ICT Mentorship Core Content - Month 1 - Impulse Price Swings & Market Protraction

Summary

The script discusses the concepts of impulse price swings versus market protraction. Impulse price swings refer to high-low price movements irrespective of time. Market protraction refers to manipulation-driven price swings timed around key sessions to mislead traders. Examples are shown of protraction around midnight NY, 7am NY, and London closes. The goal is to blend analysis of impulse swings with protraction timing signals as context for anticipating turns. This can aid session trading by revealing when impulses at set times are likely contrary signals rather than true turns.

Takeaways

• 😀 Impulse price swings show directional price movement from high to low to high.
• 😯 Market protraction involves time-sensitive impulse price swings used for manipulation.
• ⏰ There are 3 key daily times for market protraction: 0 GMT, 7 AM NY, & 8 PM NY.
• 🔼 Protraction often involves a counter-directional price swing to trick traders.
• ↕️ Blending impulse swings & time can identify manipulative protraction moves.
• 😠 Protractionary moves aim to reach for liquidity and take out stops.
• 🕑 A protractionary judas swing fakes traders into thinking a reversal.
• ⌛ You can use protraction concepts to anticipate moves around key times.
• 📈 Impulse swings show overall direction; protraction adds time context.
• 🤯 Protraction moves faster as it seeks liquidity from previous swing lows.

Q & A

What is an impulse price swing?

An impulse price swing is a price movement from a high point to a low point and back to a high point, illustrating volatility and momentum in the market.

How is market protraction different from impulse price swings?

Market protraction involves time-sensitive impulse price swings that occur at specific times of day, such as 0 GMT, when the London session opens, or 7 AM New York time. The goal is to manipulate trader sentiment at those key trading times.

What are the three primary protractionary market moves?

The three primary protractionary moves are: 1) A 'raid' at 0 GMT, 2) A move after the London open, and 3) A move after 7 AM New York time when the US session opens.

What is the purpose of the initial move after midnight New York time?

The initial move after midnight New York is meant to fake out traders who chase that initial move, drawing them into the wrong side of the market so liquidity can be reached.

How can you identify the London open protractionary move?

If the market has moved lower in London, watch for a retracement higher right after the London open. This false rally is meant to manipulate sentiment.

What signals the New York protractionary move?

A 'round up' off the London high right after 7 AM signals a protraction where price rallies to reach for liquidity before reversing down.

How can you trade protractionary moves?

Anticipate the false move and trade in the opposite direction, selling into temporary strength or buying into temporary weakness.

Why does combining impulse swings and time help traders?

It provides context - impulse swings show momentum while timed protraction reveals when manipulation is likely occurring.

Where can you apply these concepts?

Session trading and session drills benefit from anticipating these moves. It builds price action skills.

What is the key difference between impulse swings and protraction?

Protraction adds a time element - it anticipates manipulative moves at specific times of day, while impulse swings show general momentum.

Outlines

00:00

😀 Impulse Price Swings and Market Protraction

This paragraph introduces the concepts of impulse price swings in a market, where prices swing up and down from highs to lows repeatedly. It explains that looking at price action requires thinking about these impulse swings. It then transitions to discussing market protraction as a time sensitive, manipulative impulse swing occurring at specific times of day.

05:00

😊 Examples of Market Protraction Manipulation

This paragraph provides examples of market protraction manipulation, explaining how fakeout moves are made near the opens of the London and New York sessions to trick traders. It notes these protractionary moves are intended to reach for liquidity and manipulate trader sentiment for advantage.

10:01

😃 Using Impulse Swings and Protraction Analysis

The final paragraph explains how blending analysis of impulse price swings and market protraction states can provide context for trading. It gives an example tracking swings on a price chart and noting protractionary moves that quickly reach for liquidity at areas like prior lows.

Keywords

💡impulse price swing

An impulse price swing refers to a price movement in a particular direction, either up or down. The video illustrates how the market price makes several impulse swings up and down over time. Impulse price swings are important for understanding overall market directionality and momentum.

💡market protraction

Market protraction refers to a specific type of minor price swing that occurs at particular times of day and is designed to manipulate trader sentiment. For example, the script mentions protractionary swings shortly after midnight NY time, 7am NY, and 8pm NY that aim to fake out traders.

