Smart Money NY Session Trade | ICT Concepts + FVG + Order Block Precision | BREAKDOWN

Summary

In this detailed breakdown, the trader walks through a live trade shared on Twitter, explaining the process from a higher time frame to a lower one. Key concepts like the daily volume imbalance, New York AM session setup, fair value gaps, and the opening level theory are used to create a structured and precise trading strategy. The video highlights the importance of multi-timeframe analysis, order blocks, and price action in determining entry points and targets. The trader emphasizes the significance of waiting for confirmation and staying disciplined to execute a well-planned trade with clear intentions.

Takeaways

• 😀 The trade breakdown focuses on a live trade shared on Twitter that resulted in a 120-point profit.
• 😀 A key aspect of the trade was identifying a New York AM session short setup based on a daily volume imbalance and the new week opening gap.
• 😀 The market opening gap is seen as a 'magnet,' suggesting the market's direction and providing insight into institutional order flow.
• 😀 The daily volume imbalance was crucial in determining a bearish bias for the trade, as price opened inside this imbalance.
• 😀 A 4-hour fair value gap was used as a key level to refine the trade setup, providing further confirmation for the bearish thesis.
• 😀 Price action during the 4-hour candle was marked by compression and consolidation, hinting at an upcoming breakout in the New York AM session.
• 😀 The 9:00 AM candle confirmed the trade thesis by running the 8:00 AM highs, indicating manipulation before the downward move.
• 😀 A bearish order block was formed after the 9:00 AM candle closed below the 8:00 AM candle, leading to further price movement to the downside.
• 😀 The one-minute time frame was used to fine-tune entries, despite some missed opportunities due to lack of confirmation from higher time frames.
• 😀 The final entry was confirmed after price displaced the 9:00 AM open, forming consecutive fair value gaps, and providing the basis for a clean short entry.
• 😀 The full trade narrative relied on multi-timeframe analysis, including the opening level theory, CRT logic, PD arrays, and structure validation.

Q & A

What is the significance of the gap between Friday’s close and Monday’s open?

The gap between Friday’s close and Monday’s open is seen as an important clue in the market, suggesting that the market is leaving behind information that could indicate the next move. This gap is treated as a magnet, not random, and it plays a key role in shaping the bias for the upcoming week.

What is a daily volume imbalance, and why is it important in this strategy?

A daily volume imbalance, also referred to as an 'old day opening gap,' occurs when the price opens inside a gap that has not yet been filled or balanced. It’s significant because it often signals that institutional order flow may want to rebalance prices, creating an opportunity for the trader to act on a bearish or bullish bias.

How does the 4-hour chart contribute to the execution of this trade?

The 4-hour chart helps refine the daily analysis and provides more precise entry levels. It highlights a fair value gap that aligns with the daily setup, aiding in identifying areas of potential price rejection or continuation. This timeframe is crucial for aligning the larger narrative with precise execution.

Why is the 9:00 a.m. New York session significant in this trade?

The 9:00 a.m. New York session is important because it marks the key time for price expansion, especially after the compression seen earlier in the day. It often serves as a trigger for the market to make significant moves, either to break through established levels or continue a trend.

What is the purpose of the 'CRT' levels mentioned in the script?

The 'CRT' levels are used as reference points for identifying high-probability areas where price action might either reverse or continue. These levels help in structuring the trade by providing targets and stop-loss placements, ensuring a clear entry and exit strategy.

Why was the 1-hour order block considered important in the execution of this trade?

The 1-hour order block was crucial because it marked a key level where price rejected, offering a potential point of entry. When price revisited this level, it provided a setup for a short trade, with the rejection validating the bearish thesis.

What is meant by the term 'sniper entry' in the context of this trade?

'Sniper entry' refers to a highly precise entry that occurs after waiting for confirmation and using lower time frames to fine-tune the perfect moment to enter the trade. It involves avoiding chasing the market and instead waiting for the most accurate setup with minimal risk.

What role do the 'fair value gaps' (FVG) play in this strategy?

Fair value gaps (FVG) represent price areas where the market has left behind a gap in price action, typically indicating that the market may return to fill the gap. In this strategy, FVGs are used to identify key levels for potential reversals or continuations, guiding the trader’s entry and exit points.

How does the use of multiple timeframes enhance the trade setup?

Using multiple timeframes allows the trader to see the broader context (higher timeframes) and drill down to finer details (lower timeframes). This approach increases the probability of success by aligning larger market trends with precise entry points, ensuring that the trade is well-supported by confluence from various timeframes.

What was the reason for missing an entry during the 8 a.m. to 9 a.m. period?

The missed entry between 8 a.m. and 9 a.m. occurred because the trader did not receive enough confirmation, as a clean entry based on the higher timeframe analysis did not materialize. The trader was patient and chose to wait for more precise signals rather than chase a less confirmed move.