resistance Levels

In this section, the speaker discusses the concept of support and resistance levels in trading. They explain how these levels can indicate potential price movements and provide insights into market structure.

Key Points:

• Support and resistance levels are important areas on a price chart where price tends to stall or reverse.

• If price is trading around a key support/resistance level, it is considered bullish/bearish for the market structure.

• When price approaches a support level, there are two possibilities: it may trade lower or break through and find support again.

• Higher time frame support/resistance levels carry more weight and influence future price movements.

• Bullish prices are often associated with breaking through resistance levels and finding support, while bearish prices involve breaking down support levels and encountering resistance.

• As price moves between different levels, new shorter-term support/resistance levels are created on lower time frames.

• Short-term trades can be taken in sync with the higher time frame direction, using these newly formed support/resistance levels.

Price Swings and Trading Strategies

This section focuses on understanding price swings and how they can be used to develop trading strategies. The speaker explains how to identify optimal trade entries based on key support/resistance levels.

Key Points:

• Price swings refer to the movement of prices between different support/resistance levels.

• While short-term resistance may be encountered during an upward swing, the expectation is for prices to break through these levels.

• Optimal trade entries can be identified by observing short-term bounces at key resistance/support levels. A lack of significant bounce indicates that the level is likely to break down as support but become influential as resistance later on.

• Similarly, when prices move downward, key support levels are expected to break, and if price trades back to these levels, they should act as resistance.

• The concept of support/resistance can be applied in both bullish and bearish market conditions, with the rules reversed.

• Confirmation of price action is crucial when identifying optimal trade entries based on support/resistance levels.

Applying Support/Resistance Levels for Trading

In this section, the speaker explains how to apply support/resistance levels for trading purposes. They discuss using key support levels as buying opportunities and key resistance levels as selling opportunities.

Key Points:

• Key support levels can be used as buying opportunities by applying the market-maker profile strategy.

• When prices move higher, resistance levels should be broken but allow price to come back and find support again.

• The overall price swing can be used to anticipate specific price levels and determine whether they will act as support or resistance.

• In a bullish scenario, resistance is expected to provide more support than resistance, while in a bearish scenario, the opposite is true.

• Confirmation through price action is essential when determining the effectiveness of support/resistance levels.

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New Section

This section focuses on using market maker profiles and predetermined levels to identify buying opportunities and support for price.

Utilizing Market Maker Profiles

• The market maker profile is used to identify buying opportunities and support levels.

• Predetermined levels on higher time frames (monthly, weekly, daily, 4-hour) are used to determine potential areas of support.

• The 101.50 level on the Australian dollar daily chart is highlighted as an example of a key support/resistance level.

New Section

This section provides a quick recap of the previous presentation and emphasizes the importance of the 101.50 level as a key support/resistance level.

Importance of the 101.50 Level

• The red line at the 101.50 level represents the midpoint or 50% mark between a high and low range.

• This area is considered a key support/resistance level.

• Traders can anticipate an opportunity to go long or buy at this level based on price action analysis.

New Section

This section explains how to utilize market maker profiles in both buying and selling scenarios.

Utilizing Market Maker Profiles for Buying and Selling

• The focus is on utilizing market maker profiles for both buying and selling scenarios.

• Price action analysis is used to determine entry points.

• Confidence in reading price and identifying key support/resistance levels is crucial for this type of trading strategy.

New Section

This section delves into understanding market maker profiles by analyzing a specific area in price action.

Analyzing Price Action with Market Maker Profiles

• A specific area in price action, represented by a gray box, is analyzed using market maker profiles.

• Smart money, represented by the "busy bees," accumulates during consolidations.

• The analogy of smart money being a Tyrannosaurus Rex highlights their significant impact on the market.

New Section

This section further explains how smart money accumulates positions during consolidations.

Smart Money Accumulation

• Smart money, such as central banks and big dealers, accumulates positions during consolidations.

• They strategically buy in small quantities to create short-term demand and allow price to move back to a more favorable point.

