HOW TO BUILD INTRADAY BIAS USING ICT CONCEPT

Summary

This video offers a detailed approach to building a premarket trading plan by utilizing key levels such as New York midnight open, Asia High/Low, London High/Low, and fair value gaps. The presenter emphasizes the importance of using various timeframes (daily, 15-minute, 2-minute) to analyze price action, identify order flow changes, and spot potential trade setups. By combining high probability setups with time zone-specific strategies, the video demonstrates a structured method for anticipating market movements and managing risk through strategic entry and exit points.

Takeaways

• 😀 Key trading levels such as previous day high/low, New York midnight open, and fair value gaps are crucial in building a premarket plan.
• 😀 Asia and London kill zones (8 PM - Midnight and 2 AM - 5 AM) are important timeframes for anticipating price action and reactions to key levels.
• 😀 The strategy focuses on the concept of 'immediate balance,' where the market is expected to retrace and balance within a specific range, like the daily fair value gap.
• 😀 Price action around the New York midnight open level is critical for identifying potential setups and understanding market direction.
• 😀 The speaker uses a combination of high time-frame analysis (daily and hourly charts) and low time-frame analysis (15-minute and 2-minute charts) to identify optimal entry points.
• 😀 Key price formations, such as a 15-minute change in the state of delivery, signal potential entries for trades based on shifts in order flow.
• 😀 Using institutional order flow, the speaker advises entering trades at points where liquidity sweeps have occurred, such as after breaking previous highs or lows.
• 😀 Stop loss placement is emphasized at strategic levels like above recent highs or liquidity zones to manage risk effectively.
• 😀 The strategy involves taking partial profits at key levels like New York midnight open, Asia High, or London High while allowing the trade to run towards the final target.
• 😀 Real distribution is a key concept in this strategy, with the focus being on market manipulation during certain timeframes and waiting for consolidation before entering trades.
• 😀 The speaker encourages building a flexible premarket plan, using levels such as New York midnight open, Asia/London highs/lows, and equilibrium points, to stay prepared for various market scenarios.

Q & A

What is the main focus of the speaker's approach to pre-market planning?

The speaker's approach focuses on using key levels, like the New York midnight open, previous day's high and low, and fair value gaps to anticipate market movements. The goal is to build a pre-market plan based on these levels and adjust entry points according to changes in order flow and liquidity.

How does the speaker define 'fair value gap' and its significance in the market?

A fair value gap refers to areas in the market where the price has moved too quickly or too far, creating an imbalance. These gaps often represent areas of potential price rebalancing, and the speaker anticipates either a continuation or a reversal when these gaps are tested.

What role does the New York midnight open play in the speaker's strategy?

The New York midnight open is used as a key reference level to understand market behavior and as a potential target or entry point for trades. If the price reacts strongly at this level, it can signal important price action for the upcoming trading session.

How does the speaker use different timeframes for analysis?

The speaker uses multiple timeframes, including 15-minute and 2-minute charts, to identify market shifts, such as order flow changes. These shorter timeframes help pinpoint precise entry points when liquidity sweeps or order blocks form.

What is the significance of liquidity sweeps and order blocks in this strategy?

Liquidity sweeps and order blocks are key to understanding market sentiment and potential reversals. A liquidity sweep indicates a significant market move that could lead to a reversal, while an order block is used as an entry point for trades, with a stop loss placed above key liquidity levels.

Why does the speaker focus on the Asia and London kill zones?

The Asia and London kill zones are crucial for observing market manipulation and price action before the New York session. These time periods help the speaker anticipate how the market might react once the New York session opens, aiding in the creation of a more accurate pre-market plan.

What does the speaker mean by 'change in the state of delivery' on a 15-minute chart?

A 'change in the state of delivery' refers to a shift in market order flow or sentiment, which can be identified on shorter timeframes like the 15-minute chart. This change often signals a potential reversal or continuation of the price move.

How does the speaker manage risk during trade execution?

Risk is managed by placing stop losses at strategic levels, such as the New York midnight open or nearest liquidity levels. The speaker also uses partial profit-taking at key levels like New York midnight open or Asia high to reduce risk while allowing the trade to run toward its final target.

What is the role of partial profit-taking in this strategy?

Partial profit-taking is used to secure profits at key levels like the New York midnight open or Asia high. This helps lock in gains while still leaving a portion of the position open to capture further market movement toward the final target.

How does the speaker use the concept of 'short-term high' and 'short-term low' in their analysis?

Short-term highs and lows are identified within specific ranges, such as the Asian or London session. These levels are used to anticipate price action and determine where the market may reverse or continue. The first fair value gap after a short-term low is often used as an entry point for trades.