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ICT Mentorship Core Content - Month 05 - Stop Entry Techniques For Long Term Traders
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ICT Mentorship Core Content - Month 05 - Stop Entry Techniques For Long Term Traders

Stop Entry Techniques for Long Term Traders

In this lesson, the speaker discusses stop entry techniques for long term traders. The focus is on buying with stop orders and looking for setups to have the monthly and/or weekly suggesting institutional order flow.

Buying with Stop Orders

  • Look for setups to have the monthly and/or weekly suggesting institutional order flow.
  • Place a buy stop at the bearish candle's opening.
  • Use strength to get you long in the marketplace.
  • Use this entry technique to get in sync with those long-term trends.

Placing Buy Stop Orders

  • Place a buy stop for an entry on long positions at the opening price of a bearish candle.
  • If price trades back up to that opening price and through it, we should be turning the corner and should be trading higher.
  • Every time you get a new successive down candle, keep adding that new entry at the opening price.

Dovetailing with Order Block Theory

  • We're dovetailing really nicely with order block theory so if we're buying at the opening price on a down candle long term expecting monthly and/or weekly pd arrays to be the draw on price in other words something on the higher time frame charts are going to bring price higher.
  • When price moves away from the opening price and comes right back down, look for confirmation. You're going to see new buying, which may be another opportunity for you to add new positions.

Trade Management

  • No specific section was dedicated to trade management but it was mentioned that stops will be discussed later.

Trading Techniques for Short Selling

In this section, the speaker discusses trading techniques for short selling. He explains how to identify entry and exit points using monthly, weekly, and daily charts.

Identifying Entry Points

  • When buying, look for equilibrium or less than the range identified on monthly and weekly charts.
  • When selling, use stop orders.
  • The monthly and weekly charts should suggest institutional order flow will be seeking a PD array below daily market price.
  • Place a sell stop at the opening price of the last up candle rate for the down price move.

Placing Stop Orders

  • The daily chart must close with an up close to be valid while trading indoor forming the cell stop.
  • Place a sell stop at the bullish candle's open high, low, close or open of the candle.

Profitability

  • Take partial profits if you get profitability in your trade.
  • If there is a retracement back to that same opening price after taking partial profits, sell short again with that same portion we just took partial profits.

Market Expectations

  • We're expecting weakness to take us into the marketplace from a monthly and weekly standpoint.
  • We're executing on the daily chart while waiting for a move opposite to direction by having an up candle or bullish candle.

Examples of Short Selling Techniques

In this section, examples are given on how to apply short selling techniques in different scenarios.

Example 1: Missed Opportunity

  • A buy stop would have been placed at the opening price of a small down candle but was not filled.

Example 2: Triggered Long Entry

  • A buy stop was placed on the opening price of another down candle which triggered long entry when next green/bullish candle opened lower than the down candle's opening price.

Example 3: Adding to Long Position

  • A buy stop was placed on the opening price of a down candle, and when price filled that, another buy stop was triggered at the opening price of another down candle.

Example 4: Stop Loss

  • Stop-loss should be below the swing low that's most recently been created on the daily chart and below a specific reference point which will outline in lesson eight.

Using the Japanese Yen for Selling on a Stop

In this section, the speaker discusses using the idea of selling on a stop to trade the Japanese yen. They analyze the market structure break and use daily, weekly, and monthly time frames to determine their directional bias.

Trading Strategy

  • The speaker focuses on a market structure break that occurred in 2007.
  • They map out every up candle that goes back to the premium of ranges that price was trading in for the daily chart.
  • For each up candle, they trigger a short position at its opening price.
  • The speaker shows several examples where traders can sell short at an up candle's opening price and profit from potential downside.

Position Building

  • Traders can build larger positions by starting with a small amount allocated to the initial position and adding more back in after profiting on portions that may not have been viewed as an opportunity.

Overall, this section provides insights into how traders can use selling on a stop strategy to trade the Japanese yen. The speaker emphasizes analyzing market structure breaks and using multiple time frames to determine directional bias.

Playlists: 2017 ICT Private Mentorship Core Content Month 05
Video description

2017 Premium ICT Mentorship Core Content Video Lectures Audio and visuals are exactly as they were distributed in January 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.