ICT Advanced Price Action Trading Concepts

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On the 90% of all losses, ICT was talking about all of the losses he took on his Bond trades, I believe. This is why the Kill Zones are talked about so much. The Dealer's Range consolidation will normally get worked on Both Sides, which will kill all but the largest of Stop Losses.

Edit: I was going to put this back in my previous post, but the editing was locked. Oops.
 
Got a chance to talk to ICT ( plug for the Chat that Jack added) for a bit today. So three details.

1) Session wasn't recorded and he might not use GotoMeeting again. He was trying it out. (Reviews/thoughts welcome on that)

2) I didn't miss anything with my notes, so that should cover most things that he went over. Minus crying yourself to sleep on over-leveraged losses.

3) He *will* do teaching on this in the future.
 
Personally, I like the Go To Meeting format. I like the audio commentary than trying to follow a fast scrolling chat window, with a lot of off topic comments... or thousand people asking if their is audio every 30 seconds. That is distracting. That is just my opinion... Anyway he was to share is fine with me though.
 
Live Stream Notes for April 25:

Not Recorded.

5ish Volumes to come in the future on this topic.

Studying USDJPY.

Looking back at Market Structure today.

101.25 Order Block discussion.

Just because there is an Order Block, doesn't mean we take a trade. We look in closer, and look for Price Patterns.


- From Daily Chart, always go DOWN at least 2 time levels -

From "Trading For A Living" by Alexander Elder


ICT uses, in teaching, D1, then H4 and H1 chart.

Framework for the Trade has to be in-line in all 3 Time-frames.

Looking at the Feb 28 Swing Low in the Yen.
- Response to Feb 3 Order Block.

ICT first "sees" Swing Points, then starts analysis of Market Structure. Then finding Order Blocks.

Laying out how to digest a price chart.

"Parent Price Swing" / "Subordinate Order Block" teaching soon. "Parent/Nesting" Concept... coming soon!

About how getting in Intraday is actually a Swing/Position Trade.

Don't change the idea of your Trade when you're in it; this is why he taught "Double Tap" trades.

Order Block Priority is always to the Higher Time Frame.

Highlighting the demo-Gold trades and how you "good trades" that ignore the Higher Time Frame get stuck.

Picture 1: Parent Price Swing

Bottom CAUSED the Top of the Range.

KEEP NOTES OF KEY LEVELS!

Don't want to be going opposite into key levels.

Trade in the Grey: tools only give you accurate but not perfect information.

He's confident about 90% of all of his losses are trades taken during a Consolidation.

Reactionary Traders are Emotional Traders.

L7 Range can let you know "over-bought"/"over-sold" long before an indicator can.

Higher Time Frame Levels aren't "take a TRADE!", it's a "Killing Zone" to hunt your trade.

Showing the ICT Reflection on March 3rd.

Demonstrating ICT Reflection Pattern: Came from a Corn Chart in his Entertainment Center.

And teaching Turtle Soups. Price swings stop *before* a key S&R, then shoots up to the actual level before Swinging away.

Picture 2: Look at it in a Mirror.

ICT Reflection Pattern: Use of the Fib in a reverse view. How he can catch/call Tops/Bottoms.

Pull Fib, then shift it until the first Reaction level, then move closest point to 79% OTE level. 100% is expected Top/Bottom.

Don't chase the Price Action. Use the H1 order block beginning level to start hunting your entry.

Looking at it Real-Time is necessary to understand it, which means you have to be there and study it. Charts help, but you have to be ready there.

Swing Points aren't good unless it's at a Key Level. Then it's great.

ICT's Swing setup is based off the old Larry Williams "Ring High" or "Ring Low"

Swing Point Analysis: Open, Low, High & Close of the 3 Candles have utility.

Picture 3: Red lines are Swing Point important Levels & HOW TO LOOK AT ORDER BLOCK LEVELS.

Do Not Chase Price!

Don't Jam your Stop Up when you're taking a longer-term trading. If you're not comfortable taking risk, just trade Demo for fun.

Nesting aspect: the Child Order Blocks are built up, which is the sign of the Trend.

