Live Stream 2014-04-24 Notes
I'm not sure if ICT recorded today's session or not, but here's some notes I took.
On Trade Setups/Ideas that are highly likely:
- Mark Key Levels
- Wait for Reaction
- Wait for Order Block to be gone back to *during* a Kill Zone
(Level, Response into Time & Price; That's the Order in which you deal with trade setups. You "fit" the trade idea to what the Price is giving you, not the other way around)
When trading to a Big Figure, expect some momentum past it. (Big Figures, 00 & 50, have a lot of orders booked up, so the longer it's been away from a level, the more momentum to expect past them. Really KEY if you're placing a Limit at one)
"Street Smarts" referenced again. Taking trades inside a consolidation is an almost sure-fire loser.
If Price, going into London Session, goes into the previous day's Order Block: where is the Highest Likelihood Price it will turn at.
You have permission to lose... just not more than 2%.
The Price goes to where the Majority of Money is to be made.
What happens at 5 GMT? First major move is where the Money is.
90% of all losses came from taking a trade during a consolidation.
Use Dealing Range as Box, Copy High & Low, as a 1 Standard Deviation Trading Range for the day.
1 Chart per day.
Since ICT was fighting the Beast from the Cave of Caerbannog of Rabbit Trails with the last part (which ran roughly 2+ hours after he wanted to end the webinar), I'll explain what he was up to. This is also what he did when he solo-mentored people. One of which (Gate) showed up Wednesday. Who, it should be noted, has made legitimate bank with ICT's teaching.
So, the Dealer's Range Chart Exercise, which goes with the video posted this morning goes like this:
- 4 Weeks of *just* watching Price Action, in real time, from 5 GMT to 8 GMT (or roughly there about). The point of the exercise is not to take trades, it's to *watch* the Price Action. Watching in Real-Time ends up being key. (Any of the pro traders around can probably explain about it better)
- 3 Months of trading 20 pip gain/20 stop-loss, on demo, using the Standard Deviation Model.
- At this point, you'll start knowing what Price Patterns are forming and have a very good idea *where* to get out of the trades. (If it's a day-trade)
This is the method ICT used for solo teaching.
The Attached picture is how ICT was highlighting the functionality. You take the Dealing Range (1800 GMT to 2359 GMT) and replicate the Boxes to the Top & Bottom. This forms the Dealing Range & 1 Standard Deviation top & bottom.
This is where the "Power of Three" concept operates from. The picture is this analysis on the Pound-Franc, as ICT asked for a random pair to do analysis on (as it works on all of them). Someone typed that first.
Second Exercise:
- This is with the "Homework".
- WORK ON ONLY 1 PAIR
- Post, for 30 days (though I think he means 1 Trading Month) the Dealing Range analysis of your pair. Along with the Order Blocks within reach for that day.
Sub-section topic he ended up hitting on for a while:
Review the Price Action series from this weekend, especially the "L7 Range". It came up during the Pound-Franc analysis, but it's really helpful in properly framing the more functional Range. Just pulling a Fib doesn't mean much. It's *where the Order Block* is within the Fib. An area with a heavy Order Block is the previous Swing to to be most mindful of.
Knowing how to choose Order Blocks is a skill that takes work, which is why it's lost on so many. Which is why ICT wants Homework posted.