ICT Charter Price Action Model 13 - Charter Lecture On 2022 YouTube Model
Summary
TLDRThe transcript outlines an intraday trading model for index futures focusing on liquidity raids and rapid market structure shifts to target premium or discount price distribution arrays. It details optimal time windows, entry tactics, stop loss placement, risk management, and profit taking logic. The model aims to capitalize on specific times of day when algorithmic trades trigger, leaning on market open/close volume and entering on 5-1 minute charts after momentum shifts, using tight risk controls to maximize profit potential.
Takeaways
- 😀 This model targets intraday market structure for index futures using PD array matrix objectives
- 👍 It can be used on any timeframe - hourly, 30min, 4hr etc. - though the given rules specify 5min to 1min
- 💡 It looks for liquidity raids followed by market structure shifts to identify entries
- 📈 Entries: Bearish - sell limit order at high of discount low; Bullish - buy limit at low of premium high
- ⛔️ Tight stop losses placed at opposite end of the fair value gap candle used for entry
- 💰 Take profits by targeting opposing PD arrays - premiums if bullish, discounts if bearish
- ⏰ Key times to anticipate setups are given for both AM and PM sessions
- 😖 Reduce position size after losses to mitigate drawdowns
- 🔁 Continuously monitor price action around the given times for the ideal setup
- 🧠 Integrate with overall market analysis and look for one-sided setups with a clear directional bias
Q & A
What is model 13 referring to?
-Model 13 refers to the 13th trading model covered in the 2022 free YouTube mentorship series. It focuses specifically on trading index futures using intraday market structure.
What is the ideal time window for trading index futures using this model?
-The ideal time windows are 7-10am Eastern for Forex trading, and 8:30-11am Eastern for index futures trading.
What chart timeframes can be used with this trading model?
-Any timeframe can be used including hourly, 30-min, 15-min charts etc. The key is monitoring price action after a liquidity raid and market structure shift.
What is the significance of fair value gaps in this model?
-Fair value gaps ideally should be at or above/below equilibrium for bearish/bullish setups respectively. They represent imbalances and potential for further price movement.
How is the stop loss placement determined?
-The stop loss is placed at the nearest significant swing high/low that invalidates the directional bias. This allows optimal risk management.
What dictates partial profit taking with this model?
-There are no definitive rules. It depends on the trader's personal preferences, psychology and market conditions. Experimentation is required.
When during the day are setups likely to occur?
-Setups are likely around major events like openings, economic data releases, lunch break ends etc. A list is provided in the script.
How should one interpret the given time windows?
-Don't expect setups at every listed time. Rather monitor price action during those windows for alignment with bias and other factors.
What is meant by one-sided setups?
-One-sided setups have a clear directional bias based on preceding price action and market context, making reversals unlikely.
How can this model be combined with other techniques?
-This model provides a framework for intraday index trading. It can be combined with other analysis methods for greater edge.
Outlines
😀 Introducing the ICT Mentorship Model 13 for Index Futures Trading
The paragraph introduces ICT Mentorship Model 13 for trading index futures intraday based on market structure, targeting opposing PD array matrix objectives. It covers the timeframes, charts, and setup conditions to identify liquidity rate events and market structure shifts to enter discount/premium trades.
😊 Entry Rules and Stop Loss Placement for Model 13 Setups
The paragraph provides specific entry rules for bearish and bullish setups in Model 13. It covers limit order placement at high/low of fair value gaps on 1-5 minute charts that fulfill the setup conditions. Detailed guidance is also provided on strategic stop loss placement to limit risk.
😅 Addressing a Typo in Paragraph and Moving Forward Positively
The paragraph acknowledges a typo in the previous paragraph and encourages the reader to accept imperfections, not overreact, and progress constructively. It reflects maturity in handling errors transparently rather than hiding or being excessively critical.
🌟 Profit Taking Logic and Targets for Long/Short Positions in Model 13
The paragraph provides clear guidance on profit taking logic for long/short positions using Model 13. It identifies specific price levels like premium/discount PD arrays, previous session highs/lows, fair value gaps etc. as profit targets on the opposing side.
