Episode 1: (Introduction) - Have an independent mindset. See things yourself and come to decisions on your own. Do not be codependent on him. - Don’t cut corners in his teachings. - Do your homework, study, do the things he suggests. Study hard and fully understand the concepts. - Backtest, backtest, backtest. Episode 2: (Elements To A Trade Setup) Weekly - Before the new trading week begins, think about what the next weekly candle is likely to do. Establish a weekly bias/assumption based on this weekly candle, either lower or higher. This is your weekly bias. - When it comes to price action on the weekly chart.. Ask yourself this question: ‘What is it most likely to draw towards? Ie: is there an imbalance higher, is there a liquidity pool lower? This sets your initial bias for the week. Factors that can impact the weekly candle… - Seasonal tendencies - Interest Rates - Earnings seasons & the release of quarterly earnings - Price action on a weekly and daily chart Edufx254 edwin.kimori@yahoo.com Daily (Long Term Perspective) - Next, go into the daily time frame and figure out where you are in the grand scheme of things on that weekly range expanding higher or lower. - If we are bearish biased on the weekly candle; then on the daily timeframe, every short term low, underneath those lows are sell stops aka liquidity. Edufx254 edwin.kimori@yahoo.com - Learn to recognize where the market is going to draw to. Its drawing to 1 of 2 things, buy/sell stops (liquidity) or it's running to an imbalance. - Ask yourself this question: Where are the liquidity pools price can seek? Smart money will be looking at old lows and old highs. Liquidity providers will be looking to take business in around these same levels. - Look for swing highs and swing lows to get your liquidity. - The draw on liquidity is for the most part found on the daily timeframe. - The majority of your analysis should be on the daily chart. - Anytime a significant price move is expected; always anticipate some measure of a stop hunt or a short term high/low being taken out. - The market constantly engineers liquidity. - The daily chart should have alot of your time and analysis, - The daily chart will give you feedback every 24hrs on that weekly candle. - We use that feedback to support our assumptions of the weekly candle expanding higher/lower. How to determine draw on liquidity - The DOL will either be 1. a liquidity pool or 2. an imbalance. - Large funds aka smart money will be looking at these two things on higher time frames. Edufx254 edwin.kimori@yahoo.com 1 Hour (Long Term Perspective) - With a bias and a draw on liquidity from the higher time frames we can now build a framework on the 1h chart. - Once the algorithm (IPDA) seeks the induced liquidity to move the market higher/lower we want to jump to the lower time frames to look for a specific entry. 15 minute (Intermediate Term Perspective) - Once you see a MSS or BOS with displacement, you want to look for your FVG. - Measure displacement range with fib. Your FVG’s will form in this range, from the 15m down to the 1m. Make sure you are buying at a discount in the displacement range if you’re long (draw fib from bottom of range to top) Make sure you are buying at a premium in the displacement range if you’re short (draw fib from top of range to bottom) Enter trade with a limit order in the FVG, stop loss below candle that created FVG Use FVG’s & liquidity (previous highs/lows) as exit target for your setups. Rule of thumb, target the low hanging fruit first 5m (Short-Term Perspective) Charting Routine - Check forexfactory.com for high impact news drivers - Start on the weekly timeframe and set your initial bias for the week based off of the weekly candle. - Move to the daily timeframe and figure out where you are in the grand scheme of things on that weekly range expanding higher or lower. - If we are biased short/weak based on the weekly candle; on the daily timeframe, every short term low, underneath those lows are sell stops aka liquidity. Edufx254 edwin.kimori@yahoo.com - Recognize where the market is going to draw to.. Its drawing to 1 of 2 things, stops AKA liquidity or its running to an imbalance. - Move to hourly chart, use the daily levels , daily low/high, zoom into 1 hr, liquidity - Anytime a significant price move is expected; always anticipate some measure of a stop hunt or a short term high/low being taken out. - find imbalances and order blocks. 1h is used to identify trend (swing lows swing highs and volume imbalance) - Drop down into 15m, identify the 15m imbalances within them - drop down to 1 2 3 5m chart and find FVG the 1m, 2m, 3m chart tends to be the best for finding imbalances in indices because this is what the high frequency algorithms operate on nothing higher than 3 minutes IPDA moves the market Like watching 8:30 - 11 am there is usually a setup in there still watches after, but that is generally the sweet little spot Trading Times: EST 8:30am -12:00am No Trade Zone from 12:00pm -1:00pm 1:30pm - 4:00pm want to try to be positioned and be riding something into lunch, or taking some off into lunch 1:30 is the point in time where you look for a stop hunt for the pm session, so same as 8:30 for am session Episode 3: (Internal Range Liquidity & Market Structure Shifts) Market Structure Breaks (MSB) aka Break of Structures (BOS) lead to the prolonged movement of a multi-day trend, thus they are more significant than Market Structure Shifts. BOS is a break of strong swing highs and lows, MSS is a break of minor lows and highs within the range of the strong swing highs and lows. Edufx254 edwin.kimori@yahoo.com A Market Structure Break AKA Break of Structure requires more context when compared to Market Structure Shifts. Swing high is the highest swing point before the pullback. Market Structure Shifts (MSS) lead to an intra-day draw to intra-day liquidity pools or FVG’s. After the intra-day draw occurs, the prolonged trend continues. When price takes out liquidity in the market, Market Structure Shifts become more significant. After a MSS, the market will start to seek opposing liquidity. Market Structure Shifts Areas of Interest - An old low or clean low for a Bullish MSS - An old high or clean high for a Bearish MSS Where are you looking for liquidity - Highs and Lows of Asian Session (8:00PM - 0:00AM) - Highs and Lows of London Session (2:00AM - 5:00AM) - Highs and Lows of NY Session (7:00AM - 10:00AM) - Intraday highs and lows before equities open (9:30AM) Buying and selling strength/pressure has absolutely zero effect on where price is going to go It is algo’s pricing things higher or lower. Whichever way algos are offering price is the way it will go, buying/selling pressure has no effect. The market seeks liquidity at swing highs and lows. The market constantly engineers liquidity. Edufx254 edwin.kimori@yahoo.com Episode 4: (Backtesting) Be like a deer hunter, train your eye to track this setup. Go in looking for it and know what it looks like. Stalk this pattern. 8:30 am starts the “hunt” for the setup When backtesting, annotate it and look for similarities in setups. Annotate important factors like how long did it take from the BMS to get up into the FVG. How long did it take from your entry to your target. How much drawdown did you weather before it hit your target? How much draw down to get stopped out for loss? The rules of the setup force the market to show it’s hand. Backtest. Collect tons of examples of trades. Episode 5: (Intraday Order Flow & Understanding The Daily Range) You want to trade the futures monthly contract with the most liquidity. can see it on barchart.com Whichever contract has the most open interest, trade that Must always respect stop loss and have sound risk management want to see displacement the only two patterns you need displacement, fair value gap Important episode, go over again Morning session Looking for swing highs and swing lows prior to 8:30, 1:30 looking for swing highs and swing lows. Buy program is when algo’s go into the process of “spooling” where algos continuously offer higher prices 3 Drives Pattern The 3 drives pattern is followed by 3 swing highs and swing lows creating HL and HH This happens to grab liquidity Happens near buyside liquidity Displacement is the official breakthrough candle that will create the FVG. looks like “VVM” thick bodied momentum candle. Edufx254 edwin.kimori@yahoo.com Episode 6: (Market Efficiency Paradigm & Institutional Order Flow) How we internalize price delivery - Do not trade patterns for patterns sake - We do not trade indicator readings or momentum - We look to enter longs where retail sells - We look to enter shorts where retail buys - We anticipate price seeking liquidity - Time of day is vital when engaging with price Smart money is not looking at price patterns. They’re looking at liquidity. What is the underlying narrative