ICT Forex - Market Maker Series Vol. 5 of 5
Summary
TLDRThis video is part five in a series by the Inner Circle Trader, focusing on daily bias and market macros. The video provides a detailed analysis of the British Pound vs. US Dollar for the week of July 26, 2021, using five-minute charts to illustrate market behavior. The speaker discusses key trading strategies such as optimal trade entries, market structure breaks, and liquidity pools. Additionally, the importance of managing trades and psychology is emphasized. The speaker encourages viewers to learn from free content, test strategies, and develop confidence in trading, aiming for consistency rather than wealth accumulation.
Takeaways
- 📈 The video focuses on daily bias and generic market macros for trading, particularly for GBP/USD during July 2021.
- 📉 The market analysis includes studying short-term lows and highs, identifying optimal trade entries based on algorithmic behavior and market maker patterns.
- 🕐 Key trading windows include London open, New York open, and kill zones, emphasizing price behavior during these periods.
- 📊 Monday through Wednesday in a bullish week are important for identifying buying opportunities below the opening price, while Thursday and Friday require a different approach.
- 🧠 The concept of the 'Judah swing' catches traders off guard as the market trends downward, presenting buying opportunities during London’s open.
- 🔄 The 'seek and destroy' market profile on FOMC Wednesday is highlighted, showing how the algorithm removes both short-term highs and lows.
- 🚀 The focus shifts towards bullish market expectations and identifying 'buy stop liquidity pools' for potential price targets.
- 🛑 Understanding market structure, bearish order blocks, and how smart money operates is crucial for identifying low-risk trades, especially later in the week.
- 🔍 The series emphasizes using algorithmic price runs and repeating market patterns to predict movements, such as 'smart money reversals' and 'redistribution'.
- 🎯 Traders are encouraged to practice, take notes, and dive deeper into other resources to solidify understanding, with a reminder that success requires persistence and patience.
Q & A
What is the focus of the video series mentioned in the transcript?
-The video series focuses on teaching daily bias, generic market macros, and how to trade in the market maker model, specifically using the British Pound vs. US Dollar as an example.
Why does the speaker emphasize not relying solely on 5-minute charts?
-The speaker emphasizes this because not all platforms allow you to access historical 5-minute charts, so they provide additional context and insights to help fill that gap.
What is the 'Judah swing' mentioned in the video, and how does it affect trading decisions?
-The 'Judah swing' refers to a market move that catches traders off guard, usually presenting an opportunity for a reversal trade. Traders might mistakenly think the market will continue down when it's actually a good time to buy.
What is 'optimal trade entry' (OTE) in the context of the video?
-Optimal trade entry (OTE) refers to the most favorable price levels to enter a trade, based on retracements and market structure breaks, usually occurring after short-term highs or lows are taken out.
How does the market maker model view price movement during FOMC (Federal Open Market Committee) events?
-During FOMC events, the market typically exhibits back-and-forth price movement, taking out short-term highs and lows, referred to as 'seek and destroy.' At the key time (2 PM), manipulation enters the market, and the algorithm seeks liquidity by taking out lows or highs.
What does the speaker mean by 'seek and destroy' in market behavior?
-'Seek and destroy' is a market behavior where the price constantly targets short-term highs and lows, clearing out liquidity in both directions, before finally making a more significant directional move.
What is the significance of 'buy side liquidity pools' in the speaker's trading strategy?
-Buy side liquidity pools are areas above the current price where buy stops are likely placed. The speaker looks for these areas as targets for price to rally towards, allowing smart money to unload positions.
What is the significance of 'market structure breaks' in the trading strategy discussed?
-Market structure breaks indicate a shift in the market’s direction, either bullish or bearish. These breaks are important signals for entry points, especially when aligned with the overall market bias (bullish or bearish).
Why does the speaker suggest focusing on Monday, Tuesday, and Wednesday for trades?
-The speaker recommends focusing on Monday through Wednesday because these are the days when the highest probability trade setups occur, based on the weekly bias. On Thursdays and Fridays, the market is less predictable.
What advice does the speaker give to those struggling to succeed in trading?
