Stop Waiting for Pullbacks, Use Market Maker Models Instead (ICT Concepts)
Summary
TLDRThe video discusses the challenges traders face when waiting for market pullbacks, particularly in relation to premium and discount levels. The speaker shares personal experiences of overcoming these obstacles by mastering continuation trades instead of relying on pullbacks. By understanding market flows, fair value gaps, and market maker models, traders can improve their win rates and profitability. The key takeaway is to focus on trading continuations to catch more opportunities without overtrading or missing trades. The speaker emphasizes mindset and experience as crucial factors for long-term trading success.
Takeaways
- 💡 Understanding when to trade a continuation vs. waiting for a pullback is crucial for trading success.
- 📉 Many traders wait for pullbacks but miss out on profitable continuation trades, which are common in market moves.
- 🎯 Premium and discount zones are useful, but waiting for them can often lead to missed opportunities.
- 🧠 Trading reversals has its place, but relying solely on reversals can limit your trading frequency and potential profits.
- 💪 Continuation trades offer higher frequency and win rates, though they often come with a lower risk-reward ratio.
- 🚀 Confidence in the market direction allows for smoother trading and reduces overtrading or hesitance due to fear of missing out.
- 🔄 The key to profitable trading lies in understanding market flow, fair value gaps, and market maker models.
- 🛑 Overemphasizing precision, like catching exact tops and bottoms, can lead to overtrading and poor decision-making.
- 📊 Scaling into trades after identifying market direction and fair value gaps is a powerful strategy.
- 💼 Consistency and experience in reading price action help build a more confident and profitable trading mindset.
Q & A
What is one of the biggest challenges a new trader faces when starting out?
-One of the biggest challenges a new trader faces is overcoming the tendency to wait for market pullbacks before entering trades, which can lead to missing out on profitable opportunities.
What is the significance of understanding premium and discount in trading?
-Understanding premium and discount is significant because it helps traders identify overbought or oversold conditions in the market. However, it's crucial to use this tool in the right context to avoid misuse that could hinder profitability.
Why is waiting for pullbacks potentially detrimental to a trader's success?
-Waiting for pullbacks can be detrimental because it may cause traders to miss out on continuation trades. The market does not always pull back, and waiting for it can lead to missed opportunities and overtrading.
What shift in mindset helped the speaker become profitable in trading?
-The speaker became profitable by shifting their mindset to understand when to look for a pullback and when to look for a continuation. This allowed them to catch more trades and not miss out on market movements.
What are the two main types of setups in price action trading?
-The two main types of setups in price action trading are reversals and continuations.
How does the speaker describe the typical number of true reversals in a trading session?
-The speaker suggests that there is usually only one true reversal in most trading sessions, with the rest of the setups being continuations.
What is the value of understanding reversals in trading?
-Understanding reversals is valuable because it indicates an overall change in market direction, which can help traders execute trades more fluidly without过分担心错过机会.
Why is frequency of trades considered valuable in continuation trading?
-Frequency of trades is valuable in continuation trading because it allows traders to consistently evaluate the market and extract profits without risking too much capital at once.
What is the importance of not waiting for a discount when trading continuations?
-The importance of not waiting for a discount when trading continuations is that the market may not pull back, and waiting could lead to missing out on the trade. Instead, traders should focus on the flow of the market and the creation of new fair value gaps.
How does the speaker suggest traders should approach taking losses?
-The speaker suggests that traders should not be afraid to take losses and understand that not every trade will have a high risk-reward ratio. They should focus on the direction of the market and the overall flow rather than pinpointing exact entries.
What is the benefit of combining both reversals and continuations in trading?
-Combining both reversals and continuations in trading provides peace of mind because traders gain the ability to catch trades in various market conditions, reducing the fear of missing out on opportunities.
Outlines
📈 Overcoming the Pullback Mentality
The speaker discusses the challenge of waiting for market pullbacks when trading, which often leads to missed opportunities. They recount their own experience learning to trade and how focusing on premium and discount can hinder profitability if misused. The key takeaway is understanding market dynamics and market maker models to trade continuations effectively, rather than waiting for pullbacks. The speaker shares their transformation from significant losses to profitability and financial success by shifting their trading approach.
🔄 The Power of Continuation Trades
This section delves into the benefits of trading continuations over reversals, emphasizing the higher frequency and win rate of continuation trades. The speaker explains the importance of not overtrading and understanding the market flow to make consistent trades without excessive risk. They also discuss the concept of 'fair value gaps' and how reacting to these gaps can signal the market's direction, providing multiple trading opportunities within a single market movement.