If a market is moving quickly, it's headed somewhere with a very specific reason.

Smart Money Buys in Sell-Candles; Sells in Buy-Candles. You know when the Order Block is respected.


Short Pyramid explanation:

Inverted Pyramid: From Ken Roberts, BUT DO NOT DO THIS. IT'S Stupid, and only works when you get lucky.

Normal Pyrmaid: A way you *can*: You can take a *SMALLER* position the further in the trend you go. This is how funds operate.

Lots of opportunity: but if you lose the Higher Time Frame, you miss the great opportunities.

Going over previous week (April 21 to 25) USDJPY.


Central Bank Dealer's Range: 18 GMT to 0 GMT.

Highlighting the trade above the Dealer's range on April 24.

Order Block "framework" has to allow price to move around a little.

Using the previous day's True Range, using the Standard Deviation. There is Money on either side of the Range.

Picture 4: Alignment of Dealer's Range.

10,000 dollar challenge still on.

We want to take the other side of Trades that Street Money is taking.

Power of 3 explanation.

Reference the move above the Open (in a Down Day) as a Range expansion.

If you think you're doing something wrong, either collapse the trade OR walk away for the day. YOU WILL CONVINCE YOURSELF YOU'RE RIGHT.

Being able to Manage the emotion and Manage the trade, that's the biggest skill.

Apparently a guy started at $100 and replaced his income after a while. Keeping his job because he wants to open franchises.

Daytraders' market right now. If that doesn't fit you, take time off and Study.

If you can sit on your hands and wait for the 3-4 trades per month that hit (3:1 R/R), you can get to a functional life eventually. A 100,000 account is very doable in 3-4 years with consistency. What type of living can you have for 8% on a 100k account?

ICT will be completely gone from Charts & Trading for June. He's going to unplug. We hope.
 

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Oh, one thing I should probably point out, since I study the USDJPY.

The 101.25 level is actually from a Weekly Order Block... created in April 2013. The Higher Time Frame premise is really key in all of this.

Now, tracking the current Weekly Order Blocks is a bit of a head-scratcher, but that's a separate issue.
 
Roaray said:
Hi Squa, Thanks for your great posts. Do you have the custom Indicator(Period Seperator) for MT4 Please.

ICT was going to toss his indicators up on his website, but he hasn't yet, to my knowledge. So I don't have that Period Separator yet.

However, this is my Trick:

- Open an ICT Asian Session Indicator
- Change the settings to: 18:00 GMT & 23:59 GMT (or whatever is the same from your platform)
- Change the Line Color and Line Type

You don't get the vertical bits, but since this is a *daily* activity, you can just place lines yourself.
 
Live Stream 2014-04-28 Notes.

Note: this was supposed to be 2 hours. It hit around 4.5 hours. :eek:

Central Bank Dealer's Range & "Little Known Strategy" for growing a small account quickly.

Dealer's Range lets you look "behind" Price Action.

Pre-analysis HTF helps a lot, but isn't necessary.

All pairs have "fake out" moves, no matter the volatility. Judas Swings.

When looking at Price, where is the Potential Area of "Stop Loss Orders". Cluster or Congregation of Orders. "Clean Levels".

Raids have "speed". When Price trades cleanly and then falls off, it's a sign of Liquidity.

Gauging where a potential large reaction levels with technical analysis.

And how to use the Sunday Range.

Use both Friday & "Sunday"/Monday as your Dealer's Range.

Picture #1, covering in case ICT screws up the recording. :)

Majority of movement is London Open to London Close.

Reversal Patterns during NYO are on Higher Time Frame analysis.

How do we arrive at London giving you High or Low for the Day?

During Dealer's Range, it's a bad idea to take a trade during it.

Don't think that the Next Setup happens in the Dealer's Range.

"When Not to Trade" is incredibly important, which reminds you not to take trades during this Range.

2 Approaches:

1 Standard Deviation: Boxes on Top/Bottom.
Banks are looking for where the Stops & Liquidity?

Got to talk to a Pro Poker Player. The players have a niche for exploiting the Game. They know how to Maximize their Risk:Reward when it's available.

