ICT Concepts: How to Choose and Use Dealing Ranges

Summary

In this video, the trader shares an in-depth guide on identifying and utilizing dealing ranges, primarily focusing on ICT's methodology. The tutorial walks through the process of framing trades with premium and discount zones using Fibonacci retracements on TradingView. It covers how to set up and customize the Fibonacci tool, save the settings as a template, and apply the dealing range to charts for efficient trading. Emphasizing practical steps and customization, the video aims to help traders improve their decision-making and streamline their charting process for better results.

Takeaways

• 😀 The dealing range is an essential tool used to identify premium and discount zones for trading.
• 😀 Traders can use the Fibonacci retracement tool to highlight these key zones on TradingView.
• 😀 Premium and discount zones represent potential buy and sell areas based on market structure.
• 😀 The speaker shares a trade example where they framed the market using a short-term high and sold off after the London session.
• 😀 The strategy involves identifying liquidity above a short-term high and taking profits after the market moves accordingly.
• 😀 The Fibonacci retracement tool settings should be adjusted to show only the 0.5 level for the premium and discount zones.
• 😀 Traders can save custom Fibonacci settings as templates for future use, speeding up chart setup.
• 😀 The template can be applied quickly by selecting it from the menu and anchoring it to key swing points.
• 😀 The dealing range tool helps traders frame their bias on multiple timeframes, including daily or weekly charts.
• 😀 The video encourages traders to subscribe to the channel, join a newsletter, and engage with the community for further learning and support.
• 😀 The speaker emphasizes the usefulness of ICT’s dealing range in improving trading decisions and structure understanding.

Q & A

What is the purpose of using a dealing range in trading?

The purpose of using a dealing range is to frame the market conditions, determining key levels where price might react, based on liquidity and market structure. It helps in identifying premium and discount zones, which traders can use to decide entry points and take profit targets.

How does the trader identify key levels for entry and exit?

The trader identifies key levels by using the dealing range, which is based on the Fibonacci retracement tool. By marking the swing highs and lows, they identify premium and discount zones. They enter trades when price reacts to these levels, targeting a high probability of success.

What is the significance of the 0.5 level in the Fibonacci tool for this strategy?

The 0.5 level is significant because it represents a key area within the premium and discount zones. The trader focuses on this level to gauge where the market might reverse or find support/resistance, making it an essential point for decision-making in trade execution.

How does the trader manage risk once a position is taken?

The trader manages risk by setting a stop loss at break-even once a certain level of profit is reached. This ensures that the trade doesn't turn into a loss while allowing the remainder of the position to run to its final profit target.

What is the role of liquidity in this trading strategy?

Liquidity plays a critical role in this strategy because the trader looks for areas where buy-side or sell-side liquidity is being purged. This indicates potential reversal points, and by trading these levels, the trader aims to capitalize on price movements driven by liquidity shifts.

What is the benefit of saving a dealing range as a template in TradingView?

Saving a dealing range as a template allows traders to quickly apply consistent setups to their charts without needing to manually adjust the Fibonacci levels each time. This streamlines the trading process and ensures that the trader is always using the same analysis framework.

How does the trader suggest handling chart customization?

The trader suggests customizing the Fibonacci tool by removing unnecessary levels, focusing only on the premium and discount levels. This can help reduce visual clutter and make the tool more focused on the specific ranges that matter for the trading strategy.

What timeframes are used in this trading strategy, and how do they complement each other?

The strategy uses both higher timeframes (like daily and weekly) to establish a broad market bias and lower timeframes to fine-tune entries. This multi-timeframe approach ensures that trades are aligned with the larger trend while still offering precise entry points on smaller timeframes.

What is the process for applying the dealing range to a chart in TradingView?

To apply the dealing range, the trader first selects the Fibonacci tool, then anchors it to the swing high and low of the market. This sets the range, marking the premium and discount zones, which can then be used for trade decision-making.

How does the trader encourage viewers to engage with their content and community?

The trader encourages viewers to like the video to help others find it, subscribe to the channel for future content, and join the community by subscribing to the weekly newsletter and joining their Discord group for deeper engagement and learning.