ict

what does ict do first

Look at the weekly chart and try to get a read on what the next weekly candle is gonna do if it’s going to go higher or lower (not trying to predict the close and also think about where price is likely to draw to(which levels)

What can cause futures to go down

When interest rates go up as stock market doesn’t like that. Earning season can cause volatility in the market and can cause price to go down if the reports is bad or worse then expected

What does market draw to

Either stops which is liquidity or going to an imbalance

Once you have an idea(bias) of where it’s gonna go for the week what do you look at next

Swing highs and lows on the daily to get your liquidity(majority of draw on liquidity found on this time frame so majority of your analysis should be here) and identified a low that it will most likely draw to that day

What happens when you expect a significant price move lower is expected

Anticipate a stop hunt (trigger of buy stops) of buy stops or a short term high taken out

When finished on day where do you go next

On to the 15 minutes and highlight the hourly swing high or low you think will be swept to get liquidity to go further down to the level you expected.

Why are equal highs and equal lows important

Because retail traders view it as important and they usually put there buy stops above them and vice versa for equal lows

What is a break in market structure

When a market creates a short term low in a lower time frame such as a 2 minute and then displaces below that

Why is the 1,2 and 3 minute charts the best for looking for imbalanced

Because the high frequency trading algorithm normally don’t operate on anything higher then 3 minutes

What happens when your target swing high or low for liquidity has been swept on the 15 minutes

You want to go down to the 2 minute or 5 minute and then look for a break in market structure and a retracenent of price back to the fvg from that break in structure which is where you want to sell and if you don’t sell there you can go to a lower time frame and wait for it to occur on that time frame. And you would put your stop above a swing high if shorting

What do you use when identifying premium and discount

Use the Fibonacci tool to highlight the low of the day and the high of the day and identify 50% between there if selling the premium would be above the 50%. And if short you want to look at the previous range and want to take a short at the premium and the algorithm usually then heads for a discount so you would want to close your short at a discount below a swing low or fvg as that’s where sell stops are

What is a imbalance that is bullish

A buy side imbalance and it has to have a equal delivery to be efficient priced and book by the algorithm so price will go down to fufill its role in balancing the buy side offering with a sell side offering

When does he watch the index futures

8:30 -11:00 New York time to take a set up

difference between market structure shift and market structure break

Market structure shift is a change intraday price movement where as market structure break is the overall trend

What is a market structure shift

When price has traded below a low (or above a high) that will be viewed as support or resistance for retail traders and (if the low taken out) you would wait for price to then go above a swing high(it does not need to close above it)and that will be a market structure shift and

What is a bullish order block

When price takes out a significant or old low then there’s displacement above the opening of the move down before the move up after that low is taken the opening would be the order block and when price retraces back into that order block it acts like support. So in this case it would be the highlight just above the black as that’s the opening

What is an order block

It is a change in the state of delivery once price moves below it. It is also sensitive as price remembers it so when price goes back in there it acts as support if a bullish order block and resistance if bearish order block. As shown in the picture when price moved above it it switched delivery from offering sellside to buy side

What highs and lows is market likely to sweep

You will highlight London New York and Asia session highs and lows and any intraday high and low forming right before equites open at 9:30

When does he say it’s best to take trades

8:30-11 New York time then 1:00-4:00

What is internal range liquidity

Short terms lows and short term highs in a price leg that we are retracing back into

What does he do when there is 2 fair value gaps after a market structure shift

let’s it trade into the lower one and take the trade when it goes back up to the higher fvg

How much does he risk per trader

4 and a half percent per trade

What is displacement (tt trades definition)

Aggressive move with full bodied candles and closes above the swing high

Spx 500 delivery months

the third Friday of that month is expiration and you don’t want to be trading after expiration for that specific contract so for example march it will be the third Friday of march and you will start trading the next

What does he consider the 15 minute time frame

Bell weather so where he looks for key highs and lows and imbalances etc

Where does he take trades

8:30-12:00 (because news come at 8:30)and 13:00-16:30

What is the theee dives

When price creates a swing high then a higher swing high and higher swing high and when you get that the price doesn’t have to take out a old high because every time it creates a swing high and goes down bearers are trying to sell it and putting buy stops above the previous high which keeps getting taken and smart money already establishing short positions

What do you wanna see when looking for market structure shift

Displacement

What happens 10-20 minutes before 4

The algorithm starts spitting aggressive pricing to get traders to cover or get out of there trades so usually if it’s going up it will go up faster

