This ICT Strategy NO DAILY BIAS but makes me $16,000/Week

Summary

This video reveals a simple yet powerful trading strategy for becoming a profitable trader, focusing on the NASDAQ market (NQ). By using just one time frame (5 minutes) and key levels, traders can enter the market at optimal points without overcomplicating their approach. The strategy includes marking out key levels like Asia and London session highs and lows, previous day highs and lows, and V-shaped reversal points. With minimal tools and focusing solely on market reactions, traders can aim for significant profits, such as a 1:3 risk-to-reward ratio. This approach provides clarity and simplifies trading, allowing for consistent gains.

Takeaways

• 😀 Keep trading simple by using only key levels and one time frame (5-minute) to find profitable opportunities.
• 😀 No need for complex strategies or indicators; focus on marking key levels and understanding market behavior.
• 😀 The market open (9:30 a.m. EST) is crucial for trading, and within one hour, you should identify a trade or move on.
• 😀 Key levels to mark include previous day highs and lows, Asia high and low, and London high and low.
• 😀 A V-shaped reversal low is an important indicator of institutional trading activity, which can lead to strong market reactions.
• 😀 When the market moves aggressively, adjust your stop loss behind the high or low of the most recent candle to lock in profits.
• 😀 Always assess liquidity at key levels, as they are areas where stop losses are often placed and can trigger significant price movements.
• 😀 The strategy works best with a risk-to-reward ratio of at least 1:2.4, adjusting stop losses as needed for higher profits.
• 😀 Understand that the market’s direction is influenced by institutional traders, not retail traders, making key levels powerful tools.
• 😀 Patience is crucial—wait for market reactions at key levels before executing trades to increase the likelihood of success.

Q & A

What is the primary strategy described in the video?

The strategy described in the video focuses on trading without indicators and using a single time frame (5-minute chart). It involves marking key levels such as previous day highs, lows, and session highs/lows, then waiting for the market to react to these levels after the market opens at 9:30 a.m. EST. Traders then execute trades based on reactions at these levels, either entering long or short based on price movements.

How important are key levels in this trading strategy?

Key levels are extremely important in this strategy. These include previous day highs and lows, session highs and lows (e.g., Asia and London sessions), and V-shaped reversal highs and lows. These levels help traders identify areas of liquidity and potential reversal points, guiding their trade entries and exits.

What is the significance of the market open at 9:30 a.m. EST?

The market open at 9:30 a.m. EST is significant because it sets the stage for trading. Traders focus on the first hour after the market opens to identify clear reactions at marked key levels. The strategy suggests that if no trade opportunity arises within this first hour, traders should move on with their day.

Why are V-shaped reversals crucial in this strategy?

V-shaped reversals are crucial because they signal strong market reactions driven by institutional traders. These reversals occur at key levels like session highs/lows and previous day highs/lows, often indicating areas of liquidity that can lead to significant price movement.

How does the strategy deal with stop loss placement?

The strategy suggests using stop loss levels based on key levels, such as the high or low of the candle that triggers the entry. In aggressive market conditions, traders can adjust their stop loss by placing it behind the high or low of the most recent candle to lock in profits and manage risk effectively.

What is the recommended approach when the market moves aggressively?

When the market moves aggressively, the strategy recommends managing stop losses by adjusting them behind the high or low of the most recent candle instead of just using fixed take profit targets. This approach allows traders to capture more significant moves without getting stopped out prematurely.

How does the strategy handle swing highs and swing lows?

Swing highs and swing lows are essential for identifying key turning points in the market. The strategy uses these levels to determine potential entry and exit points, especially when the market moves significantly. Traders should focus on swing lows when the market is moving down and swing highs when it is moving up.

What role do Asia and London sessions play in this strategy?

Asia and London sessions are important for marking key high and low levels that are used as reference points for trade setups. The Asia session runs from 6:00 p.m. to midnight EST, while the London session spans from 3:00 a.m. to 7:00 a.m. EST. These sessions create key levels that traders use to determine market reactions during the New York session.

How does the strategy adjust when the market doesn't provide a clear trade opportunity?

When the market doesn't provide a clear trade opportunity, such as when key levels are swept without showing a clear reversal or continuation, the strategy advises traders to wait for the next day or session. The goal is to avoid forcing trades and to wait for the market to offer a clear reaction at key levels.

What are the risk-to-reward ratios typically targeted in this strategy?

The strategy typically targets a risk-to-reward ratio of at least 1:2. However, when adjusting stop losses for aggressive market moves, traders can achieve higher risk-to-reward ratios, such as 1:2.4 or even 1:3.48, depending on how the market behaves and how closely the stop loss is managed.