⏰ Optimal Time Windows During the Day to Anticipate Setups in Model 13
The paragraph highlights strategic times during the AM/PM sessions based on index futures behavioral patterns to watch for Model 13 setups. It covers news events, market openings, range establishment etc. as catalysts.
Mindmap
Keywords
💡Market Structure
💡Liquidity Raid
💡Fair Value Gap
💡Intraday
💡Dealing Range
💡Order Flow
💡Risk Management
💡Partial Profit Taking
💡Bias
💡Technical Analysis
Highlights
This is an amplified YouTube lecture specializing in index futures
Everything is fractal, everything is scalable - this model can be used on any timeframe
If bearish, look for buy side liquidity raid, then rapid market structure shift below recent lows with fair value gap
Entry rules aim for lowest risk while still having chance to get filled on valid setups
Use reduced risk approach from previous models to mitigate drawdowns
For PM setup, look for liquidity raids on AM or lunch hour highs/lows
Take profits at opposing PD arrays - discount arrays if bearish, premium arrays if bullish
Multiple potential targets allow for partial profit taking
Finding your own precise methods for exits and partials is a lifelong skill to hone
Anticipate setups around key times based on news, market opens/closes, established ranges
These times increase odds but don't guarantee setups/trades
Look for the one best setup matching your bias and the day's narrative
Should be one-sided with high probability, not aiming to trade each time window
Last hour of trading can have explosive moves for nimble scalpers
This builds on free YouTube content - study that first to fully utilize this
Transcripts
all right folks welcome back this is the
ICT mentorship model 13 which is
obviously the 2022 free YouTube
mentorship that I did on my YouTube
channel this is an amplified YouTube
lecture it's just for this community and
it's specializing in index
Futures all right now before we get into
it I'm going to remind you it's
important for you to have already gone
through the lessons and lectures I've
done on the YouTube Channel because
without that framework or Foundation
this is going to feel like it's not
clear okay so if you have yet to do it
don't complain about this not being
clear because it's absolutely clear
based on the foundation and lessons and
examples that was shown in great detail
on the YouTube channel for
free all right so with this model and
whenever we refer to it in this
community we're referring to it as model
13 so it's the 13th the last Model I'm
going to share with this community as
foundational that you can use to either
run with or build up your own unique
model with these ideas as Foundation but
the logic for this one is we are looking
to trade intraday Market structure that
targets opposing PD array Matrix
objectives so what does that mean if
we're bearish we're looking for Discount
arrays if we're bullish we're looking
for premium
arrays the
framework
we use time of day now this is the
specific window for Forex 7:00 a.m. to
10:00 a.m. which is the your Cool
Zone and 8:30 a.m. to 11:00 a.m. eastern
time for index Futures which is the am
session index Futures morning
session we're monitoring five down to
one minute charts after a liquidity rate
occurs and short-term shift in Market
structure unfolds now notice I've given
it a wide range of parameters that could
be utilized because in here I've taught
you price is fractal I gave them a very
specific element of time and rules over
there so it's kind of limited even
though it's a very good model it's
limited because I'm taking them into a
15-minute chart and then they have to
see a market
structure shift after buy side has been
taken
out 15 minute or five but you can use
any time frame you can use this model on
an hourly chart you can use it on a 30
minute chart you can use it
on any time frame you want it could be
done on a 4-Hour chart okay don't think
that it's limited to just what I've
outlined on YouTube Everything Is
fractal everything is
scalable but we're monitoring again 5
minute down to one minute charts after a
liquidity rate occurs and short-term
shift in Market structure
unfolds
the
setup if we're
bearish we look for a buy side liquidity
raid that means buy sides taken and
purged okay we're bearish we want to see
relative equal highs or a single high
taken ran out okay price quickly jumps
up into it once it takes that buy side
then we're waiting to see rapid Market
structure shift below a recent five or
down to a one minute chart low that's
displacement if the drop after buy
liquidity is purged and creates
displacement lower and has a fair value
Gap this is
ideal if
bullish we look for a sell side
liquidity raid then rapid Market
structure shift above a recent five down
to 1 minute
high if the rally after sell side
liquidity is purged creates displacement
higher and has a fair value Gap this is
ideal now before I go any further
obviously for the bearish and bullish
scenario inside that displacement leg in
other words after stops are rated then
we have a market structure shift
respective to the rules
here ideally the fair value Gap is going