-The speaker advises traders not to give up, even if they struggle initially. Success in trading takes time, practice, and patience. He suggests ignoring outside opinions, continuing to study, and focusing on improving skills through practice and discipline.
Outlines
📊 Introduction to Daily Bias and Market Macros
The video is the final installment in the Inner Circle Trader Market Maker series, focusing on teaching daily bias and generic market macros. The content primarily covers the British Pound vs. US Dollar, utilizing charts from July 26, 2021, to analyze price actions, trade entries, and strategies involving short-term highs and lows during the London and New York sessions. The importance of buying below the opening price and optimal trade entry is highlighted.
📈 Tuesday Market Analysis and Optimal Trade Entry
The analysis moves to Tuesday, July 27, 2021, where a bullish weekly trend is observed. The concept of the 'Judah Swing'—an early fake-out movement—is introduced. The strategy involves buying opportunities after price retraces from lows formed during the London open, leading to rallies above the day's opening price. The key message is not obsessing over the perfect exit but capturing a solid portion of the move during bullish market conditions.
⚖️ FOMC Wednesday and Seek and Destroy Profile
On July 28, 2021, FOMC Wednesday, price action becomes volatile, continuously taking out short-term highs and lows, demonstrating the 'Seek and Destroy' market profile. This pattern confuses retail traders but provides strategic entry points. Price rallies after sweeping lows and manipulation at 2 PM. The speaker recalls a personal trade executed at 1.3910 after FOMC, showing how to exploit market reactions post-manipulation.
🔍 Thursday and Friday Market Expectations
On July 29-30, 2021, the discussion shifts to late-week behavior, particularly on Thursdays and Fridays. The focus is on buying below the opening price during bullish weeks. The analysis emphasizes how late-week price action becomes less predictable, with the market consolidating and retracing into the weekly range. A bearish market structure forms on Friday after breaking Thursday's high, offering a low-risk sell opportunity in a bullish week.
📉 The Role of Liquidity and Market Structure
This segment delves into how the algorithm seeks and consumes liquidity from opposing sides of the market. The speaker explains how smart money accumulates long positions from sell stops under relative equal lows and profits above key resistance levels like 1.3910. The video illustrates how consolidation, accumulation, and redistribution phases guide smart money's market moves.
💼 Real-World Trading Success Stories
The speaker highlights the success of students who used free YouTube content to learn trading independently, without mentorship. Many have succeeded, achieving funded accounts and making money. The speaker encourages viewers to stay focused, continue learning, and practice diligently. He shares his belief that anyone can make an income from trading if they put in the necessary work and take advantage of the free content available.
💡 Conclusion and Encouragement to Continue Learning
In this final paragraph, the speaker offers words of encouragement, reminding viewers to remain persistent in their trading journey. He urges them to avoid external negativity and emphasizes the importance of self-belief. The speaker reflects on the growing economic challenges globally, positioning trading as a viable way to maintain financial independence without relying on traditional employment. His heartfelt prayer is for the success of his viewers.
Mindmap
Keywords
💡Daily Bias
💡Market Macros
💡Optimal Trade Entry (OTE)
💡Kill Zone
💡Liquidity Pool
💡Smart Money
💡Order Block
💡Judah Swing
💡Market Structure Break
💡Seek and Destroy
Highlights
Introduction to part five of the Inner Circle Trader Market Maker Series, focusing on daily bias and market macros using British Pound vs. US Dollar as an example.
Analysis of a five-minute chart from July 26, 2021, highlighting optimal trade entry based on short-term lows and highs during the London and New York sessions.
Explanation of the 'Judah swing,' a concept where traders get caught off guard, leading to optimal trade entry opportunities.
Insight into trading during key times of day, including the New York open kill zone and optimal trade entries between 7 a.m. and noon New York time.
Discussion on FOMC Wednesday (July 28, 2021), highlighting the seek-and-destroy market profile that takes out short-term highs and lows.
Explanation of how to trade FOMC events, focusing on low-risk entries after the algorithm takes out liquidity at specific levels.
Review of price action on July 29, 2021, and the focus on buying below the opening price during bullish weeks.
