THE TRADING FLOOR
Inner Circle Trader ICT
Instructor: Arty
ELEMENTS TO A TRADE SET UP
Price either does 1 of 4 things
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Expansion - Judas Swing
Retracement - New York Session
Reversal - London Session
Consolidations - Tokyo Session
The reasons why price does this and
targets to shoot for
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Order blocks
Fair value gaps
Liquidity voids
Liquidity pool
Stop runs
Equilibrium
EXPANSION
Expansion is when price moves quickly from
a level of equilibrium
When price leaves a level quickly this
indicated a willingness on the part of the
market makers to reveal their intended
repricing model
Look for the order blocks the market makers
leave at or near the equilibrium
RETRACEMENT
Retracement is when price moves back
inside the recently created price range.
When price returns inside the price range it
indicated a willingness on the part of the
market maker to reprice to levels not
efficiently traded for fair value
Look for fair value gaps and liquidity voids as
areas of interest for retracements
REVERSAL
Reversal is when price moves the opposite
direction then it was previously moving.
When price reverses direction it indicated
the market makers have ran a level of stops
and a significant move should unfold in the
new direction.
Look for liquidity pools just above an old
price high or just below an old price low.
CONSOLIDATION
Consolidation is when price moves inside a
clear trading range and shows no willingness
to move significantly higher or lower
When price consolidated it indicates the
market makers are allowing orders to build
on both sides of the market. Expect
expansion in the near future
Look for the impulse swing in price away
from the equilibrium price level that is found
exactly in the halfway point of the
consolidation range
EXPLANATION
INSTITUTIONAL ORDER FLOW
Monthly Chart EUR/USD
TOP DOWN ANALYSIS
Create Daily Price Action Logs with Price Charts
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Daily chart - 12 months no less 9 months view
4 Hour Chart - 3 months view
1 Hour Chart - 3 weeks view
15 Minute Chart - 3-4 days view
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Note where price shows a quick movement from level
Note recent highs and lows that haven't been re-tested
Note areas on chart where price left clean high and low
Note what days weekly highs and lows form
Note the daily high and daily low every trading day
(locate killzone)
IMPULSIVE PRICE SWINGS
Impulse price swings - Sharp price
movements during New York and
London Sessions.
Retraction - When price moves
opposite to essentially a fake out then
impulses again in the overall trend
continuation.
EQUILIBRIUM VS DISCOUNT
EQUILIBRIUM VS PREMIUM
PD ARRAY
Premium
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Old Highs and Lows
Rejection Block
Bearish/ Bullish Order Blocks
Fair Value Gaps
Liquidity Void
Breaker Block
Volume Imbalance
Discount
FAIR VALUATION
FAIR VALUE GAP
LIQUIDITY VOID
FAIR VALUATION
Volume Imbalance
A volume imbalance occurs when there
is a clear gap between a candle closing
price and the open price of the next
candle. These gaps are usually not
covered by wicks and leave an open
range where a volume spike has left an
imbalance in the price.
LIQUIDITY RUNS
High Resistance
Low Resistance
ORDER BLOCKS
Bullish Orderblock:
Definition - 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.
Validation: When the High of the Lowest Down
Close Candle or Price Bar is traded through by
a later formed Candle or Price Bar.
Entry Techniques: When Price trades Higher
away from the Bullish Orderblock and then
Returns to the Bullish Orderblock Candle or
Price Bar High - This is Bullish.
Defining Risk: The Low of the Bullish Orderblock
is the location of a relatively safe Stop Loss
placement.
Just below the 50% of the Orderblock total
range is also considered to be a good location
to raise the Stop Loss after Price runs away
from the Bullish Orderblock to reduce Risk when
applicable.
REJECTION BLOCK
The area in between
the wick and the
high/low of the candle
after a high/low is
formed.
BREAKER BLOCKS
THE ATM METHOD
RETAIL DAY TRADING TRAPS
Retail day trading patterns like Bullish/ bearish Flags
As well as head and shoulders patterns are used
occasionally by smart money as traps at major swing
levels to fool retail traders at those levels of liquidity
THE BIG PICTURE
LINK TO VIDEO
BEST DAYS TO TRADE
Time of Day
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London Session Open
New York Session Open
London Close
New York Close
Asian Session Open
London Lunch
Defining the daily range:
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Guidelines to follow
Day of the week
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Sunday - opt out daily range too small
Monday - can create a small range typically
Tuesday - usually a good day to trade
Wednesday - generally ideal day to trade
Thursday - generally ideal day to trade ( can reverse)
Friday - Typically small range
HIGH PROBABILITY DAY TRADING SETUPS
What Makes Daytrades High Probability?
The Highest Importance is placed on the HTF Daily or 4h direction.
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When Daily and or 4h direction is Bullish:
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Use Previous Day's Low to High for Retracement Entries.
Use Previous Day's NY Session Low to High for Retracement Entries
Use Previous Day's Low for Sell Stop Raid to accumulation longs.
Focusing on the anticipated move from HTF Discount to Premium PD Arrays.
When Daily and or 4h direction is Bearish:
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Use Previous Day's High to Low for Retracement Entries.
Use Previous Day's NY Session High to Low for Retracement Entries.
Use Previous Day's High for Buy Stop Raid to accumulate shorts.
Focusing on the anticipated move from HTF Premium to Discount PD Arrays.
HIGH PROBABILITY DAY TRADING SETUPS
When Do I Look To Buy Daytrades?
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Ideally in seasonally Bullish periods of the year. * Not required.
When the current Quarter or new Quarter is expected Bullish.
After the Daily chart has reacted positively on a Discount PD Array.
When Price has a clear unobstructed path to an opposing Premium Array.
