ICT Charter Price Action Model 12 - Scalping Intraday Model

Summary

In this ICT mentorship video, the presenter introduces a scalping model designed for 20 pips per trade. The model utilizes daily range expansion, order blocks, and fair value gaps to identify potential trade setups. It emphasizes the importance of waiting for an order block to form and then an expansion swing to unfold. The video explains how to find fair value gaps in the middle of price runs and how to scale the model for larger timeframes. The presenter also discusses how to incorporate this model with other price action models and money management techniques for a comprehensive trading strategy.

Takeaways

• 📈 The model discussed is a scalping model designed to target 20 pips per trade.
• 🔍 The model uses daily range expansion, order blocks, and fair value gaps as key elements for identifying trade setups.
• 📊 It emphasizes waiting for an order block to form and then an expansion swing to unfold, focusing on the direction of the current daily bar or candle.
• 🚫 The model does not always require a fair value gap to be present at the order block; it can also work with a down-closed candle near a key level.
• 🔄 After an order block is retested, the model looks for a fair value gap and uses internal range liquidity pools to facilitate entries for a 20 pip price run.
• 💡 The model is not limited to scalping; it can be scaled up to larger timeframes, which would deliver larger pip profits.
• 📉 The model can be used to find fair value gaps in the middle of price runs that are not necessarily close to an order block.
• 🛑 The model suggests not chasing price but waiting for the price to come back and prove itself through an expansion move and fair value gap formation.
• 📋 The model is described as forgiving, especially for traders who may miss ideal entries, as it provides opportunities to enter after the fact.
• ⏫ The model can be used in conjunction with other price action models and money management techniques to build a comprehensive trading plan.

Q & A

What is the primary focus of the scalping model discussed in the script?

The primary focus of the scalping model is to achieve 20 Pips per trade.

What are the key components used to identify the direction of the current daily bar or candle in the model?

The key components used to identify the direction of the current daily bar or candle are daily range expansion, order blocks, and fair value gaps.

How does the model differentiate between a high probability order block and a regular one?

A high probability order block in the model is coupled with a fair value gap. A regular order block may form a down-closed candle near an important key level without necessarily having a fair value gap.

What is the significance of a down-closed candle in the context of this model?

A down-closed candle signifies the potential start of an initial expansion price swing. It must be retested to qualify as a valid order block for trading purposes in the model.

How does the model use fair value gaps in the middle of price runs?

The model identifies fair value gaps in the middle of price runs that are not directly related to or close to an order block. It uses these gaps to facilitate entries in the direction of a 20 pip price run.

What is the role of internal range liquidity pools in the model?

Internal range liquidity pools are used to facilitate entries in the direction of a simple 20 pip price run, following the identification of a fair value gap and an expansion swing.

Can the scalping model be applied to larger time frames and why?

Yes, the scalping model can be applied to larger time frames. It's scalable and not limited to 20 Pips or 5-minute charts. The profit margins will increase in terms of Pips relative to the time frame being analyzed.

What is the importance of waiting for an expansion swing in the model?

Waiting for an expansion swing is crucial as it provides evidence of price movement in a particular direction, validating the order block and setting up a potential entry point for a trade.

How does the model handle situations where the price drops into the order block but doesn't create a fair value gap?

In situations where the price drops into the order block but doesn't create a fair value gap, the model waits for a subsequent expansion swing that unfolds after the retest of the order block to identify a fair value gap for entry.

What is the recommended approach for taking profits when using this model?

The recommended approach for taking profits is to bank 80% of the potential 20 Pips and then look for additional price movement using other models or price action techniques for the remaining position.