Overview of Friday, July 30, 2021, where the algorithm is expected to retrace into the weekly range after sweeping Thursday’s daily high.
Introduction to market structure breaks and bearish order blocks as the market retraces late in the week after reaching significant buy-side liquidity levels.
Explanation of smart money reversal occurring above Thursday’s high, leading to distribution and redistribution phases.
Emphasis on the importance of understanding liquidity pools and how the algorithm seeks buy and sell stops throughout the week.
Advice for traders to focus on the highest probability trades of the week in alignment with market direction and time of day.
Encouragement for traders to study the series and associated lessons, focusing on psychology, drawdown management, and money management.
Testimony about students around the world making independent income from the free content on the YouTube channel without mentorship.
Final motivational message urging traders not to give up, with advice on handling external skepticism and maintaining focus on personal progress.
Transcripts
all right folks
this is part five in the final
installment for the inner circle trader
market maker series for the youtube
channel
i'll be teaching on daily bias and
generic
market macros
all right so we've been teaching on the
british pound versus us dollar in this
series
it's relevant to the time of this
recording
those of you are watching it as i'm
producing it
or looking at your charts you'll be able
to see all these things as well but
those that
don't have that benefit you can't go
back and look at five-minute charts
because some
platforms don't let you do that this
will
help fill in that little gap of
education plus i'll amplify some things
on the lower time frames
we're looking at monday july 26 2021
on a five-minute chart opening price at
midnight
price me entering around trading down
into london
taking out a short-term low as soon as
that happens you want to see
does it show along someone a rally it
does
then retraces back down again it takes
out a short term low
again that would be an area where you
could be a buyer
rallies above now it takes out the
initial high of the day
during an open kill zone this right here
is where retail traders like to buy that
and they have to suffer through all this
retracement
you want to be buying below the opening
price or wait for a run
above and then come back down into
your open price now we have optimal
trade entry
there price shows displacement to the
upside
creates relative equal highs before
new york open kill zone 7 a.m near
global time
market drops back down below a short
term low
optimal transfer from this low to high
ot is right there you can pull that up
on your own fit
price runs the relative equal highs
trades into
one enclosed time period noon shuts the
door
high the days warrant
all right tuesday of the same week
remember all of this is framed on the
bullish
weekly expectation to run into that
bicep equity pool
so the week's bullish we already looked
at monday now here's tuesday
opening price here we want to see it
trade down first because this is judah's
swing the judah swing catches traders
off guard
and they generally aren't looking at
this as a buying opportunity they're
thinking it's going to keep going down
it goes down into the heart of london
open
so the low forming below a short term
low here
rallies short-term break there so now we
have optimal trade entry
with a break-in market structure in a
bullish
week and on tuesday
price starts to rally up trades right
back to the opening price
sells off once more rallies again and
hostile trade entry rallies aggressively
through
the initial highs of the day again
one enclosed time period between 10
o'clock in the morning and noon
new york time creates the opposite end
of the daily range
it goes a little bit higher later in the
afternoon
but not by much try not to get so
obsessed about getting the absolute
highest high
and if you can capture a portion of this
move here
who cares if you get out the actual high
here or here
if you caught either the new york or the
london
that's just a phenomenal trade no matter
how you slice it that's
what you're looking for but this is how
we're operating
on an intraday basis inside a bullish
market environment
in a market that's shown a willingness
to be bullish because of smt
the low sell side liquidity pool in the
daily chart it's
wanting to go higher is clearly reaching
for some
measure of buy stops and we've outlined
that on the weekly chart
and we're going to continuously look for
buying opportunities until we get up to
those buy stops
on wednesday july 28
2021 this is fomc wednesday
so we're seeing price back and forth
every short-term high takes out a
previous short-term high
short-term low takes out a short-term
low
high above this low gets taken out here
let me trade back up to here so it's
going back and forth not letting any
position stay safe and then we go into
the dive in new york
rallies up and then closes the end of
the day with one enclosed
but fomc is two o'clock in the afternoon
so
we see it trade down again taking out
the short term low
and then it rallies this is seek destroy
okay seek destroy is a market profile
where it's
literally taking out short-term highs
and lows all day long
