ICT Forex - What New Traders Should Focus On

00:28:31
https://www.youtube.com/watch?v=7WM8qdkanIY

Summary

TLDRIn this video, a new series of concise and user-friendly trading tutorials for new traders is introduced. The focus is on explaining the ICT (Inner Circle Trader) concepts such as liquidity raids, stop runs, and order blocks, which are essential for successful trading. The introduction emphasizes the need for new traders to understand price action and liquidity pools in Forex markets. The narrator shares personal experiences and mistakes made as a trader, highlighting the excitement and challenges of trading in a 24-hour market like Forex. The importance of practicing with a demo account is stressed, allowing traders to develop good habits without financial risk. The video breaks down strategies for identifying high-probability setups and targeting liquidity pools, encouraging traders to think differently from retail strategies and focus on essential price movements and timeframes for analysis.

Takeaways

  • 📘 New series focuses on concise trading concepts.
  • 💡 Learn to identify high-probability liquidity pools.
  • 📉 Understand liquidity raids and stop runs.
  • 🕒 Use a 15-minute timeframe for pattern recognition.
  • 🚫 Practice with demo accounts to avoid financial risk.
  • 🛑 Think differently from traditional retail strategies.
  • 🔍 Focus on price action and understanding market moves.
  • 🗝️ Key elements: open, high, low, close of price.
  • 📈 Use order blocks for identifying entry points.
  • 🔄 Markets move to areas with resting orders.
  • 🛠️ Practice patience and discipline for success.
  • 🔢 Fibonacci retracement aids in identifying entry points.

Timeline

  • 00:00:00 - 00:05:00

    The introduction sets the tone for a new series of tutorials aimed at new traders, focusing on concise and user-friendly content. The video will cover essential topics for new traders, including various ICT (Inner Circle Trader) concepts such as liquidity raids, order blocks, high-probability entries, and more. The goal is to avoid common pitfalls in trading the Forex market by learning concepts that challenge traditional retail thinking.

  • 00:05:00 - 00:10:00

    The content emphasizes the importance of understanding fundamental price components (open, high, low, and close) and their role in chart reading. The concept of fractal price movements is introduced, stating that patterns can be observed across various timeframes. The speaker recommends starting with a demo account to practice recognizing trade ideas and potential failures, focusing on the recurring presence of double tops and double bottoms on charts.

  • 00:10:00 - 00:15:00

    A detailed explanation of how market behaviors like liquidity raids happen around double tops and bottoms is presented. Retail trading habits are challenged by highlighting institutional strategies of seeking out resting orders. The video emphasizes studying price actions where liquidity is trapped, and suggests using a demo account to practice recognizing these patterns over an extended time, specifically encouraging a focus on simple and obvious chart patterns.

  • 00:15:00 - 00:20:00

    The video illustrates a trading strategy where price is expected to raid below equal lows, aiming for a certain pip range below these levels. A specific trading example is given with entry and profit targets, mentioning the importance of patience and discipline in achieving consistent, albeit modest, weekly trading goals. The speaker shares insights on setting realistic objectives and managing trades within the described framework.

  • 00:20:00 - 00:28:31

    A trade walkthrough demonstrates practical application, showing how to execute trades during retracements to ICT order blocks on a 15-minute chart. The step-by-step example uses the Eurodollar, demonstrating pre-trade analysis, entry execution at optimal points, and realistic profit-taking while emphasizing the strategic avoidance of "chasing price." The video concludes with a discussion of achieved trade outcomes, reinforcing the importance of systematic trading practices.

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Mind Map

Video Q&A

  • What should new traders study and practice according to the video?

    New traders should study liquidity raids, stop runs, ICT order blocks, and practice trading with a demo account.

  • How are the concepts in the video beneficial for traders?

    The concepts help identify high-probability liquidity pools, use low drawdown entry tactics, and manage risk effectively.

  • What is the focus of this trading series?

    The focus is on making user-friendly and concise tutorials for both new and experienced traders.

  • Why use a demo account according to the video?

    Demo accounts allow traders to practice risk-free and develop good trading habits.

  • What timeframe is recommended for observing trading patterns?

    A 15-minute timeframe is recommended for observing trading patterns.

  • What is the importance of understanding price action?

    Understanding price action is crucial as it helps in predicting market movements and improving trading strategies.

  • What are the key elements every trader should understand?

    Traders should understand liquidity pools, the importance of order blocks, and where market orders reside.

