Unicorn PDF 2.0 Interactive Guide 1 Welcome to the Unicorn PDF 2.0! Before you delve into the contents of this PDF, i strongly recommend reading the first PDF and visiting the "Education-channel" on my Discord server. The channel is a valuable resource, meticulously curated to provide foundational knowledge and context that will greatly enhance your understanding of the topics discussed in this document. By first exploring the resources and discussions in the channel, you'll be better equipped to engage with and benefit from the information presented here. Thank you for taking this extra step to enrich your learning experience! Ash_Trades Ash_Trades Ash_Trades @_Ash_Trades_ ash_trades_ @_Ash_Trades_ 2 Step by step approach to executing the model! In this PDF we will take an interactive approach to walking through a step-by-step approach to executing this model. We have defined each concept both on YouTube and in Discord. Therefore, if you need any resources while completing this PDF, please use the socials that are listed at the bottom of this page. Additionally, if you ever have any questions or want to go over any information always feel free to reach out to me on any of the socials and I will gladly respond with any information I have. 3 Unicorn What is needed to form a Unicorn? •TIME •LIQUIDITY •BREAKER •Fair Value Gap (FVG) 4 Unicorn What is needed to form a Unicorn? •TIME = Liquidity grab at the opening times. •LIQUIDITY = the liquidity grab needs to see a higher time frame liquidity and a lower time frame liquidity taken. •BREAKER = Bullish breaker: Highest up CLOSED candle BEFORE the leg down that took liquidity. Bearish breaker: The lowest down CLOSED candle BEFORE the leg up that took liquidity. •When the breaker has consecutive closes you use the consecutive •Fair Value Gap (FVG) = Needs to be aligned with the breaker. 5 Stop Hunt What is a Liquidity raid? In trading, a "liquidity raid" or "stop hunt" refers to a strategy where large market players, like institutional investors or big traders, intentionally push the price of an asset to levels where they know many stop-loss orders are placed. The purpose of this maneuver is to trigger these stop-loss orders. 6 Stop Hunt Draw the Liquidity raid (Higher Time Frame) 7 Stop Hunt Draw the Liquidity raid (Answer) 8 Stop Hunt Draw the Liquidity raid (Lower Time Frame) 9 Stop Hunt Draw the Liquidity raid (Answer) 10 Breaker What is a breaker? a "breaker block" refers to a price level where there has been a shift in market structure, typically indicating a change from bullish to bearish momentum or vice versa. The concept involves identifying a consolidation area or a block of price action that precedes a significant market move. After the market breaks away from this block, the area is watched for a potential return and reversal, as it often acts as a new support or resistance level 11 Breaker What is a bullish/bearish breaker? Bullish breaker: A bullish range or up closed candle in the most recent swing high prior to an old low being violated. The sellers that sold this low and later see this same swing high violated and will look to mitigate the loss. When price returns back to the swing high this becomes a bullish set up. Bearish breaker: A bearish range or down closed candle in the most recent swing low prior to an old high being violated. The buyers that bought this low and later see this same swing low violated will look to mitigate the loss. When price returns back to the swing low this is a bearish set up. 12 Breaker Draw the breaker block (Bearish) 13 Breaker Draw the breaker block (Bearish) 14 Breaker Draw the breaker block (Bullish) 15 Breaker Draw the breaker block (Bearish) 16 Displacement What is a displacement? "displacement" refers to a significant, impulsive and noticeable shift in price away from an established range or level, indicating a potential change in market sentiment or the beginning of a new trend. This concept is often associated with the idea of smart money actively moving the market, creating a clear separation from previous price consolidation areas. Displacements are considered important because they may signal the start of a substantial move, providing traders with clues about future market direction. 