then finally at two o'clock in the
afternoon when the manipulation enters
the marketplace
it takes out the low of the day why
because i taught you
before a market has a directional move
that's strong in nature
that's really animated bullish or
bearish if we're bullish
anticipate a low being taken and
you see what's happening here you run
down the algorithm
cleans that low out then it goes higher
and you've seen me do
the entry right in here and you watched
me take a trade
and recorded it with tradingview with
that idea after it took the blowout that
felt confident
trading it and attacking that by bicycle
at 139.10
on thursday 29th of july 2021
price had already started rallying in
the afternoon of the previous day
after fmc announcement and we had a
little bit of a
drop down on thursday but we're not
going to reference the opening price on
thursday because we're so
late in the week we're focusing
primarily on buying below the opening
price in bullish
weeks on monday tuesday and wednesday
bearish weeks we're looking to sell
short on monday tuesday and wednesday
above the opening price on thursdays and
fridays we're not
factoring that in
london we have a price run here and
trades back down into optimal trade
entry
rise again consolidates a little bit and
in new york
we come very close to the high of the
day but london closed creates the high
of the day
again when blood closes 10 o'clock in
the morning to noon
new york time and we fall off
going into noon on thursday
which brings us to the day this
recording friday
july 30th 2021
this level here is thursday's daily high
okay
so we have relative equal highs here and
then previous days high
we've been in a week that every day has
gone higher
we've already been well above our
objective which is this level here
for bicyclity framed on that weekly
chart
london we trade down
notice that we are just a little ahead
of the beginning at two o'clock in the
morning
trades will low there retraces back down
again here
rallies sweeps thursday's high
now we have pressed every single day
higher
now we're on the last day of the week
the algorithm
will likely trade back into the weekly
range
when can we trust that well we've swept
thursday's
daily high go back here's the low
prior to that run so we have this low
and the highest high of the week market
breaks down below that low
right there then trades right back up
into the last up close candle why is
this a bearish order block
because we've taken out previous days
high
we've worked the whole weekly range
bullish every single day
and expectations will be there will be a
retracement back in the daily range
there's less likelihood of
continuation on the upside this late in
the week after it's gone so far above
our objective which was down here so
here
we have a market structure break there
rally back up into bearish order block
which is another optimal trade entry
new york session we see it break lower
again
a strong break in new york there
optimal trade entry high low retracement
we have a low here and we have a low
here relative equal lows
it breaks down and attacks that old high
and returns back to that area
to consolidate so
all in all we've watched how the
algorithm
will seek liquidity take that liquidity
once that liquidity has been taken it
will look for opposing liquidity
we saw how the daily chart on pound
dollar
traded lower to take out its relative
equal lows
and below that was sell stops so now if
they went down
to take those sell stops and accumulate
them as longs for smart money
where does smart money unload
above this line here that 139.10 which
was the weekly
buy stop liquidity pool and we traded
80 plus pips above the 139
big figure
cleaned out thursday's high high of the
day forming
and then we break down and all of this
here
is classic this also
if you look at the consolidation here
this is original consolidation
accumulation reaccumulation smart money
reversal
where's the smartline reversal occurring
above thursday's high which is the high
of the week
then we break down took out that low
this becomes a low risk cell
distribution redistribution below the
emission consolidation
boom marketing sum level where's the
trade to
the old objective we had all week as a
buy side liquidity pool everything fits
together folks
it may not feel like it right now i may
feel disjointed because
you're just now starting to get serious
about learning this
all these moving parts have their place
in the grand scheme of things in the
great machine
that is the algorithm all these little
pieces and components
fit together and once you understand it
it gives you clarity that is unrivaled
so hopefully you found everything in
this series
insightful inspiring to try to get you
into these
other supportive lessons that's already
been made available to you in the
youtube channel
dig into them really take notes it
covers a lot of things on how to study
what you should be studying what things
you should be avoiding
times and days that look for specific
things
i touched on a lot of that in this
series and
literally if you just followed this
series there's no reason why you can't
carve out income
now am i saying you're gonna get rich no
i can't say that
can you make an income off of this
absolutely i believe you can
in fact i have students all around the
world that did not even join my