to be at or above the equilibrium for
bearish and at or below equilibrium
for
bullish the
entry if
bearish place a sell limit order at the
high of the discount low of the fair
value gap on the five down to one minute
chart that formed what do I mean by that
if we're looking for a sell the fair
value Gap is formed by three
candles the lower candle that creates
the bottom range of the fair value Gap
that's the discount low so so you're
placing a cell limit order at that high
now you can fancy dance it and go above
it but I personally this is what I'm
doing I'm taking it right at that high
because if the structure is there and
the idea is there and the narratives in
play I want to make sure I'm getting
filled because it might just go a
quarter of a point and then that's it
and if I'm a half a point above with my
limit I'm missing
it sometimes I've had a quarter point
above and even though it printed it it
didn't fill me and runs away that
happens folks so to make sure you get a
fill this is the rules okay you won't
miss the trade that way but it also
opens you up
to more risk Now is it going to be That
Make It or Break It type of risk I don't
believe so because we're on a very very
small time frame chart anyway so we're
talking about quarter of a point maybe
half a point that's the difference it's
not going to make a big of a deal if the
trade's good it's
good stop loss is placed at theow low of
the premium high of the fair value Gap
used for the setup so what am I saying
here we're
bearish we're looking
at the candle that creates the highest
range of the fair Val Gap in other words
it's the first of the three candles the
uppermost candle that low frames the
highest point or the premium high of the
fair value Gap when we're bearish we're
using that candle's High
that's the stop loss okay not one tick
above it not a full handle above it
right at the high so we're using the
lowest risk parameters that you can use
that way if the trade's good you have
the
maximum in terms of what you could make
and the lowest in terms of the
risk if
bullish place a buy limit order at the
low of the premium high of the fair
value gap on the five down to 1 minute
chart when I say that five down to one
it could be forming on the five minute
chart or the fair value Gap could exist
in form on the 4minute chart or the
three minute chart or the two-minute
chart or the one minute chart but we're
going down whichever one from the five
minute down creates the fair value Gap
first that's the one I'm working with
okay stop loss is placed at the high of
the discount low of the fair value got
used for the setup
the
risk we use 2% or less preferably less
per setup of the total Equity of the
trading account so if your demo account
has $25,000 in it you're risking 2% of
that 25,000 maximum ideally 1% or a half
percent because these setups form a lot
the frequency of
trade can tend to make you one to get
punch drunk and go on there and do a lot
more with a lot of Leverage and hurt
yourself since you're having frequent
setups you can do less risk so that way
even if your hit rate is less than 70%
or 60% and if it's just 50% you'll still
be able to do well over time and don't
have to have
Perfection the mitigating draw
down that is the same logic I gave in
each model so we're going to use the
same reduced risk approach I taught you
and each previous model so there's
nothing new that's required here and
what do I mean by that if you take a
trade where you R risk 2% and you take a
stop out or you lose the full 2% your
next trade has to be half of the
leverage you used in the trade that you
lost 2% on after you make 50% or 1% back
in equity then you can go back to 2% but
if you take another loss on your second
trade you're dropping down with half of
that second trade's leverage and and you
keep doing that until you can go any
lower and you stay there until you can
recoup the 50% of the previous loss that
way you're creating that plateau effect
not a roller coaster up and then down
withrawal down you're seeing it go up in
equity up in equity and if you have a
loss okay it's a small loss it's maximum
on the first one then you might have
another losing trade but it'll be less
So in theory it's 2% 1% a half a percent
a quar percent a quar perc a quar per
until you obviously make 50% of the
previous loss so it it keeps you from
having a
blowout PM session setup we've already
covered the morning session so now we're
looking at the afternoon if
bearish we look for a buy side liquidity
raid on the am session highs
or lunch hour
highs if the drop after buy side liity
is purged creates displacement lower and
has a fair value Gap this is ideal yes
that is a typo where it says buy side
liquidity in purged
creates and I'm going to have to deal
with this and you're going to have to
deal with it too so cope okay take a
dose of copium and accept the fact that
I'm imperfect I'm human and I'm going to
have to just let that typo exist I could
fix it I could go in there and fix it
and be a hero for you or I
could do therapy and just say you know
what it's not going to hurt nobody you
