sauce

Introduction

• Introduction to the trading model

  • Claim of making over $500,000 using a single ICT trading model.

  • Framework that is easy to learn and execute.

  • Proven win rate of over 70% if traded correctly.

Steps in the ICT Trading Model

Step 1: Determine Higher Time Frame Trend

• Importance of recognizing the higher time frame trend before trading to avoid trading blindly.

• Many traders overlook this critical step leading to inconsistent profits.

• Questions to determine higher time frame bias:

  • 1. Are we delivering from buy side or sell side liquidity?

  • 2. Are we respecting or disrespecting fair value gaps?

• Definitions:

  • Bullish scenario:

  • Delivering from sell side liquidity.

  • Disrespecting bearish gaps.

  • Respecting bullish gaps.

  • Bearish scenario:

  • Delivering from buy side liquidity.

  • Disrespecting bullish gaps.

  • Respecting bearish gaps.

• Explanation of respect/disrespect of gaps:

  • Disrespecting a gap: A body closure occurs above a bearish gap.

  • Respecting a gap: A wick hits a gap and the market trades away from it.

• Illustration of bullish and bearish scenarios with liquidity pools and gaps.

Step 2: Identify Key Levels for Bouncing

• Importance of finding points where the market will react to set clear trades around the bias.

• Time frames to analyze key levels:

  • At minimum, use the 5-minute time frame and higher (15-minute, hourly, 4-hour, daily, weekly).

• Types of key levels to observe:

  • Fair Value Gaps:

  • Must see price rejecting or bouncing off this level (5-minute or higher).

  • Intermediate Highs and Lows:

  • Intermediate low is a low left inside a gap; intermediate high is a high left inside a gap.

  • Previous Day High and Low:

  • Excellent areas for liquidity pools.

  • Previous Week High and Low:

  • Similar liquidity concepts as previous day high/low.

  • London and Asia Session Highs and Lows:

  • Often aligned with gaps and good areas for potential price reactions.

• Tools and resources for identifying session highs/lows.

Step 3: Understand Price Reaction at Key Levels

• Importance of recognizing price manipulation at key levels to improve entry probability.

• Identifying manipulation leg:

  • Mark from the lowest point to the highest point hitting the key level or vice versa.

  • Understand the significance of displacement post-hit.

• Role of the highest time frame fair value gap for entry:

  • Identify gap from 30 seconds up to 5 minutes.

  • Select the highest time frame gap available for entry bidding.

Step 4: Targeting and Exiting Trades

• Discuss best practices for identifying exit targets based on prior liquidity pools.

• Eight key targets used for exiting trades:

  • Relative Equal Highs and Lows: Strong liquidity targets without clearance of previous highs.

  • Equal Highs and Lows: Exact liquidity points that often become traps for traders.

  • Low Resistance Liquidity: Generated by accumulation of stop losses, producing quick price movements.

  • Previous Day High and Low: Excellent as both targets and rejection areas.

  • New Day Opening Gap: Known gaps from weekly openings also serve as targets.

  • London and Asia Session Highs and Lows: Areas where price tends to revert.

  • Data Wick: Anomalous movements caused by high-impact news; often act as imbalance to target.

  • Unfilled Fair Value Gaps: Particularly at the 5-minute or 15-minute level; critical targets noted for potential trades.

Step 5: Execute with Precision

• Key aspects to ensure effective execution of trades:

  • Correct placement of stop-loss orders.

  • Understanding whether to utilize market or limit orders.

• Discuss real-time trading examples to illustrate the process:

  • Review of a trade taken with defined steps including identifying higher time frame trends, facet of rejection levels, manipulation legs, and actual exaltation towards liquidity.

Rules for Successful Trading

• Strategies that increase win rate significantly:

  • Rule 1: Don’t trade against equal highs/lows and low resistance liquidity.

  • Rule 2: Only trade during the New York AM session (9:30 a.m. to 11:00 a.m. Eastern Time).

  • Rule 3: Follow the 4-hour candle trends, paying close attention to the 10 a.m. candle.

Conclusion

• Reiteration of model efficacy demonstrated through individual success stories.

• Call to action for personal mentoring and resources available for further learning.

Introduction

• Introduction to the trading model

  • Claim of making over $500,000$ using a single ICT (Inner Circle Trader) trading model, which focuses on institutional order flow and market microstructure. This model aims to demystify complex market movements and provide a clear, actionable framework.

