DJC
Short

ICT Theory Optimal Trade Entries

FX:EURUSD   Euro Fx/U.S. Dollar
709 6 9
With thanks to ICT Michael J Huddleston, TraderSZ and Midge Drangonflyfx.

Here you can see the inner workings of trading a reversal.

The strategy can be summarised in this way:

High Time Frame Order Block.
Daily Highs and Lows.
A Breaker will be used to sweep daily High.
Price will come back to /HTF and Breaker Order Block and retest.
The market will often provide several entries.
Price should break short term lows, but ideally not daily lows yet.
Fibonacci levels (in this example) show the sweet spot 70.5% Optimal Trade Entries (OTEs).
Market then breaks structure, breaking through significant daily lows. Some traders would call this a breakout, but we are already onboard.
In this example the market then offered again many trade entries, based on the next breaker it formed to break more daily highs. (See purple line).

Reward:

If you had of spotted this correctly you would have made 111 Pips.
If you missed it but still got onboard at the final opportunities (purple line) 59 pips.

Risk:

Not including spread one could have used a 10 pip Stop Loss from /OTE.

What happens next:

Ultimately we could be targeting the final series of daily lows to be broken. 1.07960. But then we have a giant void below us :)- As a rule I would only target a max of 200% of Fib Extension. And usually most profits are taken well before that. In this case the 200% extension would actually just about fill in the giant void below us.

GLGT.

Thank you to everyone who has ever helped me with my learning. All credit goes to you.

Whilst I have written each acronym here in full, if you don't understand what they are you need to do your homework and watch ICT's videos on his web site, they are all completely free - 40 hours of them.
philipvdlinde
11 months ago
Great chart!
+1 Reply
DJC philipvdlinde
11 months ago
Thanks Philip.
Reply
philipvdlinde DJC
11 months ago
Had the same setup, but didn't take it.
+1 Reply
Brows PRO
11 months ago
Looks like your analysis could end up being completely valid, however, I am not bearish yet. I think those levels at 1.1 and 1.105 are looking a little too clean. Also, remember the Fiber is still in a buy program on the daily. Personally I'd like to see a bit more breaking down of market structure. I feel like this is just consolidation for now.
+2 Reply
DJC Brows
11 months ago
Thanks for your comment. This setup is already completed. It is about owning a small part of price action that can be repeated over and over. Whilst my analysis says price could continue on downward I am not, and will not, be trading that premise. Instead, looking for the next setup that mirrors the above approach.
Reply
Brows PRO DJC
11 months ago
It was a very good trade! Cheers. I just don't know if I would have had the balls!
+1 Reply
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