right now in the market? Is today’s daily range going to go higher and how? They may take it lower at the open, engineer liquidity, then run it up towards end of the day. It’s efficient for smart money traders to view the market in that perspective. They are looking at liquidity every day. As opposed to technical analysis. The first element algorithms operate under is time. There is an algorithm that delivers efficient market delivery. Go into price action with a “market efficiency paradigm” perception. The market wants to engineer liquidity. Edufx254 edwin.kimori@yahoo.com The ICT Bearish Fair Value Gap - Institutional order flow pattern based on a Three Candle formation - The optimal formation of the bearish FVG will be found after a run into buy side liquidity - Typically found just above a single price high or multiple price highs in a relative basis (double top) Three candle formation, The first candle’s low has to be traded below by the following 2nd candle. The third candle (continuation candle) has to trade with an extended low below the 2nd candle's low. But cannot have a high, that goes back to the first candle’s low. stop loss above candle 1 or the swing high In that little gap space, the first candles low and the 3rd candles high (two red lines), price is only being offered to the sell side by algorithms. The market wants to trade back into that area at some future time to efficiently balance itself out. Stop loss is placed above the high of the first candle. The Bearish Market Structure Shift - The market will see price delivery of a rally above an old high or highs, then quickly shift lower - It needs to be a strong move and thick bodied candle - Significance is placed on the term quick and with displacement lower - Mark displacement high and low, look for a FVG inside. - If there is no FVG inside it, there is no trade Edufx254 edwin.kimori@yahoo.com The ICT Bullish Fair Value Gap - Institutional order flow pattern based on a Three Candle formation - The optimal formation of the bearish FVG will be found after a run into sell side liquidity - Typically found just above a single price low or multiple price lows in a relative basis (double bottom) - Stop loss below candle 1 or the swing low Edufx254 edwin.kimori@yahoo.com The Bullish Market Structure Shift - The market will see price delivery of a decline below an old low or lows, then quickly shift higher - It needs to be a strong move and thick bodied candle - Significance is placed on the term quick and with displacement higher. not a wick, or small candle - Mark displacement high and low, look for FVG inside - If there is no FVG inside it, there is no trade really good description of backtesting / trade management on setup Episode 7: (Daily Bias & Consolidation Hurdles) Use the daily timeframe to determine bias Get a read on where it likely is going to next, where is it going to draw? Is it going to draw higher to an old high, or lower to an old low. Edufx254 edwin.kimori@yahoo.com there will be “grey areas” where things aren’t always so clear. there will be losing trades. when price is hanging around equilibrium .5 50% it gets very difficult to determine a bias so when that happens you have to rely on intraday charts and look for liquidity pools, running out old highs and old lows. be alot more nimble and don’t look to hold too long. when algorithms are “spooling” it mines they are offering price directionally one way algorithms run on time then price Episode 8: (Apply Institutional Order Flow To Forex Markets) Market context, confluence Look at amzn aapl msft /vx , relative strength? How are market leading equities holding up Episode 9: (Power of 3 and New York PM Session Opportunities) Power of 3 is accumulation, manipulation and distribution specifically dealing with daily time frame (but the concept is fractal) If bullish, he expects the opening price to be near the LOD or of the session, trade lower making an important low, and then rallies. Creates a high, then closes near HOD. Entries are not the most important thing; knowing where price is most likely trying to go to is. Episode 10: (Implementing Economic Calendar Events With The Open) (very good explanation of daily bias with power of 3) Edufx254 edwin.kimori@yahoo.com on the daily mark the daily high of range and daily low of range then mark .50 equilibrium with fibonacci above .50 (equilibrium) is premium market below .50 (equilibrium) is discount market if there is an imbalance the market is going to want to rebalance it long daily bias power of 3 short daily bias power of 3 the algorithm (IDPA) opening price is 12 midnight EST. also mark the opening price of the 8:30 am candle you want to see a fakeout high above opening price (manipulation) then drop below (accumulation), then bottom (distribution) this is the judas swing Episode 11: Edufx254 edwin.kimori@yahoo.com entire daily range = opening price at midnight morning session = 8:30 am opening price look at all the swing highs swing high is a 3 candle formation. It is a high that has a lower high candle to the left of it and a lower high candle to the right of it . the highest candle in the middle is your swing high. when the displacement comes it’s like a confirmation. just sit back and relax. let it do it’s thing Episode 12: (Market Structure For Precision Technicians | Advanced Price Action Theory) Use daily timeframe structure to construct daily bias, if price trades and remains above the structure, your analysis is wrong. If you’re bearish, the long term high from the daily should remain intact. market structure will always validate/invalidate your trade ideas. WE ARE NOT interested in picking tops & bottoms of the market. Every single time price rebalances an old imbalance, that swing that is created is labeled in his mind as an intermediate term high or low. Any time an imbalance is rebalanced, that is labeled as an intermediate term high/low. (ITH) When we look at price, we are looking to see, does the market have a reason to go up/down for stops/liquidity, or is it likely to go to rebalance an imbalance. What is the current market narrative? What is it likely to be doing right now? This is the #1 ICT determines right when he sits down. Use market structure to determine which way price is likely to go up/down Edufx254 edwin.kimori@yahoo.com (LTH/LTL) Long Term High/Low: Framed on a high time frame resistance level.Generally going to be framed on the daily chart. Based on the daily level, if we believe price is going lower, we should expect the LTH to hold. If it does not hold; we can assume our analysis was wrong. (ITH/ITL) Intermediate Term High/Low: Every time price rebalances an imbalance, the swing that is created is labeled as an intermediate term high/low. Or a short term high that has a lower short term high to the left of it and a lower short term high to the right of it. The inverse for ITL. Those are the only two forms of ITH/ITL. Once you mark this ITH the STH that follows it should be lower. It should not be violated if you are bearish. If it does not hold you can assume your analysis was wrong. If an ITH/ITl breaks that is a significant break of structure. STH/STL: Short Term High/Low: You want to blend this with institutional order flow, AKA When you’re bearish all of your up close candles should keep price from going higher than them. They should not be violated. The market should respect the institutional order flow. Edufx254 edwin.kimori@yahoo.com Typically what you’ll see is ITL has a higher STL to the right of it and a higher STL to the left of it. An ITH has a lower STH to the left of it and a lower STH to the right of it. But it is not required. If the ITH is not higher than the STH’s the market is weak and is tipping it’s hand to you that it is going to go lower. Vice verse for ITL and STL’s. The STH that follows the ITH should not trade above it. If a STL and ITL taken out then we can go to the LTL A LTH/LTL is generally going to be linked to the daily chart The majority of your analysis should be on the daily chart. You should be determining where that daily chart is going over the next day, or two, or week. Try not to forecast longer than a week. Keep your perspective limited to a 5 day time horizon. There are lots of ways to frame a trade, but you have to have something that links directly to the daily chart, because the daily chart is exactly what institutions and banks are trading off of. Daily chart, where your bias is determined, makes or breaks your trend continuation, etc. Edufx254 edwin.kimori@yahoo.com If we have a break below an ITL then we have a significant break in market structure. This ITL is more significant. This tells you then you can start using the LTH/LTL and start getting projections down. The LTH and LTL are your framework from the daily. If your ITH/ITL get violated, you know your trade idea is incorrect and you move on from the trade idea. If you can frame a context around a price swing/structure that is linked to a higher timeframe chart like the daily, you have a wonderful framework and high probability trade. Do not trade against the daily time frame “If you are trading against what the daily timeframe is likely to be doing; you are absolutely asking for failure. Don’t swim against the current. Swim with the current. Align with the higher timeframes.” Episode 13: (Market Structure For Precision Technicians | Advanced Price Action Theory) You must be emotionless and indifferent to losing. You must determine your plan before you enter the market. Stop loss, risk, partials, profit target, etc. Episode 16: (Multiple Setups Within Trading Sessions With Index Futures) Edufx254 edwin.kimori@yahoo.com Opening price for index futures is midnight 12:00am or 0:00 Opening price for equities 9:30am 8:30am Majority of your analysis should be framed on the daily chart, ask yourself based on the daily: where is it likely to go? Where is the expansion likely to take price, higher or lower? That’s going to carve out your bias. no more than 4 trades a day, 2 trades in the morning. 