ICT Time & Price Secret (Time Based PD Arrays)

Summary

In this video, the speaker discusses how timing and price are crucial in predicting market movements, focusing on fair value gaps and liquidity sweeps. Using examples from trading sessions like London and New York Kill Zones, the speaker explains how identifying the time a fair value gap is created—along with the 90-minute cycle—can help traders predict price reactions. The video emphasizes the importance of understanding when a PD array will be respected, helping traders make informed decisions based on time and price confluence for higher probability trades.

Takeaways

• 😀 Fair value gaps (FVG) are important tools in trading, and understanding when and how they get filled can enhance trading strategies.
• ⏰ Time plays a critical role in predicting when a fair value gap will be respected. Knowing the specific time a gap was created helps forecast when it will likely be revisited.
• 📉 Liquidity sweeps tend to occur at specific times and can be predicted based on historical patterns, such as the London Kill Zone and New York Kill Zone.
• 🕒 The 90-minute cycle is a key factor in predicting price behavior and helps identify when fair value gaps and liquidity sweeps are likely to be respected.
• 🔄 Timing matters when a fair value gap is created. If price action revisits a gap at the same time it was originally created, the probability of the gap holding increases.
• 📊 Aligning high time-frame analysis with specific 90-minute cycles helps improve the accuracy of trade predictions.
• 📅 Different times of the day (e.g., London Kill Zone, New York Kill Zone) play a role in when price action will respect or revisit a fair value gap.
• 🔍 Manipulation cycles are important to consider, as they can help traders predict the real respect of a fair value gap and identify potential trade opportunities.
• 🎯 Fair value gaps created at specific times are more likely to be respected during the same time in the future, making time-based analysis crucial.
• 💡 The ultimate strategy is to combine time and price action, looking for confluence between these factors to predict the most probable price movements.

Q & A

What is the core concept discussed in the video?

The core concept revolves around using time and price to predict when a PD array (Price Delivery Array) will be respected or failed, and when liquidity sweeps will happen. The idea is to understand when a fair value gap will be respected based on specific time cycles.

How does the timing of a fair value gap impact its probability of being respected?

The probability of a fair value gap being respected is higher if the price action aligns with the exact time when the gap was created. For instance, if a fair value gap is created at 3:30, price is more likely to respect it when it returns at that same time, such as at 3:30 the following day.

What role does the 90-minute cycle play in the strategy discussed?

The 90-minute cycle is central to the strategy because each 90-minute candle is seen as a self-contained cycle. The highest probability for price action to respect a fair value gap occurs when the price aligns with this 90-minute cycle, especially in relation to the timing of the fair value gap's creation.

What is meant by 'Kill Zone' in the context of this video?

'Kill Zone' refers to specific time periods during the day when price action is more likely to react strongly, such as the London Kill Zone or the New York Kill Zone. These zones are key to predicting when fair value gaps might be filled or respected.

How does time-based analysis influence trade decisions in this strategy?

Time-based analysis allows traders to refine their expectations of when price will react to certain price levels. For example, by knowing when a fair value gap is created, a trader can predict when the price will revisit and potentially fill the gap, improving the chances of making successful trades.

Why does the speaker emphasize waiting for the right time to trade?

The speaker stresses waiting for the right time because acting too early or too late can reduce the probability of success. By aligning price action with specific time cycles, such as the 90-minute or Kill Zone cycles, the likelihood of a trade being successful is much higher.

What does the speaker suggest about using different time frames?

While the speaker mentions that the strategy can work on different time frames, the highest probability of success is achieved using the 90-minute cycle. Other time frames can still be useful, but 90 minutes is the most reliable for aligning price action and fair value gaps.

What is the significance of liquidity sweeps in this strategy?

Liquidity sweeps are significant because they often coincide with times when price reaches certain key levels. By analyzing when liquidity is created and swept, the strategy identifies potential entry points, often occurring within specific time cycles like the Kill Zones.

What is the key takeaway when it comes to identifying real and false moves?

The key takeaway is that a real move occurs when price reacts to a fair value gap at the exact time it was created, especially when it aligns with the expected cycle. False moves can occur when price briefly reacts to a level but doesn't follow through at the correct time or cycle.

How can this strategy be applied to different time zones or sessions?

This strategy can be applied to different sessions, such as the London or New York Kill Zones, by marking the exact time when key levels (like fair value gaps or liquidity sweeps) are created. Traders then expect price to react to these levels during the corresponding Kill Zone times, improving the odds of a successful trade.