An Easy ICT Scalping Strategy (CHECKLIST included)

Summary

This video walks viewers through a comprehensive checklist for identifying A+ trading setups, breaking down various examples with clear, step-by-step analysis. The checklist includes key factors like macro positioning, sweep of liquidity, optimal trade entry, and low resistance to target. By using this framework, traders can improve their decision-making, filter out weak setups, and increase their chances of successful trades. The presenter emphasizes the importance of practice, risk management, and holding positions for optimal returns, offering valuable insights for both beginners and seasoned traders. The video also highlights the creator's passion for trading and community support.

Takeaways

• 😀 The A+ trading checklist helps traders systematically evaluate setups, reducing emotional decision-making and improving consistency.
• 😀 The checklist includes seven main criteria: macro context, SMT, liquidity sweep, OTE, FVG, impulse with state change, and low resistance to target.
• 😀 A setup is considered A+ if at least four of the checklist criteria are met, with more criteria ticked off improving the trade's quality.
• 😀 SMT (Simultaneous Misdirection) identifies discrepancies between market instruments, such as NASDAQ and ES, to spot potential trading opportunities.
• 😀 Liquidity sweeps are crucial for confirming the presence of market participants and the possibility of a successful trade direction.
• 😀 OTE (Optimal Trade Entry) helps determine if the price is in a discount or premium range for optimal entry points.
• 😀 Fair Value Gaps (FVG) are significant in providing context for where price can move, helping traders make informed decisions.
• 😀 Impulse with a change in state, like a breakout or reversal, signals strong momentum in a market direction, confirming the trade.
• 😀 Low resistance to target is important for ensuring the trade has a clear path to move toward, without encountering significant obstacles.
• 😀 The checklist not only helps with setup validation but also serves as a mental framework that traders can internalize for faster decision-making.
• 😀 Traders should practice using the checklist regularly and start with a 1:1 risk/reward ratio, aiming to hold positions for larger profits after break-even.

Q & A

What is the purpose of the checklist mentioned in the video?

The checklist helps traders evaluate setups to identify A+ trades. It allows them to filter out bad setups and take on more risk when the conditions are favorable. By ticking off various elements, traders can assess whether a trade meets high standards.

What are the key elements of the checklist used to evaluate a trade?

The checklist includes the following elements: being inside a macro, the presence of SMT (Smart Money Tools), liquidity sweep, being in OTE (Optimal Trade Entry) or a deep premium/discount, delivering from a fair value gap, impulse creation, and low resistance to target.

How does SMT (Smart Money Tools) relate to the trade analysis?

SMT is used to identify divergence between different assets, such as the NASDAQ and the ES chart. If one asset sweeps a high or low while the other does not, it can indicate a potential trade opportunity. SMT plays a critical role in verifying the trade's validity.

What does 'sweeping liquidity' refer to in the context of this strategy?

'Sweeping liquidity' refers to the market moving through key levels, such as buy or sell stops, which indicates a shift in market sentiment. This is considered a positive signal when evaluating a trade setup, as it confirms market action is aligning with the trade.

Why is it important to be inside a macro for a valid trade setup?

Being inside a macro (such as a specific time range) ensures that the trade aligns with broader market trends or cycles. This adds context to the setup, making it more likely to succeed as it operates within a larger framework of price action.

What does it mean to be in OTE (Optimal Trade Entry) or a deep premium/discount?

Being in OTE means the price is at a favorable level within a price range, often near a swing high or low, where the risk-to-reward ratio is optimal. A deep premium or discount indicates the price is at an extreme level, either overbought or oversold, which can signal a good entry point.

What is the significance of impulse and change in state in this trading strategy?

Impulse refers to a strong price movement in a particular direction. A change in state happens when the market shifts from a consolidation or range to a strong trend. Identifying both signals that market momentum is supporting the trade setup.

How can traders use the checklist to assess trade validity?

Traders go through the checklist by ticking off each condition that is met (such as being inside a macro, having a liquidity sweep, etc.). The more conditions ticked off, the higher the quality of the setup. A setup with at least four checked conditions is considered valid, with higher counts signaling a stronger trade.

What is the recommended approach to managing risk when using the checklist?

The approach to risk management is to risk more on trades that meet all or most of the conditions in the checklist. For setups that score lower, traders should risk less. Start with a 1:1 risk-to-reward ratio and consider holding a portion of the position to a longer-term target if the trade is successful.

How can this checklist help traders avoid losing trades?

The checklist helps traders filter out setups that do not meet key criteria, thus avoiding trades that lack strong market alignment. By ensuring that more conditions are met before entering a trade, traders can improve their chances of success and reduce the likelihood of losses.