2 trades in the afternoon Your #1 goal is to understand where price is likely to go to/reach for? When you have the understood, it becomes easy to know what you’re looking for. The algorithm seeks discount to premium, premium to discount. oversimplified: all the algorithms do is reach for liquidity in the form of buy stops and sell stops, and/or imbalances or the creation of an imbalance (FVG) or return back to a FVG. and they do it on the basis of time then price. Episode 18: if he got funded with 100k and was starting over again he says he’d use this 2022 model and do exactly as follows bread and butter video goes over basically everything in detail Episode 19: Edufx254 edwin.kimori@yahoo.com You don't need to be pinpoint accurate with entries, you just need to have sound money/risk management the only time my trades are profitable is when I was in line with what the algorithm would do anyway Institutional order flow is rooted on higher time frame bias Episode 21: Does not hold overnight, does not swing, typical trade time is 90m -2h any time the market trades above an old high, it’s a short term premium because it’s tapping into liquidity any time the market trades below an old low, it’s a short term discount, because it’s tapping into liquidity market structure helps you frame an idea your trade ideas must be in alignment with the present narrative. narrative: why should the market go where you think it’s going to go on that particular day based on the climate, economic calendar, and the volatility of the session really good video showing trade examples Episode 24: Bearish scenario: Run above old highs or relative equal highs, grab the liquidity, short term low taken out with displacement (MSS), then go through the displacement leg looking for FVG’s as an entry. great video simplifying,summarizing the model I promise that i will endure losses. Trading is about managing losses Where do setups form? Edufx254 edwin.kimori@yahoo.com Old Highs/Lows and Relative Equal Highs/Lows Run above Old Highs/Lows Relative Equal Highs/Lows (Liquidity Grab) As soon as that happens, find the nearest short term high/low. Wait for an energetic move with displacement to take out that short term high/low. This is your market structure shift with displacement. Measure the discount/premium of displacement range. Look for FVG to form within displacement range. Fair Value Gaps Run into an old fair value gap. Wait for a MSS with displacement. Measure the discount/premium of this displacement range. Look for FVG to form within displacement range. Episode 25: Pay attention to seasonal tendencies the last week of april going into may there is a tendency for markets to be weak Don't try to pick bottoms/highs in the market, you will lose money doing that It is not necessary.. The algorithm operates on new york time a fractal is a piece of price action , a very small segment of price action Edufx254 edwin.kimori@yahoo.com many times when there is an afternoon continuation to the upside, you will see the lows from lunch time, get swept (aka liquidity grab) before continuation on those choppy, range does, wait for 3 o’clock afternoon session for market to grab liquidity from of range episode 38: narrative is the understanding of what price should do, why, and what things will price encounter to prove the narrative you are assuming place, is in fact underway. day trading the 2022 model: use the 15 and 5m, with the logic and narrative that you’re going to trade the daily range afternoon session, if you’re bullish, the market has ran higher in the morning, then consolidates into lunch, then after lunch, drops down below a short term low and sweeps sell stops before running again once you can read the market, where it’s drawing to, and where it’s turning. where is going to go.. then entries become the easiest part understand what price is likely to do and where it’s drawing to understand narrative submit to higher time frame trend the market is likely to follow its higher timeframe trend/direction don’t try to pick tops and bottoms don’t take low probability setups. low probability = no trade. Edufx254 edwin.kimori@yahoo.com if there is not a strong conviction one direction then it is low probability. high probability conditions with ICT is the algorithm presenting something in price that is so one sided and so obvious that it wants to go higher or lower, that it’s very difficult for you to justify the other side. It should feel obvious and one sided. If you can justify an opposing setup, that is not a high probability trade. Daily Bias find liquidity check the daily , see where we have taken liquidity if we just took sellside, price is going to seek buyside, and the inverse, if just took buyside, price will now seek sellside. this establishes our daily bias Futures: Morning Session: 8:30am - 11:00am Afternoon Session: 1:30 - 3:00pm Indices Midnight Open: 0:00am New York Open: 8:30am Equities Open: 9:30am Forex Sessions: New York: 8:00am - 5:00pm London: 2:00am - 11:00am Asia: 7:00pm - 4:00am Edufx254 edwin.kimori@yahoo.com Killzones London: 2:00am - 5:00am New York: 7:00am - 11:00am Key Concepts & Terms submit to time & price submit to the higher timeframe trend. time & price price is always drawing to liquidity or imbalances algo runs on two principles : liquidity, rebalancing & creating imbalance Price is delivered by an algorithm. There is no buying or selling pressure. Algorithmic theory is based on time & price. Price Levels are useless until time is considered. (submit to time.) Time is of no use unless price is at a key PD Array. Blending the two yields astonishing results and precision. Edufx254 edwin.kimori@yahoo.com Kill Zone: Certain times that we trade in because they are when the market is most predictable bc that’s when the algorithm is on kill zones are when you determine your entry, place your orders & walk away Discount/Premium: 0.5 fibonacci retracement that shows oversold/overbought conditions. run the fib using the candle body, it is more accurate Only get long in a discount, only get short in a premium Liquidity Pool: Liquidity pools or resting liquidity, is an established level in the market where stops and orders can be resting, leaving these areas exposed for smart money to hunt these areas taking stop losses and triggering new buy and sell orders into the market. buy stops and sell stops are sources of liquidity above and below short term and long term highs and lows. Liquidity can also be engineered by smart money knowing they will trigger these levels at a future time in price, crouching the "true value" of the currency pair. Liquidity Void: A range in price delivery where one side of the market liquidity is shown in wide or long one sided ranges or candles. Price typically will want to revisit this area. This is an inefficiency/imbalance that price will want to retrace to for redelivery. WITH A LV you never really get that run on stops The rapid movement of price with the same series of candles (speed) Swing High/Low: Swing high/low consists of 3 candles, a candle with a lower high, a candle in the middle with a higher high, and another candle with a lower high on the other end. For a swing low it is the same idea but inverse. Edufx254 edwin.kimori@yahoo.com Internal structure: Everything between the swing high and swing low After BOS, expect a pullback on that timeframe Trend change = swing highs and lows taken out MSS: is intraday internal structure The very first sign of weakness/strength Break Of Structure (BOS): When a key high or low are taken out with the expectation of price continuing in that direction. Swing highs and lows taken out as trend continues Edufx254 edwin.kimori@yahoo.com Market Structure Shift (MSS): When an intraday short term high or low is taken out with displacement. Only significant if price has traded into buy/sell stops (after a liquidity grab) Anticipate MSS after a liquidity grab. You want to see displacement and FVG’s created within the displacement range. 