Core Month 03 01 Time Frame Selection & Defining Setups

ICT Mentorship Core Content - Month 03 - Time Frame Selection & Defining Setups

• https://youtu.be/UF5J0nEBc0E?list=PLVgHx4Z63paaY69GotBJyZ7KN_U09ra2o
• 1

Content

• Time frame Selection

• Monthly Chart

  • Position Trading
  • Long term trade a few trades per year.

• Weekly Chart

  • Swing Trading
  • 1 or 2 trades per month.

• Daily Chart

  • Short Term Trading
  • Best overall chart as it include bank and institutional price action.
  • Analysis for short term trading
  • Benefits of higher time frame charts.
  • Shows Interbank objectives where stops are waiting, liquidity above and below the market place.

• 4 Hour or Less

  • Day trading

-Defining Setups for your model

• Once you find a bread and butter setup, it is applicable to all time frames.

• Institutional Order Flow and PA led to better understanding.

• When looking for setups we want unique patterns that repeat in PA

• Trend Trader, trading only in the direction of the Monthly & Weekly chart direction.

• Swing Trader, trading the Daily chart intermediate term price action.

• Contrarian Trader, trading reversal patterns in market extremes.

• Short Term Trader, trading the weekly ranges for 1-5 days in duration

• Day Trader, intraday swing trading with exits by 14:00 est.

• Start with the daily chart, gives us everything we need.

• Daily bias is not hard to determine.

  • Trusting the bias is hard.

• Monthly Chart

  • Long term PA reference for largest price swings.

  • We want to trade with the trend of the monthly chart, it gives us a higher probability of success.

  • Setups take a long time to unfold on this time frame, many months.

  • Due to the length of time to present a setup, trading in the direction of the most recent setup can yield low risk & high reward conditions.

  • Swings can be several hundreds of pips, over a long period.

    • can be 1000s of pips over 3-4 or more months.

  • Within the higher time frame many smaller moves exists on lower time frames.

  • Look for moves on monthly chart

    • Ask who would be moving price at a monthly level? Banks big institutions.

    • Monthly shows us sponsorship, deep pockets.

    • Find lows/highs,

    • where has price moved away from?

    • What is the magnitude of the move?

    • When we see a dynamic move out of consolidation

      • Look for the last large candle before consolidation, it is larger than the consolidation candles.

      • This is an orderblock (OB)

        • Smart Money is going to Sell in the OB of an up move.
        • Smart Money is going to Buy in the OB of an down move.

      • We know as traders, that if price goes back to the OB, we have a trade setup.

      • Ask where would price trade to next?

        • Look for liquidity, clean high/lows
          • Look buy/sell stops.

      • Draw the dealing range on the monthly chart.

  • Weekly Chart

    • Intermediate term PA
    • Setups take many weeks to unfold.
    • Trading with trend can yield low risk & high reward conditions.
    • Swings can be several hundred pips, over weeks of time.
    • Transpose the Monthly DR to the weekly chart.
    • Use monthly DR & Trend on weekly chart to frame trade setups.

  • Daily Chart

    • Short term PA

    • Setups take little time to form and unfold over 1-3 weeks.

    • Trading in the direction of the most recent setup can yield low risk & high reward conditions.

    • Swings can be 50-300 pips, over a short term period.

    • Frame trades based on Monthly DR & POI + Weekly

    • Pull fib from monthly chart price swing to "Grading Swings" on the daily chart.

      • The levels show where the market will present new setups for trades.
      • These are repeating patterns
      • Remember the range of PA was found on the Monthly Chart.

    • As a pattern trade or setup seeking trader.

      • Find OTE

      • OBs

      • Stop runs

      • Turtle Soup

      • Look for false breaks above or below old high/low (raids) , and dynamic PA away from the raid level, that are with the HTF trend.

      • Should also have confluence with grades from HTF range.

      • Why is the stop run happening, does it align with the trend?

      • Hold the bias until PA shows a change in bias.

      • If not a turtle soup trader.

        • Trade Breakers or OBs

      • Use HTF + Trade setup for your model for setups

      • Three Primary Patterns for ICT setups

      • Exists on all time frames

      • We only need one of these to be a successful trader.

      • Become an expert in all three, and you can trade in any market.

      • Inside range (Gaps and Voids), PA pull back into range for with trend trade setup.

      • Prior H/L (Stop Runs), PA retraces to Prior H/L for with trend trade setup.

      • OB (), PA retraces to OB for with trend trade setup.

      • Look for known range, for trades.

Notes

• Find 10 occurrences in past price action and log them in your trade journal.
• Extra credit if found on multiple time frames.

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