VIDEO
HIGHLIGHT
Log InSign up
ICT Charter Price Action Model 1
SummaryTranscriptChat

ICT Charter Price Action Model 1

Introduction to Intraday Scalping

Overview of Price Action Model

  • The tutorial focuses on the first of 12 price action models, specifically for intraday scalping.
  • This model is based on previous day high and low, requiring prior knowledge from "Mastering High Probability Scalping" volumes 1 through 3.

Trader Profile

  • The hypothetical trader profile is characterized by a preference for short-term trades, avoiding long-term positions.
  • This trader seeks frequent setups and has a selective focus on specific markets rather than aiming for large trades.

Purpose of the Model

  • The model serves as a foundational approach to engage with price action using rule-based strategies without discarding previous learning.
  • It aims to enhance understanding through mentorship while maintaining simplicity in rules.

Setup Overview

Trading Strategy

  • The strategy involves buying during bullish optimal trade entries in the New York session, targeting rallies to the previous day's high.
  • Conversely, it includes shorting during bearish optimal trade entries while anticipating declines to the previous day's low.

Defining Previous Day's Range

  • The analysis extends beyond just yesterday’s range; it considers any previous day within a current 20-day data range.
  • A practical example illustrates how this week’s analysis was conducted using the defined look-back period.

Analyzing Daily Ranges

Identifying Key Levels

  • Focus is placed on identifying highs and lows from the last 20 days to establish discount or premium levels.
  • A matrix of PD arrays will be utilized, emphasizing liquidity resting below key lows over recent days.

Liquidity Pools and Market Structure

  • Specific lows are highlighted as liquidity pools that traders anticipate running below for potential market moves.
  • Clarification is provided regarding terminology; "previous day" refers specifically to days within the defined IPA range.

Market Analysis Techniques

Price Structure Insights

  • Analyzing price structure reveals rejection blocks and higher highs that inform trading decisions.

Understanding Bearish Order Blocks and Market Structure

Bearish Order Block Dynamics

  • The discussion begins with a focus on the bearish order block, highlighting how price trades into this area before falling away. This indicates a potential reversal point in market behavior.
  • The speaker references a specific candle formation that was predicted to mark the week's high, suggesting an anticipated downward movement below certain price levels.

Liquidity and Scalping Strategies

  • Emphasizing the importance of liquidity pools, the speaker notes that understanding these concepts is crucial for scalpers operating on daily time frames.
  • The presence of equal lows creates opportunities for traders to identify ranges within which they can operate effectively.

Price Movement Analysis

  • Acknowledging current price positions relative to equilibrium, there is an expectation of a downward move based on previous market behaviors.
  • The analysis shifts to lower time frames, where price movements are scrutinized against known liquidity points, enhancing trading decisions.

Identifying Previous Day's Low and Trading Opportunities

Understanding Previous Daily Low (PDL)

  • The concept of PDL is clarified; it refers not just to yesterday's low but rather any low from the previous 20 days that falls within a defined range.
  • Specific reference is made to Friday's low as part of the analysis leading into Monday’s trading session, indicating strategic planning for optimal trade entries.

Anticipating Market Movements

  • There’s speculation about potential market rallies early in the week based on established premium levels from prior trading sessions.
  • An anchor point is identified for swing projections, emphasizing its significance in determining future price movements.

Defining Buy Programs and Trading Days

Characteristics of Buy Programs

  • A buy program is defined by conditions such as taking out swing highs within a specified data range while avoiding premium zones.
  • Ideal buying conditions are outlined as occurring primarily from Monday through Wednesday during New York sessions.

Risk Management Considerations

  • On Thursdays, if liquidity remains intact, buying may still be viable; however, caution is advised due to potential exhaustion later in the week.
  • Traders are encouraged to adjust leverage when trading late in the week due to increased risk associated with diminished liquidity pools.

Optimal Trade Entry Techniques

Retracement Strategies

  • Focus shifts towards identifying retracement patterns against prevailing momentum using Fibonacci retracement levels specifically targeting 62%.
  • An example illustrates how traders can enter positions after observing initial market attempts at rallying followed by retracements toward key Fibonacci levels.

Long and Short Trading Strategies

Long Position Strategy

  • The long stop loss placement process involves using the low between 7:00 a.m. and 10:00 a.m. as a foundation for entry, placing the protective sell stop at this low or five pips below it.
  • After scaling out 20 pips from the position, move the protective stop higher to lock in gains of 5 to 10 pips once price moves above the New York session initial high.
  • For long position targets, scale off just before returning to the initial high of the day, with additional scalings at Target One and Target Two on your Fibonacci tool.
  • If a symmetrical price swing is reached after news events post-noon New York time, close all positions; however, be cautious as markets may continue running beyond this point occasionally.
  • Generally, it's advisable to close positions at symmetrical swings since they often cap daily ranges unless significant market momentum is present.

Short Position Strategy

  • Define shorting conditions by ensuring that the daily has taken out a swing low within the last 20 days; shorting can occur at equilibrium levels of this range.
  • In trading examples like cable (GBP/USD), identify where liquidity pools rest below equilibrium levels for potential parabolic expansion runs targeting previous day lows.
  • Ideal days for short selling are Monday through Wednesday during New York sessions; Thursday can also be considered if liquidity remains untested.
  • Use a five-minute chart to look for retracements against London session momentum while applying bearish optimal trade entry patterns based on Fibonacci retracement levels minus five pips for spread adjustments.
  • For short stop-loss placements, use highs between 7:00 a.m. and 10:00 a.m., setting protective buy stops accordingly until certain profit scaling conditions are met.

General Trading Protocol

  • When taking profits on short positions, scale off near initial lows or at defined targets on your Fibonacci tool while leaving some portion open for potential symmetrical swings.
  • Follow established protocols consistently until reaching or sweeping daily liquidity pools; avoid counteracting order flow trends set by larger institutions in trading zones.

Market Analysis and Trading Strategies

Overview of Recent Trading Setups

  • The speaker discusses recent trading setups, specifically focusing on the cable market. They highlight a successful trade that hit Target Two, indicating effective movement in price.
  • Another example is presented where the price retraces to an optimal trade entry point. The speaker emphasizes the importance of stop-loss placement for risk management.
  • A symmetrical price swing is noted, showcasing how it can lead to significant market reactions after hitting certain levels.

Key Trading Concepts

Retracement Levels and Price Swings

  • The discussion includes a New York initial high retracement at the 62% level, with specific stop-loss strategies outlined. This highlights the significance of understanding market structure during trades.
  • Emphasis is placed on taking profits effectively, suggesting that traders should be proactive in securing gains from their positions.

Anchoring and Swing Projections

  • The speaker explains anchoring techniques using Friday's low as a reference point for swing projections into Monday's high. This method aids in establishing a framework for higher time frame scalps.
  • Clarification is provided on why Friday's low was chosen over other potential lows, emphasizing reaction points rather than arbitrary selections.

Advanced Trading Techniques

Symmetrical Price Swings and FIB Analysis

  • A known symmetrical price swing from Monday is discussed as part of anticipating future market movements based on historical data and Fibonacci analysis.
  • The speaker outlines how to grade swings based on established models, reinforcing the importance of having clear levels for decision-making in trading.

Framework for Optimal Trade Entries

  • An overview of anticipated optimal trade entries is given, detailing how different quadrants within a trading range can provide precision in execution.
  • The concept of scalping within these quadrants is introduced, noting that aligning trades with major sessions like New York can enhance success probabilities significantly.

Conclusion: Building a Foundation for Scalping Success

Playlists: ICT Charter Content
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.