The BEST FINAL Entry Confirmation - SMC & ICT Concepts

Summary

In this video, the speaker delves into the strategy of using the two-drive engulfing candle as a final confirmation in trading. After discussing various approaches to SMC and ICT trading, the focus shifts to the effectiveness of the engulfing candle in predicting market intentions and increasing win rates. By emphasizing the second drive after a pullback and confirming with an engulfing candle, the strategy aims to improve trade accuracy, reduce risks, and enhance win rates. The speaker shares insights from their own strategy with proven results and promotes a comprehensive boot camp for further learning.

Takeaways

• 😀 The video provides a complete guide to using the two-drive engulfing candle strategy for improved trading performance.
• 😀 The two-drive engulfing candle is considered a final confirmation tool for high-probability trades, which the presenter has kept private for about a year and a half.
• 😀 Traders often face challenges with aggressive or confirmation-based approaches, both of which can lead to low win rates and psychological struggles.
• 😀 The first approach involves aggressive entries using limit orders at order blocks, but it has a low win rate due to too many points of interest in the market.
• 😀 The second approach, while better confirmed, can lead to missed trades, impacting the trader’s psychology and long-term consistency.
• 😀 A solution to these challenges is using the engulfing candle after a pullback, particularly below the 61.8% Fibonacci level for a higher probability of success.
• 😀 An engulfing candle signals market intention, showing an aggressive move in a specific direction, which can provide a clear trade entry point.
• 😀 The second drive after the first engulfing candle is crucial for entering trades, aiming for a safer and more optimized entry with a clear direction.
• 😀 The strategy includes using a 1:3 risk-to-reward ratio, with the goal being a high win rate, which has been proven to work through extensive testing and data.
• 😀 The presenter mentions a live boot camp that goes in-depth into this strategy, offering weekly training, testing, and applying techniques in live market conditions.
• 😀 The presenter encourages traders to download the free PDF for more detailed information and invites them to participate in testing and applying the strategy to improve their win rate.

Q & A

What is the main focus of the 'Two Drive Engulfing Candle' strategy?

The main focus of the 'Two Drive Engulfing Candle' strategy is to improve the win rate of traders by using an engulfing candle as a confirmation tool, which indicates market intention and helps identify the best entry points.

How does the aggressive entry approach in SMC and ICT trading affect win rates?

The aggressive entry approach, where traders enter using limit orders at key zones without waiting for confirmation, can lead to lower win rates. This approach is risky because there are many points of interest in the market, and it's uncertain which one will actually work.

What is the role of the engulfing candle in this strategy?

The engulfing candle signals market intention by showing an aggressive move in a certain direction. When an engulfing candle closes above a certain area, it indicates that the market is likely to continue in that direction, making it a key signal for entry.

What is the significance of the 'second drive' in this strategy?

The second drive is the pullback that occurs after the first significant market movement (the first drive). The second drive is critical because it offers a more reliable entry point, confirmed by the appearance of an engulfing candle.

Why is waiting for a pullback important in this strategy?

Waiting for a pullback is important because it provides a more favorable entry point at a discounted price. It helps reduce risk and ensures that the trade aligns with the market's direction, as indicated by the engulfing candle.

What is the typical risk-to-reward ratio used in this strategy?

The typical risk-to-reward ratio used in this strategy is between 1:2 and 1:4, depending on the trader's preferences and the specific trade setup. The average win rate for this approach is around 81%, according to the presenter's tests.

What role does Fibonacci retracement play in this strategy?

Fibonacci retracement is used to identify potential pullback zones, particularly below the 61.8% level. This helps traders pinpoint discounted areas where they can enter a trade more effectively, increasing the likelihood of success.

What is the importance of market intention in this strategy?

Market intention is crucial in this strategy because the engulfing candle helps confirm whether the market is likely to continue in a particular direction. By following the market's intention, traders can make more informed decisions, leading to higher win rates.

How does the presenter suggest traders test the strategy?

The presenter suggests that traders test the strategy by actively applying it in real market conditions and tracking their results. The presenter emphasizes that testing is essential for confirming the effectiveness of the strategy before using it in live trading.

What is the significance of the live boot camps mentioned in the video?

The live boot camps provide traders with an opportunity to learn and apply the strategy in real-time. The boot camps focus on setting up a strong foundation, testing strategies, and applying the strategy in live market sessions, such as the London and New York sessions, to improve trading skills.