mentorship they've never seen a
mentorship video
they have no idea what i'm teaching in
there they've only studied this
content on the youtube channel they are
independently making their own money
without any
insight from me no hand-holding i'm not
telling them what to do
they're doing it all on their own and
nothing can make me more proud than that
the fact that i've given you my time
i've shared my life's work with you all
and you've
had the opportunity to test it for free
all you have to do is go into these
videos and test it and see if what i was
saying was
true was it really in the charts like i
said and those diligent individuals all
around the globe
that put that challenge to the test
they discovered that this is in fact
really what goes on
and some of them have went on to get
funded
and now they're trading with the amount
of money that i would have never been
able to save
up to do and they're getting checks
they're getting
payouts they're getting inspiration
every day because of the things that
they're doing all by themselves
has nothing to do with me i don't want
that credit
you're taking that risk you pursued your
passion
you believed in yourself learning this
and i should
never be credited for your
success there that success
you earned it on your own and those of
you that are doing that i'm so proud of
you
i'm so proud of you and i can't wait to
see more success stories
until next time good luck and good
trading
you can use all this information also to
get in sync
with what i teach in this youtube
channel which is a one shot one kill
this is the wednesday fomc day
and you can see this candle here i went
long
the fill was 138.65 and
two pipettes so as we dropped down
we swept this low and then we went back
down into it again
i trusted the fact that we didn't want
to go back below that low and i went
along there
rallied higher i took a partial there
and i took a partial there you see this
in the recording on my telegram channel
and then i also left 500 000 leverage
on the trade with a limit order at
139.50
it's like a partial there 250 000 came
off and the final 250
came off on a limit basis at 139 51 and
one fit that
there so this is a typical
one shot one kill where i'm aiming for
anywhere between 50 to 75 pips a week
and that's it if i went and traded
earlier in the week on tuesday
this would have been enough by itself
but i did something on tuesday
with pound with my mentorship and you
all saw this one here
using everything that i've outlined here
from beginning to end
everything i used was literally
youtube level it's not secret you know
mentorship stuff
everything here is taught somewhere in
my youtube channel
now i get a lot of emails
and it takes forever for me to get
through them and it's
gotten to the point where i'm probably
never gonna get caught up anytime soon
there's just so many of them coming in
but i can tell you that if you have the
question in mind that
where is a certain thing taught i don't
know
specifically what videos because i've
done so many videos
i just i didn't keep a good record of
what i did in each video
um years ago some of my students were
doing a really good job of
documenting what's covered in what video
and even what minute marker
it would be i don't know what that is
and
maybe when you're doing your studies
through this channel
when you study your videos each time you
come to a specific thing
you might want to break down the video
and kind of like do it as chapters like
a
between minute mark or this and this ict
talked about this or that topic or order
blocks or you know breakers or
mitigation blocks
you know all those types of things it'll
make it easier for you to go back in
and locate those areas to to touch up on
a subject matter that may be a sticking
point or a struggling point for you
obviously there's a whole lot more to
trading and i could have took a lot more
out of
the free content here and made much more
out of this series
but i literally watched the market maker
series this week
all over again and
i had a lot of talking in those videos
and while
most of its useful information i want to
kind of give you
a rendition that was more to the point
that goes right to the heart of what all
these videos
should have given you an understanding
and then
what should have been taken away and
this isn't everything like i could have
put even more
into this but i wanted to give you
something that is
useful that i used in real world
settings
where in front of lots of people
okay all around the world they watched
me co-sign this whole idea this week
and it panned out and it delivered like
gangbusters
it's not a fluke i could have talked
about this and it could have flopped
but because it's rooted in the things
i'm teaching you here which is also
taught
in other areas of this youtube channel
it's not created just because
this stuff worked this week okay it's
literally every single week every single
week
these markets operate with these
specific generic
macros a macro is a small little program
that unfolds in an algorithm
and what they are is basically a price
run
from one level to the next during a
specific time of day okay that's the
easiest one i can give you as an example
another would be when it's bullish a
bullish optimal trade entry that forms
between seven o'clock in the morning at
