Inversion FVG & Aggression Entry Model Explained | Liquidity Sweep + HTF ICT Price Action!

Summary

In this video, the presenter explains a federal aliation entry model, known as the ICT B model. They focus on a live market example to demonstrate how to take trades using the FG inversion entry model, targeting specific market moves. The approach emphasizes identifying key market retracements and using liquidity as an entry point with a focus on simple, actionable steps. The target is a clear size, aiming for a good risk-to-reward ratio while avoiding overcomplicating the strategy.

Takeaways

• 😀 The video focuses on explaining the Federal Aliation Entry model, a classic model used in trading as per ICT.
• 😀 The goal is to show how to apply this entry model in live markets and take trades effectively.
• 😀 The entry model explained is an aggressive strategy based on the inversion FG model, targeting specific market retracements.
• 😀 The main approach involves observing market biases, particularly daily and weekly trends, and acting when the price enters a specific zone.
• 😀 A key aspect of the strategy is waiting for price to retrace into the designated area before entering a trade.
• 😀 The presenter emphasizes the importance of targeting a set size and not overcomplicating the trading steps or strategies.
• 😀 The focus is on identifying and using PD (Price Deliverance) for analysis, with particular attention on liquidity levels.
• 😀 The strategy involves using simple tools like the 16 indicator to target specific liquidity zones and gauge market behavior.
• 😀 The process includes analyzing market displacement after liquidity is taken, with a target based on the random movement of the market.
• 😀 Risk-to-reward ratio is a critical consideration, with the trader aiming for a good balance in order to maximize profits while minimizing risk.
• 😀 The overall strategy is universal and can be applied on different timeframes (daily, weekly), with the most suitable timeframe chosen by the trader.

Q & A

What is the Federal Affiliation Entry Model mentioned in the video?

The Federal Affiliation Entry Model is a trading strategy covered by ICT. It is a classic 'B' model that focuses on identifying entry points in the market by using an aggressive approach called the Inversion FG Entry Model.

What is the Inversion FG Entry Model?

The Inversion FG Entry Model is an aggressive entry technique in trading. It involves waiting for specific market conditions such as retracements or liquidity grabs before entering a trade. The model targets high reward-to-risk ratios based on market structure.

Why does the presenter mention ICT 2022 in the context of the market retracement?

ICT 2022 is referenced as a guideline for understanding the retracement levels in the market. The retracement concept is important as it helps traders know when the market is likely to reverse and enter a profitable trade.

What is meant by 'targeting the size' in the video?

Targeting the size refers to the trader’s goal of aiming for a specific price movement or target range in the market. The size could be based on a predefined risk-to-reward ratio or the distance the price is expected to move after the trade is taken.

What is the significance of not trading based on decimals, as mentioned in the script?

Not trading based on decimals implies that the trader avoids overcomplicating the trade setup by focusing on minor price fluctuations. Instead, the focus is on significant market moves and key price levels, which offer better opportunities for profitable trades.

How does the weekly bias influence the trading decision?

The weekly bias helps the trader understand the overall market trend. By analyzing the market behavior on a weekly scale, the trader can determine whether to take a long or short position in alignment with the broader market direction.

What does the term 'PD below the C' refer to in the video?

PD below the C refers to a potential decision point (PD) in the market that is positioned below a specific level, denoted by 'C'. This point is used to assess whether the market has reached a key level where price action could reverse or continue.

What role does liquidity play in the entry strategy outlined in the video?

Liquidity is a critical factor in this strategy. The market needs to take liquidity before a significant price move occurs. The strategy focuses on waiting for liquidity to be taken and for displacement to occur, signaling the ideal entry point.

Why is risk-to-reward ratio important in this strategy?

The risk-to-reward ratio is crucial because it ensures that the trader is willing to risk a small amount of capital for the possibility of a larger return. A good risk-to-reward ratio increases the chances of long-term profitability in trading.

What is the checklist the presenter uses for executing trades?

The checklist includes: 1) Identifying sell liquidity; 2) Ensuring SSL liquidity with high probability; and 3) Using a timeframe (such as daily) that suits the trader's strategy. This checklist helps the trader systematically evaluate the market before entering a trade.