know what it should mean you know what
it should say and I'm making more of it
than I should
right if
bullish we look for a salside liquidity
raid on the am session lows or lunch
hour lows okay uh what are lunch hour
lows between 12:00 and 1:00 New York
local time if there's a swing low or a
swing
High inside that hour I'm watching that
one now if it's relative equal lows or
relative equal highs that were made in
the morning session prior to going into
lunch at noon I'm going to be really
interested in those getting tagged not
just a lunch hour high or low okay so
there's precedence that's established on
morning
session than that of the hour price
action between 12 and 1 there will be
times where there is a absence of
relative equal them or relative equal
lows in the morning session and it'll be
just a single high or it could create
relative equal highs in that lunch hour
it's rare but it can happen but if
there's absence of relative equal highs
or lows in the morning session I'm going
to elect to use the higher low inside
the lunch hour very simple
rules and if the rally after sells side
liquidity is not in is purged creates
displacement higher and has a fair value
Gap this is
ideal all right the
entry if
bearish is redone and iown but this is
how it's spelled out for you place sell
limit order at the high of the discount
low of the fair value got on the five
down to one minute chart whichever one
forms the fair value
Gap stop loss is placed at the low of
the premium high of the fair Bay got
used for the
setup if
bullish
place by limit order at the low of the
premium high of the fair value gap on
the 5 minute down to one minute chart
that formed in other words wherever the
fair value G forms first going down from
5 minute to one that's the one you're
going to
use stop- loss is placed at the high of
the discount low the fair value Gap used
for the
setup we're coming down the home stretch
folks told to painless profit taking
logic
we are looking to take profits at
opposing PD arrays what does that mean
we're looking if we're bearish to ride a
swing lower Inay to get below
equilibrium into a discount if we're
bullish we're looking for a ride higher
in intraday price swings above
equilibrium to a premium
PD the targets on short
positions
any discount PD array at or the closest
under equilibrium of the dealing
range under previous session
lows under previous day
low inside the fair value Gap or fair
value gaps because it may be multiple
ones below
equilibrium under any of the
above suggested PD
arrays meaning if there is a fair value
Gap below previous day low or previous
day session
low or the same previous session
low there's an additional one I just
gave you audibly it's not in the text
here that way you have multiple targets
you can do partials okay it partials is
a skill set that you're going to have to
acquire and it's a unique personal thing
there is no hard and fast rule that's
going to fit every single one of you so
you have to sit down and figure out
which is the lowest hanging fruit for
you and be content with that and
experience will be the guide on how
you're going to evolve from that I
promise you you'll come up with your own
way of doing it and even when you get
good at it you'll still not really be
fully satisfied because you're going to
always see some kind of a experience
making a deposit in your understanding
of what you're doing and how you
navigate and take profits again I've
been it to you openly that's the weakest
part of me as a Trader I'm never content
with my exits and you've seen them you
know in in the Layman's eyes it looks
phenomenal but to me for doing this 30
years I'm not satisfied with it so I'm
always working towards trying to improve
that sticking to the rules but I'm
always looking for ways that I can find
a secret uh shortcut if you will to get
to a better way of being consistently
Precision oriented targets that deliver
more accurately than I already have and
I might not find it it might not exist
for me you might find it for you to aim
for
it the targets on Long
positions any premium PD at or the
closest above equilibrium of the dealing
range above previous session
highs that means if we're trading
obviously in the PM session we're
looking at the am session if we're
looking at the am session we're looking
at yesterday's PM session so I wasn't
making that clear earlier but now I just
did above previous days
highs inside the fair value Gap or fair
value gaps above any of the above
suggested PD
arrays so what we're looking for is the
market reaching up
into extreme premium levels where
there's a fair value Gap where there is
an order
where there is fair value gaps that
may
exist beyond the scope of the session
you're trading the previous day's
session and or the previous day's high
so that way you're really getting there
where a buy side is and you may break
the dealing range and have to look at
the previous day or even the day behind
that depending on how strong the
Market's
moving where to anti ipate
trades am
session at 8:30 a.m. eastern time news
or embargo
lifts when high or medium impact news is