• This accumulation process is compared to a dinosaur slowly entering a pool, causing the water level (price) to rise.

New Section

This section emphasizes that smart money aims to get involved at an average price and avoids drawing too much attention.

Smart Money's Strategy

• Smart money wants to get involved at an average price while avoiding drawing too much attention.

• They buy in larger quantities when price moves lower into the consolidation area.

• Their goal is to accumulate more of the same position at a lower price point.

New Section

This section concludes the discussion on smart money accumulation and its impact on price action.

Impact of Smart Money Accumulation

• As smart money continues accumulating positions, it causes significant reactions in price action.

• Buying during consolidations leads to quick upward movements in price.

• Price eventually moves back into the consolidation area where more accumulation takes place.

Understanding Smart Money Movement

In this section, the speaker discusses the importance of identifying smart money movement in the market and how it can indicate potential price changes. They emphasize the need to enter trades when smart money is active and not wait for obvious signals.

Identifying Smart Money Movement

• Smart money refers to institutional level trading that has the power to move prices significantly.

• When smart money is on the move, there will be an absence of interest from retail traders.

• If institutions are not willing to buy, it can lead to a fall in price. Conversely, if they start selling, it may cause capitulation.

• The speaker mentions a higher time frame support level at 100-150 as an example.

Anticipating Price Action with Market Maker Profiles

In this section, the speaker introduces the concept of market maker profiles and how they can help anticipate price action. They focus on a specific segment in the Australian dollar market as an example.

Analyzing Price Action

• The speaker drills into October 7th and 8th in the Australian dollar market.

• A consolidation occurs followed by a breakout, indicating smart money entering the marketplace.

• The speaker asks viewers to identify buy and sell models within this small area of price action.

• They highlight that observing market maker profiles can provide insights into future price movements.

Spotting Market Maker Profiles for Trade Opportunities

In this section, the speaker continues discussing market maker profiles and their significance in identifying trade opportunities. They provide examples within a specific segment of price action.

Identifying Market Maker Profiles

• The speaker points out an area where a market maker profile unfolds within a consolidation phase.

• They emphasize the importance of observing price movements and identifying areas where market maker profiles are present.

• The speaker mentions that these profiles can help anticipate price swings and levels before they happen.

Utilizing Consolidation for Short-Term Trades

In this section, the speaker discusses how consolidations can be used to identify short-term trade opportunities. They provide an example of a consolidation followed by a price move.

Using Consolidation for Trade Opportunities

• The speaker highlights a consolidation as an area of opportunity for short-term trades.

• They mention that within this consolidation, there is potential for capturing a good number of pips.

• Observing supply and demand dynamics within consolidations can help determine future price movements.

Market Maker Profiles and Price Reactions

In this section, the speaker continues discussing market maker profiles and their impact on price reactions. They analyze another example to illustrate how market structure breaks and optimal trade entries occur.

Analyzing Price Reactions

• The speaker points out a consolidation followed by a move down into a higher time frame support level.

• They highlight the importance of observing market maker profiles in determining optimal trade entries.

• A retest of the previous consolidation occurs before another upward move, indicating potential trading opportunities.

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Understanding Price Movements and Market Makers

In this section, the speaker discusses the opportunity to take profits based on price movements and market maker behavior. They explain how retracements between highs and lows can indicate potential buying opportunities or stops being taken out by market makers.

Analyzing Price Movements

• The speaker points out that when there is a high concentration level between two price points, it can signal a potential rally. However, if the rally fails and prices move lower, it indicates a failed breakout.

• Retracements between highs and lows allow market makers to take out stops on the right side of the marketplace before prices resume their upward movement.

• The speaker suggests zooming out to higher time frames, such as 15-minute charts, to get a clearer picture of price patterns and market maker behavior.

Identifying Fractals in Different Time Frames

In this section, the speaker explains how fractal patterns can be observed in different time frames. They emphasize the importance of analyzing multiple time frames to identify patterns accurately.

