ICT Concepts - Immediate Rebalance [PART 1] 🤫

Summary

This video explores the powerful concept of 'Immediate Rebalance' taught by ICT, emphasizing its versatility across multiple timeframes and strategies. The concept is explained alongside key concepts like Fair Value Gaps, with a focus on identifying successful and failed immediate rebalances in price. By combining this tool with higher time frame analysis and macro timing, traders can refine their entries and exits, optimizing their understanding of price movements and liquidity pools. The video is the first part of a series, promising deeper insights and practical applications in future installments.

Takeaways

• 😀 The Immediate Rebalance is a powerful yet simple concept in trading that helps to predict price movements without leaving a fair value gap.
• 😀 The immediate rebalance differs from the traditional fair value gap by not leaving an inefficiency for price to return to, which can create clearer price action.
• 😀 Successful immediate rebalances show price expanding during the next two candles after the rebalance, while failed rebalances show price slowing down or retracing.
• 😀 Combining the immediate rebalance with higher time frame biases and macros makes it a more powerful tool for predicting price movement.
• 😀 A macro refers to a specific time of day where price is expected to spool towards an inefficiency or liquidity pool, and the immediate rebalance can be used in conjunction with this for better entries.
• 😀 The immediate rebalance formation can be used across various time frames to spot potential price reversals or continuations, especially when combined with other price action strategies.
• 😀 On higher time frames like the hourly chart, immediate rebalances can be observed in the upper wicks, with the 25% level of these wicks being a key reference point for further price movement.
• 😀 Using the immediate rebalance alongside liquidity sweeps and market bias can help traders better understand price action and timing for market entries.
• 😀 Understanding the context of time (such as macro periods) helps in determining the right moments for entries when an immediate rebalance forms.
• 😀 By combining multiple signatures from different time frames (like the 1-minute and 15-minute charts), traders can form a higher probability of success in their trades, especially when targeting liquidity pools.

Q & A

What is the main concept being discussed in this video?

The video focuses on the concept of the 'Immediate Rebalance,' a powerful tool taught by ICT that can be used in various ways across different time frames and trading strategies. The video aims to explain its formation, significance, and how to combine it with other concepts for better trading outcomes.

How is the 'Immediate Rebalance' different from a traditional Fair Value Gap (FVG)?

An Immediate Rebalance differs from a Fair Value Gap because there is no gap left in the price action. In a Fair Value Gap, a price imbalance is created, and it's more likely for price to return to this gap. In contrast, an Immediate Rebalance does not leave such an inefficiency, meaning there's no imbalance that price needs to return to.

What rule should be followed when identifying a successful Immediate Rebalance?

For an Immediate Rebalance to be successful, the rule of thumb is that we want to see price expansion during the two candles that follow the Immediate Rebalance. This indicates that the price movement is continuing in the expected direction.

What can a failed Immediate Rebalance tell traders?

A failed Immediate Rebalance occurs when the price fails to expand as expected during the following two candles. This can signal that the expected trend is not continuing, and traders can use this information to avoid entering or to adjust their strategy.

How does the Immediate Rebalance concept combine with macro price action?

The Immediate Rebalance can be combined with macro price action, which refers to a time of day when price is expected to move towards an inefficiency or liquidity pool. By aligning the Immediate Rebalance with macro times, traders can better anticipate not only the direction of price but also when the movement is most likely to occur.

What is the significance of the 25% level in the context of Immediate Rebalances?

The 25% level is significant because it serves as a key reference point when price enters the wick of the first candle in an Immediate Rebalance formation. ICT teaches that we can treat wicks as gaps, and the 25% level within a wick can act as an important zone for price action, often indicating a reversal or continuation.

How do traders use the 1-minute chart to investigate Immediate Rebalances on higher time frames?

Traders can zoom into lower time frames, like the 1-minute chart, to investigate the price action within the wicks of higher time frame candles. This allows them to see more granular details, such as how price interacts with key levels like the 25% of a wick, and assess whether the Immediate Rebalance is unfolding as expected.

What role does time play in understanding the Immediate Rebalance strategy?

Time is critical in understanding the Immediate Rebalance because it helps traders determine when to expect price movement. By combining the Immediate Rebalance with macro time frames, such as the 1050 to 1110 macro, traders can time their entries more accurately, ensuring they are aligned with significant price moves.

What is the importance of bias when interpreting the Immediate Rebalance?

Bias plays a significant role when interpreting the Immediate Rebalance, as it helps determine the expected direction of price movement. In the examples provided, after a liquidity pool is swept, the bias—whether bullish or bearish—guides the trader in interpreting whether the Immediate Rebalance will be successful or if the price will reverse.

How can the concept of standard deviations be applied to price targets in the context of Immediate Rebalances?

Standard deviations can be used to set price targets after an Immediate Rebalance, especially when combined with key levels like order blocks or liquidity pools. By applying a standard deviation to the price leg, traders can calculate likely targets (e.g., negative one or negative two standard deviations) to help determine where price is likely to move next after an Immediate Rebalance.