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  • 00:00:12
    [Laughter]
  • 00:00:16
    [Music]
  • 00:00:47
    hello folks welcome back all right so
  • 00:00:50
    we're embarking on a new journey for
  • 00:00:54
    some of you and for those who have gone
  • 00:00:56
    through my old vintage ICT tutorials
  • 00:00:59
    these will probably be a little bit more
  • 00:01:02
    user friendly and concise I did have the
  • 00:01:07
    aim and goal in mind to make them as
  • 00:01:11
    short concise is dense as possible with
  • 00:01:15
    content but still not be so long in a
  • 00:01:19
    time window
  • 00:01:20
    I want the durations to be a little bit
  • 00:01:21
    more manageable so that was the goal for
  • 00:01:25
    this this round of tutorials we're gonna
  • 00:01:29
    be talking about what should new traders
  • 00:01:31
    study and practice ok so what's gonna be
  • 00:01:42
    covered in this module
  • 00:01:43
    ok the ICT concepts used in this one
  • 00:01:46
    there's gonna be the theory of liquidity
  • 00:01:48
    raids or stop runs introduction to
  • 00:01:53
    liquidity pools
  • 00:01:58
    how to locate high probability liquidity
  • 00:02:01
    pools introduction of the ICT order
  • 00:02:07
    block high accuracy entry points low
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    drawdown entry tactics high probability
  • 00:02:18
    targeting the benefits of scaling
  • 00:02:21
    profits and how to make money when you
  • 00:02:25
    are wrong all these concepts and ideas
  • 00:02:30
    are going to be used in practical
  • 00:02:32
    application but before we show you that
  • 00:02:34
    it's important to begin with a overview
  • 00:02:40
    okay so when we look at price action as
  • 00:02:43
    a new trader you're going to come into
  • 00:02:45
    the marketplace especially with Forex
  • 00:02:47
    because it's so exciting it's fast paced
  • 00:02:48
    it's it's a wonderful mark it's a
  • 00:02:51
    beautiful market it gives plenty of
  • 00:02:52
    opportunities you can be day trading it
  • 00:02:54
    you can scalp it you can position trade
  • 00:02:56
    it you can swing trade it it's
  • 00:02:58
    absolutely phenomenal I love it it's a
  • 00:03:00
    to me it's the best asset class today
  • 00:03:03
    however like you when I first got
  • 00:03:06
    engaged in the study of price action for
  • 00:03:09
    Forex I quickly found myself doing a lot
  • 00:03:13
    of things I should have been doing and
  • 00:03:14
    what's worse is I was an experienced
  • 00:03:17
    trader from other asset classes stocks
  • 00:03:19
    bonds commodities and I did trade the
  • 00:03:23
    currency markets by way of the futures
  • 00:03:25
    market so you would think having a
  • 00:03:29
    decade of or more really of experience
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    before getting involved in the foreign
  • 00:03:35
    exchange market that I would have had a
  • 00:03:36
    little bit better grasp on my emotions
  • 00:03:39
    in my excitement but that didn't happen
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    because it's 24-hour market it moved
  • 00:03:44
    around very liquid and it was like a
  • 00:03:47
    it's like a candy store for me so I did
  • 00:03:52
    a lot of things wrong and I've learned
  • 00:03:53
    over the years and these videos are
  • 00:03:56
    gonna help you avoid a lot of those
  • 00:03:58
    pitfalls so we're gonna cover an element
  • 00:04:03
    of price action that I think is
  • 00:04:04
    essential and if you have no previous
  • 00:04:08
    trading experience if you've not
  • 00:04:11
    opted your mind with the retail stuff
  • 00:04:13
    that is promoted in the industry you're
  • 00:04:16
    actually added advantage okay folks that
  • 00:04:20
    have gone through trading courses and
  • 00:04:23
    material are going to have some
  • 00:04:26
    hardships with this not just with this
  • 00:04:29
    teaching but all of the ones I'm going
  • 00:04:30
    to be teaching the constant theme is I
  • 00:04:36
    want you to think about the market place
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    completely opposite to what retail
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    teaches so retail is like Elliott Wave
  • 00:04:47
    supply and demand harmonic patterns
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    animal patterns all these things that
  • 00:04:54
    you put on your charts they're all
  • 00:04:56
    distractions all you need to know is the
  • 00:05:00
    open high low and close okay there's
