ICT Forex - The ICT London Close Killzone

00:09:34
https://www.youtube.com/watch?v=3OEUIkkcmLE

Resumo

TLDRThis video explains the London Close Kill Zone, a key trading period from 10 a.m. to noon New York time, which typically sets the high or low of the trading day. It emphasizes the importance of understanding how time and pricing affect trading strategies, especially for short-term movements yielding 10 to 20 pips. The video illustrates various examples of how price action behaves during this period across major currency pairs, providing insights into daily range characteristics and market dynamics relevant to traders. It also discusses how bullish and bearish market conditions affect trading outcomes and highlights the significance of the ICT methodology for analyzing market behavior within specified time frames.

Conclusões

  • 🕙 The London Close occurs between 10 a.m. and noon New York time.
  • 📈 Expect 10-20 pip movements during the London Close.
  • 📉 The daily high usually forms during this time on bullish days.
  • 💡 Price action in the London Close often retraces from daily highs or lows.
  • 🔍 Monitor the London Close for optimal trade entry patterns.
  • 📊 Time and price are crucial for defining market dynamics.
  • 🔁 London session trends typically carry into the New York session.
  • 💼 Understand the significance of daily ranges in trading.
  • ⚡ London Close can set continuation patterns into the New York afternoon.
  • 🔑 Four reference points: open, high, low, and close, define daily market behavior.

Linha do tempo

  • 00:00:00 - 00:09:34

    The video discusses the concept of the ICT London Close Kill Zone, which is a specific time frame that occurs from 10 a.m. to noon New York time. This period is crucial for trading major currency pairs, often leading to optimal trade entry patterns that can yield small profits of 10 to 20 pips. The London Close frequently signifies significant price action, encapsulating the daily high or low within this time frame. The speaker elaborates on examples of how the London Close impacts price movement, suggesting that it can create setups for both bullish and bearish trades. Moreover, the session highlights the importance of observing price action and uses multiple charts (like the Dollar CAD and Euro Dollar) to clarify these concepts. The characteristics of the London close are further explained, reinforcing that while profits might be modest, they are consistently achievable with keen observation and strategic trading during this critical window.

Mapa mental

Vídeo de perguntas e respostas

  • What is the London Close Kill Zone?

    The London Close Kill Zone refers to the time period between 10 a.m. and noon New York time, known for setting up optimal trade entries.

  • How many pips can traders expect during the London Close?

    Traders can typically expect short-term movements of 10 to 20 pips during the London Close.

  • What are the trading characteristics during the London Close?

    During the London Close, bullish days tend to see a retracement from the daily high, while bearish days retrace from the daily low.

  • Is the London Close always influential in trading?

    While the London Close often influences market movements, there are exceptions, especially during certain market conditions.

  • What should traders monitor during the London Close?

    Traders should look for optimal trade entry setups and the characteristics of price action during the London Close.

  • Why is time and price important in trading?

    Understanding the relationship between time and price helps traders identify optimal entry and exit points in the market.

  • How does the London session affect the New York session?

    If the London session is bullish, the New York session is expected to continue moving bullishly as well.

  • What happens during consolidation phases in the market?

    Consolidation can lead to significant price movements, and key highs and lows are often formed within these phases.

  • What role does the ICT methodology play in trading?

    The ICT methodology provides insights into price movement behavior and can assist traders in making informed decisions.

  • What should traders remember about daily market ranges?

    Traders should consider the four reference points: open, high, low, and close when defining daily market ranges.