10 o'clock in the morning new york time
and runs to 10 30 in the morning
okay that repeats a lot
several times a week but i'm teaching
you as my students
to focus on the highest probable day of
the week
in the most probable direction bullish
or bearish
and the time of those specific days
and what those patterns of entry look
like
there's other things once you've gone
through this
series a couple times taking copious
notes
you want to go back into lessons where i
talk about money management
i have psychology lessons in here trade
psychology
i have lessons on how to deal with
drawdown
because you're going to have it no
matter how good you think you are you're
going to have drawdown
and how you're going to manage that how
you're going to overcome that
how you're going to mitigate those
losing streaks i teach that for free in
this youtube channel
i am convinced that everything i've
given
for free in this youtube channel
literally lays waste to everything out
there you can buy as a course
and that's barring no mentor none
whatsoever
because it's free you can test drive it
here you can
see right away if there's any fluff
there's a lot of talking
but the talking points are important
because i'm actually addressing
psychological
factors that's going to either arise
from the things that i'm telling you to
do in the video
or from a previous video that i got
feedback from
when i do a video but back then when i
was doing those videos i was able to
read my emails a little bit more
quickly and keep up with it now i just
you know with over 120 000 students and
i have a youtube channel
audience too i i personally
cannot keep up with the correspondence i
wish i could
because i love it sometimes it moves me
to tears because of the joy
i get by hearing these stories and
also the stories that people are
struggling not every one of my students
do exceedingly well
i want to be up and up front and honest
and tell you that i've said it in the
past it's not like something i want to
just confess to now i've always said
this
this is a very difficult business to do
well in
because you're competing against
yourself
you're misinformed you're giving
so much improper information
and there's so many people out there
masquerading as someone that knows what
they're doing
and all of that is a disadvantage for
you
and it's almost like a land mine field
laying in front of you
and you really need to know where to
step because if you step
the wrong place at the wrong time it's
over
and if you do it enough times no matter
how strong you feel about
conquering this and knowing that there's
going to be periods of
adversity at some point
even the best of you will want to throw
into town quick
i'm here to tell you don't
don't ever quit it doesn't cost you
anything to watch these videos except
for the time that you invest
if you keep digging into them and keep
practicing when i tell you to practice
and keep studying and looking for the
things i'm pointing to
it will happen for you it will unlock
your understanding
and one day what day i don't know it is
always different for somebody else
and i have students from my 2016 group
that still
cannot make money i'm being absolutely
honest
but i also have students that just came
into this final group in 2021
that are literally killing it because
they were trading
with information they learned here with
those hit and miss hit and miss
now they're doing exceedingly well was
it because they joined the mentorship
probably or is it because they put
enough
time in beyond what they probably
thought was going to be required
i think it's that so
don't give up don't let someone else
convince you that you're wasting your
time doing this
the worst thing you can do is tell your
friends and your family what you're
doing
don't even do that because they're not
going to understand
and they're going to be asking you
usually at the wrong times hey how you
doing you're so-and-so and it'll be a
period where you're struggling
and they'll be like well i'm glad i
didn't listen to you
how's that going to make you feel it's
going to make you question whether or
not what you're doing
is a viable means of pursuit to a better
life
when i'm telling you it absolutely is
this is the last bastion folks
look around i'm not going to describe
what i'm
really hinting at but all you have to do
is look around
every form of employment
is being ravaged right now
it's going to get worse do you have a
hedge against that
do you have a way for you to feed you
and your family without having to leave
your house
or hold your hand out for a government
handout
no subsidies required no leaving your
home
as long as you have an internet
connection
and equity in the account you can eat
that's where we're at now it's not about
getting rich
it's about making sure that you can eat
that you can meet your bills make your
ends meet
so it's my prayer and heart felt desire
and passion to
to inspire you to do well and hopefully
i've given you some tools here too
to do that or at least begin the journey
and working towards it
you're always in my prayers i'm always
thinking about all of you
even i don't know you i've never laid my
eyes on you face to face never shook
any of your hands
i'm rooting for you
and you'll get it just keep plugging
until next time be safe
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