This Completing Transformed My Trading (RESPECT & DISRESPECT)The idea of RESPECT and DISRESPECT completely transformed my ability to effectively read price action and trade profitably.
ICT teaches about Premium/Discount (PD) Arrays. There is a lot of bickering and debate as to which of these PD Arrays are better.
I'm here to build a case for the idea that they are all equally effective, and are just reference points on a chart to build a trade idea around.
To me, it boils down to: Which levels are being RESPECTED or DISRESPECTED?
That's it for me, that's what made it all click. That is what helped me stop worrying about every little level on the chart.
Once you have a high time frame (HTF) narrative and draw on liquidity (DOL), you know which PD arrays you want to see respected and disrespected. Coming up with your HTF Narrative is also based around what levels are being RESPECTED or DISRESPECTED.
I hope this video can give you an a-ha moment like it did for me.
Ictconcepts
Mastering High Probability Trading EnvironmentsIn this educational video, we'll delve into High Probability Trading Environments and introduce a simple yet effective concept to confirm their presence . Understanding these environments will empower you to confidently navigate the market with consistency and success.
For a comprehensive understanding, I recommend watching my previous video on Understanding Trend Analysis, SMT, and ICT Concepts below.
If you have any questions, feel free to leave them in the comments section.
Happy trading!
The_Architect
Understanding Trend Analysis, SMT and ICT ConceptsIn this video, I'll delve into the concept of Institutional Market Structure, a vital tool for trend analysis. Specifically, we'll explore the Smart Money Tool/Technique (SMT), which provides insights into whether a market will continue its trend or potentially reverse. Understanding these concepts is crucial for effective trading strategies. Sit back, relax, and enjoy the video!
Please do leave any questions in the comment section if you have any.
Kind Regards,
The_Architect
ICT Unicorn Model - The powerful ModelThe Unicorn entry model in the ICT method combines the concepts of the Breaker Block and the Fair Value Gap, providing a unique approach to identifying trade opportunities. This combination highlights a future area of support/resistance.
A Bullish Unicorn Pattern consists out of:
A Lower Low (LL), followed by a Higher High (HH)
A Fair Value Gap (FVG), overlapping the established Breaker Block
A successful re-test of the FVG which confirms the pattern.
A Bearish Unicorn Pattern consists of:
A Higher High (HH), followed by a Lower Low (LL)
A Fair Value Gap (FVG), overlapping the established Breaker Block
A successful re-test of the FVG which confirms the pattern
In this trading idea, I would combine the movement of DXY and GU/EU to explain the correlation and divergence (ICT SMT). Futhermore, I want to share how powerful the ICT Unicorn Entry Model is.
Exploring ICT Concepts: GBPUSD Educational AnalysisIn this educational video, I will delve into key ICT concepts such as Market Structure, IPDA delivery, Order Pairing, High Resistance Liquidity Zones, and Draw On Liquidity, Entry Confirmations. Additionally, I will provide a detailed long-term daily perspective on GBPUSD.
The purpose of this video is to elucidate why I identified a potential sell opportunity on GBPUSD during the London session. For further context, please refer to the post below.
Refer:
Kind Regards,
The_Architect
Goldbach levels explained The algorithm uses the following equation
3x3 =9
9x3 =27
27x3=81
81x3=243
243x3=729
729x3=2187
And so on…
These are our power of 3 numbers we want to keep in mind.
When we get the final result, charts will move 3,9,27,81,243,729 pips..or points or dollars at a time.
It employs goldbach levels using (po3) dealing ranges and completes objectives along each (DR) from low to high and back .
Why don’t your fair value gap or order fail to work sometimes but not always?
The dealing range you see has labels- each of icts pd arrays form and work specifically inside of the right level. Order block forms in ob
Fvg forms on fv
Liquidity voids ( long insane runs / candles) start from the lv levels ONLY.
breakers form in br
Mitigation block is mb
Rb is rejection block
If you are a Fvg or order block trader you need to understand this. The algorithm will only form the correct structure in the correct area…again like all ict concepts, it is completely fractal in nature.
Each po3 number has It’s own dealing range and smaller ones (3,9,27) all work inside of the higher ones (81,243,729)
From high to low is just these numbers in amount of pips ..
27 dr (dealing range) is 27 pips and so on, they are made up of a premium and discount also
Buy in a discount, sell in a premium..ya once 0.5 is a premium market
Since I’m on the daily using more time to swing, I’m using a 243 and 729 dealing range.
We are bearish. The algorithm is perfect.you have to open your mind to see what’s really happening…..
Understanding the ICT BREAKAWAY GAPIn this video I go through the ICT Breakaway Gap and how YOU can use it to your advantage. I include some tips and tricks with a real trade setup demonstration.
