High Probability Targets | Magnetism of Time-Based Liquidity Ep.1 (ICT Concepts)

Summary

In this video, the speaker dives deep into time-based liquidity pools and their impact on market manipulation, particularly around key intervals like the pre-market range and New York open. The speaker challenges surface-level concepts, focusing on high-probability targets and in-depth trading strategies. Through multiple examples, including pre-market highs and lows, session highs, and true opens, the video emphasizes the importance of liquidity manipulation and the role of time in capturing accurate market movements. Aimed at traders of all levels, this video offers valuable insights into timing, liquidity, and market structure for better decision-making.

Takeaways

• 😀 Time and price are both essential for successful trading, with time-based liquidity being a crucial factor in understanding market movements.
• 😀 Liquidity is central to price manipulation; the pre-market highs and lows are key targets for such manipulation during market opens.
• 😀 The New York opening range is important for identifying liquidity pools that can guide directional biases, especially when manipulating pre-market highs and lows.
• 😀 Time-based liquidity repeats regularly, and understanding these patterns is essential for capturing high-probability trading opportunities, particularly around market open times.
• 😀 The 7:00 a.m. to 9:30 a.m. pre-market range is a key interval for setting up manipulation, where the highs and lows created are often used for liquidity accumulation.
• 😀 High probability trading setups involve understanding the pre-market highs and lows, and how these are manipulated at market open for larger moves.
• 😀 The concept of 'kill zones'—specific times where liquidity injections occur—plays a significant role in determining market direction and can be used to place stop losses effectively.
• 😀 Opening ranges during the pre-market (7:00 to 8:30, 8:30 to 9:30) can offer good targets for trading, particularly when there is energy in the consolidation phase.
• 😀 Session highs and lows (such as New York AM and PM sessions) are critical targets for liquidity, with high-probability trades occurring when a session opens and immediately forms significant highs or lows.
• 😀 True opens, such as the midnight open and 8:30 a.m. open, are key markers for identifying premium and discount conditions, helping traders make decisions about market direction.
• 😀 A deep premium or deep discount scenario, where price is above both the midnight and 8:30 opens, offers high-probability sell opportunities, aligning with the overall market bias.

Q & A

What is the main focus of the high probability target series in the video?

The main focus of the series is to cover advanced trading concepts related to time-based liquidity pools, including how to identify and trade high-probability targets using time and liquidity as key factors.

Why does the speaker prefer to focus on advanced concepts rather than basics?

The speaker emphasizes that many trading channels already cover basic concepts like liquidity, and their aim is to go beyond surface-level teachings to provide more in-depth, valuable knowledge that applies to various types of traders.

What is the formula the speaker uses for determining a directional bias in trading?

The speaker's formula is: time and liquidity equals directional bias. This means both time and liquidity are crucial in forming a bias for making trading decisions.

How does the speaker explain the concept of time-based liquidity pools?

Time-based liquidity pools refer to specific time intervals during which certain highs and lows are manipulated in the market. These time intervals are often predictable and can provide high-probability targets for traders.

What role does the pre-market range play in the speaker’s trading strategy?

The pre-market range, defined from 7:00 a.m. to 9:30 a.m., is used as a key time interval for identifying manipulated highs and lows, which can indicate potential market moves once the New York market opens.

What does the speaker mean by 'manipulation' in relation to the pre-market range?

Manipulation in this context refers to the market's tendency to take out the pre-market highs or lows to create liquidity, which is then used for further distribution or price movement after the market opens.

Why does the speaker suggest traders should focus on the time period from 7:00 a.m. to 9:30 a.m.?

The speaker suggests this period because it consistently forms a reliable pre-market range that provides the most accurate readings for liquidity manipulation and price movement once the New York market opens.

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

Session highs and lows, particularly those formed at the open of the New York AM session, are considered higher-probability targets because they represent areas where liquidity is accumulated and the market often makes significant moves.

How does the concept of true opens affect trading strategies?

True opens, like the midnight and 8:30 open, are critical reference points. When these opens align with liquidity pools, they create high-probability zones for traders to target, particularly when paired with other market indicators.

What advice does the speaker give regarding trading during deep premium or deep discount conditions?

The speaker advises that when prices are above both the midnight and 8:30 open (indicating deep premium), smart money tends to sell. Conversely, when prices are below these levels (indicating deep discount), buying opportunities may arise, but traders need to align their trades with the overall market bias.