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it helps welcome back this teachings
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gonna be specifically dealing with the
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ICT ATM method
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you
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okay points of focus in this module we
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introducing the ICT ATM method
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the ATM in bearish conditions with
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targets and stop placement the ATM in
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bullish conditions with targets and stop
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placement
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okay introducing the ICT ATM method
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all right it's a standalone price action
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pattern
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the pattern capitalizes on stop runs
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you can find this pattern on the
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60-minute chart
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it's relatively easy to spot and you can
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do it quickly and finding it it's pretty
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much a
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well it's a rejection level okay now
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I'll show you what that looks like it's
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pretty easy to tree
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and wonderful thing is it's a complete
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trading model or setups
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okay so we're gonna look at the ATM in
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bearish conditions now once you take a
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look at this diagram on the right hand
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side okay and let that image burn in for
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a couple of minutes
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and as I'm talking to you this kind of
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like study what it's depicting and I
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want you to think about how when we
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start as traders generally the idea of
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support resistance is
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rather early in our introduction to
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technical analysis and the problem I
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found when I first started as a trader
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is what support resistance levels do I
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use is I mean there's so many you could
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possibly have on your chart which ones
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should I be focusing on so my work has
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been trying to simplifying that so that
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way I could teach it to my children
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because of this I've been able to make
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pretty detailed tutorials for people
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around the world to learn from and I
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develop a little bit better ability to
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teach over the years doing it but
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initially when I first started I gave a
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lot of information and it was overkill
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so this teaching is going to be rather
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brief but it's again very dense in its
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information so again looking at this
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diagram here I want you to think about
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what would constitute these turning
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points and I'm sure if you were to go
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through charts you could see patterns
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like this that are very similar in
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different time frames the time frame
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that I teach to find this pattern on is
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the hourly chart the reason why I like
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to look for it on the hourly chart is
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because it gives me flexibility to draw
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down to a lower timeframe to refine risk
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to a smaller amount and while still
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keeping the maximum reward still in
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sight
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and also the hourly to me is clean
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enough in terms of a time frame it
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promotes a little bit longer term
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horizon for the set ups now a granite an
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alloy chart is not long term but you can
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see a lot of the levels you can see
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otherwise on a 4-hour or daily if you
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know what you're looking for
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so I kind of like one in green in your
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mind and this teaching how we can use
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key support resistance levels and what
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makes these levels key
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so the first thing you want to do is you
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want to take your 60-minute chart and
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this couldn't work on any asset class
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okay so I'm gonna be using Forex for
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this discussion okay and the scope is in
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demo trading only but you can also do if
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you can also do demo accounts with
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futures contracts commodity stocks bonds
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and the like
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so you start with a 60-minute chart
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pretty simple straightforward you don't
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do you don't to do a whole lot of
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top-down analysis because the pattern is
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self-sufficient so you've been looking
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for a 60-minute chart for a key high to
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form and what makes it a key high is you
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want to see it create this initial
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short-term high and then it runs through
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it then it breaks down okay it's going
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to break a swing low right here when
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price trades through that that's when it
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becomes a valid pattern it does not
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become a valid pattern until we get
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below this swing low here okay so
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imagine price action kind of creating a
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check mark okay give it a little sort of
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short-term high here and it makes a
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check like that okay when that check
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mark gets surpassed by price action when
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it trades back up to that that's the
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setup okay that's what we're looking for
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so ideally what makes this setup
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stronger is if this whole price swing is
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part of a two-stage move in other words
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we have a short-term high
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that's ran out let me have a short-term
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high here and it runs out okay so this
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move should be ideally the second move
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up taking on a short-term high that
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means we're pretty much overbought from
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a technical standpoint without the
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necessity of any indicators so we're
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focusing again on this short-term low
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here
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and it has to break below that
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again our two stage move higher
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I'm going to be waiting for price to
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retrace back to the swing low that forms
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prior to the key i forming now what
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makes this high key
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is the fact that we have taken out a
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short term high but though
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immediately after that short term high
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is violated it's broken down so in in
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essence this is a break in market
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structure here and all we're doing is
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waiting for a retest of that same old
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support level now becomes resistance
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cell now when we see this in proper
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context we can classify and quantify
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real support resistance because we're
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incorporating the idea of a stop run
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above this short term high and then
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anyone that's long here we're going to
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have a stop below this low so they run
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through those stops price comes back up
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to this level here we've already
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rejected price above this short term
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high above number two so this level here
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should promote selling and it should
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stay voff any real buying because we've
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broken market structure with this swing
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low with this drop down so this would be
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nice area to look for shorts and then
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once we have that
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what we look forward well in this entry
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pattern we have to frame obviously
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profit and risk so we first have to
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determine what's our potential profit
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what do we hope to make so we look for a
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swing low where in this case it would be
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sell stops
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resting below that short term low and we
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would target from our entry point at