15m timeframe Trending Down: Want to look at the highs for the MSS Trending Up: Want to look at the lows for the MSS Take out a high and a low with displacement Dealing Range: A range where price has taken out buyside, then reversed and taken out sellside. Dealing range stays dealing range until external liquidity is swept then thats the new one Bullish Dealing Range: Takes out sellside first then buyside external range liquidity, look for internal range liquidity pd arrays in a discount to get long aka the external high gets broken Bearish Dealing Range: Takes out buyside first then sellside external range liquidity look for internal range liquidity PD arrays in a premium to get short. aka the external low gets broken Edufx254 edwin.kimori@yahoo.com Displacement: an energetic move that breaks the previous market structure. Should result in a FVG created within the displacement range. Displacement marks: the end of a counter trend false more, or the beginning of a reversal. Fair Value Gap: A price delivery range where one side of the market is offered and usually confirmed by a liquidity void on the lower time frame charts in the same price range. (imbalance) Requirements to be a FVG - Must have a run on liquidity first (BSL or SSL) Edufx254 edwin.kimori@yahoo.com - Found within the displacement range of a Market Structure Shift Breaker Block: Form of mitigation, A run on liquidity, followed by a MSS Bullish Breaker: A bullish range or up close candle in the most recent swing high prior to an old low being violated. AKA liquidity grab below an old low, sellers are then trapped short. The sellers that sold this low and later see this low violated, will then look to mitigate the loss. When price returns back to the swing high, this is considered a bullish setup. Mark the breaker using the last up candle of the swing high. Bearish Breaker: A bearish range or down close candle in the most recent swing low prior to an old high being violated. Aka a liquidity grab above an old high, buyers are then trapped long. The buyers that buy the low and then later see the swing low violated, will look to mitigate the loss. When price returns back to the swing low, this is considered a bearish setup. Mark the breaker using the last down candle of the swing low. - A bearish breaker will keep your ability from reaching an OB (or any PDA that comes after it) which is the top of the hierarchy. When you see bearish breakers, it will prevent price from hitting the OB. Its the most dominant PDA. - breakers by themselves is most likely the first thing you encounter, even though its near bottom of list Edufx254 edwin.kimori@yahoo.com Order Blocks: A change in the state of delivery. An OB is manipulation. Gathers buy orders then a FVG Should print as the buy orders are inefficiently delivered. Order blocks are basically bookmarks for IPDA. If the wick is overlapping with an FVG then you use the wick. If the wick isn’t overlapping with an FVG then use the body. - Liquidity Grab - BOS - FVG - A High Probability Order Block - Liquidity grab Edufx254 edwin.kimori@yahoo.com - Break of structure - FVG + displacement - made during sessions This is institutional order flow, price should respect it. 50% of the body is what matters; the mean threshold is what is important Once passed 50% it bodes well for continuation that way Bullish draw on liquidity, bullish order blocks should be respected and price should not trade below them. Bearish bias, bearish order blocks should be respected and price should not trade above them. if the wick is overlapping with an FVG then you use the wick. If the wick isn’t overlapping with an FVG then use the body. Invalidating: When an OB is traded through if it doesn’t have a reaction is can be invalidated or when we trade all the way below/above an OB. Or through mean threshold. If we are bullish and DOL on daily is bullish seeking buyside, only enter/trade with bullish ob’s and target/take profit at bearish order blocks. draw using open close (bodies of candle) displacement within these OB’s is the evidence in price action that we have institutional sponsorship behind the move. Only trade with the OB’s that align with high tf bias and DOL Bullish Order Block: The lowest candle or price bar with a down close that has the most range between open to close and is near a support level. Series of down close candles before strong move with displacement. A change in the state of delivery, algorithmically Edufx254 edwin.kimori@yahoo.com - Liquidity grab of a low - Break of structure - FVG/displacement (confirms institutional sponsorship is behind the move) - Preferably 2-3x as big as the ob - Near a support level (IRP, PD Array) Bearish Order Block: The highest candle or price bar with an up close that has the most range between open to close and is near a resistance level. A chance in the state of delivery, algorithmically. - Liquidity grab of a high - Break of structure - FVG/displacement (confirms institutional sponsorship is behind the move) - Preferably 2-3x as big as the ob - Near a resistance level (IRP, PD Array) If we are bullish and DOL on daily is bullish seeking buyside, only enter/trade with bullish ob’s and target/take profit at bearish order blocks Bullish Rejection Block: When a price high has formed with long wicks on the high(s) of the candlestick(s) and price reaches up above the body of the candles to run the buyside liquidity out before price declines. Edufx254 edwin.kimori@yahoo.com Bearish Rejection Block: When a price lowhas formed with long wicks on the low(s) of the candlestick(s) and price reaches down below the body of the candles to run the sellside liquidity out before price moves higher. Volume Imbalance: A segment in price where the algorithm delivers inefficiently , it leaves an imbalance of volume. Price Balanced Price Range: Liquidity: The degree to which a market asset or security can be bought or sold in the market without affecting the asset’s price. Low Resistance Liquidity: Liquidity with a low amount of resistance for it to be taken, for example, lows in a down trend. High Resistance Liquidity: Edufx254 edwin.kimori@yahoo.com Liquidity with a high amount of resistance before it can be taken, for example, protected highs in a down trend. Liquidity Void: a range in price delivery where one side of the market is shown in wide or long one sided ranges or candles. Price typically will want to revisit this range or void. Clear displacement. Buyside Imbalance, Sellside Inefficiency (BISI): bullish imbalances, there is an inefficiency in sellside delivery Sellside Imbalance, Buyside Inefficiecy (SIBI): bearish imbalances, there is an inefficient in buyside delivery Power of 3: Accumulation, Manipulation, Distribution Judas Swing: 3 Drives Pattern: Draw On Liquidity: Where price is drawing to. This is always either liquidity or an imbalance/inefficiency. Consequent Encroachment: .5 of an imbalance/gap/wick Mean Threshold: .5 of an order block Inducement: inducing liquidity from retail SMT Divergence: Smart Money Technique, indicates relative strength/weakness by comparing /ES, /NQ & DOW. a crack in correlation of correlated or inversely correlated assets Institutional Order Flow: The underlying direction of i flows at the institutional level. It is the higher probable direction of the delivery of price… on the majority of near term candles. Edufx254 edwin.kimori@yahoo.com IPDA will look to initiate significant price runs when the IOF is directional and when the state of delivery has changed into opposing order flow.. at a key PDA. Look at order blocks Bullish: every down close candle will provide support and every up close candle is being broken Bearish: every up close candle will provide resistance and every down close candle will be broken When you’re bearish all of your up close candles should keep price from going higher than them. They should not be violated. The market should respect this institutional order flow. Price swings that are bullish, the down close candles are your support aka IOF. Price swings that are bearish, the up close candles are your resistance aka IOF. You can trail your stop loss based on the lows/highs of these candles IOF Blend this IOF with market structure Internal Range Liquidity: All of the structure and liquidity within the swing high and swing low (swing range). inside of the dealing range - When the current trading range is likely to remain. Liquidity voids will fill in - Gap risk - When the current trading range is likely to remain, Fair value gaps will fill in - Gap risk - Orderblocks inside the