  • 00:05:02
    four reference points that make up price
  • 00:05:04
    and we make charts based on those four
  • 00:05:07
    reference points now we have an element
  • 00:05:09
    of time that's a factor that won't be
  • 00:05:12
    talked about in this module but I will
  • 00:05:14
    talk about it in coming lessons but I
  • 00:05:19
    want you to think about when for
  • 00:05:21
    instance we're looking at this chart
  • 00:05:22
    here now this is - happens to be the day
  • 00:05:25
    of this recordings Eurodollar okay it's
  • 00:05:28
    a 15-minute time frame and I want you to
  • 00:05:31
    look at it and maybe some things jump
  • 00:05:34
    off maybe other things aren't so
  • 00:05:36
    apparent or obvious to you but I want to
  • 00:05:39
    kind of change your perspective on price
  • 00:05:41
    action and I want you to focus in on
  • 00:05:44
    areas in price action it doesn't make a
  • 00:05:46
    difference what time frame you look at
  • 00:05:48
    okay because price is fractal meaning
  • 00:05:51
    that the things that you can see on one
  • 00:05:53
    time frame they can be seen on the lower
  • 00:05:55
    time frame or the higher time frame as
  • 00:05:57
    well so it's a phenomena it's it repeats
  • 00:06:01
    itself okay the same type of formation
  • 00:06:03
    or setup can be seen on every time frame
  • 00:06:06
    so when we look at price or how I teach
  • 00:06:09
    my students to look at price I want them
  • 00:06:11
    to first understand what makes the
  • 00:06:14
    markets move okay without understanding
  • 00:06:16
    that your probabilities of being
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    successful in developing yourself in a
  • 00:06:21
    demo trade is highly unlikely and you
  • 00:06:24
    must
  • 00:06:25
    forget about becoming a live fun trader
  • 00:06:27
    if you can't do well in a demo you're
  • 00:06:29
    not going to do well on a live account
  • 00:06:31
    everything that I'm teaching here should
  • 00:06:34
    be done in the medium of a demo all of
  • 00:06:38
    my teaching is done in a demo and that's
  • 00:06:40
    just the best way to do it play in the
  • 00:06:42
    sandbox
  • 00:06:43
    it's risk free and you learn to develop
  • 00:06:46
    good habits this way so what do you do
  • 00:06:48
    with a demo account well before you even
  • 00:06:51
    put on trades I think that it you should
  • 00:06:54
    be studying price action like this okay
  • 00:06:57
    I want you to think where every one
  • 00:07:01
    else's trade idea would fail them now
  • 00:07:06
    think about that because when you read
  • 00:07:08
    books they tell you buy here sell here
  • 00:07:11
    your stops here try to aim for this
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    target ok so they're geared towards
  • 00:07:17
    getting you into a move and the stop
  • 00:07:21
    losses are pretty generic below an old
  • 00:07:24
    low above an old high I have started a
  • 00:07:29
    new wave of free membership followers
  • 00:07:32
    online and they have shared their
  • 00:07:35
    enthusiasm with the discovery of
  • 00:07:37
    something so simple but it evades most
  • 00:07:40
    traders even traders that have been
  • 00:07:42
    trading for a long period of time if you
  • 00:07:45
    look at periods in price action where
  • 00:07:47
    there are equal highs and equal lows
  • 00:07:50
    this is the easiest most obvious price
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    point to see in charts every time you
  • 00:07:56
    see that I want you to note that ok put
  • 00:08:00
    a small little trendline horizontal ok
  • 00:08:02
    and that's the only type of trendline I
  • 00:08:04
    like we're delineating previous points
  • 00:08:08
    where it made equal highs or slightly
  • 00:08:10
    higher or lower it doesn't make a
  • 00:08:12
    difference if it's exactly or if it's
  • 00:08:16
    off by one or two pips the general theme
  • 00:08:19
    is if it looks close enough then it's a
  • 00:08:22
    double top or a double bottom now retail
  • 00:08:25
    circles will teach that these are good
  • 00:08:26
    areas to trade off of as support
  • 00:08:28
    resistance institutional minded traders
  • 00:08:31
    think entirely different they know
  • 00:08:34
    what's sitting above there's equal highs
  • 00:08:35
    its traders by stops
  • 00:08:38
    and they know what's residing below the
  • 00:08:39
    equal lows traders cell stops so the way
  • 00:08:44
    institutional mindset is poised about