Knowing your Edge, and how to apply it, is how to make it when the Odds are against you. The Game Changer.

This happens every day. 10k challenge still open. :)

He will call the Dealer's Ranges as "Buy Window" or "Sell Window".

No crystal ball for which way it will go first. But Higher Time Frame gives you a higher probability to know which way it will move first.

Thanks Chris Lori for Asian Range, helps set the rest of the day.

Power of Three coverages. Discussing Weekly Order Flow, Blocks, trading against them is risky.

I'm a Buyer: Where is my Stop Loss?
I'm a Seller: Where's my Stop Loss?
I'm trading a Breakout: Where's my Buy Order?
I'm trading a Breakout: Where's my Sell Order?

Ask yourself that daily, will help a lot.

ICT doesn't want you to trust him; he wants you to Trust Yourself. Getting to that level on your own is the point of all of this.

ICT wants to see others do well with this, as he's made his money.

Very lonely work, and, even making money, is actually pretty boring.

If you don't come to the conclusion on your own, you're hurting yourself. If someone else comes up with the Trade, you train yourself to follow, like a dog.

Picture #2 - What Setups you are looking for in each of these.

Asian Range is useful in a lot of ways, but Dealer's Range is where it's at.

ICT London Open: 6 to 10 GMT, then 7:30 to 8:30 GMT.

Picture #3: Do you want to Buy that? But that's where the Fair Price is at. This is HARD to learn. (003.bmp)

Lazy Pays ICT: you want the Lazy to pay you!

Normally an Order Block from NYO.

DO NOT TRY TO TRADE THE DEALER'S RANGE FOR A MONTH! Note it for yourself, and do that for a Month.

Don't make mental mile markers of Defeat. Use it as an exercise.

Large Range Days start with a move away from the Open. Question is "Where"? That's what we're working to learn here.

Price in the Window will still go to a Fib level, through Stops and to Order Blocks.

Be driven by a Process, not by Greed. You don't, however, know how much Money is available. You want to get to be friends with Price Action.

What Price Action doesn't like is more important than what it does Like.

Do not Chase Price. Take the Money out of the exercises until you learn. Study it.

If you have a Bullish Market, You do NOT want to focus on any Short Selling.

If you're making money/pips on Shorts, you convince yourself you're analysis was wrong.

How often have you stuck with the Higher Time Frame Analysis and WAITED for it?

If you have no opportunity for you to be up at London, you can place HTF-trend analysis to place Limit Orders at Midnight GMT. ICT favors -5 to -10 below ADR for an exit. Don't so demanding on exit.

Do NOT watch your equity if you're looking for the ADR. You will convince yourself out of your targets.

In Day Trading, Larry Williams taught to hold for the ADR as much as you can.

Day Trading, 1500-1600 GMT is when you look to take profit.


Parent Price Swing concept. This is why previous day's High & Lows.

We take Profits around Time & Price because it can close back to the Dealer's Range on any day.



Explosive Days/larger ADR days. Use 2 Standard Deviations. That's what we do.

Go back in your charts on the pairs of your choice. Study Days that had massive Ranges. Use 1 STD then 2 STD.


Can be wrong, but there's a set of reasons why it breaks down.

When D1 Chart doesn't give a "good" Order Block, look for it in the H4 Chart in the move after.


Will never "Swing" more than 2 STD, otherwise it's an explosive Pip day.


Always refer to where you are in the Current Trading Range.

Showed it works on GBP-CHF.

Looked also at EURJPY.

Previous Day Low/High is a great location to look for Price to Run to.



-- ICT is combining everything up into an Expert-level, 3 Volume Teaching. In the future. --


Where's Intra-week High, Low?


When you have a "Normal" Market condition. Always be mindful of 2 Standard Deviations, which sets up a "Market Reversal Profile".

If it blows through 2 STDs through London, it's setting up a London Close Reversal Profile (highly likely).

Z-Days are going to cause you to lose money, if you're not careful. They're like Land Mines.

Getting "paid" quickly is the best sign you're in the market properly. If it isn't going anywhere quickly, you're likely wrong.

Being in the Market enough, studying well enough, you see what is likely to happen in those situations. You have to spend time to learn this. Not trading.