Observing Fractals in Higher Time Frames

• While fractal patterns may be visible on a five-minute chart, they become more apparent when zoomed out to a 15-minute chart.

• By analyzing higher time frames, traders can identify similar price segments and anticipate future price action.

Recognizing Market Maker Profiles

Here, the speaker introduces the concept of market maker profiles and how they can help anticipate price action. They provide examples of bullish and bearish scenarios using these profiles.

Understanding Market Maker Profiles

• Market maker profiles consist of consolidations, breakouts, optimal trade entries, and moves below previous consolidations.

• By analyzing market maker profiles, traders can anticipate price swings and identify profitable trading opportunities.

Trading Fractals with Flexibility

In this section, the speaker discusses the flexibility of trading fractals and emphasizes the importance of adapting to different market conditions.

Flexibility in Fractal Trading

• Traders can use market maker profiles to trade both bullish and bearish scenarios, depending on the overall market environment.

• The speaker highlights that profitability is more important than being right in trading fractals.

• Fractal trading offers a freestyle approach without bias but requires finesse and understanding of market dynamics.

The transcript provided does not specify a language. Therefore, the summary has been written in English as per the instructions.

Market Maker Profile and Continuation

The transcript discusses how the market maker profile on a short-term timeframe within a larger higher timeframe fractal can appear to fail but actually provides a continuation of the larger profile. It explains the concept of market structure break and how it indicates potential higher prices.

Understanding Market Structure Break

• Market structure break occurs when price moves from a specific point and breaks the existing market structure.

• This break indicates the possibility of higher prices in the future.

• After the break, traders look for optimal trade entry points to go long.

Meandering Price and Waiting for Setups

• Price may meander and change its appearance when traders come back to their charts.

• Waiting for setups is an essential part of trading as it requires patience.

Support/Resistance Levels and Optimal Trade Entry

• New support/resistance levels need to be considered along with the higher timeframe support level.

• Retracements don't always reach previous levels; they may occur slightly earlier.

• Double-O 50 (using big figures and mid figures) can be used for optimal trade entry levels.

Expectations in Bullish Environments

• In bullish environments, sell models won't necessarily come all the way down to previous lows.

• Instead, there may be higher timeframe retracements within a bullish market environment due to accumulation by smart money.

Accumulation by Smart Money

• Deep retracements within a bullish market environment indicate more accumulation by smart money.

• This accumulation leads to continuation patterns and bounces from support levels.

Short-Term Trading Opportunities

• Short-term optimal trade entries can be utilized based on short-term price action within a higher timeframe bullish market maker profile.

• Traders can use confluence factors such as Fibonacci levels, pivots, or Trinity levels for additional confirmation.

Expectations in Bullish Environments

This section further explores expectations in bullish environments and how price may form new buy levels within a higher timeframe market maker profile.

New Buy Levels in Bullish Environments

• In a bullish environment, the sell model won't necessarily come all the way down to previous lows.

• Price may retest support levels or work within optimal trade entry ranges.

• Implied support levels, such as pivots or Trinity levels, can be factors in retracements.

Defending Price Levels

• Smart money will defend specific price levels to maintain or increase prices.

• Deep retracements within a bullish market environment indicate accumulation by smart money.

Continuation and Higher Prices

• Accumulation by smart money leads to continuation patterns and higher prices.

• Short-term optimal trade entries can be utilized for short-term trading opportunities aligned with the higher timeframe market maker profile.

Understanding Market Structure and Price Action

In this section, the speaker discusses market structure and price action, focusing on key support and resistance levels. They explain how price movement can indicate potential trade opportunities.

Highs and Lows in Market Structure

• The speaker mentions that there is no necessity for trendlines when identifying market structure.

• Key support and resistance levels can be observed during consolidations, where price eventually breaks the market structure.

Trading from Key Resistance Levels

• When trading from a key resistance level, the expectation is for price to move down into a market maker profile for a buy opportunity.

• Traders anticipate price to trade down to a support level each time they analyze the charts.

