ICT Series 4

Episode 7

A high/low range is defined on the Nasdaq 15min chart with the anticipation of price taking out the stops on the lower end of the range.

NASDAQ -15min

The same range forms on a correlated 15min chart on the S&P500.

S&P - 15min

A fair value gap forms on the 2min S&P 500 chart after taking out the lows.

S&P-2min FVG

On the same Nasdaq 2min chart the price action looks very similar but there is no Fair Value Gap.

Although since the markets are correlated you can replicate and the on the NASDAQ as if you were trading the S&P.

NASDAQ-2min No FVG but Trade

Episode 8

To determine the trading bias of a trading pair that you would like to trade you can view the daily chart of the EURJPY.

EURJPY

You can also further identify the trend by observing the individual futures contracts of the pair. Here is an example of the Euro Contracts looking strong and bullish.

EURO FX Futures

Here is an example of the Japanese Yen futures contracts looking weak and bearish.

Japanese Yen Contracts

This gives us an additional confirmation we can anticipate prices of the EUR to move higher against the YEN.

EURJPY Bias

Episode 9

Power of 3 – Accumulation, Distribution and Manipulation

If we anticipate the larger timeframe such as the daily candle to move bullish, price will fake a move lower from the opening, rally, and finish the day near the high of the day.

Power of 3

Do not chase price. If price has run up extremely fast in a previous session do not jump into the trade along with it. Let price show you some more characteristics and let it trade into a more ideal entry point such as a fair value gap that is taking out liquidity before moving onwards.

Do not chase price

By Dave

I'm Dave. I help inspire traders to become professional and trade for a living.