ICT 2026 1st Hour Dealing Range \ March 28, 2026

Summary

In this video, the speaker dives deep into advanced trading strategies, focusing on concepts like the first hour's range, fair value gaps, and market manipulation. They emphasize the importance of understanding market structure and using specific price levels to anticipate market movements with high probability. The speaker discusses how to manage risk with dynamic stop loss strategies, offers insights on trailing stops, and stresses the value of backtesting and adapting strategies to real market conditions. They also share their personal trading experiences, encouraging viewers to trust their own analysis and stay flexible in volatile markets.

Takeaways

• 📊 The first hour's range (FHR) is crucial for understanding market structure and projecting potential price movements for the day.
• 💡 Fair value gaps (FVGs) and reclaimed FVGs serve as high-probability trade setups, especially the first presented FVG after breaking the FHR.
• 🕵️‍♂️ Wicks versus bodies: Bodies represent true market consensus, while wicks often indicate stop hunts or manipulation.
• 📉 Volume imbalances can confirm strength or weakness in a move, helping traders anticipate direction.
• 🎯 Use dynamic trailing stops based on clusters of three candles to lock in profits and adapt to volatile market conditions.
• 🧮 Breaking FHR into quadrants or octants provides actionable levels for potential price interaction and trade entries.
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• 🔄 Price often retraces or fails at key levels; observing these failures indicates weakness and potential reversals.
• ⏱ Timing and anchoring to the FHR, along with stop hunts, allows traders to anticipate afternoon trends before they unfold.
• 📚 Observation, backtesting, and recording trades are essential to internalize patterns and improve trading logic.
• 🚫 Avoid relying on breakouts, support/resistance chases, or luck-based strategies; focus on probability, order flow, and structured levels.
• 📝 Consistently noting time, price, and levels from FHR, FVGs, and quadrants/octants strengthens forecasting and trade decision-making.
• 🔍 Even imperfect markets can be navigated successfully using structured levels, dynamic stops, and probability-based targets.

Q & A

What is the 'first hour dealing range' and why is it important?

The first hour dealing range is the price range formed during the first hour of trading. It is important because it provides a framework for projecting potential price movements and identifying key levels for the rest of the trading session.

How can traders use the first hour dealing range to project price targets?

Traders can measure the first hour range and project it from the high or low to estimate potential price targets, similar to a standard deviation. This helps anticipate where price may move under ideal conditions.

What does it mean when price fails to reach the projected target?

It indicates weakness in the expected move. For example, if price cannot reach a projected lower target in a bearish scenario, it suggests reduced momentum or unfavorable market conditions.

How can traders manage trades when market conditions are not ideal?

Instead of holding for full targets, traders can use partial exits or trail stop losses more aggressively, such as targeting 75% of the projected range rather than 100%.

What is the purpose of using the 75% level of a projected range?

The 75% level acts as a more realistic profit-taking zone when markets are volatile or uncertain, helping traders secure gains before price potentially reverses.

What trailing stop method is suggested in the script?

A three-candle method is suggested, where the stop loss is placed above the highest high of the last three candles and adjusted as new candles form.

Why is the three-candle trailing stop method effective?

It allows traders to lock in profits dynamically while staying in the trade as long as the trend continues, reducing the risk of giving back large portions of gains.

What are 'octants' and 'quadrants' in this context?

They are subdivisions of the price range created using Fibonacci or similar tools. These levels act as key support and resistance zones where price often reacts.

What does it indicate when price respects octant or quadrant levels?

It suggests that price is following structured behavior, likely driven by algorithmic or institutional activity, reinforcing the significance of these levels.

How can traders identify market manipulation using these levels?

If price moves or reacts in areas that do not align with key octant or quadrant levels, it may indicate manipulation or irregular market behavior.

What is 'consequent encroachment' and how is it used?

Consequent encroachment refers to the midpoint of a price range or candle. It is used as a key level to assess strength or weakness in price movements.

What role does time play alongside price in this strategy?

Time is used in conjunction with price to anticipate when certain moves are likely to occur, helping traders align their expectations with market structure.

Why is it important to adapt strategies to current market conditions?

Because market behavior changes, and strategies that work in ideal conditions may not perform well in volatile or uncertain environments. Adjusting expectations and risk management is crucial.

How does the script suggest traders validate this approach?

Traders are encouraged to study and collect data independently, observing how price interacts with projected levels to determine if the method adds value to their analysis.

What is the overall goal of using the first hour dealing range strategy?

The goal is to forecast price movement, identify high-probability trade setups, and manage trades effectively by combining price levels, time, and structured risk management.