trading range will be populated with new buy and sell orders - Market maker buy & sell models will form inside trading ranges. External Range Liquidity: The liquidity of the swing high and swing low points, (liquidity on the outside of the swing range.) Edufx254 edwin.kimori@yahoo.com - The current trading range will have buyside liquidity above the range or high. - The current trading range will have sell side below the range or low. - Runs on liquidity seek to pair orders with pending order liquidity in the form of liquidity pools. - External range liquidity runs can be low resistance or high resistance in nature. - As a trader, you want your trades to be in low resistance liquidity conditions. Edufx254 edwin.kimori@yahoo.com High Resistance Liquidity: Liquidity resting with a large amount of resistance before it can be swept. ie: uptrending market, (higher highs and higher lows) these highs are going to provide a lot of resistance. High high resistance liquidity is usually going to need some form of high impact economic news driver (NFP, CPI, FOMC) to cut through it aggressively. Without the injection of volatility the high resistance liquidity is usually well defended and will cause price to stall. This results in price taking much longer to trade to its objective. For shorts, you would want to avoid this type of price action since it is high resistance liquidity. Long positions would make sense here. Targeting high resistance liquidity is lower probability and we want to avoid doing so. Price is going to stall and take longer to achieve its objective during these conditions. They are not going to feel effortless and clean like low resistance liquidity runs do. Thus, we want to avoid high resistance liquidity run signatures. Edufx254 edwin.kimori@yahoo.com Old defended highs/lows are high resistance liquidity. These defended high/lows are unlikely to get ran. You basically want to trade in the direction of the trend. In this scenario, the sellside liquidity or defended lows are the high resistance liquidity. We want to target the buyside liquidity which is the low resistance liquidity run. Low Resistance Liquidity: Liquidity resting with a minimal amount of resistance for it to be swept. Looks like an impulsive move; displacement. The range from the MSS, to the displacement high/low is the low resistance liquidity. This is the ideal condition you want to trade in. Targeting low resistance liquidity is much higher probability. It is the easiest area to trade in price action. These trades will feel simple, quick and effortless. Use these low resistance liquidity run signatures to catch your simple 2R trades. Edufx254 edwin.kimori@yahoo.com After a large expansion, displacement type of move lower, once we get that MSS, above the old high, the market will have an easy time trading back up to the old low. This is the easiest area to trad in e in the marketplace. Edufx254 edwin.kimori@yahoo.com In this scenario, the defended highs are the high resistance liquidity runs. We want to take shorts targeting the buyside liquidity under the lows. These are our low resistance liquidity runs. https://www.youtube.com/watch?v=22XkhpJR5eA&t=336s Interbank Price Delivery Algorithm (IPDA): Controls price along side with the commercials(Central Banks) This is part of how I setup myself up as a trader to be more successful moving into a new trading month. IBDR: Interbank Dealing Range Consolidation, Expansion, Retracement, Reversal SMT Divergence: A break in correlation between positively or negatively correlated markets. Power Of 3: Accumulation, Manipulation, Distribution Immediate Rebalance: efficiently delivered price When price displaces, an immediate rebalance is instantly delivering price back to the BISI/SIBI, before continuing higher. With an immediate rebalance, an FVG will never form, because price has already been efficiently delivered. This basically shows a willingness for price to expand. Price Delivery Array Matrix Bearish Premium Arrays - Old high/low - Rejection block - Bearish JB - FVG - Liquidity Void Edufx254 edwin.kimori@yahoo.com - Bearish breaker - Mitigation block Bullish Premium Arrays - Mitigation block - Bullish breaker - Liquidity void - FVG - Bullish JB - Rejection block - Old high/low 3 things when he goes to the chart See where did price come from? See what price is doing See where price is going, where it wants to draw to (DOL) Establish bias and narrative the algorithm works and pushes price for smart money the algorithm likes to use the advantage from news Often time will see big moves aligning with high impact news the market is going to move regardless of if there is news or not, and it’s a good reason from price to get to its areas of interest quicker if there’s news involved (the only thing that really matters is interest rates, long term daily timeframe) use as many things in confluence as you can A+ Setup Checklist Edufx254 edwin.kimori@yahoo.com - Liquidity Grab - MSS + Displacement - FVG/OB above/below .5 fib of displacement range - Return to the FVG/OB - Solid Risk:Reward price will always make a run for PHOD or PLOD every day price is going to make a run for the previous day high or previous day low we focus on time more than price you want time to be a confluence we trade during killzones because volatility is in the market, we have a lot of volatility because the algorithm is on they say the algorithm turns back on after 1:30 things that happen during killzones are of more significant days you don’t trade fibonacci retracements bearish, place top of displacement range to bottom bullish, bottom of displacement range to top Use the daily to figure out what the range can trade to Edufx254 edwin.kimori@yahoo.com The lower time frame tells the story before the higher time frame do not get mad at your loss go back to your losses, go back to them, play out what you did wrong etc Ict takes off half of october, december, then starts demoing half way into jan /ES /NQ opening prices 0:00 (midnight open) & 8:30am (NY morning session) Usually there's some form of fake move in the AM midnight open: 0:00 NY morning session open: 8:30am equities open: 9:30am london session open: asia open: First I look on the monthly/weekly/daily PD Arrays (mainly focusing on old highs and lows, OB’s, breakers and FVG’s After I dive into the 4 hour chart and see where we are with price In a range, did we take liquidity on a certain side, did we hit a PD Array and move away from that zone? Stuff like that How the market moves based off the daily and 4h help give me a sense of market direction Edufx254 edwin.kimori@yahoo.com I then look for the closest pd arrays on the 4 and 1 hour and these are where I’ll take my trades I wait for the market to hit a PD Array then I drop to a 15/5 min to find a setup This is where I’d want to see the market so a stop hunt and move away from that zone, which is the HTF pd array. After the stop hunt, I want the market to break structure and retrace back to the area of the HTF level. In there you you look for 5/1min pd arrays, mainly OB’s and FVG’s I would place my stop on the low, if bullish, and high, if bearish targeting the closest pool of liquidity which usually forms around London KZ or maybe it’s the previous days high or low institutional market structure reaching for liquidity reaching for imbalances smart money looks at the market with the perspective of liquidity and imbalances Daily Bias/Analysis - previous liquidity taken - swing highs/lows (market structure) - Market structure shifts (MSS) - Imbalances (FVG) - Discount or Premium of daily range (use open/close of candles, not wicks) swing high to swing low if your weekly bias is correct there’s a 70% chance tuesday is the low of the week and thursday is the high of the week The moat basic way to understand ICT IA to understand that you are learning exactly why the IPDA algorithm does what it does. ICT didn't invent it, he only cracked the code. Edufx254 edwin.kimori@yahoo.com just master the 2022 mentorship model ict says that is the easiest, most simple model don’t waste time learning things that aren’t tough in this model always trade in line with the higher timeframe narrative (higher probability) everything is more significant on a higher timeframe running a level means running through it and not looking back sweeping a level means tapping into it, going above or below, grabbing liquidity and then reversing back the bodies of the candles may tend to respect areas. not necessarily the wicks Also sticking to the times (submit to time) is TRUE. If you veer outside those times things get weird, and not in a good way. You'll find yourself waiting a long time for price to come back or move away or whatever it is you want it to do. But in the off times, theres not as many traders , or money, present and you'll remember him saying that you have to submit to