  • 00:08:48
    looking at price action they're looking
  • 00:08:51
    for counterparties they're looking for
  • 00:08:54
    the opposite side of their trade so when
  • 00:08:58
    everyone else is in the retail world
  • 00:08:59
    looking for indicators to give them buy
  • 00:09:02
    and sell points institutions are
  • 00:09:04
    actually thinking where are the orders
  • 00:09:06
    resting right now in the easiest way I
  • 00:09:09
    have learned to teach traders to start
  • 00:09:11
    with and there's other ways to do this
  • 00:09:12
    but as far as I'm gonna go in the free
  • 00:09:16
    content this is the only one I'm going
  • 00:09:18
    to teach and it's a very simple one in
  • 00:09:20
    literally a five-year-old can see it in
  • 00:09:22
    the chart so anytime you see a double
  • 00:09:25
    bottom or a double top put a small
  • 00:09:28
    little segment or a line above it or
  • 00:09:30
    below it delineating it and put a
  • 00:09:32
    notation what it is above double tops on
  • 00:09:36
    your chart make a small little notation
  • 00:09:37
    that it's by stops and below equal lows
  • 00:09:40
    cell stops and I want you to study do
  • 00:09:44
    not demo trade do not try to pick the
  • 00:09:46
    direction I want you to study it for one
  • 00:09:49
    full month do nothing else pick one or
  • 00:09:53
    two pairs literally go through and watch
  • 00:09:56
    how many times this phenomenon takes
  • 00:09:58
    place you can look at it on any
  • 00:10:00
    timeframe but I think a 15 minute time
  • 00:10:02
    frame is ideal because you'll see a lot
  • 00:10:05
    of scenarios to pan out now I traded two
  • 00:10:08
    markets today at the time this recording
  • 00:10:10
    I sold short the dollar cad and also so
  • 00:10:13
    sold short the euro dollar okay both
  • 00:10:16
    pairs generally do not move in the same
  • 00:10:18
    direction but I knew there was a strong
  • 00:10:22
    likelihood that the dollar cad would
  • 00:10:24
    sell off aggressively and therefore any
  • 00:10:26
    movement down in the euro dollar would
  • 00:10:29
    be a suspect decline and it would be
  • 00:10:31
    reaching for sell stops so that's gonna
  • 00:10:32
    be the context behind what you see me do
  • 00:10:35
    later on in this video that was a
  • 00:10:36
    recorded trade so as we're looking at
  • 00:10:39
    price I want you to take a look at this
  • 00:10:41
    area rate in here okay we have equal
  • 00:10:44
    lows and price has already went above an
  • 00:10:48
    old high and broke down and it's found
  • 00:10:51
    an area of
  • 00:10:52
    consolidation and this is the very
  • 00:10:54
    consolidation that I taught you how to
  • 00:10:57
    trade the New York set up for scalping I
  • 00:11:01
    want you to think about that if this is
  • 00:11:05
    a short where could you reasonably
  • 00:11:07
    expect to see price go well obviously we
  • 00:11:10
    would expect it to go lower but
  • 00:11:12
    targeting what specifically well we know
  • 00:11:14
    there's equal lows here and I like to
  • 00:11:18
    look at old lows and old highs and
  • 00:11:21
    project 10 to 20 pips beyond those
  • 00:11:24
    double bottoms and double tops so in
  • 00:11:26
    this double bottom folks see that as
  • 00:11:29
    support price comes down hits it here
  • 00:11:32
    retail minded traders are going to see
  • 00:11:34
    this rally up as a buy I do not want you
  • 00:11:38
    to think that I want you to think the
  • 00:11:40
    opposite I want you to think that this
  • 00:11:43
    whole scenario is just the market
  • 00:11:45
    getting ready to sink and go lower and
  • 00:11:47
    attack the sell stops that are below the
  • 00:11:50
    market place here for those traders that
  • 00:11:51
    have been fortunate enough to be long in
  • 00:11:53
    all this movement Road up to this high
  • 00:11:56
    but still did not take profits and have
  • 00:11:58
    open positions and their protective sell
  • 00:12:01
    stops are gonna be trailed up below
  • 00:12:02
    these lows so institutional minded
  • 00:12:05
    traders they're gonna see this as
  • 00:12:07
    liquidity the market will drop down 10
  • 00:12:12
    to 20 pips below equal lows and that in
  • 00:12:14
    itself you need to be determining
  • 00:12:16
    whether or not that's a trade that's
  • 00:12:17
    viable for you so what's a viable trade
  • 00:12:20
    I teach that my students as a new trader
  • 00:12:22
    should think about 20 to 30 pips per
  • 00:12:26
    week to start and that's a very very low