🌊 Flowing with the Market's River
The speaker continues to elaborate on the concept of trading with the market's flow, likening it to understanding which way a river flows. They discuss the value of identifying market direction and using tools like fair value gaps and order blocks to capitalize on continuation trades. The speaker stresses the importance of mindset, moving away from a scarcity mindset to an abundant one, where traders are less afraid of missing trades and more focused on the overall market direction.
🚀 Combining Reversal and Continuation Strategies
In the final paragraph, the speaker advocates for a balanced approach that combines both reversal and continuation trading strategies. They highlight the importance of not being overly reliant on any single type of trade and the psychological benefits of understanding the market's direction. The speaker also touches on the practical aspects of trading, such as entering and exiting trades at the right times and managing risk effectively. The video concludes with an offer for viewers to work directly with the speaker to become profitable traders.
Mindmap
Keywords
💡premium and discount
💡pullbacks
💡continuation trades
💡price action
💡fair value gaps
💡reversals
💡overtrading
💡market maker models
💡win rate
💡frequency
💡state of delivery
Highlights
Understanding when to look for a pullback and when to look for a continuation is crucial for profitable trading.
Misusing premium and discount can prevent you from becoming a profitable trader.
Premium and discount are useful tools when applied in the right context.
Waiting for pullbacks can lead to missing out on trades.
Learning how to catch continuation trades is a key to profitability.
Price action and market maker models are essential to understanding market movements.
Continuation trades offer higher frequency and win rate compared to reversals.
Fear of missing trades can lead to overtrading and poor decision-making.
Understanding the market flow is more valuable than trying to catch every single move.
Fair value gaps and liquidity reactions are key indicators for continuation trades.
Continuation trades allow for scaling in and securing profits without waiting for the perfect entry.
Trading continuations can build a better mindset and reduce fear of losing or missing trades.
Reversals indicate a change in market direction and provide opportunities for continuation trades.
Combining reversals and continuations can lead to a more comprehensive trading strategy.
Breakaway gaps signal a potential continuation of the market's direction.
Not being afraid to take a loss is important for successful continuation trading.
The market's direction can be identified through various price action signatures.
Understanding the market's flow allows for multiple trading opportunities within a single move.
The video offers a direct mentorship program for becoming a profitable trader.
Transcripts
how many times have you waited for the
market to pull back you've drawn out
your premium and discount and then the
market just keeps going right to the
Target that you had in mind but you're
sidelined because you wanted to wait for
a pullback now I know whenever I first
started trading this was one of the
biggest things that I had to get over in
order to become profitable but once I
stopped waiting for pullbacks once I
understood how to catch these
continuation trades here is what
happened so whenever I first started out
learning ICT I learned the basics you
know I watched the core content that's
how I learned and one of the first
lessons I think it was actually the
second or third lesson talks about
premium in discount now premium discount
is a tool that when misused will prevent
you from becoming a profitable Trader
now premium discount is great but it's
only great when you use it in the right
context whenever I first started I would
always go to my screens and the first
step I would do is try to identify the
current range I would draw a premium and
discount tool and then I would think
okay well the market has to come back
it's going to pull back and if I don't
wait for the pullback then you know I'm
just overtrading or I'm being eager
which couldn't be further from the truth
because when you understand how price
works and you understand Market maker
models and fair value gaps you don't
really have to wait for these pullbacks
and in fact if you do wait you're going
to miss a lot of Trades so I went
through this cycle of waiting for all of
these trades to come back and then when
they didn't after a while I would just
start you know overtrading because I was
so sick and tired of the market never
pulling back but it was just because I
was looking at things in the wrong lens
now I was able to go from consistently
blowing all my accounts losing all my
money and overtrading even though at
this time I knew how to trade ICT and
I'd watch all the videos but once I made
this simple shift not only did I become
profitable but over the last couple of
years I have made millions of dollars
and I've retired my parents and done all
sorts of amazing stuff but I can tell
you with 100% confidence I would not be
even a profitable Trader much less able
to do any of this had I not taken the
time to understand when to look for a
pullback and when to look for a
continuation and many of you guys who
are watching this are just one aha
moment away from becoming profitable and
I hope that this video which is going to
teach you how to determine whether or
not to trade the reversal or if the
Market's just going to continue and not
give a pullback I hope this video is one
that helps you tremendously now I didn't
put a ton of editing work into this
video a lot of you guys who've been on
the channel for a long time will
probably really appreciate this video
because I'm not using the you know the
the the Smartboard and you know it's