💡reach for liquidity

This refers to the market moving quickly to take out stop losses placed by traders at recent swing levels. For example, the script notes how protractionary upswings are followed by expansion downward as stops are triggered below recent lows.

💡Judas swing

Also known as a false breakout. This is where the market makes a strong but deceptive swing in one direction, trapping traders on the wrong side, before reversing. Often used synonymously with market protraction.

💡premium market

This refers to the market trading above the 62% Fibonacci retracement level within a broader swing. It represents an area where the market is considered expensive or overbought for selling.

💡anticipatory price skills

The ability to forecast potential future price behavior based on contextual factors like market structure, momentum, manipulation traps (protraction), and areas where stops may be clustered.

💡impulse vs protraction

The main difference is that protractionary swings have a specific short-term manipulation intent tied to particular times of day, while impulse swings represent more natural market directionality and momentum.

💡session trading

Trading centered around the most active market sessions, especially London and New York, when liquidity and volatility tend to be highest.

💡session drills

Practicing trading at specific times of day to simulate real market dynamics and manipulation around major session opens/closes.

💡context

Considering the market in terms of broader structural concepts like impulses, protraction phases, liquidity grabs etc. to properly evaluate sentiment and directional bias.

Highlights

Impulse price swings show market directionality through sequences of price movements up and down

Market protraction involves time-sensitive impulse price swings used for manipulation around key trading sessions

The Asian session has a small impulse price swing away from the market open price as a first sign of market protraction

After midnight in New York, an initial impulse swing tricks traders by going against the prior market direction

A morning impulse swing in New York draws in traders by faking a market bottom before reversing

In London, an upwards impulse swing is seen as false strength to sell into for more bearish conditions

Blending impulse swings and time of day shows how markets use key times to manipulate participation

Selling at the 62% Fibonacci retrace of an impulse swing anticipates a move below the prior low

The speed of moves shows where stops and liquidity sits below former swing lows

Impulse swings show overall direction; protraction adds time elements for finer session trading tactics

Rallies after midnight NY reach for sellers; morning rallies in NY seek stops above prior highs

Asia's lack of influence means just watching for an initial divergence from open price

New York's morning impulse up draws in buyers for a failure swing before momentum down

Sequence of impulse swings shows market direction; protraction turns market during key sessions

Blending swings and session context helps build price anticipation and practice tactics

