One model,paired with "TIME"- Breaker Block [Cheat Code in Trading] ~ ICT Concepts

Summary

In this video, the presenter introduces a trading model called the 'Breaker Block Concept,' designed to help traders identify entry points based on market structure shifts. The model emphasizes timing, price levels (premium for shorts, discount for longs), and candle closures as critical components. Through detailed examples, the presenter illustrates how to spot breaker blocks and execute trades effectively, catering to both beginner and experienced traders. The video encourages viewers to subscribe for more insights and live trading sessions, promising a practical approach to enhancing trading strategies.

Takeaways

• 📈 The macro with breaker block concept helps traders identify key market reversal points by analyzing price structures.
• 🕒 Timing is crucial; traders should focus on specific trading sessions for optimal setups.
• ⚖️ For short positions, ensure the price hits a premium Price Delivery Area (PDA); for long positions, it should reach a discount PDA.
• 📉 A breaker block is confirmed when the price closes below (for shorts) or above (for longs) specific candle bodies.
• 🧩 Price structures like equal highs and lows serve as strong liquidity levels, often revisited by the market.
• 💡 Beginners should wait for candle closure confirmations before entering trades to manage risk effectively.
• 🔍 Lower time frames can provide more precise entry points and confirm trade ideas established on higher time frames.
• 🛑 Stop-loss levels should be placed strategically, usually just above or below the breaker block.
• 📊 Successful trades can yield high rewards; a well-executed trade can offer returns of 2:1 or higher.
• 📺 For ongoing education and real-time examples, following dedicated trading channels and social media accounts is recommended.

Q & A

What is the main concept introduced in the video?

The main concept is the 'macro with breaker block' trading model, which focuses on identifying specific price patterns and market structure shifts.

How does a breaker block form?

A breaker block forms when price creates a higher high, then generates a new higher high, followed by a market structure shift through the last two swing lows.

What are the key rules for using the breaker block model?

The key rules are: 1) Timing must align with the setup, 2) Price must hit a premium or discount PD array depending on whether you are looking for shorts or longs, and 3) Look for a candle body closure below or above the breaker block.

Why is timing important in the breaker block model?

Timing is crucial because the setup is only valid during specific time zones; trades should be executed when the market is most likely to respond according to the model.

What should beginners focus on when trading with breaker blocks?

Beginners should wait for a candle body closure below the breaker block before entering trades to minimize risk and increase the likelihood of a high-probability setup.

What does a fair value gap represent in this context?

A fair value gap represents a premium or discount price area where traders expect price to retrace or react, making it a potential entry point for trades.

How can one refine a trade idea using lower time frames?

By moving to lower time frames, traders can identify additional price action details, such as swing highs and lows, which help refine entry and exit points.

What is the significance of equal highs and lows in trading?

Equal highs and lows act as strong levels of liquidity, indicating areas where price is likely to return and 'clean out' these levels.

How can traders determine their target in a breaker block trade?

Traders can set their target at the nearest liquidity pool, such as relative equal highs or lows, which are identified through price action analysis.

What is the expected reward-to-risk ratio when successfully executing trades using the breaker block model?

Traders can expect at least a 2:1 reward-to-risk ratio, with many achieving even higher ratios based on the accuracy of their trade ideas.