time. Always target the low hanging fruit Use the main timeframe to watch structure, Don't exit a trade based off 1m-5m structure Go by the 15m-30m-1h for trade structure target the low hanging fruit Edufx254 edwin.kimori@yahoo.com The algorithm runs certain macros Macros are certain lists of orders and instructions, do this do that, if then or.. Logic behind how price is being designed, delivered and booked. retail trading techniques, books, courses etc are made to trick you into blowing your money and become liquidity for smart money. they want to sell you the easiest thing so you blow your money in the market. ie: support & resistance. Daily Bias - Previous liquidity taken? - Swing highs / swing lows (market structure) (resting liquidity) - Short term highs / short term lows (market structure) (resting liquidity) - Relative equal highs / relative equal lows (market structure) (resting liquidity) - Market structure shift (MSS) - Imbalances ( FVG & OB) - Discount or Premium - Highers highs, higher lows, lower highs, lower lows Likes to look for setups from 8:30-11am (sweet spot) Does not tend to take trades from 12-1 Wait until 1. Typically from 2-3 there is a setup in the afternoon trend If a day is bullish.. The market rallied all AM session In the PM session the market should seek the sell side liquidity formed by the lows of that AM session and then reprice to any BISI (buyside imbalance sellside inefficiency) once it is there, expect a return to premium inside the range. Edufx254 edwin.kimori@yahoo.com The 4 Price Delivery Market Conditions - Consolidation - Expansion - Retracement - Reversal Daily Bias Where is price right now Where did price come from Check dealing range Bullish or bearish dealing range Edufx254 edwin.kimori@yahoo.com Mark recent swing highs and lows Weekly Bias Monday weekly candle, power of 3 https://www.youtube.com/watch?v=Yqio1Ja0lIQ Draw line from opening price of week Look for power of 3 Tuesday Wed 70% chance of high of week in bearish scenario Tuesday wed 70% chance of low of week in bullish scenario Thursday Chance of high of week Thursda chance of low of week When identifying orderblocks, they are going to give you your bias. price should respect these order blocks. Bullish price action = bullish PD Arrays do not trade fomc days, nfp days, cpi days Edufx254 edwin.kimori@yahoo.com price is always either rebalancing an imbalance or taking liquidity ICT Killzones New York - 7:00am - 9:00am - The New York session usually has two scenarios - continuation of london’s move or a complete reversal on the daily direction. - When the daily is in a clear one sided momentum, it is best to look for confirmation of that direction from London’s price action. - If London agrees with the daily bias, we can anticipate new york to post a continuation setup. Reversals require more insight. London - 2:00am - 5:00am - EUR & GBP are ideal for this killzone Edufx254 edwin.kimori@yahoo.com - The London Open generally has the highest probability of creating the high or the low of the day - This helps you determine, when bearish/bullish when the actual high/low of the day is going to form Asia - AUD, NZD, & JPY are ideal for this killzone - Forex Session Times New York 8:00 - 5:00pm London 3:00 am - 12 After 5 winning trades, size down a little This is in preparation for a losing streak This will flatline your equity draw down. Money management https://youtu.be/RtMRykCZtC4 Edufx254 edwin.kimori@yahoo.com Risk Reward 1:2+ Size down half after 5 winning trades Size down half after a loss Continue sizing down half after each loss, until you win (Need rules to plan for and weather draw down) 5 winning trades is a complete win set cycle After that streak drop back to the lowest increment for leverage/risk anytime a significant move is expected, anticipate some measure of a stop hunt / liquidity grab prior Only trade FVG’s within displacement range and that are in discount (longs) or premium (shorts) target low hanging fruit. liquidity & imbalances can trail stops based on IOF sometimes bias will not be clear and the trading conditions will not be high probability because you don’t have clear conviction one way. when that is the case, just wait and don’t trade it scale out at order blocks look for IOF to confirm what side of the market you’re on Look for PD arrays and IOF to be respected which ones aren’t , resistance or support pd arrays this tells you the direction we currently moving in If we are at a bullish OB if price isn’t sending that higher then the direction isn’t up Any rallies when bearish should be seen as a stop out or false rally. Vice versa bullish Timeframes: W, D, 4h, 1h, 15m, 5m, 3m, 1m Edufx254 edwin.kimori@yahoo.com Weekly: Determine the likely weekly candle expansion. Higher or lower? Daily: Establish draw on liquidity and daily bias. Use PDH and PDL as targets for price to ultimately seek. PDH when bullish bias and PDL when bearish bias. 4h: 1h: 15m: Bellwether chart, use for trade management, intraday structure, 5m: use for trade management 5m, 3m, 1m: Use for trade entries on FVG. use dealing ranges Trade Checklist - Killzone - Clear Draw On Liquidity - Liquidity Grab - MSS + Displacement - FVG/OB above/below .5 fib of displacement range - Return to FVG - 2R+ take 70-80% off at low hanging fruit internal range liquidity (2R) leave 20-30% for runners / external range liquidity high probability = feels so one sided that you can’t even make a case for trading the other side of the market Edufx254 edwin.kimori@yahoo.com TradingView Chart Layout Daily chart 1hr chart 15m chart 5m entry chart on laptop /ES & /NQ DXY Indices Killzone: Morning Session: 8:30am - 11:30pm Afternoon Session: 1:30pm - 3:30pm Risk Management: Account Equity: 100k (2.7k drawdown) Risk Per Trade: 2%) size down half after a loss - 1st trade of the day 1% loss - 2nd trade of the day size down to .5% risk if you take a 3rd trade of the day size down to .25% risk size down half after a loss 1-2 trades a day swing high is the highest point before the big pullback same with swing low Edufx254 edwin.kimori@yahoo.com after this swing high is broken this confirms break of structure BOS = continuation of structure , breaking a swing point in continuation Trade Management: Partials Money Management: https://youtu.be/RtMRykCZtC4 4% risk per trade (work down to 1-2% risk per trade) 1-2% Risk Per Trade Size down half after a loss Continue to size down half after losses. Go back to normal risk once you’ve made half of that first losing trade back. Stop Loss Trail based on Institutional Order Flow, in a bearish scenario, the up candles should not be violated or over taken. The market should respect institutional order flow. When price moves 50% of expected target range, the stop loss can be trimmed by 25% Edufx254 edwin.kimori@yahoo.com Range is entry fill to profit target When price moves 75% of the expected target range, the stop loss can be trimmed to break even. Range is entry fill to profit target Every element of studying should focus on studying the narrative. Who is getting harmed, who is getting manipulated and for what reasons RULES: - Do not try to predict tops and bottoms of the market. - Let the institutional order flow switch and price tell you when we are ready to move higher/lower - STAY ALIGNED WITH THE ALGORITHM - Stay aligned with daily bias and high timeframe orderflow - Never trade against your daily bias - Submit to time and price - Only trade in during killzones - Only long in a discount - Only short in a premium - Target the low hanging fruit - Low resistance liquidity runs - Only exit a trade if you are stopped or hit your profit target. the rest is noise - Do not trade on FOMC and NFP days - Do not trade AM sessions after large range days - large range days usually lead to consolidation & sub optimal price action - Trade in the direction of your bias and higher timeframe - IOF should be respected , order blocks Tips - Aim for the low hanging fruit as targets, take off bulk of position at these low hanging fruit Edufx254 edwin.kimori@yahoo.com - Only trade low resistance liquidity run signatures - “70% of your time analyzing these markets should be on the daily timeframe. Once you can understand where the market is likely to reach for next, it becomes easy.” - ICT - Candles should wick in FVG, should not close full body through. They should respect the FVG - Become an artist with your chart logs - Take paper notes - Note your sticking points then move on - Let price show you - with FOMC, the new york session prior to FOMC is usually chop, sloppy conditions, building liquidity to use the news driver to send price wherever For me right now it is intraday structure and aligning with the direction after a large range day you can expect consolidation, seek and destroy environments. watch the order flow, bullish / support order blocks and fvgs should be