The Breakaway Gap may have been an elusive concept to understand, but I present a simple way you can spot them on the chart and frame your trades around them. It is a powerful weapon that can be used to snag some awesome trades.
Simple put, the Breakaway Gap is a gap that does not get traded into with the NEXT FEW CANDLES. Emphasis on the last part because price is fractal, and the best way to frame a trade with ICT's Concepts is by taking a few candles on the higher timeframe for your bias, and going to a lower timeframe to form your narrative, and either entering on that timeframe or even going to a lower timeframe for your entry.
Hopefully this gives you some insight into one of the many concepts that ICT has bestowed upon the public.
If you need clarification about the content, or you are still struggling with finding your groove as a trader and need personal guidance or mentorship, feel free to reach out to me via TradingView’s private message or on X.
Happy trading and happy studying!
- R2F
Fair Value Gap Trading StrategyFair Value Gap Trading Strategy
To implementing a fair value gap as a trading strategy you need to understand these three basic components of this trading strategy.
Time
Liquidity Hunt
Market Structure Shift
Fair Value Gap
Let’s begin by discussing the importance of time in trading. According to ICT Trader, time is considered to be fractal, meaning that what happens on higher time frames is reflected in lower time frames if studied in the proper context.
In this context, fractal refers to the idea that patterns and behaviors observed on longer time frames, such as daily or weekly charts, can be seen in shorter time frames, like hourly or minute charts.
By studying price action and market behavior across different time frames, traders can gain a deeper understanding of market dynamics and potentially identify profitable trading opportunities.
Time indeed holds significant importance in the fair value gap trading strategy, particularly when it comes to identifying favorable trading setups. Despite the forex market being open 24 hours a day, not all times present ideal conditions for executing fair value gap trades. That’s where the concept of ICT Kill Zones comes into play.
ICT Kill Zones
ICT Kill Zones refer to specific time periods during the day that have been observed to offer higher probability trading opportunities. These zones are associated with the entry of smart money, which are institutional or banks who have the ability to influence market direction.
In short, ICT Kill Zones correspond to specific time periods during the day that are particularly relevant for trading activities. These zones include the London Open, London Close, New York Open, and New York Close.
Traders using the fair value gap trading strategy often focus on these times as they tend to offer higher probability trading setups. The ICT Kill Zones are associated with the entry of smart money and can provide enhanced opportunities for traders to capitalize on market movements. By aligning their trading activities with these specific time periods, traders aim to improve their chances of success.
Liquidity in FVG Trading Strategy
Liquidity in the market often takes the form of buy stops and sell stops.market makers or smart money intentionally trap retail traders by manipulating prices to trigger their stop losses.
The idea is that they move the market in one direction to hunt for stop losses, causing retail traders to place orders in the false direction and set their stop losses at key levels. After the stop loss hunt, the market reverses in the opposite direction, benefiting the smart money.
Let’s analyze the above chart from a retail trader’s perspective. When we observe the chart, we notice that the price levels between 44240 and 44280 have proven to be strong resistance in the past.
Based on this observation, many retail traders might place their selling pending orders to anticipate of a price reversal at these levels. To manage their risk, they would likely set their stop loss orders just above this resistance area.
What is done by market makers or smart money,they could manipulate the market by initially pushing the price upward, deliberately triggering the stop loss orders placed by retail traders. This action would cause some retail traders to think that a breakout is occurring and prompt them to place buying orders while setting their stop losses at levels below the resistance area.
Once the stop loss orders have been hunted and triggered, the market makers or smart money may then reverse the price direction.
Enhancing Trading Success with the Fair Value Gap Entry Strategy
After a liquidity hunt on a higher time frame, you suggest switching to lower time frames such as 15 minutes, 5 minutes, 3 minutes, or even 1 minute to identify certain patterns that may emerge following the stop loss hunt. These patterns include:
1.Sudden or sharp price movements: Following the liquidity hunt, you may observe rapid and significant price fluctuations on the lower time frames.
This sharp movement causing market structure shift and provide an extra confluence.
2. Fair value gap (FVG): Look for gaps between the current price and the fair value of the asset. The fair value represents the equilibrium price based on various factors. Identify instances where the market price deviates significantly from this fair value.
3. Entry position based on the Fair Value Gap strategy: Once you spot a fair value gap pattern after the liquidity hunt, you can consider taking a position in anticipation of the market filling that gap. The expectation is that the market will eventually return to the fair value price.
It’s important to carefully train your eyes to recognize these patterns after a liquidity hunt and patiently wait for the market to come back and fill the identified gap. Once you have identified a suitable entry position, you can place your stop loss order above the first candle to manage your risk.
Please note that implementing such strategies requires careful analysis, experience, and a deep understanding of the specific market you are trading. It’s crucial to conduct thorough research, backtest your strategy, and consider other factors that may influence price movements before making any trading decisions.
