ICT Daily Bias Was Hard, Until I Understood This

Summary

This video breaks down key trading concepts from ICT, focusing on understanding market structure, daily bias, and price action. It emphasizes the importance of liquidity hunting, fair value gaps, and order flow analysis in identifying high-probability trade setups. The video walks through a top-down approach, starting from higher timeframes to narrow down the market direction, and highlights patience and confidence in waiting for optimal trading conditions. The trader also introduces a mentorship program for those seeking live trading and educational guidance.

Takeaways

• 😀 Understanding the reasons behind market movements is crucial for successful trading. Four primary reasons include liquidity hunting, rebalancing inefficiencies, rebalancing equilibrium, and generating liquidity.
• 😀 Building a daily bias starts with analyzing higher timeframes (e.g., weekly chart) to identify overall market direction and liquidity zones.
• 😀 Focus on identifying the market's expansion direction—whether buy-side or sell-side—and ensure that your analysis aligns with this direction.
• 😀 Using fair value gaps (FVG) can help identify areas where the market may come back to rebalance, making it crucial for spotting potential trades.
• 😀 Patience and discipline are key to success in trading. Rushing into trades without clear confirmation can lead to poor decisions.
• 😀 Always refine your bias by zooming into lower timeframes, like the 4-hour and 1-hour charts, to confirm your expectations for market movement.
• 😀 Pay attention to market structure shifts, especially when price displacement occurs above swing highs or lows, as this indicates potential continuation or reversal.
• 😀 Internal price actions such as accumulation or distribution on smaller timeframes help refine entries and validate your analysis of the larger trend.
• 😀 Psychological discipline is crucial: focus on the process, not just profits, and avoid fear of missing out (FOMO) by waiting for optimal trade setups.
• 😀 Remember that not every market movement is a trade opportunity. The key to success is waiting for clear setups rather than chasing every price move.

Q & A

What is the main concept being discussed in this video script?

The main concept discussed in the video is market structure, specifically focusing on daily bias in trading, order flow, and how to identify bullish or bearish trends based on internal and external market factors.

Why is it important to start with a larger time frame analysis?

Starting with a larger time frame helps in identifying the overall market trend and structure. It provides a broader perspective, which is crucial for aligning trades with the general market direction, improving decision-making, and increasing the chances of success.

What does the term 'buy side' refer to in the context of this video?

'Buy side' refers to the market's general direction or bias towards higher prices. In this context, it indicates that the market is expected to move upward, which aligns with a bullish market structure and order flow.

What does the phrase 'displacement back inside the range' mean?

It refers to the market's price action moving back into a previously established range after an initial move outside of it. This suggests that the market is not breaking new ground but rather revisiting levels where price action was previously confined.

Why is it emphasized that fighting the market trend is not recommended?

Fighting the market trend is discouraged because it goes against the flow of order flow and market structure. The market is typically more efficient when traders align with the prevailing bias (bullish or bearish), increasing the likelihood of successful trades.

What is the significance of the term 'value' in the video?

The term 'value' in the video likely refers to price levels where the market has found equilibrium or where there is significant interest, such as areas where demand and supply are balanced, leading to a potential continuation of the trend.

What role does the concept of a 'gap' play in this analysis?

A 'gap' refers to a price area where there has been no trading activity, often suggesting inefficiencies in the market. In this video, it is suggested that gaps on larger time frames will continue to hold bullish, providing areas for price expansion to the upside.

How does the 5-minute chart help in making trading decisions after the market opens?

The 5-minute chart is used to zoom in on shorter-term price action after the market opens. It allows traders to spot immediate moves, such as a quick price run to the buy side, and helps to identify efficient price movements that align with the overall market bias.

What is meant by 'internal bias' and 'external bias' in the context of this video?

'Internal bias' refers to the shorter-term market sentiment based on smaller time frames, while 'external bias' refers to the broader market trend identified on larger time frames. Aligning both internal and external biases is essential for effective trading decisions.

What does the creator offer in terms of mentorship and educational support for traders?

The creator offers a mentorship program where traders can access live trading sessions, educational videos, and charting sessions. The program is designed to help traders improve their skills by learning directly from the creator’s experience, sharing valuable insights from over 60 videos and live trading interactions.