  • 00:12:30
    threshold objective it's easy to get
  • 00:12:32
    probably doesn't feel that way now as a
  • 00:12:34
    new trader but I promise you over a few
  • 00:12:37
    lessons you'll see how very easy it is
  • 00:12:40
    to find 20 or 30 pips over the course of
  • 00:12:41
    a week the problem is gonna be your
  • 00:12:43
    ability to refrain from trading once you
  • 00:12:46
    get it in your demo account you should
  • 00:12:48
    exercise patience and not do any more
  • 00:12:51
    weight to the next week because this
  • 00:12:53
    teaches two important and crucial
  • 00:12:56
    elements to longevity and trading number
  • 00:12:58
    one it teaches patience patience waiting
  • 00:13:01
    for the next set up now there's gonna be
  • 00:13:02
    a lot of gyrations in the chart that's
  • 00:13:04
    going to draw your attention you're
  • 00:13:05
    going to want to do
  • 00:13:05
    something with it there's nothing wrong
  • 00:13:07
    with paper trading it in other words
  • 00:13:08
    making notations and saying okay I would
  • 00:13:09
    hypothetically do this and
  • 00:13:11
    hypothetically do that but when you
  • 00:13:13
    practice practice with a demo account
  • 00:13:15
    doing one execution manage it to get 20
  • 00:13:19
    to 30 pips for the week and then stop
  • 00:13:21
    don't do any more demonstrating and it
  • 00:13:23
    also teaches discipline so you're
  • 00:13:26
    forcing yourself to follow rules
  • 00:13:28
    everyone else is taught in the books to
  • 00:13:31
    trade your edge keep doing the same
  • 00:13:34
    thing over again while your hands hot
  • 00:13:35
    play it hard
  • 00:13:36
    that's this foolish we're not gambling
  • 00:13:38
    we're looking for high probability
  • 00:13:40
    scenarios and setups so we have to
  • 00:13:43
    understand what that is so in in
  • 00:13:45
    addition to and a compliment to the high
  • 00:13:49
    probability scalping course I'm using
  • 00:13:52
    this first video to kind of like segue
  • 00:13:55
    into a little bit more detail I want you
  • 00:14:00
    to think about what makes price move
  • 00:14:02
    prices move to levels where orders
  • 00:14:05
    reside now orders reside above old highs
  • 00:14:09
    and below old lows so if we see double
  • 00:14:14
    toss and double bottoms our charts
  • 00:14:16
    should be noted like this notice there
  • 00:14:19
    is an absence of any kind of indicator
  • 00:14:21
    except for now the application of a
  • 00:14:23
    Fibonacci the Fibonacci is what I taught
  • 00:14:26
    to use to get the optimal trade entry
  • 00:14:29
    now what I'm going to show you here is
  • 00:14:30
    the classic ICT optimal trade entry
  • 00:14:34
    sixty two to seven times treatment level
  • 00:14:36
    get short look for an objective going
  • 00:14:40
    lower in here you can see how price did
  • 00:14:44
    have several opportunities to get short
  • 00:14:47
    at the sixty two percent tradesmen level
  • 00:14:48
    now finally expanded down hit the first
  • 00:14:52
    skilling objective which is the old low
  • 00:14:55
    seam here then target one is hit target
  • 00:15:00
    two is hit and then the symmetrical
  • 00:15:01
    price swing okay all of these levels are
  • 00:15:04
    in agreement with running below these
  • 00:15:07
    equal lows so it's not the fact that the
  • 00:15:10
    magic is done by the Fibonacci the
  • 00:15:13
    understanding is is there's traders that
  • 00:15:15
    have been going long here double bottom
  • 00:15:18
    is going to have trail
  • 00:15:19
    on their by positions ringing their cell
  • 00:15:23
    stops up so the markets going to come
  • 00:15:25
    back and grab those orders the market
  • 00:15:28
    does in fact collect all the cell stops
  • 00:15:31
    and then look at the nice vault higher
  • 00:15:34
    in price afterwards this big response
  • 00:15:37
    here is post sell stop rate in other
  • 00:15:42
    words after the cell stops have been
  • 00:15:43
    gathered up and tripped anybody that was
  • 00:15:45
    long now has been knocked out so if they
  • 00:15:48
    bought here or somewhere in this run up
  • 00:15:50
    here okay they have been taken out they
  • 00:15:54
    can't capitalize on anything going
  • 00:15:55
    higher but what happens if you don't
  • 00:16:00
    have the classic ICT optimal trade entry
  • 00:16:04
    on your chart so you miss it what do you
  • 00:16:05
    do well if you don't get into that
  • 00:16:08
    Fibonacci 62 to start chasing level as
  • 00:16:10