just one of those videos that I know
whether people watch it or not it's
going to be one that changes many
Traders live so enough with the chitchat
let's hop on a chart trading
continuations is often times one of the
most misunderstood difficult but the
most valuable things that you can learn
as a price action Trader because
everybody when they come into you know
price action
trading which what is what ICT is okay
it's say a form of it you know you
really have two types of
setups like I mean it's pretty pretty
pretty binary right you're either
trading a reversal or continuation now
we look at NASDAQ let's just say on a
one minute chart that's where most of
you guys are
trading we'll look you know how many
times is there really a true reversal in
most days usually one time now how many
time how many trade setups do you think
there are on most days more than one or
just one there's more than one of course
there is the value of reversals you get
you know good RR right there's some pron
Pro or some cons to it which is usually
a lower win rate because you're trying
to catch a falling knife but that you
know the good R makes up for it the
hidden value that if you don't realize
this you're not going to ever become a
Trader who can execute fluidly and not
really care if you miss trades because a
lot of the times when I'm analyzing the
chat analyzing you guys like I can tell
a lot of you guys I mean you're just a
bundle of nerves and the reason
of that is because you feel as if you
are watching the charts and you're going
to get this one chance and that's just
ridiculous right and it's normal though
the reason for this cuz you guys don't
understand the most valuable thing about
reversals is that it just tells you an
overall change of Direction now I mean
this is kind of like wow thanks Jessie
what a
mindblowing you know was powerful but it
is because you don't understand that
like let's just take this random example
as soon as you have this reversal right
let's let's just clean up the whole
chart let's just say if you're going
back in time let's let's just say you
have two true reversals during a session
because usually there is going to be
more than more than just one right here
and right here are the two true
reversals
okay but how many trades happened in
this move down how many trades happened
in this move up
a ton ton of Trades happened now what is
the value when you really think about it
what is the value of these two areas
that the value is not in just being able
to say okay boom you know
ifg I caught this crazy trade you know I
caught 10r that's not the value because
that's not usually going to be um what
happens like of course I mean we did
catch a really crazy trade it wasn't 10r
but a lot of the times you're going to
be able to catch big moves like that
but it's not necessarily always going to
be that in terms of the value because
the value is just that change in
Direction let's talk a little bit about
continuations so with
continuations we have different pros and
cons usually you're not going to have
you're going to have lower RR usually
right but you're going to have a higher
win rate now the other very very very
large value in this is more frequency
why is more frequency good A lot of
people will say that frequency is bad a
lot of people will say that oh you know
you got to wait like this Jedi to trade
and you're going to wait for that one
setup and just you're going to snipe it
and you're like a you're like a
samurai who just you know cut a bullet
in the air it's just stupid okay
that's just not that's not how this
actually works the way this works is
being able to evaluate the markets
consistently and extract some money out
while not risking a ton that's really
what this game comes down to and
learning how to read price action
efficiently enough to be able to do so
on a daily BAS basis now you don't have
to trade every single day but you have
to be able to put yourself into the
market and not every day before somebody
goes and runs with what I'm saying but
you have to understand the flow of the
market you have to be able to put
yourself in the market without having to
wait for this the Stars to align so to
speak so let's take a look at this right
here if we look right here now we took
um which I think we we took a trade
right here yeah it was like right here
we put our stop up there we ended up
trading down below I think we cut it
somewhere right around here correct I
cut it like right here somewhere right
in this area but we entered the trade
right up here and I think this candle
when it engulfed okay now notice how we
didn't get the top we didn't get the
best risk reward but let's just take a
look at all the other setups that there
were because once you've identified what
way the river's flowing you identify
what we're pushing towards what we're
likely drawing to now we could just use
this low even we'll just just use this
low now there was obviously drawing
lower and price waiting helps us C
capture more of the move let's just see
how many times in this leg of
price were there
opportunities well at first there's
going to be one and we're just going to
use fair value gaps to keep this simple
we might look at some other stuff too
but look there's a fair value Gap right
here we'll just mark this out fair value
Gap okay great so once we push into a
fair value Gap what you're going to
watch for to confirm whether or not
we're really moving down in this new
direction is how does the market react
toir fair value gaps and how does the
market react to liquidity it should act
very viciously away from it so what does
that mean well if we trade into a fair
value Gap ideally you want a new fair
value Gap to be created which is what
happened here and then you want any kind
of opposing order flow or opposing logic
to be quickly invalidated so for example
we have a bullish fair value Gap okay