Transcripts

okay folks we'll be looking at

impulse price swings and market

protraction

very similar ideas but uniquely

different

i'm going to first talk about impulse

price swings

a impulse price swing

would be something like this

okay so we have an impulse price

swing down

then we have another impulse price swing

higher

and we have another impulse price swing

lower

and the impulse swing higher

followed by an impulse swing lower

and a higher

swing

of impulse movement higher

then we have another impulse swing lower

followed by another impulse swing higher

followed by an impulse swing lower

another impulse swing higher

and ultimately another impulse swing

lower

so we have price swings moving from high

down to a low to another high down to

another low

to a high to a low

to another high

making another low

up to a high down to a low up to a high

down to a low

when you look at price action you need

to be thinking in terms of impulse price

swings

because inside the impulse price swings

it's going to give you a lot of detail

now

there are

smaller more specific impulse price

swings

that have a lot more influence over

the marketplace in the form of a

manipulative

move or

market making

manipulation

so

let's take all this off and focus

primarily on

protraction now if we look at the market

with the similar

ideas we just illustrated

with every impulsive price swing

and then we add to it time of day

by holding down control and tapping y on

your keyboard you'll add

the vertical delineations for zero gmt

so zero gmt

vertical

line to another

day divided basically

when we see this

okay

then we can look at

time sensitive

impulse price swings

which is

market protraction

market protraction is time sensitive

it's an impulse price swing that is

highly sensitive to a time of day

there are three primary

protractionary market moves every 24

hours

the first one is

raid at zero gmt

you'll see one little movement away

or

lower in other words up or down right at

that

at delineation in time

you see one here it trades down away

from it and moves higher

we see this one here trades down then

moves higher

you see this one here trades higher

this one here it trades higher

and that's all we're going to look out

for for that asian session i don't

believe asia is that

influential initially

the other

market protractionary

state is in

is in london

now we can take the control y

feature off and just focus on the

vertical lines here delineating

midnight new york

initially right after midnight new york

on this day we have a market move higher

this market move here is a

protractionary market phase

where the market trades up initially

at a specific time of day so there's an

impulse price swing here but its design

is to fake out the individuals that

chase that initial move after midnight

the second impulsive price swing

starts in new york we delineate seven

o'clock in the morning

and we anticipate if the market has

moved lower in london we're going to be

looking for a retracement higher that

impulsive price move higher is market

protraction

it's designed and intended for

manipulation only it's to get traders to

think that the the market's making a low

in this case

it rallies up

and then trades down ultimately here

again

here's new york time

in

new york session opening

market goes into another projectionary

market state

right after

the seven o'clock hour

going into new york open

small little retracement

and market trades lower

again

seven o'clock in the morning

the market goes into a small

impulse price swing

higher

this is market protraction its intent is

for for manipulation

its counter

direction in other words if this move

occurs at this time of day

if it goes higher we think the opposite

direction

if it goes lower we think the opposite

direction

so if it initially moves higher

and the market's been going lower

we see that as manipulation or market

protraction market's going to seek

to draw in participants on the wrong

side of the marketplace or

reach for liquidity it has to happen

after seven o'clock in the morning

has to happen after seven o'clock in the

morning

and it has to happen after seven o'clock

in the morning the other one is

in the london session obviously

and it's after

four

gmt on the forex ltd

demo account if we see a movement higher

and more bearish we see that as market

protraction or a judas swing it's a

false rally to sell into

same thing occurs in after new york's

seven o'clock in the morning time

we anticipate a round up

off the london high so when we see that

we expect the market to go into a

protractionary state where it rallies up

to reach for liquidity

and then expand down

this day here

market drops initially rate from the

midnight candle

drops lower

then rallies up

so this is market protraction it seeks

liquidity

below the market over here clearing out

lows and then rallies

rate it

new york

markets

one more time little rally in here

then sells off

the next day

london

we see initial rally after midnight

candle

and then it trades lower

right after seven o'clock in the morning

new york we get one more protractionary

state in the marketplace where the

market rallies again

small minor little impulse price swing

but its design is to manipulate

the sentiment and or the thoughts of

traders wanting to be participants

this would look like a low

in this run up here would entice buyers

in a new york session

and then they reverse it

having these things in mind

we can look at

the market

in the context of what we shared so far

for this month

we see a

market move

down from a market

impulse price swing

so we can measure that swing down

from the high

we can use this one

it's high down to this low it retraces

back up above equilibrium so we go into

a premium market at the 62 retracement

level we can sell there with a move

expecting to see a run below this low

market goes into protractionary

phase after an impulse price swing

we can be a seller reaching for

liquidity below the lows and looking

over here in previous days we can find

an old load back here as well and market

trades down into that level

market makes another impulsive price

swing

here

in this context the market rallies up

with another move higher

in the next london session it's in

judah's swing lower or market

protractionary phase

faking traders out thinking it's going

to drop initially and it rallies up and

it rallies up into the new york session

right into

a premium market so we're blending

impulse price swings and then time of

day

retrade rate back into equilibrium

for market protraction right in here and

then it expands going lower

taking out stops below the lows over

here and aiming for the stops below

these equal lows

which they accumulate here

another impulse price swing

here

down to the low right

here impulse swing up

rate at the

new york midnight candle

due to swing higher

fake move higher

it trades down

going into new york we see another

protractionary market phase where it

trades up

right into

an area where it sold off before

lower expansion

reaching down into the 3255 level

why would it reach down there and why is

it quickly moving so fast to go down to

that level

is because you can see the old low over

here

the difference in

in determining

impulse price swings and in market

protraction

is the fact that there is a time element

applied to the small

impulse swing after midnight

new york time

after 7 a.m

new york time

and 8 p.m

new york time

there's usually a protractionary market

phase that enters the marketplace and

it's a small little impulse price swing

that's counter the major direction that

you're going to see after that specific

time of day

so for session trading and for session

drills you can use this

concept to help

give you context in your practicing and

also

build your anticipatory price skills