    that balance occurs here what are you
  • 00:16:14
    left to do do you just let the trade go
  • 00:16:17
    know over the years I've shared examples
  • 00:16:21
    of me getting into a trade and for those
  • 00:16:25
    individuals that aren't really
  • 00:16:26
    interested in learning from me they
  • 00:16:28
    they're quick to point and say well
  • 00:16:29
    that's chasing price and you're gonna
  • 00:16:31
    see just because we're not entering at
  • 00:16:33
    the 60 to the 700 tradesman level and
  • 00:16:35
    we're getting in somewhere down in here
  • 00:16:37
    that's not chasing price it's absolutely
  • 00:16:40
    not chasing price and I'll give you a
  • 00:16:42
    perfect example of it in this recording
  • 00:16:44
    but I want you to think about what can
  • 00:16:46
    we do as traders if we don't get this
  • 00:16:50
    area up here because I first taught that
  • 00:16:51
    this is where you should get in it the
  • 00:16:53
    problem is over the years I've been
  • 00:16:54
    inundated with emails stating that folks
  • 00:16:57
    don't have the courage to get in and
  • 00:16:58
    they want to get in but many times they
  • 00:17:02
    are too afraid to chase price because
  • 00:17:03
    they heard me preach don't chase price
  • 00:17:05
    don't chase price my definition of
  • 00:17:07
    chasing price would be once it breaks
  • 00:17:09
    below the low here then you are chasing
  • 00:17:11
    price you if it's gone too far
  • 00:17:13
    and you're too close to where the
  • 00:17:15
    targets would be to be able to see a
  • 00:17:18
    profit okay so what do we do well we can
  • 00:17:22
    focus in above that low in this area
  • 00:17:27
    right in here I'm gonna take you right
  • 00:17:28
    into that area with a little bit more
  • 00:17:29
    detail
  • 00:17:33
    so this is that section of price action
  • 00:17:36
    we just zoomed in and I want you to look
  • 00:17:39
    at this the up candle right in here
  • 00:17:43
    prior to this down move this is what I
  • 00:17:45
    refer to as a bearish ICT order block
  • 00:17:48
    now every up close candle and every down
  • 00:17:52
    close candle does not make a order block
  • 00:17:55
    okay there has to be a context or a
  • 00:17:58
    storyline behind why the price should be
  • 00:18:00
    doing what you anticipate it doing in
  • 00:18:02
    this case we think that the cell stops
  • 00:18:04
    below the marketplace are going to be
  • 00:18:06
    rated any time we see an up close candle
  • 00:18:10
    smart money will be in that candle
  • 00:18:13
    selling short but how can we use that
  • 00:18:16
    information well this very next candle
  • 00:18:20
    if you read the annotations on the chart
  • 00:18:23
    here price actually returns back to the
  • 00:18:25
    bearish order block low okay now what's
  • 00:18:27
    the low of this candle right here price
  • 00:18:29
    is returning back to it rate the time of
  • 00:18:31
    this candle is closed it hits that low
  • 00:18:34
    at that time that's a low risk entry
  • 00:18:38
    despite trading lower initially we can
  • 00:18:41
    wait for price to read trade back to the
  • 00:18:43
    order block to get in if we know what
  • 00:18:45
    we're looking for
  • 00:18:46
    so this read trade back to the bearish
  • 00:18:49
    order block is a low risk entry point
  • 00:18:53
    now if the short is valid this up close
  • 00:18:56
    candle will hold price below it until
  • 00:19:00
    the targets are reached on this case the
  • 00:19:02
    sell stops that we'd be talking below
  • 00:19:04
    the equal lows now notice also in here
  • 00:19:09
    as long as price is still above this low
  • 00:19:13
    this setup is staged properly to reach
  • 00:19:17
    for the liquidity pool below there's
  • 00:19:18
    equal lows I noted a moment ago in the
  • 00:19:20
    recording now as long as it's a boat
  • 00:19:23
    above this low right here the setup is
  • 00:19:26
    still valid but now I want you to think
  • 00:19:28
    about this formation right here this
  • 00:19:32
    candle already starts moving lower it
  • 00:19:34
    went down to this point here and then
  • 00:19:36
    started trading back up higher at that
  • 00:19:38
    moment while you're watching price right
  • 00:19:41
    in here that's when you time your entry
  • 00:19:44
    notice that the candles retracing right
  • 00:19:45
    back to the ICT bearish order blocks low
  • 00:19:48
    that's this up close candles low that is
  • 00:19:51
    exactly when your entries made at the
  • 00:19:53