Focus on the Process. Find the things that makes sense to YOU. But you have to find what it is you do.



There is a way Small Accounts can really Build up, with little risk & little trading.

"Not doing Something" is a Position, and it Wins every time.

-- Side point about it not being about the Money, but the Freedom. However, you shouldn't be going Full Time untily you have 100k in the bank. 5 years is an ideal Time Frame.

Not going full time... isn't wrong. It takes trust in yourself, either way. --

What to do if you can't get 5k or 10k? How to start with a small amount.

Explaining Ken Robert's 1-2-3 Top (or Bottom), looking at Yearly High/Lows



John Murphy's Technical Analysis on the Financial Markets (title changed?) - suggestion for it.

ICT wanted to figure out how to make Ken Robert's Idea into something on steroids. (Apparently the Feeder Cattle Market is how he got this to work)

-- Measure yourself against... yourself. That's how you develop. --

This is Futures & Options teaching.

-- ICT is a little too obsessive about price Charts --

Looking at Lean Hogs. Picture #4. No joke.

---------------------------

Teaching:

Higher Time Frame -- Weekly Charts -- for the Market.

You have a very limited risk exposure.

- When applied Volatility is Low, Options markets get really quiet.

- You'll purchase "Call Options", if it's going Up.

"Call Up" / "Put Down" for remembering the terms.

Go to the Options change, Out of the Money, that's at least 1/2 of the previous range.

Premium + Cost is your Risk.

Look 12 months out, looking at costs. Go through the "Options Chains".

- If you search, you can get Options that are very, very cheap.

Don't purchase beyond 50% Retracement level, from the 62-79% level.

Looking 6-12 months out.

This is just Price Action for Huge Moves.


When going down, Calls are over valued
When going up, Puts are over valued

It's a "bang for your buck" style of trading.

COT data helps, but we're already at 4 hours.

--------------------------------


If you're trading on pure Dealer's Range intra-day via the "can't be there" method, take 1/2 off at the opposite side of the dealer's range. Move other portion's Stop Loss to +1 pip. Let's you hold out for "near" ADR, without any risk.
 

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Well done Sqa. You put a lot of work into this summary and did a great job. I understand what standard Deviation is but you've lost me a bit on this. Do you use standard setting in the indicator and could you explain a little further please? Thanks
 
ICT should have the Webinar out Tonight/Tomorrow some time. The Options Stuff should start right around 3 hours in.
 
Hello Friends,
Most of us of this thread are following ICT Price Action concept and OTE is very impressive entry point, but all of us watching same chart but result is different, so I decided to note the confluences in respect of most importance. If you have a different view, please share us.

1. Daily swing point (3 bar)
2. Market structure break
3. HTF Support Resistance
4. Institute Level
5. Dly, 4hr Order Block
6. Stop Hunt
7. Divergence with indicator or co-related pair

Anything else I am missing!?!?.......... and to find above confluences we need good patience :) and that is the key.
 
juteksm said:
Hello Friends,
Most of us of this thread are following ICT Price Action concept and OTE is very impressive entry point, but all of us watching same chart but result is different, so I decided to note the confluences in respect of most importance. If you have a different view, please share us.

1. Daily swing point (3 bar)
2. Market structure break
3. HTF Support Resistance
4. Institute Level
5. Dly, 4hr Order Block
6. Stop Hunt
7. Divergence with indicator or co-related pair

Anything else I am missing!?!?.......... and to find above confluences we need good patience :) and that is the key.

I guess it all depends on the individual but the Central Bank Dealing range does look very useful to use.
 
I have started a Myfxbook "Demo" account with 3000 deposit,
am planning to trade Fiber Only, with 1 trade a week, if it presents itself.
Will use a respective 30 pip stop each time.
When i place any trade/order, i will show it here...
If any of you think there is an opportunity to put the "1" weekly trade on, let me know your thoughts, to discuss here.
lets see if we can make some profit, from 1 trade a week, no more!
Because i trade live during Asia, this is the best i can do for a 1 shot 1 kill per week following Fiber only During/into London open
Who's in for the challenge?
 

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