How To Find Intraday Bias - ICT Concepts

Summary

The video covers a trader’s approach to understanding and utilizing market structure shifts, fair value gaps, and PD arrays to identify profitable trades. The trader focuses on analyzing price action from multiple time frames, looking for bullish order flow and buy-side liquidity to target key levels. The process involves taking out sell-side liquidity, respecting fair value gaps, and executing long trades based on market behavior. The video highlights real-time analysis and trade setups shared in a Discord group, emphasizing the importance of following intraday bias and internal range targets for optimal trade execution.

Takeaways

• 😀 Identify liquidity levels by marking significant buy-side and sell-side areas on higher time frames (e.g., daily, 4-hour).
• 😀 PD Arrays, such as Fair Value Gaps, Order Blocks, and Breakers, help determine where price is likely to retrace or continue in the market.
• 😀 A bullish market bias forms when sell-side liquidity is taken out, and price respects bullish PD arrays like Fair Value Gaps.
• 😀 A bearish market bias forms when buy-side liquidity is taken out, and price respects bearish PD arrays like Order Blocks or Fair Value Gaps.
• 😀 Focus on price action shifts when scaling down to lower time frames to confirm market structure changes and identify trade setups.
• 😀 In intraday trading, always target internal buy-side or sell-side liquidity within consolidation areas instead of external levels.
• 😀 When price respects bearish PD arrays, aim for short trades targeting sell-side liquidity.
• 😀 When price respects bullish PD arrays, aim for long trades targeting buy-side liquidity.
• 😀 Use a market structure shift (higher highs or lower lows) to confirm the intraday bias direction on lower time frames.
• 😀 In a bullish market setup, use the 50% level for first profit targets and a premium Fair Value Gap for second targets.
• 😀 Risk management should involve placing stops near significant PD arrays, ensuring at least a 1:1.5 risk-to-reward ratio for each trade.

Q & A

What is the significance of bearish PD arrays in the script?

Bearish PD arrays represent zones where price action is expected to respect lower levels of liquidity, typically areas where sell orders are concentrated. In the script, these arrays are used to identify potential resistance zones when price breaks through sell-side liquidity.

How does the market structure shift affect the trader's decision-making?

A market structure shift is a change in the price action trend. In the script, the trader uses this shift as a signal that the market is transitioning from a bearish to a bullish state, suggesting a good time to enter long positions, especially when accompanied by a fair value gap.

What role do fair value gaps play in the trader's strategy?

Fair value gaps are areas where price has moved too quickly, leaving behind an imbalance between buying and selling orders. The trader looks for these gaps to identify regions where price might return to before continuing in the intended direction. Disrespecting a bearish fair value gap signals that the price might continue to rise.

What does the term 'disrespecting a bearish fair value gap' mean?

Disrespecting a bearish fair value gap refers to price moving away from a gap without filling it, indicating that the market might be stronger on the bullish side and not willing to retrace back into the gap, which can be a sign of continued upward movement.

Why does the trader focus on internal range buy stops?

The trader focuses on internal range buy stops during consolidation because it provides more reliable targets within the current market structure. Targeting internal buy stops helps to mitigate risks associated with the uncertainty of larger swings, especially when the market is in a range-bound phase.

How does the trader approach the 1-hour chart for decision-making?

The trader uses the 1-hour chart to identify key levels of liquidity and market structure shifts. By observing whether sell-side liquidity has been taken out and monitoring price action, the trader can gauge the market's direction and align trading decisions with higher time-frame trends.

What is the importance of buy-side liquidity in the strategy?

Buy-side liquidity is crucial because it represents areas where buying orders are concentrated, which the market may seek to fill. The trader aims to target these buy stops as potential entry points for long trades, particularly after a shift in market structure and the taking out of sell-side liquidity.

What is meant by a 'market maker buy model' in this context?

A market maker buy model refers to the idea that after a market shift, price action often follows patterns that reflect institutional buy activity. This model is used to frame the market as being in a phase where buyers are more active, prompting the trader to look for opportunities to go long.

What does the trader mean by 'internal levels of buy side or sell stops'?

Internal levels of buy-side or sell-side stops refer to liquidity points within a narrower range or consolidation zone. These levels are used as tactical targets for trading, offering opportunities for smaller, more controlled trades rather than attempting larger, uncertain moves outside of the consolidation.

Why does the trader use a multi-target approach in their trade setups?

The trader uses a multi-target approach to manage risk and maximize profit potential. By setting different targets at varying price levels, such as the 50% level for the first target and buy-side liquidity for the third, the trader can adjust positions based on market behavior, ensuring that trades are taken off gradually as the market moves in their favor.