    market institutional traders will short
  • 00:20:02
    during up moves now when price returns
  • 00:20:05
    back to these up close candles we can be
  • 00:20:07
    shorting it as well alright so now back
  • 00:20:14
    to our example here if we see that we
  • 00:20:19
    can find levels that have double tops
  • 00:20:21
    and double bottoms in the market we'll
  • 00:20:22
    want to go through them once this occurs
  • 00:20:26
    chances are the markets going to go the
  • 00:20:28
    opposite direction until it reaches
  • 00:20:30
    another area of liquidity so the markets
  • 00:20:33
    always gyrating back and forth back and
  • 00:20:35
    forth
  • 00:20:35
    seeking liquidity above the marketplace
  • 00:20:37
    and below the market place below these
  • 00:20:41
    equal lows there's a specific range that
  • 00:20:43
    I look for it's 10 to 20 pips sometimes
  • 00:20:46
    it can be as much as 30 pips but I give
  • 00:20:48
    a working range of 10 to 20 pips so
  • 00:20:51
    there's only two levels I'm looking for
  • 00:20:52
    it's not a zone exactly 20 pips below
  • 00:20:56
    that low at 118 84 it's one 1864 okay
  • 00:21:02
    really simple specific price levels not
  • 00:21:04
    zones not ambiguous areas to try to
  • 00:21:06
    figure out what's going on it's exact
  • 00:21:09
    it's a science we know exactly what
  • 00:21:10
    we're looking for but the problem is
  • 00:21:14
    what if we are expecting to sell short
  • 00:21:16
    at that bearish order block at the low
  • 00:21:18
    when it reads back to it does this offer
  • 00:21:20
    potential for us to take a well we have
  • 00:21:26
    an anticipated entry price at one 1891
  • 00:21:31
    we have an anticipated 20 pip sell stop
  • 00:21:34
    raid price at one 1864
  • 00:21:37
    so no words we're anticipating getting
  • 00:21:39
    in at one 1891 up here which is the low
  • 00:21:41
    of this up close candle and we already
  • 00:21:44
    know 20 pips below these lows the lowest
  • 00:21:46
    of the to equal lows is what I use 20s
  • 00:21:49
    below that that gives us a range low of
  • 00:21:51
    1 1864 so now we have 2 price points to
  • 00:21:55
    determine whether there's enough of a
  • 00:21:56
    range to make
  • 00:21:57
    profit you take to these two numbers and
  • 00:22:01
    you - them 91 from 64 gives us 27 pips
  • 00:22:07
    so we have anticipated range for
  • 00:22:09
    profitable movement of 27 pips
  • 00:22:11
    that is enough to take the scalp now
  • 00:22:16
    what I want you to do is I want you to
  • 00:22:17
    watch me use everything that's used here
  • 00:22:19
    because this is what was going on in my
  • 00:22:21
    mind before I actually executed and why
  • 00:22:24
    I took the trade okay folks we're gonna
  • 00:22:32
    be doing a short and I'm waiting for the
  • 00:22:40
    trade right back to the bottom of this
  • 00:22:41
    candle here set the traits to 1 1891
  • 00:22:47
    also short not in a hurry if it takes
  • 00:22:53
    off without me that's fine but I'm
  • 00:22:56
    trading the bear shoulder block in here
  • 00:23:00
    all right folks so I'll be looking for
  • 00:23:05
    that price at 118 91 as soon as it hits
  • 00:23:09
    it at market I will go short now my stop
  • 00:23:13
    has to be above the up close candle or
  • 00:23:15
    bearish order block but because of a
  • 00:23:17
    spread in this demo account it forces
  • 00:23:19
    you to be 10 pips away so I'm just gonna
  • 00:23:21
    elect to go with one 19154 my stop okay
  • 00:23:27
    it's about there i fingers on the
  • 00:23:32
    trigger
  • 00:23:32
    I'll have to do boom okay now I'm short
  • 00:23:37
    my stop is just below one 1915 and I'm
  • 00:23:44
    focusing my attention right below these
  • 00:23:46
    equal lows because I want to see a sell
  • 00:23:48
    stop raid so I'm gonna put my
  • 00:23:51
    delineation somewhere that would be in
  • 00:23:53
    terms of targeting and just in case I
  • 00:23:57
    had my limit order lower down to here
  • 00:23:59
    okay so if it goes down to that low and
  • 00:24:01
    it's not a stop run I have a limit order
  • 00:24:05
    to catch any accelerated price movement
  • 00:24:08
    but I'm really targeting that 20 pip run
  • 00:24:10
    so I have three Lots short I'm watching
  • 00:24:14
    price I want to see it trade below that
  • 00:24:16
    short term low we're flirting with and
  • 00:24:19
    then have a range expansion below there
  • 00:24:22
    so this recording is actually sped up
  • 00:24:25
    for time purposes but right now we're