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this hole low down to that level just
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below the old low that's what we are
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aiming for that's our target if you will
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the risk is going to be defined by one
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or two pips above the key high okay or
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the rejection high
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price can go above this short-term low a
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little bit it's better if it doesn't but
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don't be a you know fraid if it goes
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above a little bit your stop-loss is up
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there to do its work it's a demo account
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don't lose you any sleep over it okay so
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we're looking for the framework of this
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entry point to this as our objective and
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our stop-loss protecting our overall
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position okay so let's take a look of it
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in actual price action
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okay we can see price creating a
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short-term high here
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price runs through it we have no
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short-term high here price runs through
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that and then it rejects being above
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this short-term high and trades down
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below this low
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and price comes back up and retail three
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trades to it okay so this candle here
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violates it then we come right back up
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to it and trades right into that same
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level as soon as that happens that is a
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sell scenario okay or shorting
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opportunity we're going to looking for a
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move below this low our risk is defined
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by the high set sixty five pips risk to
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make from this entry point down to the
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stops
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that's not bad you can take that trades
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none you barn Bernie okay
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if we drop down into a 15-minute
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timeframe we can take that same insight
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and here and zero in and use our trusty
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optimal trade entry pattern to reduce
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some of the risk so now we can reduce
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that 65 pip stop-loss down to 20 pips
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notice also that we have a Fibonacci
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extension of 300% which takes us right
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below that low where our self stop
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target would be so now we're going to
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get look at an example of the bullish
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condition of an ATM again look at the
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scenario here in this
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crude depiction
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again we're scanning the price action on
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a 60-minute chart key low perform and a
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short term swing high broken to the
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upside that's gonna be this right here
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so we're looking for a low
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that's violated and then we trade right
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back above the short term high right
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here so in other words what we're
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looking for
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it's kinda like a crooked little number
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seven okay and when that is violate on
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the upside when price comes back down to
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it that's what we're hunting
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so ideally this is going to be part of a
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continued swing lower we have a swing
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low that's violated here and then we
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have a swing low
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that's violated here so it's like a
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two-stage move lower of breaking old
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support old support so now we're really
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oversold technically without any
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necessity of needing any indicators to
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tell us that
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so here's our to scale drop-down
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and we are we waiting for price to
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retrace back to the swing hi broken
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prior to the key lo forming again that's
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this here and we zero in right there
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that's our setup for a long so we'll
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look for our opportunity for training
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our potential reward again we're gonna
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be hunting by stops above this swing
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high here and the stop-loss is below
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here so our entry to our stop is our
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risk and our entry to the buy stops
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above here is our potential profit or
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reward alright we'll take a look an
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example in the bullish condition
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all right so here is price action on an
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hourly chart you can see we have
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one support level broken another area of
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support broken and then we have an old
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low violated aggressively and then price
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trades back above it right here when we
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see that this retest of that old high
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that's where we're hunting along so if
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that's our entry and this is our stop
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loss
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we're risking 140 pips to make 225 pips
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by stops our our target here now that
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may not be an ideal scenario for you and
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it may not be something that fits your
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risk appetite
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so we can now drop down into a 15-minute
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time frame and try to get that same 225
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pips with a little bit lower stop-loss
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so here we are on a 15-minute time frame
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up zoomed in here in that same little
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area of looking to be a buyer we're
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gonna be now removing all of that risk
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down to 80 pips so we have a stop loss
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just below this old low here okay
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so we have this low to this high here
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coming back down into that level so
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we're trying to give ourselves a little
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bit more of a better risk to reward
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model here right away
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we're almost at three to one
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so that's improved but watch what we do
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when we zoom in a little bit more we're
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going to actually down to a five-minute
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chart now
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and still see if we can get that 225
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pips but with a smaller stop-loss
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okay so now we have a 5-minute chart
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again that same little area that green
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circle were zoomed in here and now I'm
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doing this doing an optimal trade entry
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long running the fit from the body's
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lowest open or close to the highest open
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or close in this swing high I guess it's
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a beautiful little awesome trade entry
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long right at the same level we would be
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done looking for that scenario to unfold
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that and now we can reduce that stop
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down to 20 pips but still looking and
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hunting 225 pips or in this case becomes
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11 to 1 reward to risk model so what
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we've done is we've looked for a key
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turning point
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we've identified the key levels relative
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to runs on liquidity stops and we use
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the targets in the form of a stock run
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as well we can use the optimal trade
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entry zero in and reduce the risk but
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still keep the possible potential reward
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still the same as we would have used
00:13:47
from an hourly setup
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so the two or 25 pips is still available
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to us with a 20 pips stop-loss now
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agreement got to hold it for a while but
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this is what it looks like on a 5-minute
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zoomed out and I'm getting that entire
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move but it takes a little bit of time
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to get there but nonetheless this is how
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we can use the ATM method to get high
00:14:11
probability setups trading key support
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resistance levels again to hunt 25 pips
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is available with 25th stop-loss
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I hope you enjoyed this presentation if
00:14:25
you like these types of teachings you
00:14:27
define more at be in a circle trader.com