ICT Order Block Trading Strategy : Asian Session Liquidity SweepASIAN Session Liquidity Sweep Model
Mark High and Low created in Asian Session.
1. Upon starting of London Session it sweep Asian Session liquidity and closed price below Asian Session High.
2. Created Bearish OB.
3. Sell side imbalance in form of FVG.
So we have three confluences
i.e. Liquidity Sweep + OB + FVG
Remember these three are confirmation for trend or break out direction.
How Order Blocks WorkOnce you have drawn Order Block on Daily
time frame now move to lower time frame
like 1H , 30 M or lower,
you can see it started creating bullish candles.
In this particular case a popular bullish
candlestick pattern three white soldiers
formed at 30 M time frame indicting potential reversal in trend.
Bearish Order Block: A Thorough Analysis in 2024
Identify bearish order block as mentioned in previous post.
Go to lower time frame to check consolidation phase and mark its support level.
Check point where price went below support level and comeback to retest.
Enter short trade once it breaks below again.
so now we have 4 confluences for short entry.
1. 4 Hour's Bearish OB
2. Price Consolidation at lower time frame.
3. Retest of price
4. Breakout in short direction.
Identification of Order Bearish BlocksExplaning the Bearish Order Block
A bearish order block is a price area on a chart that indicates a potential sell opportunity because it suggests a shift in market sentiment from bullish to bearish. It's essentially a zone where a large number of sell orders were placed, creating a temporary imbalance between supply and demand.
Happy New Year 2024| Learn Our Methods | Read Description|Happy New Year Everyone 2024:
Let's first talk about CHFJPY then we will talk about how you can improve and learn some tips.
CHFJPY in last six or seven months price overbought heavily due to JPY poor performance and government's zero intention to interfere in the market. However, many reports suggests that JPY will likely to be rebound in first quarter of 2024 in this case we can see a strong shift in price characteristics. Our first entry indicates, that we should expect price to continue the bearish momentum and drop from current area of the price. However, as we will having NFP in the first week of the month, it is likely to see some unexpected movement in the market. Second entry, is when price fill the gaps in the market and then drop smoothly, we will keep you updated.
We want all of you to succeed in the forex or commodities trading.
Here how you can improve:
Firstly find one or two pairs that suits you: meaning if you focus on every single instruments available to trade in the market, you will never succeed instead focus on one or two pairs and master them, know how and when these pairs move, what factors influence them in the market and trade swing highs and lows.
Secondly, use longer time frames to have a better vision, have a longer vision which will help you catch the big moves, yes, it is time consuming but if you are beginner then focus first in this and then along the way you will learn intraday trading.
Lastly, learn more about consolidation, accumulation and distribution: before the big reversal, price first will consolidate then accumulate and distribute, you should be looking to enter in phase of accumulation and take every enter when price consolidate which leads to a breakout.
If you learn above information in details and practice, your chances of becoming a successful trade increase. There is no overnight success, it is all hard work, if you believe in your self and focus on above things you will one day be proud of yourself.
Happy New Year and Trade Safe 2024.
We wish all of you all the best.
Team Setupsfx_
This is My Favourite ICT Day Trading ModelHello traders,
This is the complete breakdown of my favourite ICT Day Trading Model.
This is so easy to replicate on any two time frames. One must be higher, while the second one which is for entry should be lower.
The higher time frame is for market direction, orderflow, trend.
Identify your discount and premium levels on higher time frame.
above 50% of your fib is premium, while below 50% is your discount.
If price is bearish, you are to look for sell opportunities when price retrace back to your premium levels.
Then go to your lower time frame to look for selling opportunities.
Your entry should be taken mostly within London kill zone.
For you to have a quality A+ trade setup, time and price must align together with your trade idea.
Your trade idea have a high probability of working out if you take your entry within London Kill Zone.
Look at my chart diagram to understand the model.
What is ICT Power of 3?Power of 3 at work on Gold producing a 8.6RR move on 30/06/2023
FOREXCOM:XAUUSD
Ict power of 3 is a strategy that reveal the market maker algorithm model for price delivery.
Power of 3 simply means there are 3 things market makers algorithm do with price in ever trading days.
Those 3 things are; Accumulation, Manipulation and Distribution.
AMD:
A: Accumulation
M: Manipulation
D: Distribution
1. Accumulation: They accumulate liquidity through the delivery of a ranging market.
The purpose for delivering a ranging market is to induce both buyers and sellers to enter the market thinking that price will go in their direction.
2. Manipulation: After accumulating both buying and sell orders, they then manipulate the market to further induce another set of traders which are breakout traders.
But, that particular manipulation move is not their intended direction for the day. They only use it to gather liquidity, Which will then lead them to the next action which is to move and distribute price in their real direction for the day.