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  • 00:00:10
    but hey folks welcome back this teaching
  • 00:00:13
    can be specifically dealing with the ICT
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    running close kill zone
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    okay London close kills it what ICT
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    concepts are many years in his module
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    the importance of time and price alone
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    then close the London clothes kill then
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    characteristics of the London clothes
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    okay so the London clothes is a
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    particular time of day that usually ends
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    the opposite end of the daily range the
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    major pairs usually coupled with a
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    dollar or ideal for this time of day and
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    the London clothes frequently sets up an
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    optimal trade entry pattern that can
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    offer 10 to 20 pips for a scalp the key
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    times the monitor are 10 a.m. to noon
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    New York time this is the ICT London
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    clothes kill zone as you can see here on
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    the chart on the right this is a dollar
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    cad chart you can see the beginning of
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    the day we had consolidation but in that
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    consolidation during the asian market we
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    create the low of the day then after
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    midnight New York time to market rallies
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    one-sided all the way up into the time
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    window that's dylaney between 10:00 a.m.
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    and noon New York time this is the
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    London close kill zone you see the daily
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    high performed exactly within that
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    little window of time and then pry
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    subsequently traded the lower into the
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    close another example here this is the
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    euro dollar just to show you how did
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    london clothes encapsulate s-- the daily
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    range okay we have the agent range in
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    here the high created during the asian
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    market actually treated this pair and
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    this is a very similar chart we've used
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    in this series so far but the high forms
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    in asia
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    then after New York midnight time we had
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    a high form again and London high New
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    York session high and then the low of
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    the day forms exactly at the parameters
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    between 10:00 a.m. and noon New York
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    time
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    this is the ICT London close killzone
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    market rates higher off that window of
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    time and then goes into the close but on
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    the close kill then if we study this
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    portion of the day the price action seen
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    at London closed typically sees a
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    retracement off the high of the day on
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    bullish days and off the low one the day
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    that is seen bearish there's typically a
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    five-minute optimal trade entry setup in
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    these conditions but they're very
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    important to remember this they're very
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    very short-term in nature so the moves
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    aren't a lot they're not like the
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    equivalent of like a London open or in
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    New York open it's typically going to be
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    very small short-term 10 15 maybe even
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    20 pips if you get anything more than 20
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    pips it's going to be it's going to be a
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    rarity for that to occur but you can see
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    it as an example here the Aussie dollar
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    we have the ICT London close kills on in
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    here and the market creates the low of
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    the day as we would expect then it gives
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    us an optimal trade entry long and
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    trades higher now this gives us a rather
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    easy 20 pips in here on this particular
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    day there they won't always look like
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    this but it's important to see how the
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    daily range is encapsulated the higher
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    lows generally formed between 10:00
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    o'clock and noon New York time so for
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    the sake of note-taking and completeness
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    if we're bullish and the daily close is
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    going to be high relative to its opening
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    in other words it's an up close day the
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    London close is going to be typically
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    when the high today is formed between 10
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    o'clock and noon now there will be times
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    when that isn't the case but for now if
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    you use this general rule of thumb it's
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    going to serve you well okay
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    characteristics of London close and the
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    London close can create continuation
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    points for swings that trade well into
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    New York afternoon hours that means if
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    we're bullish overall in the day instead
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    of creating the
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    I of the day in bullish markets or
  • 00:04:52
    bullish days many times the London
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    clothes connects to create a
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    continuation pattern as seen in this
  • 00:04:58
    example here on the dollar yen the
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    market had traded higher initially
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    during today and then we have a
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    consolidation but inside the
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    consolidation we had an optimal trade
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    entry here this is gonna be on a
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    5-minute basis okay whenever we're
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    studying the month and close you have to
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    be looking at it from a 5-minute
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    anything higher than that you're not
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    going to get to detail you need but
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    awful trade entry long in here it
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    creates the continuation of the overall
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    trend and a nice extrapolated move all
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    the way up to 300 extension and what had
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    been the direction of the day or week
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    can change during the London close and
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    let's take a look at an example here you
  • 00:05:34
    can see in this Aussie dollar chart we
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    can see that a very phenomenon take
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    place let's zoom in and take a closer
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    look at what's being shown here this is
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    a New York and London close overlap so
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    there's characteristics that's important
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    for New York session typically what
  • 00:05:56
    you'll see is the continuation of what's
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    seen in London overnight and that would
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    be if we're bullish in London we would
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    expect to see New York continuing
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    continue moving foolishly as well and
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    then London close
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    be the high today if we're bearish and
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    we've seen London bearish then New York
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    bearish we're really looking for London
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    close to be the low of the day okay
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    between 10 o'clock and noon or expect to
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    see the low of the day form now if there
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    are times when the market creates a
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    Princeton side liquidity pool like this
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    you can clearly see what's I'm going to
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    reference here but it's the double top
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    right in here
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    and we can see how London closes this
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    particular day creates the high of the
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    day but also forms a reversal point for
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    the rest of that day and the next day we
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    see price move rather aggressively lower
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    so if we look at all these
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    characteristics as a whole okay I
  • 00:07:01
    started with the intraday even though
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    some of you may not be interested in day
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    trading because of your life
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    circumstances or you just don't have an
  • 00:07:10
    appetite for doing it it's beneficial to
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    understand the engineering of how price
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    moves from the short-term and then we
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    can work from that price point higher
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    into higher time frames it's important
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    to know these things for entries it's
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    important to know these things for
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    managing positions because the
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    characteristics that been shown in the
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    create tutorials that I've done thus far
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    they may seem rather simplistic they may
  • 00:07:38
    be rather short in duration you're used
  • 00:07:40
    to very long videos from me but the
  • 00:07:43
    insights I've given you are very concise
  • 00:07:45
    they're very generic but don't let that
  • 00:07:48
    simplicity and short-term delivery and
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    presentation for you there's a lot of
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    insight that's been shown I've given you
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    the DNA if you will of how a daily bar
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    or candle is formed on bullish and
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    bearish days the times you're going to
  • 00:08:06
    be unfruitful using this information is
  • 00:08:08
    when we have a Z day where it goes up
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    and down in quiet consolidation or a
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    seek and destroy day which is a really
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    wild choppy up-and-down day where it
  • 00:08:20
    doesn't really go anywhere until the
  • 00:08:21
    last portion of the day and then it runs
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    out the stops and no one saw coming so
  • 00:08:25
    if you accept the fact that you're going
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    to have days where you're gonna see a
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    scenario that may form and you may
  • 00:08:34
    believe it's a scenario that may warrant
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    a entry on your demo account it may not
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    come to fruition if your study the
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    things I've given you thus far we went
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    through the Asian session the London
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    session the New York session and now
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    we've completed the daily range with the
  • 00:08:55
    London clothes killzone so we have
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    everything at our disposal in terms of
  • 00:09:01
    defining the daily range now that does
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    not mean daily bias it does not being
  • 00:09:07
    long-term direction it just means that
  • 00:09:08
    we have been able to define the for
  • 00:09:11
    reference points that make up power
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    three the open the high the low and the
  • 00:09:16
    close and what those three phenomenon
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    take place inside of those four price
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    points which is the accumulation
  • 00:09:25
    manipulation and distribution so
  • 00:09:29
    hopefully you found this teaching
  • 00:09:30
    insightful you can find more at the
  • 00:09:32
    inner circle trader com
Etiquetas
  • London Close
  • Kill Zone
  • ICT
  • trading
  • Forex
  • market dynamics
  • price action
  • daily range
  • scalping
  • optimal trade entry