What does he check for in 15 minutes

Prior to the market open what is the most significant or obvious swing high or low the first one you see before 8:30 and after 13:30 for afternoon session then after that goes into the 5 minutes

What happens when this swing low after 13:30 got violated

The stop hunt starts a buy program where the algorithm goes into the process of spooling which continues offering higher prices

What happens if you don’t get a swing low violated after 13:30 on afternoon session

You will look for a move up higher with displacement and look for a fvg and buy when it retraces to fvg. But if a swing low does get violated he buys and don’t wait for fvg

How we internalize price delivery

Do not trade pattern for patterns sake

Do not trade indicator readings or momentum

we look to enter longs where retail sells

We look to enter shorts when retail buys

We anticipate price seeking opposing liquidity

Time of day is vital when engaging price

Why is time crucial for smart money

Because there are specific elements in daily range that build the likelihood of volatility to come in and when short term reversals are likely to occur

Bearish ict fair value gap

There is a high taken out with a candle then the next candle is a low that goes below it and the third candle goes below the second one but can not have a high that goes to candle number 1

What does a bearish fvg mean

The gap means that price is only being delivered in the sell-side and hasn’t been efficiently offered. For buyers and to balance it the market wants to trade up into that area

Market stricture shift bearish

Price will rally above an old high or highs and quickly shift lower then swing low and there must be displacement and preferably close below (doesn’t have to close below)old swing low and a lot of movement below the swing low

Where do you look for fair value gap

In the area between where the new high is formed and where the swing low that needed to be taken out is

Where do you put your stop loss

Above the candle right above the fvg or the swing high

Time frame switch quite

Once you mark a sworn high or low to is text to be taken out on the 15 minute you would go down to the 5 minute and will wait until the swing high taken and market starts trading lower and then go into 3 minute and look for fvg and go lower if no fvg

Where does he take partials and where he close trade

Takes partials at internal tangle liquidity so that would be within the price leg where the discount is and closing if trade would be the lows or highs that haven’t been swept yet that are outside price leg when you use the Fibonacci

What he uses to determine daily bias

For example if we just took out a high and there’s a market structure shift and a retracement into fvg at the fvg he will be anticipating lower prices until price reaches the target (whether the lows or a confluence within premium) and if he does take a long he will use less money

How much to risk as a beginner

Less then 1%

How does the spx and Nasdaq and Dow relate

They have roughly the same price movement

Using the Nasdaq Dow and spx to confirm an idea (going higher)

When the Nasdaq creates a lower low and the spx creates a lower low but the Dow is creating a higher high when you see this smt divergence and it cracked(didn’t move in tandem) at a important point where liquidity was just swept

What did he do when didn’t know where market willing to go

Put some money in and helps you see how the market is reacting when you put that money in and look at whether it’s easily or lethargically moving away from that order or running agains it. And it makes you more attentive to price

When does ict trade happen

7am to 10am and this is the ict kill zone for forex

For expansion type moves where there’s no range where do you take profit from

Place fib for the previous swing and put the fib with 0 at the previous swings low and the 1 at the previous swings high and then negative 1 would be the target

Why did he anticipate eur jpy going higher

Because eur dollar went higher also the euro alone going higher and the yen alone going lower

What is a indecisive candle

When the body of the candle is thin

What is power of 3

Accumulation manipulation then distribution

Power of 3 when bullish

Expects opening price to be near the low of the day then trades lower making a important low then rallies created a high then closes near the high of the day

Where do you wanna take long

Ideally the manipulation but if not near the opening price

What is a high probability order block

Consecutive Down close candles then price displaces above the swing high and there’s a bullish within that order block

Where did he go long

When price traded into an fvg that was before 8:30 and it’s big one on the 15 minute and there was order block there with a short term high begging taken out but the short term high was after 8:30

What is the closing time for ict

4:30

What happens when you get a over night price move up before market open where overnight is 2am to 5am

Doesn’t ain’t to trade a lot aNd get in and out moves he waits for a significant price move otherwise you get chopped up

When looking for a low for price to go below what does he look for

Preferably a low that has an fvg below it that aligns with the direction you want price to go

What does he do when there’s a big run overnight

Avoid the morning New York session instead waits for lunch and anticipates the New York lunch lows taken out or the New York morning session low (if you are bullish)