3. Distribution: After manipulating price to a particular direction different from their plan, they then distribute price to their original intended direction.
e.g to buy, they will first sell the market and then buy at the discount price level.
Example of Power of 3 on Gold
AMD:
A: Accumulation
M: Manipulation
D: Distribution
Accumulation : Price range during Asian session, accumulating liquidity on both sides of long and shorts.
Manipulation : Price broke the low of the accumulation during London session to take out sell side liquidity and then fill the previous day imbalance.
Distribution : Price move away from the FVG leading to a shift in market structure on 5m time frame, plus a short pull back, follow by a massive move to the upside during the New York session to take out buy side liquidity above.
I was Right On Gold/XAUUSD,Watch This Video To See How I did itIn this video, I gave the full breakdown of how I could see and accurately predict Gold's bullish move before it happened.
If you enjoy my content, drop a comment, boost this video, and make sure you follow me so you won't miss my future updates.
EUR/USD Scalp IdeaPay close attention!
This is the Last 7 Days (Trading Days ofc) !
I drew the London Session's Low , You see Every time we Hunted the London Low in NY Session and Reclaimed it, So We had a Scalp Chance to Long at London Low and Take Profit after 24 hours.
the only day that we didn't reclaim London Low, it was Thursday and the price was effected by the news.
Thursday's News:
🕯USD: Core PPI m/m
🕯USD: Core Retail Sales m/m
🕯USD: PPI m/m
🕯USD: Retail Sales m/m
🕯USD: Unemployment Claims
Do you Think we Should keep using this Pattern for the next couple days?
How we can improve our Stop and TP?
ES Morning Shorts From Last Nights IdeaGood Afternoon everyone,
I will show in depth order entries in this post, read the updates to see.
This idea was formed last night around 10PM NY Time. I originally was hoping to trade up into the most recent Order Block (green path arrow) during the London session and end at the Terminus -4 around 8:00AM NY time. I then would've liked to see accumulations followed by a Turtle Soup or sweep of that low at the Terminus -4 during market open. I wanted to take countertrend longs in that area into the Order Block resting above the Liquidity Void, this move is denoted by the orange path arrow.
However we ended up going straight to Terminus -4 during London and we rallied above Asia accumulation into the Bearish Order Block sitting right above (green path arrow). We took shorts from this area and we were looking to target the Sellside Liquidity below to complete our MMSM (Market Maker Sell Model) on the 15M chart. We were able able to bank 2.1% off the move just by taking profits at the short term low 4507.5 and holding a few more contracts to a slightly lower price once we noticed price wasn't wanting to break the low at the Terminus -4 just yet. The Sellside Liquidity is still a viable target, we have just been choppy since right after open so taking profits is worth the time spent waiting for price.
Hopefully this was more insightful on how to form an idea for the next trading day. I will commit to making more informational posts like this. Please read the updates for a 5M look at the entries and a reference to the MMSM.
Why I analyze the direction of DXY.For a trader that trades GBPUSD like me, it is important to analyze the direction of TVC:DXY because TVC:DXY is negatively correlated with $GBPUSD. Knowing the direction of DXY is an additional confluence in trading $GBPUSD.
Here is how I analyze TVC:DXY direction.
Today's TVC:DXY direction analysis.
- DXY is showing a downtrend move.
- It took the sell side liquidity with equal low (SSL D TAKEN line) then moved up.
On its way up,
- it filled fair value gaps (purple shades). 1 fair value gap is not yet fully filled
- it took the 78.6% Fib level, which is the deepest optimal trade entry (OTE)
LONG bias: it is possible for DXY to continue moving up because there is a daily bearish order block just above (BearOB D line)
SHORT bias: it is also possible that TVC:DXY could reverse back down from here because it is showing signs of rejection of the 78.6% Fib level.
For this reasons, my bias for TVC:DXY is NEUTRAL.
Now it's time to analyze FX:GBPUSD
Backtesting SMC Continuation StrategyTV wouldn't let me write "ICT" in the title lol
Anyhow, here's a great example of a clean SMC/ICT continuation trade on the 15min timeframe.
I generally like to watch the Euro on the 4H, but since I don't have a setup at the moment, I thought I'd flip to the lower timeframes and play around with Replay.
1. The first thing that caught my attention was the break of structure on the 15min TF. This BOS to the upside was the first hint that price wanted to move up.
2. This BOS was caused by a tiny order block, and the same explosive move created a fair value gap (imbalance). Since we know price loves to fill imbalances, you'd want to see price pull back into the order block where a tight entry and SL could be filled (as it did in the, in the picture).
3. Before price hit the order block, it first purged the liquidity within the present area, which is another sign I look for before pulling the trigger.
4. With TP placed at the most recent high, this trade was able to offer 7R (thanks of course to the very tight spread between entry and SL).
1 of 2 patterns I rinse and repeat these days. Hope it helps