respected on kings bearish /resistance pd arrays will be respected on shorts High probability conditions with ICT concepts is the algorithm presenting something in price that is so one sided and obvious that it is difficult to make a justification for the opposing side of the market. Use ICT market structure TRADE ALIGNED WITH THE HIGHER TIMEFRAME STRUCTURE, BIAS and LOGIC Align with the daily chart. Submit yourself to what the daily chart is doing. Align your trade ideas with it. IOF should be respected, use that to help manage trades “If you’re linking all of your trade ideas based on the logic of higher time frames, you’re going to avoid a lot of losing trades.” Edufx254 edwin.kimori@yahoo.com Anytime a significant price move is expected; always anticipate some measure of a stop hunt just use the swing range measure discount premium get into a daily routine get mind and eyes used to analyzing break of structure , align with bias daily intraday bias daily you’re daily bias is not always going to be right u have to be able to adjust on your lower timeframes follow the structure mainly use the 15m 1h for structure intraday Backtest daily Know my routine for setups your trade ideas must be in alignment with the present narrative. Get aligned with the algorithm stay aligned with the higher timeframes and institutional order flow don’t take trades against the higher tf trend and order flow don’t take trades against your daily bias Watch price, understand what price is doing, let price show u, don't try to predict it. Narrate it Don't try to pick the tops and bottoms Just catch part of the expansion after price has shown you Watch for power of 3 judas swing Edufx254 edwin.kimori@yahoo.com I Am The Algo Analysis Routine / Model Weekly Range Expansion - What is our weekly bias? Where is the weekly candle likely to expand, lower or higher? Power of 3, weekly candle delivery Daily Draw On Liquidity - Where is the draw on liquidity on the daily chart? (ie: liquidity pool, imbalance) - Where is price likely to draw towards on the daily? (PD arrays, equal highs lows, etc.) Narrative - Interbank traders view price in terms of liquidity and imbalances. This is what price draws towards. This is our #1 priority to look for when we sit down at the charts. This is how we build a narrative. Narrative leads towards a draw on liquidity. A draw on liquidity gives us our daily bias. This will be derived from our long term perspective (4h, Daily) Ask yourself: - Are we going higher for buy side liquidity or to rebalance a SIBI? - Are we going lower for sell side liquidity or to rebalance a BISI? Time Edufx254 edwin.kimori@yahoo.com - Submit to time. - Stay aligned with the algorithm and only trade during killzones. Liquidity - Wait for a liquidity grab to occur MSS - Wait for a market structure shift with displacement to occur after a liquidity grab. FVG - Identify fair value gaps within the displacement range to enter your trade. - Measure the discount/premium, only take long’s in a discount and shorts in a premium. Essentials To Trading The Daily Bias - All daily bias is attaining the likelihood of an up close or down close day. - Look for Intermediate Term Highs/Lows and Short Term Highs/Lows. - Use dxy to confirm Look for key turning points, ITH/ITL , key swing high/lows, Check and see, are we coming off a liquidity grab, (a run above an old high/low?) Bullish bias, price should seek PDH and show an inability to breach PDL. Bearish bias, price should seek PDL and show an inability to breach PDH. Very rarely do you see both PDH and PDL traded through in one daily candle. When this happens it usually signals a reversal on the daily. This is called an outside day, leading to a reversal. when you go live with the ict model, trade with 0 emotion. have risk management rules in place. 1% per trade? 0.5? Edufx254 edwin.kimori@yahoo.com remove P&L if you have to. know your $$ risk based on the fvg candle high and then remove P&L if necessary. make monthly withdrawals from apex give yourself a budget monthly Daily Bias Keys To Daily Bias - Everyday bias is unrealistic - Determine the likely weekly expansion - Look for obvious liquidity in that direction - Identify imbalances in price delivery top down - Focus on the high or medium calendar event dates - Look for directional price runs in killzones intraday is price action/ market structure bullish or bearish? are resistance or support PD arrays being respected what did price most recently do? identify any MSS after liquidity has been taken Where has price most recently come from? Where is the nearest FVG or liquidity? What price level changes your bias? Edufx254 edwin.kimori@yahoo.com daily time frame and bias “there are going to be times when you don’t know.” Sometimes daily bias isnt clear, WHEN IT ISNT, JUST WAIT AND SIT ON HANDS Mark daily swing range with fib. (premium or discount?) Do not try and pick tops and bottoms. Look for setups that are about to target a specific pool of liquidity Clear idea of where price is going to go when institutional orderflow is established price should respect it IOF is orderblocks and market structure Daily Bias Determine the likely weekly expansion: Does it look like it's going to run to an old low/high? Is it trying to run to an imbalance above or below? Or is it likely not to move because there is no data for it that week. Look for the direction of the weekly expansion move. The best setups occur when calendar events are in play, and the setups occur around that same time. Ignore the “both sides” type movement once open interest is higher on following month, rollover to next months contract use bar chart.com to see it ict doesn’t trade on mondays Have an area that invalidates your bias Price should respect bearish movement (bearish ob’s, fvg’s etc) Edufx254 edwin.kimori@yahoo.com in a bullish example tuesday is 70% chance of being low of the week in a bearish example tuesday is 70% chance of being high of the week swing range most recent swing high and swing low on that specific time frame don’t try to predict anything trend is your friend Look for points of interest Old highs and lows, REQH/REQL, imbalances order blocks etc Once we get to POI, look on lower timeframe for FVG model. Pay attention to the weekly range. Power of 3 timeframes work together price will make the same signatures on all different timeframes the high timeframes act like a boundary every time frame works together and the timeframe above acts like a boundary or framework for the ones below Edufx254 edwin.kimori@yahoo.com if price breaks out of that boundary, you have to go back to the higher timeframe to get a new perspective order blocks give you your bias, they act as a sort of confirmation for what side of the market you’re on these order blocks should be respected by price u can trail your stops based on them as price should respect them the lower timeframes will give hints at what the higher timeframes are trying to do Mark PDL, PDH, Weekly Open, Midnight Opening Price, 8:30 Opening Price W, D,4H general direction & “bias” 1h & 15m structure intraday and framework 15m get in sync intraday 1h 15m giving hints to what the higher timeframe going to do. 15m is your “bellweather” time frame 5m and below for trade entries using FVG model backtest every week on the weekends. go back, figure out what you could’ve done better. record what you did right, and how you can optimize it. What were your mistakes? Were they technical, emotional, etc? It’s all about refinement and constant improvement. Review every week and your trades/journal. Backtest every week. looking for price to reach down into a point of interest Edufx254 edwin.kimori@yahoo.com 15m / 1h / 4h / D then looking for the youtube model to form inside of that area use dealing ranges, master them Pay attention to what PD Arrays are being respected/disrespected. For example, if we are respecting bearish PD Arrays and disrespecting bullish PD arrays, price is showing you it’s hand. you need to be able to read price action and build a narrative form a storyline around what it’s telling us learn ICT market structure go through braveheart pdf 5 points a day 25 points a week the algorithm is always going to be right build a storyline around what the algorithm is doing there is going to be times with you get your overall draw on liquidity and narrative wrong or you simply don’t know based on the chart and have to wait for more clarity. When you’re able to justify both sides of the market, that is low probability Your trades should feel extremely one sided and sure, same with DOL and bias. Pay attention to what PD arrays order flow is respecting and disrespecting Edufx254 edwin.kimori@yahoo.com Is price respecting bullish pd arrays or bearish pd arrays you want to trade low resistance liquidity runs and take majority off at low hanging fruit work on framing a narrative