ICT Concepts - Dealing Ranges 🤯

Summary

This video dives into advanced trading concepts, focusing on using dealing ranges, price action, and order flow analysis to refine entry points for trades. It covers the importance of understanding market bias, identifying premium and discount zones, and utilizing higher timeframe charts (daily, 4-hour) alongside smaller timeframes (hourly) for precision. The speaker emphasizes the fractal nature of price and how to apply these principles across different timeframes for better accuracy. Ultimately, the video offers valuable insights on improving trade setups, risk management, and entry refinement for traders.

Takeaways

• 😀 The dealing range is essential in determining entry points, price movement expectations, and setting appropriate targets in trading strategies.
• 😀 Understanding whether price is in premium or discount relative to the dealing range helps refine decisions on when to buy or sell.
• 😀 A bearish bias can be identified using higher time frames (such as daily and 4-hour charts) and refined using lower time frames (like hourly or minute charts).
• 😀 Price action fractality allows you to apply concepts from higher time frames to lower time frames, improving precision in entries and market reading.
• 😀 Stop raids and the creation of highs and lows at premium levels are key indicators of price respecting algorithmic reference points.
• 😀 The concept of inefficiency in price action helps identify areas where price is unlikely to return, informing when to avoid certain levels.
• 😀 Breakaway gaps occur when price moves away from a key level, especially after reaching an immediate rebalance area, signaling the continuation of a trend.
• 😀 A detailed 'dealing range checklist' helps refine entries, considering factors such as higher time frame bias, IPA targets, and the balance of premium and discount in the range.
• 😀 The importance of identifying where price is in the range allows for better understanding of price action and decision-making when reading charts.
• 😀 Regular journaling, backtesting, and observing live price action are crucial practices for improving one's ability to internalize order flow and develop trading strategies.

Q & A

What is the main focus of the video?

The main focus of the video is understanding price action in trading by analyzing different timeframes (daily, 4-hour, hourly) and how to identify key levels, liquidity zones, and potential entries based on the concept of dealing ranges.

What does the speaker mean by 'dealing range'?

A 'dealing range' refers to the price range within which price action occurs over a specific timeframe. The speaker emphasizes identifying the equilibrium within the dealing range to determine whether the market is in a premium (higher) or discount (lower) area.

How does the concept of 'premium' and 'discount' affect trade decisions?

When the price is in a premium (higher part of the range), it creates opportunities for short trades, while in a discount (lower part of the range), it presents opportunities for long trades. The speaker suggests that understanding whether price is in premium or discount is key to refining entries.

What is a 'breakaway gap' and how is it significant in price analysis?

A 'breakaway gap' occurs when price moves away from key levels, leaving inefficiencies or gaps in the market. Identifying these gaps helps traders anticipate the direction of the price, making it a crucial element for predicting market movement.

What role does 'stop raiding' play in price action analysis?

Stop raiding refers to the market's search for liquidity, which often occurs when stop orders are triggered. It provides important clues about the market's behavior, signaling that price may continue in the direction of the liquidity search.

What is meant by 'liquidity' in this context?

In this context, liquidity refers to the volume of buy and sell orders in the market, often concentrated around certain levels. The market may 'raid' these areas by triggering stop orders to gather liquidity before continuing its movement.

How does the fractal nature of price affect trading strategies?

The fractal nature of price means that the same principles used to analyze price on higher timeframes can also be applied to lower timeframes, such as the one-minute chart. This allows traders to refine their entries with greater precision and adaptability.

How does the speaker suggest refining entry points?

The speaker suggests refining entry points by understanding whether the price is in a premium or discount of the dealing range and then looking for short entries in the premium and long entries in the discount. Identifying key areas where price shows resistance or inefficiency also helps refine entry points.

Why is it important to understand where price is within a range?

Understanding where price is within a range helps traders anticipate whether price will continue in the same direction or reverse. It informs decisions about which side of the range to target for short or long trades and helps manage risk more effectively.

What tools or methods does the speaker recommend for improving trading strategies?

The speaker recommends journaling, backtesting, and studying live market action. By practicing these methods, traders can better internalize order flow, understand price behavior, and refine their trading strategies to improve accuracy and outcomes.