Failure to Reach Previous Levels

• It is common for price to fail to reach previous highs or lows within a range.

• Traders should consider the range as a whole and not solely focus on specific points.

Reflection Patterns and Optimal Trade Entries

• Price movements that fall short of previous levels can indicate reflection patterns or turtle soup setups.

• These patterns can be used as optimal trade entries or areas to initiate trades.

• As price moves down into higher time frame support levels, traders expect price to bounce back up.

Consideration of Trend Continuation

• While expecting higher prices based on a buy model, traders should also consider the possibility of trend continuation lower.

• Previous ranges are important in understanding how price may unfold into trend following continuation lower.

Analyzing Australian Dollar Movement on Different Time Frames

This section focuses on analyzing the movement of the Australian dollar on different time frames. The speaker highlights key levels and consolidation areas where smart money accumulates before making significant moves.

Delineating Ranges on a Five-Minute Basis

• The speaker points out how a specific area delineates the range for the Australian dollar on a five-minute basis.

• This range is defined by a low at 101.48 and a key level at 101.50.

Hourly Analysis of Price Movement

• On an hourly basis, the Australian dollar trades within the same price area.

• The key level at 101.50 is observed and analyzed on an hourly basis as well.

Retesting and Optimal Trade Entries

• Price eventually moves up after retesting the 101.50 level, providing buying opportunities.

• Traders can take advantage of optimal trade entries during retests of previous ranges.

Trend Continuation and Breakouts

• The speaker mentions that price may come back down to previous accumulation points before continuing higher.

• Eventually, price breaks out of previous consolidation areas, leading to profitable short-term trading opportunities.

Short-Term Trading Opportunities in Australian Dollar

In this section, the speaker discusses short-term trading opportunities in the Australian dollar based on previous analysis. They highlight specific price levels where traders could have entered trades for potential profits.

Short-Term Trading Opportunities Unfolded

• The speaker refers to over 200 pips of profit available for short-term traders based on their analysis.

• Specific areas were identified as potential buying opportunities during price movements.

Utilizing Accumulation Points for Optimal Trade Entries

• Traders should consider taking profits rather than assuming positions solely based on key support or resistance levels.

• By using accumulation points and considering possible trend continuation lower, traders can make more informed decisions.

Conclusion

The transcript covers topics related to market structure, price action, support and resistance levels, trend continuation, optimal trade entries, and short-term trading opportunities in the Australian dollar. It emphasizes the importance of analyzing different time frames and considering previous ranges for successful trading.

Understanding Short-Term Trading vs. Climax Reversal Short-Term Trading

In this section, the speaker explains the difference between short-term trend trading and climax reversal short-term trading.

Short-Term Trend Trading vs. Climax Reversal Short-Term Trading

• Short-term trend trading focuses on using moving averages like the 18 and 40 moving averages.

• Climax reversal short-term trading involves looking for reversals at resistance and support levels.

• Support and resistance levels take precedence over moving averages in climax reversal short-term trading.

• Price action is a leading indicator, while moving averages are lagging indicators.

Analyzing Price Action in the Australian Dollar

This section discusses an example of price action in the Australian dollar and how it can be analyzed for short-term trading.

Analyzing Price Action in the Australian Dollar

• The speaker shares a specific example of price action in the Australian dollar.

• The market maker profiles indicate a potential trade opportunity based on support and resistance levels.

• The breakout of a range signals a significant move in price.

• The speaker mentions that price has moved even higher since the discussed low point.

Utilizing Price Patterns for Short-Term Trading

In this section, the speaker emphasizes the importance of utilizing specific price patterns for successful short-term trading.

Utilizing Price Patterns for Short-Term Trading

• Specific price patterns can be applied to short-term trading strategies.

• Understanding part of a fractal pattern can be sufficient for building a successful career in either buying or selling modules.

• Traders should consider their approach to short-term trading and apply appropriate price patterns accordingly.

Timestamps have been associated with the corresponding bullet points to facilitate studying the transcript.