  • Framework that is easy to learn and execute, designed for traders of all experience levels to understand and apply fundamental market principles.

  • Proven win rate of over $70\%$ if traded correctly, achieved by aligning with institutional algorithms and high-probability setups, which reduces random entries and increases consistency.

Steps in the ICT Trading Model

Step 1: Determine Higher Time Frame Trend

• Importance of recognizing the higher time frame trend before trading to avoid trading blindly. Understanding the overall market direction from daily or weekly charts provides crucial context and prevents going against significant institutional moves.

• Many traders overlook this critical step, leading to inconsistent profits because they are often caught on the wrong side of major moves or fail to capitalize on sustained trends.

• Questions to determine higher time frame bias:

  • 1. Are we delivering from buy side or sell side liquidity? This refers to whether price is drawing towards areas where significant stop-losses or pending orders (buy-side liquidity above highs, sell-side liquidity below lows) are accumulated, indicating potential reversal or continuation points.

  • 2. Are we respecting or disrespecting fair value gaps? Fair value gaps (FVG) are specific three-candlestick patterns that indicate an imbalance in price delivery, showing where price moved too quickly in one direction. Respecting these means price reacts to them, disrespecting means price moves through them.

• Definitions:

  • Bullish scenario:

  • Delivering from sell side liquidity, meaning price has swept below prior lows, likely triggering sell-stops and accumulating buy orders from institutions.

  • Disrespecting bearish gaps, indicating that price is powerful enough to push through downward imbalances, often closing above the bearish FVG.

  • Respecting bullish gaps, where price has found support at upward imbalances and continues to rally after touching or interacting with them.

  • Bearish scenario:

  • Delivering from buy side liquidity, meaning price has swept above prior highs, likely triggering buy-stops and accumulating sell orders from institutions.

  • Disrespecting bullish gaps, indicating price is strong enough to push through upward imbalances, often closing below the bullish FVG.

  • Respecting bearish gaps, where price finds resistance at downward imbalances and continues to fall after touching or interacting with them.

• Explanation of respect/disrespect of gaps:

  • Disrespecting a gap: A body closure occurs decisively above a bearish gap (for a bullish move) or below a bullish gap (for a bearish move), signaling strength in the new direction.

  • Respecting a gap: A wick hits a gap and the market trades strongly away from it, confirming the gap as a valid support or resistance level.

• Illustration of bullish and bearish scenarios with liquidity pools and gaps, demonstrating how these elements interact on a chart to signal market direction.

Step 2: Identify Key Levels for Bouncing

• Importance of finding points where the market will react to set clear trades around the bias. These are critical confluence levels that institutional algorithms often target or use for rebalancing, offering high-probability entry or exit points.

• Time frames to analyze key levels:

  • At minimum, use the $5$-minute time frame and higher ($15$-minute, hourly, $4$-hour, daily, weekly). Analyzing multiple time frames helps confirm the strength and validity of these levels, ensuring they are significant across different market perspectives.

• Types of key levels to observe:

  • Fair Value Gaps: These imbalances (created by rapid price movements) often serve as magnet zones or strong support/resistance, as institutions seek to rebalance them. Must see price rejecting or bouncing off this level ($5$-minute or higher) to validate its strength.

  • Intermediate Highs and Lows: An intermediate low is a low left inside a gap; an intermediate high is a high left inside a gap. These are localized highs or lows within an FVG that can act as minor points of reference for price reactions.

  • Previous Day High and Low: Excellent areas for liquidity pools, as many retail traders place stop-losses or breakouts orders around these obvious reference points, making them prime targets for institutional sweeps.

  • Previous Week High and Low: Similar liquidity concepts as previous day high/low but on a larger scale, providing even more significant targets for institutional order flow and often leading to stronger reactions.

  • London and Asia Session Highs and Lows: These are often aligned with gaps and serve as good areas for potential price reactions because significant institutional activity occurs during these sessions, leaving behind important support/resistance levels that can be revisited.

• Tools and resources for identifying session highs/lows typically include custom indicators on charting platforms that automatically mark these levels, helping traders visualize market structure.

Step 3: Understand Price Reaction at Key Levels

• Importance of recognizing price manipulation at key levels to improve entry probability. Institutional players often engineer moves to trigger stop-losses of retail traders before reversing the price, creating opportunities for informed entries.

• Identifying manipulation leg: Mark from the lowest point to the highest point hitting the key level or vice versa. This