The Ideal Days of the Week buying Monday, Tuesday and Wednesday.
Refer to the CBDR and determine if it is less than 40 pips ideally.
Demand the Asian Range be in a 20 pip range ahead of Frankfurt Open.
Buying between 2:00 am to 4:00 am NY Time seeking LOD.
Buy 1-2 STD of CBDR and or Asian Range coupled with Discount PDA.
Timeframe to execute on 15 or 5 minute chart.
HIGH PROBABILITY DAY TRADING SETUPS
Where Do I Look To Buy Daytrades?
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Under Asian Range plus 5 pips.
FVG below a Short Term low from Previous Day's NY Session.
Bullish Orderblock below a Short Term low either Prev-Day or today.
If I am very Bullish - 1 STD with ANY Discount PD Array in LO Killzone.
Inside the Protraction lower post 12:00 am to 2:00 am with PDA.
Filling of a Liquidity Void that completes under a Short Term low.
If after rally post 12:00 am - Buy the 1st retrace into 15 or 5 minute +0B.
1-2 STD in Asian Range coupled with Discount PD Array.
If Short Term low is taken out twice with no upside... buy Turtle Soup.
HIGH PROBABILITY DAY TRADING SETUPS
Placing Stop-losses In Buy Daytrades?
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Whatever you use as the initial Stoploss - Do Not Rush moving it.
If you are Trading the CBDR overlap with PDA - Stop is 30 pips under.
If you are Trading a Run under the Asian Range - Stop is 40 pips under.
If you are Trading ANY Sell Stop Raid - 30 pips under the low/entry.
If you are Trading the 1st retracement into +OB - 10 pips under LOD.
If you are Trading second return for Sell Stops - 30 pips under the LOD
If you are Trading any other setup not described above - use 50% ADR of the last 5 days subtracted from the Asian
Range Low.
HIGH PROBABILITY DAY TRADING SETUPS
Taking Profits In Buy Daytrades
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Always try to take something off in gain at 20-30 pips. Always
Look to Scale something off every 2 STD of the Asian Range or CBDR.
Take something off at the Previous Day's High +5 - 15 pips.
Take something off at 50% of the Price Range you are trading inside 60m.
Take or have 60-80% off at 5 day ADR projections... Always.
If trading higher than Previous Trading Week High - take something off.
If trading higher than Previous Month High - take something.
In Time Of Day - scale out at 5:00 am NY Time a portion.
In Time Of Day - scale out at Short Term High prior to 7:00 am NYO
In Time Of Day - scale out at 10:00 am to 11:00 am NY time in rally.
Ideally any of the above scenarios coupled with a Premium PD Array.
HIGH PROBABILITY DAY TRADING SETUPS
Where Do I Look To Short Daytrades?
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Above Asian Range plus 5 pips.
FVG above a Short Term high from Previous Day's NY Session.
Bearish Orderblock above a Short Term high either Prev-Day or today.
If I am very Bearish - 1 STD with ANY Premium PD Array in LO Killzone.
Inside the Protraction higher post 12:00 am to 2:00 am with PDA.
Filling of a Liquidity Void that completes above a Short Term high.
If after drop post 12:00 am - Sell the 1st retrace into 15 or 5 minute -OB.
1-2 STD in Asian Range coupled with Premium PD Array.
If Short Term high is taken out twice with no downside... sell Turtle Soup.
HIGH PROBABILITY DAY TRADING SETUPS
Taking Profits In Short Daytrades
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Always try to take something off in gain at 20-30 pips. Always.
Look to Scale something off every 2 STD of the Asian Range or CBDR.
Take something off at the Previous Day's Low -5 - 15 pips.
Take something off at 50% of the Price Range you are trading inside 60m.
Take or have 60-80% off at 5 day ADR projections... Always.
If trading lower than Previous Trading Week Low - take something off.
If trading lower than Previous Month Low - take something.
In Time Of Day - scale out at 5:00 am NY Time a portion.
In Time Of Day - scale out at Short Term Low prior to 7:00 am NYO.
In Time Of Day - scale out at 10:00 am to 11:00 am NY time in decline.
Ideally any of the above scenarios coupled with a Premium PD Array.
KILL ZONES
London : 02:00-05:00 UTC-4 (New York time)
New York : 07:00-10:00 UTC-4 (New York time)
JUDAS SWING
SILVER BULLET
London Set Up Time - 03:00-04:00 UTC-4
New York Set Up Time - 10:00-11:00 UTC-4
(UTC-4 is New York Time Zone)
Price essential will create a fair value gap in
this time frame. Then once price returns to
that fair value gap it will reject and move
toward the next available liquidity. Do not
take this set up unless you can get at least
15 pips on forex pair or 10 points on Indices
(bare minimum, preferably more)
POWER OF THREE
Power of 3 refers to the 3 components that make up price action
Accumulation/Manipulation, Distribution, Range Expansion
When the daily bias is bearish
Confirm london session was bearish
Wait for 07:00 NY time to look for short
Between 07:00-09:00 NY time it will form
After 07:00 NY time wait for retracement
NY session will retrace from the swing low
Ideally select retracement of at least 20 pip lower
If no retracement of 20 pips forms by 09:00 dont trade
If it does form enter on 62% fib level
(expect to retest low of the day and may continue)
OPTIMAL TRADE ENTRY - OTE
SMART MONEY TECHNIQUE - SMT
AUDUSD
DAILY
USD INDEX
DAILY
HOW TO USE THIS INFORMATION
Lets jump into the charts
and run through some examples
CONGRATS!
You may need to watch this multiple times
To have these concepts memorized
You only really need to use 1 and stick to it
Let us know you feed back in the general chat on discord