well if we're going to be bearish what's
going to happen very quickly it's going
to get inverted now that's a new level
and then guess what happens and gets
created out of that
level a new fair value Gap and all of
these are trade opportunities all these
you can use to frame a trade now let's
just say that this hypothetically was a
15minute because you can use the same
logic on any time frame let's just say
if this was a 15-minute well every
single time that this happened every
single time there are going to be lower
time frame trade entries often times
there's going to be all of this in some
form or fashion in each one of these
little moves so why wouldn't you scale
in well I mean are you going to scale in
a trade just to the point where no
matter what when you're wrong long
you're just going to secure that you're
going to lose all the money you made of
course not that would not be very smart
the goal is not to be able to catch
every last pip or move or tick in the
market that's not the goal the goal is
to be good enough to understand and
extract when you can to understand what
way the the Market's moving and to be
able to extract money from at least one
part of it we're not here to just take
every single you know dollar from the
market that we can at every day every
turn because what happens then is you
start to build the identity of what I
used to call the min max I don't know if
you guys like in gaming they talk about
this like Min maxing it's like every
little thing you just are trying to
optimize or or maximize and and and it's
one of those things that like it sounds
sexy but it's not realistic like most
ICT stuff because you don't need to do
that in order to make money and most of
the time the people who are infatuated
with doing things like that are usually
not even making any money but they want
to jump from not making any money to be
able to extract every last dime from the
market it's ridiculous that is the value
in understanding what way the river is
Flowing it's what I always say if you
guys ever hear me say that this is what
I'm talking about what way is the river
flowing you might just need to get in at
this Dock and get off at this dock you
don't have to get the entire overall
move there's even more like anytime the
market comes above a high you can look
at that as well so anytime the market
comes into a fair Val gap or above a
high you can also use order blocks once
you get better but I focus on just using
this right now because if not you start
to look at every single level now after
you hit into whatever you think the
Market's drawing towards then cool
activate price rating like we did you'd
move your stops here okay as soon as we
come down and we make a new low you can
move your stops up again there are a lot
of different ways you can capitalize on
more than move but the real value here
is understanding which way the the river
is Flowing because when you understand
how to trade a
continuation then you're going to have a
higher win rate you're going to have
more frequency when you have more
frequency with logic you don't overtrade
and you stop being so afraid of losing a
trade or missing trades because you
understand hey I'm comfortable in
knowing what I'm doing and I know that
there are going to be tons of
opportunities you start to operate more
from an abundant perspective more so
than like what you were talking about
earlier you know you're like sitting
there like there's vomit on his sweater
already like all that you know what I'm
saying you're over here like acting like
it's about to be the Olympics or
something to take a trade because this
is going to be the only shot you get
today and that mindset is what turns you
guys into those timid traders who make
mistakes you got to learn to
think multiple steps ahead so like
what's the IM immediate benefits okay
more frequency higher win rate great
cool that's all that's all fun but what
is the real real deep benefit here
especially if you're somebody who's
unprofitable it's just building a better
mindset and reframing the way you look
at each day AKA experience this is what
it means when you say oh you just got to
go through it you have to earn the new
one St you have to learn experience this
is that verbalized into words that's
what that means and if you are good at
identifying that and becoming aware of
that you are going to be a much more
successful Trader there's a great you
know you can trade the reversal that's
great too there's nothing wrong with it
I'm not saying there's anything wrong
with it but let's just take a look over
here what happens once you've truly
identified when the market has started
to reverse cool we've got fair value
gaps right there now here's another
really good really good example so a lot
of you guys in this example
we be looking at it like this you're
going to say and this is from under a
lack of understanding a lot of people
say cool I'm going to use discount and
premium okay well I'm going to use the
discount fair value Gap huge mistake
because you're literally saying I'm
going to use a breakaway Gap right when
there is a redelivered rebalance price
range right here the market shouldn't
trade any lower after you have that
first initial fair value Gap and then
you have that area that is shared by
these two Wicks and you create another
fair value Gap this is now a breakaway
Gap if this is Revisited the Market's
likely to go lower and then guess what
happens if that's Revisited guess what
that guess what that were to be able to
tell you like let's just say if the
market you know came down and we're just
going to you know draw a
beautiful candle here look at this look
at that art or say if it Revisited this
guess what that would have signified to
you a new change in the state of
delivery or the change in Direction now
again before an ICT cultist come after