  • 00:24:28
    retesting the bodies of the candles in
  • 00:24:29
    the previous short-term low and now I'm
  • 00:24:31
    gonna be looking for expansion on the
  • 00:24:32
    downside and it'll reach 10 pips and
  • 00:24:36
    hopefully 20 pips it's about two minutes
  • 00:24:38
    late from 8:30 New York time usually
  • 00:24:41
    it's a big volume increase for
  • 00:24:43
    volatility and I'm setting my order up
  • 00:24:45
    to collapse
  • 00:24:46
    two of the three standard Lots that I'm
  • 00:24:50
    short on Europe and I'm watching waiting
  • 00:24:53
    to see if price gets down to that second
  • 00:24:55
    level or 20 pips okay it's already
  • 00:25:00
    showing 10 pips up the decline as soon
  • 00:25:02
    as it hits that lower level line I'm
  • 00:25:04
    gonna collapse two of them there you go
  • 00:25:06
    and move my stop down to +1 now I'm in a
  • 00:25:09
    situation where I don't really care but
  • 00:25:11
    look at the entry points zero heat
  • 00:25:14
    no drawl down on that entry no drawl
  • 00:25:17
    down whatsoever it was not chasing price
  • 00:25:20
    so I have two of the three standard Lots
  • 00:25:25
    banked and now I'm watching price later
  • 00:25:27
    on and I'm gonna be looking to lower to
  • 00:25:30
    stop-loss and I may get lucky here and
  • 00:25:33
    see a run down to that limit order but
  • 00:25:37
    always keeping in mind that it started
  • 00:25:40
    to trade with the context of it being
  • 00:25:42
    just a stop run one sell stops so I want
  • 00:25:45
    to be mindful of how much the price
  • 00:25:47
    shows a willingness to stall or not want
  • 00:25:50
    to go lower and I'm watching price in
  • 00:25:52
    here to do that so I've collected a
  • 00:25:55
    small portion of the position also now
  • 00:25:58
    here's the second time taking something
  • 00:26:01
    off so a very small portion of the
  • 00:26:04
    original three standard Lots one that's
  • 00:26:06
    the small little fragment of the
  • 00:26:09
    position price does one more attempt to
  • 00:26:12
    break lower again now it's ten o'clock
  • 00:26:18
    so time has passed about a hour and a
  • 00:26:19
    half is going by and at this time I'm
  • 00:26:23
    watching price I do not want to see it
  • 00:26:24
    reverse or start to show a sign of
  • 00:26:27
    rejection stop has been lowered to now
  • 00:26:32
    I'm gonna be trying to lock in 20 pips
  • 00:26:35
    with my stop-loss
  • 00:26:37
    as it breaks down I will lower my stop
  • 00:26:39
    so that way if it does knock me out now
  • 00:26:41
    I have 20 pips locked in 25 pips is
  • 00:26:44
    locked in now we're in an area where it
  • 00:26:47
    could start to reverse it could fail to
  • 00:26:49
    get down to that other limit order so
  • 00:26:53
    I'm not gonna be able to move to stop
  • 00:26:55
    because the spread won't permit me to do
  • 00:26:56
    so so I have to either allow my stop to
  • 00:27:01
    be hit or my limit order to be taken or
  • 00:27:04
    I can collapse the trade now I was away
  • 00:27:06
    from the computer here at the time but
  • 00:27:07
    had I been there I would have been
  • 00:27:09
    collapsing right now well ultimately
  • 00:27:14
    price comes back up and it does in fact
  • 00:27:17
    stop me out eventually as you'll see
  • 00:27:24
    but I profited along the way taking out
  • 00:27:27
    small portions because you never know
  • 00:27:29
    you never know if it's gonna go down to
  • 00:27:31
    your objective and if you've taken the
  • 00:27:33
    risk on initially that risk needs to be
  • 00:27:36
    reduced to a point of which where it's
  • 00:27:39
    no longer impactful and there's my
  • 00:27:40
    stop-loss
  • 00:27:41
    being tagged and there is the fruits of
  • 00:27:44
    that short very very predictable in
  • 00:27:50
    terms of price action and not a bad
  • 00:27:54
    little scout for a run on stops the
  • 00:27:58
    context was there everything was
  • 00:27:59
    outlined and you can see the post trade
  • 00:28:02
    results ultimately later on you can see
  • 00:28:06
    as we showed in the beginning the video
  • 00:28:07
    your dog does vault up higher after
  • 00:28:10
    running those stops hopefully you found
  • 00:28:11
    this insightful until next time wish you
  • 00:28:13
    good luck and good trading
  • 00:28:22
    you
Tags
  • ICT trading
  • liquidity pools
  • order blocks
  • Forex trading
  • demo account
  • price action
  • trading strategies
  • retail trading
  • trading setup
  • trading psychology