17 Displacement Mark the bearish displacement (example 1) 18 Displacement Mark the bearish displacement (Answer) 19 Displacement Mark the bullish displacement (example 2) 20 Displacement Mark the bullish displacement (example 2) 21 FVG What is a Fair Value Gap (FVG)? a "Fair Value Gap" refers to a price range in a market where minimal trading occurred, creating a gap or void in the price chart. This gap represents an area where price did not establish fair value, suggesting that the market might return to this range to 'fill' the gap and establish fair value 22 FVG Draw the bearish Fair Value Gap (example 1) 23 FVG Draw the bearish Fair Value Gap (Answer) 24 FVG Draw the bullish Fair Value Gap (example 2) 25 FVG Draw the bullish Fair Value Gap (Answer) 26 UNICORN THE UNICORN Now that you have all the components, it is time to put it all together. •Time is our most important element. We ONLY execute during the opening times. FX Opens = London: 2am–5am EST, NY: 7am–10am EST Indices Open = London: 2am–5am, NY: 9:30am–12pm EST •"The breaker is one of the strongest algorithmic entry patterns especially if you have taken out liquidity at the opening price" - ICT •We do not trade outside of the opening times. 27 UNICORN THE UNICORN Second most important element is the Draw on liquidity. •Price is only ever doing two things: running above/below a swing high/low or rebalancing an inefficiency. •Therefore, our two forms of liquidity are swing highs/lows and Fair Value Gaps. •We obtain our draw on liquidity from the higher time frames because we want to be on the same side as the higher time order flow 28 UNICORN THE UNICORN We always analyze from higher time frame to lower time frame. We use time frame alignment to understand which time frames we would analyze. Time frame alignment: •Monthly PD array > Daily Entry Function •Weekly PD array > 4HR Entry Function •Daily PD array > 1HR Entry Function •4HR PD array > 15M Entry Function •1HR PD array > 5M Entry Function •15M PD array > 1M Entry Function 29 UNICORN THE UNICORN "You have to understand where there is liquidity. The best breakers are going to see two levels of liquidity. The short term and then the higher time frame liquidity." -ICT •We use time frame alignment to obtain both the short term and higher time frame liquidities. When we are analyzing we want to use a higher time frame swing high/low or FVG as an area of interest to execute our position. •Once we are at a higher time frame area of interest during the the opening times we will then search for the short term liquidity grab (raid) to begin searching for our entry function. 30 UNICORN Example of using both liquidities 31 UNICORN THE UNICORN Analysis of prior example: •1HR > 5M Time frame alignment used •NY open used for time •Price swept the higher time frame area of interest (SSL is a swing low) •At the area of interest, a stop hunt occurred (Short term raid) •Then we waited for displacement to occur •The displacement left an FVG aligned with the breaker block •Once all of the criteria for our entry function was completed, we entered our position the next time price tested the entry function •Stop loss went below the entry function •We took profit at +2R 32 UNICORN Draw the bullish unicorn (stop hunt, breaker and FVG) 33 UNICORN Bullish unicorn (stop hunt, breaker and FVG) 34 UNICORN Draw the bearish unicorn (stop hunt, breaker and FVG) 35 UNICORN Bearish unicorn (stop hunt, breaker and FVG) 36 UNICORN Keys to using the Unicorn •Only execute during opening times •Higher time frame liquidity and lower time frame liquidity needs to be taken •At the higher time frame liquidity, the lower time frame liquidity needs to be taken •After stop hunt occurs, we need to see clear and decisive displacement •The displacement needs to leave an FVG aligned with the breaker block 37 UNICORN Keys to using the Unicorn •We must confirm all criteria to the entry function is completed before entering •Once criteria is completed we enter from the unicorn with a stop on the other side of the entry function •Must size position according to the size of the entry function •When executing we are looking for 1:2RR •We execute the Unicorns that are aligned with higher time frame order flow 38 UNICORN Keys to using the Unicorn "That right there is a unicorn set-up folks. That is one of the wonderful set ups that repeat over and over again. Its there every single week multiple times on many different time frames. This set up alone is a model in itself." -ICT 39 UNICORN Links to each concepts and socials Concepts •TIME - https://www.youtube.com/watch?v=yQI4QbysC34&t=608s •LIQUIDITY - https://www.youtube.com/watch?v=wksJdeCMzQg&t=119s •STOP HUNT - https://www.youtube.com/watch?v=VtSh_9eoW0U&t=44s •DISPLACEMENT - https://www.youtube.com/watch?v=MdC-zQf7x3c •BREAKER BLOCK - https://www.youtube.com/watch?v=y8nS-xeIWOc&t=19s •EXECUTION - https://www.youtube.com/watch?v=gYKnCrNz0Q0 Socials • https://bento.me/ash-trades
