$ICT Charter Price Action Model 6 \ Buyside Trade Plan$

ICT Charter Price Action Model 6 \ Buyside Trade Plan

Name: ICT Charter Price Action Model 6 \ Buyside Trade Plan
Uploaded: 2024-01-27T15:01:00.000Z
Duration: 30 min 57 s

Universal Trade Plan: Buy Side of the Market Maker

Overview of the Trading Plan

The video introduces ICT Price Action Model Number Six, focusing on a universal trade plan that emphasizes the buy side of market makers.

Each trading plan consists of five stages: Preparation, Opportunity Discovery, Trade Planning, Trade Execution, and Trade Management.

Preparation Stage

Traders should note all medium and high-impact events for their markets and analyze how these events may shape the weekly profile.

A 20, 40, and 60-day lookback period is established to determine the highest high and lowest low in recent trading days to define current dealing ranges.

Splitting this range helps identify premium and discount PD array matrices; buying is primarily focused within discount ranges.

Anticipating Price Movements

The goal is to anticipate price movements towards a premium PD array that aligns with weekly biases based on economic events.

Understanding market maker buy models involves recognizing original consolidations where prices start near lows or discounts before moving up to premiums.

Opportunity Discovery

An example illustrates a market maker sell model where traders identify premium PD arrays above current prices for potential sell opportunities.

Forecasting market conditions is crucial; traders should wait for upward movement toward specific premium arrays before considering selling positions.

Targeting Premium Arrays

The concept of "Terminus" refers to anticipated price points where markets are expected to reverse direction after reaching certain levels.

In a market maker buy model, traders target old highs or relative equal highs as potential areas for price movement upwards before reversing.

Reaccumulation Trade Planning

Understanding Market Conditions for Trading

Reaccumulation trade planning focuses on identifying market conditions that are favorable for a rally, particularly when there is a convergence of manipulation and price movement opposite to the trade bias.

Traders should look for price drops into discount fair value gaps during key trading sessions (London or New York open), ideally with standard deviations not exceeding -3.

Entry Strategies and Risk Management

In bullish scenarios, anticipate institutional order flow entries during retracements or sell stop raids, placing buy limit orders at calculated entry prices based on standard deviation and PD array convergence.

Set specific profit objectives using multiple limit orders: 20 pips for the first position, 40 pips for the second, and manage trades by closing portions as profits accumulate.

Position Sizing and Leverage Calculations

When entering trades, set stop losses strategically below recent lows (minus 20 pips), with provisions to re-enter if stopped out. Monitor secondary entry opportunities closely.

Position size calculation involves determining account equity multiplied by risk percentage divided by stop loss in pips; this helps in managing leverage effectively.

Adjusting Risk Based on Performance

If utilizing multiple orders, divide risk across them; e.g., risking 2% over four orders means each order risks half of 1%.

For example calculations: With $20,000 equity and a 20 pip stop loss at micro lots ($0.10 per pip), you can have up to 150 micro lots per trade while maintaining appropriate risk levels.

Managing Losses and Profits

After experiencing a loss equivalent to your full risk percentage (R%), reduce your R% by half until recovering part of the loss before returning to previous leverage levels.

Playlists: ICT MMXM Lectures, 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.