daily understand why fvg or pd arrays won’t work at times IPDA Insights Institutional Order Flow & Secrets of Efficient Price Delivery This is how the markets book, how price is created. Interbank Dealing Range: Range where both buy side and sell side has been ran Based on how the algorithm refers to old data Find the interbank dealing range The dealing ranges are on every time frame Be able to build a bias, dol, narrative, Every price range needs to be efficiently delivered External to internal liq, internal to external liq. Rinse and repeat study weekly profiles study new york session daily profiles Draw On Liquidity creates bias Narrative is how price should deliver to the draw on liquidity this is the foundational premise for your analysis Edufx254 edwin.kimori@yahoo.com learn break away gaps 40:00 into ict 2023 episode 1 The bus comes around at the same time every day! low resistance liquidity runs = low hanging fruit take LRLR signatures, grab 2R and be satisfied 2R is all you need to pay the bills follow the displacement for the DOL Follow the orderflow SIT ON 15m chart, 1h (bellwether) use the 15m for structure always don’t get fooled by 5m structure ALIGN WITH THE 15m, 1h before looking to enter use the 15m & 1h orderflow and structure (MSS) to confirm price intention 1h orderflow and structure is key to determine dol, narrative etc keep an eye on 15m, 1h structure (MSS) to confirm the structure shift be fluid with price be able to switch on a dime take profit along the way KEEP A DETAILED TRADERSYNC JOURNAL Edufx254 edwin.kimori@yahoo.com only limit orders on entries. don’t chase price. be okay with it leaving without me. be okay with missing the bus. it comes around at the same time every day. hold 30% runners for external, PDH/PDL let order flow dictate where stop should be and how to trail. don’t trail too tight, give trades room to breathe. Target liquidity or pd array from matrix I try to hold for daily range, will take partial at 1st opposing PD array beyond equilibrium and hold runner for external liquidity. 1.5-3R is what I go for, all comes down to what price offers. SL is probably about 7.5pt on average, its rare I take trades with max 10pt SL Not much more to it than that, pay yourself at low hanging fruit and hold on for terminus be okay with missing movrs and not getting files be okay with missing the bus. remember the bud comes around the same time everyday take your 2R trade and dip. you don’t need to catch all of the move, and you don’t need to catch every move. Build a narrative POI’S: Daily/4H/1H Observe on 15m until I have a reason to cycle through ltf for entry 5m 4m 3m 2m 1m entry model I think in its simplest form, '22 is taking advantage of daily PO3 within the NY killzone, don't make it any more complicated than that. Wait for immediate BSL/SSL on 15m to the left of 8:30 to be swept and then wait for indication the '22 model is setting up. You know the rest for entry criteria. ICT basically zeroes us in on the manipulation of the PO3 to be positioned for the distribution. Edufx254 edwin.kimori@yahoo.com we just just look for a run on liquidity above below midnight open PO3 Good, price needs to pair traders who chase the short breakdown inducement with smart money who want to buy those stops at a discount. At any time, PDH or PDL can be draw on liquidity but you look at the order blocks from 1H and 15M to see if the order flow is subservient to daily/4H bias. If daily bias is bullish and bull OB are getting blown through then price has yet to reach a relative discount and take out SSL to begin respecting bull OB on 1H/15m etc. So price needs to still decay from a premium before ripping higher. Always a dip before a rip, or a climb before the dive. This is all I do, straight up. You see my entry checklist in lower right with daily/1H bias. Price was squeezing into a deeper premium and on the 1H still � so SSL needed to be swept prior to any long setup forming. Rest was history. Pick w/e htf PD array you want to exit position at You can treat the hourly as your daily bias, so yes a reduced size counter trend trade. Or just wait for the two to be in alignment Edufx254 edwin.kimori@yahoo.com You see how OB/FVG and order flow can be used to enter long after 22 model discount/premium entries have come and gone? look for intraday high/low that forms right before 9:30 equities open Look at 1h orderflow and establish bias/DOL study cj_fx chart es & nq learn SMT for added confluence SMT only works if you have an existing HTF narrative/bias because you are looking for confirmation of bull or bear signals look for layered FVG’s for added confluence FVG in a breaker block added confluence stay aligned with higher timeframe bias / narrative look at orderflow see what is being respected/disrespected follow the displacement for DOL study cj_fx get his 2022 model entry criteria define entry model criteria to a T to the last detail then backtest extensively Edufx254 edwin.kimori@yahoo.com Do not trade NFP days Do not trade FOMC days bodily candle close invalidates the fvg, wicks do not SMT divergence can help you confirm if it’s a true stop hunt because if one fails to run stops, it gives a strong indication SMT only works if you have an existing HTF narrative/bias because you are looking for confirmation of bull or bear signals pay attention to dealing ranges 15m , 1h, 4h, D be able to switch on a dime and be fluid with the bias/DOL. align with IPDA SMT for added confluence (ES, NQ, DXY) 15m highs and lows, BSL/SSL, will dictate MSS for me from now on OHLC is all you need, add time elements and understanding of time and the macros of the algorithm sessions highs and lows are very important for liquidity that gets targeted These ob’s should support price and be respected until we reach our higher timeframe objective Orderflow should be respected You have to know where price is likely to go to before you even think of putting on a trade. time is the most important then price. Edufx254 edwin.kimori@yahoo.com there’s 3 macros that run between 3:00pm and 4:00pm not every day does all 3 occur, usually 2 but always at least 1. highest probability longs are in a deep discount of the range, and we want to target premium pd arrays highest probability shorts are in a deep premium of the range and we want to target discount arrays we look to trade from one PD array to the next, ideally from premium to discount / discount to premium if you can’t come up with a narrative and dol, no trade if the dol and narrative is not clear, sit out, wait for clarity bias = what direction price is going to trade in narrative = how is the market going to get there when the DOL is higher, bullish order flow should be respected bullish order blocks should act as support pyramiding is valid until crossing equilibrium of the target range Edufx254 edwin.kimori@yahoo.com Price Cycles Consolidation - When price is accumulating/ranging in an equilibrium state Expansion - Price impulsively breaks out of consolidation leaving behind inefficiencies in price - Expansion looks like strong displacement Retracement - When price pulls back and redelivers to the inefficiencies in price and induces liquidity. - All retracements do is target inefficiencies and induce liquidity. Reversal - Continuation move away from the consolidation phase after the retracement. Monday likely accumulation, look for Tuesday high likelihood of being a large range day Wednesday high probability of consolidating Thursday Friday If we are bullish, there is a 70% chance the low of week occurs on a monday tuesday or wednesday. Edufx254 edwin.kimori@yahoo.com 90% of the time if Monday creates the low or high of the week Thursday caps the weekly range. ES ORDER FLOW IS KING FOLLOW THE ORDER FLOW Here's the thing...that is the classic/breaker IDEAL retracement entry. However, you've been neglecting all the continuation entries available until terminus � is reached I mean OB/FVG/VIB are all far game after the classic/breaker setup occurs Just have to get used to continuation entries I think what would also be beneficial is to qualify HTF PDA as part of your model. I.e if it isn't a 15m +PDA I am not interested always indentify the current market condition consolidation expansion retracement reversal 90% of the time if Monday creates the low or high of the week Thursday caps the weekly range. price is always doing 1 of 2 things; either drawing to imbalance or liquidity pool time & liquidity poools (power of 3, OHLC) When are we likely to consolidate, S&D - At equilibrium of HTF range Edufx254 edwin.kimori@yahoo.com - When we have red folder news late in the week and none early in the week - Pre-major red folder news like: FOMC, CPI, NFP - In london session when the asian range expanded extremely large - In new york session when the london session expanded extremely large Edufx254 edwin.kimori@yahoo.com