me before ICT himself even corrects me
and says oh this isn't a I'm not saying
saying the actual original term I'm
saying the actual value you get from it
it's telling you what way the market is
Flowing CU what you know what is the
state of delivery are we bullish or
bearish once you understand and you
identify different signatures and price
that tell you that A Whole New World of
opportunity opens up you start to think
outside the box and you stop just
thinking you know based on linear and
very easy things you start to actually
draw value and be able to use it in a
different uh situation than the picture
perfect one that most people wait around
on that's why you wouldn't expect that
and whenever you're truly moving in One
Direction you're going to watch every
fair value Gap you don't have to wait
for a discount okay it's the stupidest
thing honestly it is I'm just going to
be honest everyone's going to people are
going to come after me for that you
don't have to wait for a discount if
you're trading the continuation of a
market maker model and often times it
won't happen like you just watch each
for Value Gap right here did you get a
confirmation if you look at both of
these right here what's really the
difference like this one just had Wix in
it at the end of the day you didn't just
enter the trade as soon as you tapped
this this or this you entered it as soon
as the market started pushing away from
it and creating what just like we talked
about up here if the Market's truly
flowing One Direction what should happen
from a fair value Gap we trade into a
fair value Gap right there what should
happen next a new fair value Gap created
out of it let's go down here once we
trade into a fair value Gap what should
happen next if we're likely to continue
a new fair value Gap and you don't have
to even wait for this one to be tapped
because that right there is confirming
you're moving
up anytime you want to play stop losses
you want to look for for a recent swing
low ideally one that took out an old one
so like right here we took out an old
level in price you could have entered
the market right here put it at this
redelivered rebounds price range because
you shouldn't see it go under that right
arget would have been much higher you
could have entered on the reversal right
of course the reversal is going to give
you the best restk re it's going to be
the sexiest but I'm not here to try to
show you guys that I'm here to show you
the other value you can get from
understanding how many moves there are
in one move that you can actually catch
and make money on now now look right
here where is another one right here the
key here also is not being scared to
take a loss and understanding like once
you have those days where you're really
confident in the direction like a lot of
people what they'll do is this they'll
be like okay great here's a trade oh why
didn't I get good RR and maybe that
makes you more comfortable in this
example you got two RR which is fine but
sometimes it's going to happen it's
going to be like5 RR or one RR and off
of a big move you shouldn't be looking
for those low amounts of r now I'm not
saying you can't ever trade low R you
can you just have to make sure that that
is like a last leg kind of price action
move but when you're trading a big lean
price you shouldn't look at it like that
now in this example there are tons of
different and I mean tons of different
examples of when this happens so look
again right here Breakaway Gap okay and
I look at Breakaway gaps from every
consolidation I don't look at it just at
the reversal I don't care if that's how
it was taught by it works okay so when
we look right here then what happens
what do we look to be created out of a
fair value g a new one now again what
did I just say a second ago we don't
have to tap back into that as soon as
that's created that and of itself is an
entry you see how many times you can
literally sit here and trade this Market
without having to catch the bottom
without having to be afraid that you
know and and once you realize this
you're not so afraid and so laser
focused on trying to pinpoint this you
don't chop yourself to pieces you don't
have hesitate because what happens when
you're just looking for this is every
time the market shows you the smallest
little desire to reverse you start
pushing buttons so again whenever you
can combine these two like if you can
combine continuations and reversals if
you can combine both then you get peace
of mind because you understand hey I
have the ability to be able to catch
trades in the market I don't have to
just think that I'm going to miss this
this one reversal this one opportunity
this is what happens when you just trade
the ICT
2022 or you're you know afraid of of
only playing liquidity sweeps or only
playing one type of trade when in
reality the reversal itself whether you
catch it or not gives you the Market's
Direction it's the market showing you
its
hand
okay if you found this video valuable
and you want to work directly with me
where you can live trade with me get
access to weekly calls access says to me
reviewing your trades everything that it
takes in order for you to become a
profitable Trader and me holding you
accountable to do it well then go ahead
and click the link in the description to
become a funded Trader in 12 weeks and
if you qualify then I guarantee that you
become funded or I'll trade with you
personally until you do thank you for
watching make sure to subscribe and I'll
see you in the next video
関連動画をさらに表示
7 Trading SECRETS That Made Me a Millionaire by 21
Intraday Bias Simplified | ICT 2022 Mentorship + MMXM = 🤯
How I manage position size, money, and risk management (Class 15)
EASIEST ICT Trading Strategy (77% Win Rate)
Market Commentary 07 APR 2024
How to Conquer Overtrading | Trading Psychology | FundingYourTrades.Com
5.0 / 5 (0 votes)