Higher Time Frame Points of Interest - ICT Concepts

Summary

In this video, the speaker outlines a strategy for finding lower timeframe trade entries based on higher timeframe price levels. The key elements include monitoring highs and lows, identifying fair value gaps, order blocks, Optimal Trade Entry (OTE), and internal range liquidity. By analyzing these factors on higher timeframes and refining entries on lower timeframes, traders can improve the accuracy of their trades. The video emphasizes the importance of waiting for confirmation before entering positions, ensuring a more precise and methodical approach to trading.

Takeaways

• 😀 Time frame selection is critical for successful trading: Use lower time frames for entries (e.g., 1-minute, 15-second) and higher time frames (e.g., 15-minute, 1-hour, 4-hour) for points of interest.
• 😀 Key concept of searching for points of interest on lower time frames involves identifying significant highs and lows, including session and daily highs and lows.
• 😀 Pay attention to where price breaks previous highs and lows, as these areas act as targets for price to revisit.
• 😀 Look for price movement around fair value gaps and order blocks, as these can act as key areas for potential retracements or continuation.
• 😀 The Optimal Trade Entry (OTE) is a useful strategy to identify retracement areas within a range and is a key point of interest for lower time frame entries.
• 😀 Liquidity of a range is another important factor, indicating where price is likely to gravitate toward during retracements.
• 😀 After a low is taken, look for possible long entries around internal range liquidity, ideally targeting areas like order blocks or OTE zones.
• 😀 When price breaks a high or low, always watch for confirmation on lower time frames before making an entry. Don't rush the decision.
• 😀 In a bearish trend, expect price to target previous lows and reach back into premium price levels before a possible continuation.
• 😀 Use multiple techniques, such as highs and lows, fair value gaps, OTE, and order blocks, to predict potential reversal areas and monitor lower time frame entries for confirmation.

Q & A

What are the five key factors to watch for when searching for lower time frame entries?

The five key factors to watch for are highs and lows, session highs and lows, daily highs and lows, fair value gaps, order blocks, OTE (Optimal Trade Entry) of a range, and liquidity of a range.

What time frames does the author focus on for entries and points of interest?

The author uses the 1-minute and 15-second time frames for entries, and watches the 15-minute, 1-hour, and 4-hour time frames for points of interest.

How does the author define 'highs and lows' in the context of trading?

Highs and lows refer to significant price points where price either reaches a peak (high) or a trough (low). The author looks for which highs have been breached and which lows are likely to be taken for potential trades.

Why are fair value gaps important in trading strategy?

Fair value gaps represent areas where price has moved quickly, leaving a gap. These gaps can indicate potential areas for price retracement, providing good spots for lower time frame entries.

What does OTE (Optimal Trade Entry) refer to in this strategy?

OTE refers to the optimal retracement level within a price range, typically around a 50-61.8% retracement. It is a key area for traders to look for potential entry points in a market trend.

How do liquidity and range interact in the author’s trading strategy?

Liquidity refers to the amount of buy and sell orders present at a price level. The author monitors liquidity within a range to identify potential areas where price might break out or reverse.

What role do session highs and lows play in determining entry points?

Session highs and lows are important because they mark critical price levels where price might reverse or continue. If price breaks these levels, they can provide a signal to watch for lower time frame entries.

What is the significance of running a low or high in this strategy?

Running a low or high refers to breaching previous support or resistance levels. Once price moves beyond these levels, it often creates a new point of interest for the trader, signaling a potential reversal or continuation.

When should traders look for short entries in this strategy?

Traders should look for short entries after price has moved into a premium range or has breached a high. After price reaches these levels, they look for signs of reversal or retracement back into lower price ranges.

How does the author use lower time frames for confirming entry models?

The author uses lower time frames to monitor for price action patterns, such as breakouts, retracements, or reversal signals. Confirmation on a lower time frame is essential before executing an entry, as it provides more precision.