How to journal the Daily Candle using ICT Concepts

Summary

In the video, Oliver discusses the daily candle and the business of power 3, emphasizing the importance of understanding the process and fundamentals behind it. He suggests that by journaling the daily candle's open, high, low, and close, one can build skills and reference experiences. Oliver explains that each unit interacts and influences the others, and by studying their relationships and dependencies, one can navigate the daily candle effectively. He also highlights the role of the environment in shaping the process and the necessity of adapting to it. The video encourages viewers to iterate and learn from each daily candle, ultimately improving their understanding and becoming more proficient over time.

Takeaways

• 📈 Understanding the daily candle and its business involves recognizing the interaction and mutual influence of its components: open, high, low, and close.
• 📊 Journaling the process of the daily candle helps build skills and reference experiences, leading to a better understanding of its fundamentals.
• 🌟 Each new daily candle presents an opportunity to study the input, observe the output, and learn from the feedback, enhancing awareness and skill level.
• 🔄 The process of the daily candle is sequential, with each step (open, high, low, close) depending on the previous one and contributing to the overall structure.
• 📈 The environment plays a crucial role in shaping the daily candle, whether it's bearish, choppy, or range expanding, affecting the process and outcome.
• 🔍 Identifying and understanding the filters within the process are essential for determining the appropriate actions (do x or y) in navigating the daily candle.
• 📝 Journaling should focus on the relationships and dependencies among the components of the daily candle to understand how they contribute to its formation.
• 🚀 Repeating the journaling process over time leads to a deeper understanding and improved ability to navigate the daily candle, as it becomes second nature.
• 🎯 Focusing on the fundamentals rather than complexity allows for more significant results, as a few key components can lead to 80% of the outcomes.
• 🌐 The business of the daily candle is a system where each part has a specific role, and understanding this system helps in implementing strategies effectively.

Q & A

What is the main focus of the video?

The main focus of the video is to discuss the daily candle and the business behind power 3, explaining how to understand the process and start journaling it correctly to build skills and reference experiences.

What are the four units that make up the daily candle mentioned in the script?

The four units that make up the daily candle are the open, high, low, and close.

How do the units within the daily candle interact and influence each other?

The units within the daily candle interact and influence each other in a specific sequence, where each unit depends on the previous one, such as the low depending on the open, and the range expansion depending on the low.

What is the significance of understanding the sequence and structure of the daily candle?

Understanding the sequence and structure of the daily candle is crucial for navigating the market effectively, as it allows traders to recognize patterns and make informed decisions based on the relationships between the different units of the candle.

How does the environment affect the process of the daily candle?

The environment plays a significant role in shaping the process of the daily candle. A bearish environment will lead to a bearish process, a choppy environment will result in choppy price action, and an expanding range environment will lead to an expansive and aggressive process.

What is the purpose of journaling in the context of the daily candle?

Journaling helps traders to dissect and understand the relationships and dependencies between the different parts of the daily candle, which in turn builds their skills and reference experiences, allowing them to better navigate future daily candles.

What does the speaker suggest as the best approach to learning and implementing the fundamentals of the daily candle?

The speaker suggests that instead of focusing on complexity, traders should focus on understanding the fundamentals, the process behind the daily candle, and the few key components that make up the system. By doing this repeatedly, they can improve their skills and become more adept at navigating the daily candle.

How does the speaker describe the process of improving one's understanding and skills over time?

The speaker describes this process as iterative, where traders should continually study the output of the daily candle, learn from it, and bring that new awareness back into the original understanding. Over time, this iterative process will lead to significant improvement and a deeper understanding of the market.

What is an example of a specific narrative that can be derived from the daily candle?

An example of a specific narrative is the 'hunt on previous days low and then reverse with a New York session reversal,' which indicates a price movement that starts by testing a support level from a previous day and then reverses due to market manipulation or other factors during the New York session.

How does the speaker suggest traders avoid getting lost within the daily candle?

The speaker suggests that traders should understand the sequential order of the daily candle, the relationships between its components, and the environment's influence on the process. By focusing on these elements and journaling them consistently, traders can gain clarity and avoid feeling lost.

What is the role of intermarket analysis in understanding the daily candle?

Intermarket analysis can provide additional insights and context to the price movements within the daily candle. It can help traders identify key levels, such as support and resistance, and understand how external factors, like news events or actions from central banks, can influence the market.