released obviously you know that one I
was shared on the YouTube channel
model at 9:30 a.m. eastern time when us
equities markets open that was shared on
the YouTube channel as
well at 10: a.m. eastern time after the
first 30
minutes senent is established think J to
swing okay sometimes it'll form there in
other words what I'm saying is if you're
looking for the setup start looking at
it around
8:30 it can form early then at 9:30 if
it hasn't formed yet if it hasn't formed
at the 9:30 hour with the immediate
Judah swing at 10:00 that time window
then start hunting it again in other
words you're continuously looking at the
clock and you're gauging has it Formed
yet has it Formed yet each one you're
going through expecting at the form at
10:30 a.m. eastern time after the first
60 Minutes opening range is established
so you have that first hours trading
that's going to be influential
throughout the rest of the day and
potentially the rest of the week hint
hint nudge nud there's something for you
to mine right
there so at 10:30 if it hasn't formed
yet that's kind of like the last
opportunity for it until we get to 11:00
a.m. Eastern Standard Time on days of
the week that offer conditions for
Market reversals that would be Thursday
and Friday so in other
words I'm not really excited about
taking 11 o'clock setups unless it's
Thursday Friday and we might be having
TGIF conditions where it comes back into
the weekly range or we're looking at a
longer term Market reversal it's gone up
to a shorting opportunity on higher time
frame and long-term higher time frame
we're looking to go lower I could use
that 11:00 to get in sync with what is
typically referred to in our group as
the London close time so there's a lot
of factors that treat that 11 o'cl as a
market reversal so if it's setting up at
11 o'cl chances are not all the time but
chances are if it's day of the week
Thursday or Friday that could be a
market reversal profile unfolding and
then leading into
TGIF PM
session at 1:30 eastern time when New
York lunch volume completes and
volatility returns Inay that was shared
on the YouTube
channel at 2:00 Eastern time when PM
Trends start to unfold and potential am
stops are
purged could be the lunch hour stops as
well at 2:30 p.m. eastern time when the
final 2 hours of trading begins that's
speaking of the day session for New York
trading at 300 p.m. eastern time final
hour of day session trading ends for New
York and 3:30 Eastern Time Market on
close conditions begin these last two if
you are a very very proficient scalper
and you're working with 302 1 minute
charts you can find this setup just to
every single day in the last hour
trading it's going to demand high level
of precision and nimbleness that most of
you probably don't have yet but it's
something you can mine and study okay I
do a lot of really Ultra shortterm
trading in that last hour of trading on
the index features and literally there's
a lot of wonderful explosive price
action moves that occur in that last
hour trading which I've also hinted at
on the YouTube channel but here is these
elements that work towards breaking down
your day you're not going to get a setup
obviously every single one of these
you're working through the day saying
okay at 8:30 in the morning I'm looking
for it to set up if it doesn't set up
I'm waiting for 9:30 and at 9:30 I'm
waiting for it to set up it doesn't I'm
waitting till 10 o'clock so it gives me
that what patience I'm waiting for the
algorithm to key off of these times
these times are based on what I'm
showing you here now with everything
else I've taught you with algorithmic
Theory
these are the times that are highly
specific to index Futures and what it's
leaning on okay as to why or what's the
Catalyst behind it not invitations to tr
a trade every single time every one of
these time Windows begin okay it's not
like you're going to get what's that
five setups in the morning and five
setups in the afternoon don't think of
it like that think of it as that you're
looking for that one good setup that's
forming for each session respective ly
AM or PM but you're looking for that one
choice setup that is in alignment with
your
bias it obviously lines up with The
Narrative of the day you're looking for
inside the weekly range profile that
you've been studying and everything just
makes sense for it to be running to a
specific price level it's one-sided it's
not easy to make it setup go the other
direction in terms of analysis so you
have one-sidedness that's high
probability use these elements of time
for that to make it a little bit better
for you for selecting your setups and I
think that's going to be it folks and I
obviously it doesn't scratch the itch if
you've never really studied the model or
if you've never gone through the 41
videos on the YouTube channel with the
2022 free mentorship but I promise you
if you haven't done it if you go through
that and you come back to this this here
opens up a whole different perspective
of that model hopefully you found this
insightful until next time be
safe
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