ICT's Daily Bias - with 2022 Model !

Summary

In this video, the focus is on trading with a daily bias, where the key idea is to use higher time frame levels and price action to identify long-term objectives. The speaker discusses the importance of recognizing value gaps, liquidity pools, and market structure shifts, while guiding viewers through a step-by-step analysis of trading strategies, such as using the daily range and focusing on the ideal entry points. The video also highlights how proper charting and reducing distractions can improve trading decisions, ultimately helping traders capture significant market moves and pass trading challenges.

Takeaways

• 😀 Focus on the **daily bias** when trading, which means having a longer-term perspective and avoiding short-term fluctuations.
• 😀 Identify **value gaps** and **liquidity pools** to guide the market direction, using these areas as potential targets for price action.
• 😀 Trade in alignment with the higher time frame narrative, avoiding the temptation of small, insignificant price movements (the macros).
• 😀 Use **time of day** strategies, such as trading from **midnight to 9:30**, to identify optimal price action opportunities, especially when expecting a bullish move.
• 😀 Always look to buy beneath the **opening price** in a bullish market for a better entry, especially if you are anticipating a bullish trend.
• 😀 The **ICT 2022 model** emphasizes capturing large price moves rather than minor fluctuations, focusing on significant market trends.
• 😀 Analyze **market structure shifts** across multiple time frames (15-minute, 5-minute, 1-minute) to identify precise entry signals after confirming the broader bias.
• 😀 Implement effective **risk management** strategies, such as moving break-even points and leaving runners to capture larger price moves.
• 😀 Keep your charts **clean and distraction-free** by removing irrelevant indicators or information, focusing only on the key levels like liquidity pools and opening range gaps.
• 😀 Community interaction is crucial for **learning** and improving your trading strategy, as sharing ideas and getting feedback from others can refine your approach.
• 😀 Mastering the ability to spot significant **liquidity pools** and using them to predict price direction is essential for successful trading.

Q & A

What is the concept of 'daily bias' in trading?

Daily bias refers to having a longer-term objective for your trades, based on the prevailing market trend for the day. It involves identifying whether the market is more likely to go up or down and adjusting your trades accordingly. The goal is to avoid short-term, random fluctuations and focus on the overall market direction.

How do Fair Value Gaps (FVA) influence trading decisions?

Fair Value Gaps are areas where the price has left an unfilled gap, either bullish or bearish. These gaps are used to predict price movement as the market often revisits them. In the script, the speaker identifies a bullish FVA and expects the price to react and potentially move toward that gap.

What role do liquidity pools play in trading?

Liquidity pools refer to areas in the market where buy or sell orders accumulate, often due to stop-losses or other large orders. Identifying these pools helps traders predict where the price might head, as the market tends to target these liquidity zones to fill orders. The speaker mentions using buy-side liquidity pools as targets for trades.

Why is it important to consider time of day in trading?

The time of day is important because certain market behaviors occur at specific times, such as during the opening range or at 9:30 a.m. The speaker uses the timeframe from midnight to 9:30 a.m. to make trading decisions, suggesting that the market's behavior during these periods can offer insights into possible price direction.

What is the 'Power of Three' and how is it used in trading?

The 'Power of Three' refers to the concept of using the open, low, and high of the trading day to help structure trading decisions. By understanding the price levels at these points, traders can anticipate the market's next move, whether it's going to push higher or lower.

What strategy does the speaker employ when analyzing charts?

The speaker uses a combination of identifying key levels like liquidity pools, FVAs, and market structure shifts to inform their trading strategy. They focus on higher timeframe levels and avoid small, insignificant moves, aiming to capture larger, more meaningful price movements.

How does the speaker manage risk during trades?

The speaker manages risk by setting targets and moving the stop-loss to break-even once a trade is in profit. They also recommend leaving a portion of the position (the 'runner') open to capture larger moves, ensuring they don't miss out on significant price action.

Why does the speaker recommend removing distractions from charts?

The speaker suggests removing distractions from charts to focus on key levels and price action that matter most. Overloading the chart with unnecessary elements can make it harder to identify the most relevant patterns and levels, leading to more effective decision-making.

What is the significance of 'sweeping' buy and sell-side liquidity?

Sweeping liquidity refers to the market's movement through and beyond established buy or sell-side liquidity pools. This can signal a change in market direction or validate a trend. The speaker mentions that the market sweeps both sell-side and buy-side liquidity before confirming the trend direction.

How does the speaker apply their models in real-time trading?

The speaker uses their personal trading model to predict price targets and entry points based on real-time market behavior. For example, they mention calling out a price target after observing price action around liquidity pools, and they continuously adjust their strategy as the market moves, ensuring they stay aligned with the overall daily bias.