🔮 DAILY BIAS ICT MASTER CLASS! START THE NEW YEAR RIGHT !

Summary

In this first weekly prep video of 2026, the focus is on navigating the cautious market conditions of January. Key elements such as news events, yields, currencies, and indices are analyzed, with emphasis on managing risk during slower periods like the beginning of the year. The speaker stresses the importance of waiting for clear signals and using seasonality and market structure for decision-making. Insights on bond yields, DXY, and foreign currencies guide the viewer through potential trends and setups, while caution is urged due to volatility and uncertainties inherent at the start of a new year.

Takeaways

• 😀 **Risk Management**: Reduce risk during the first quarter of the year (January to February) as market volatility is typically lower during this time.
• 😀 **Seasonality Insight**: January often shows sideways behavior in markets like NASDAQ and S&P, suggesting a cautious approach to trading during the start of the year.
• 😀 **News Monitoring**: Pay close attention to red-folder news events throughout the week, especially on Monday, Wednesday, Thursday, and Friday. Avoid trading on Sundays.
• 😀 **Avoid Overtrading**: Day trading doesn’t mean trading every day. Focus on high-quality setups to avoid unnecessary risk.
• 😀 **Bonds and Yields Correlation**: Rising yields often correlate with a strengthening US Dollar (DXY) and can impact other assets like foreign currencies and indices.
• 😀 **Smart Money Concepts (SMC)**: Use market maker models and fair value gaps to identify key entry and exit points based on market structure shifts.
• 😀 **Bonds and Yield Behavior**: Watch for bearish trends in bonds if yields continue to rise, as they tend to move in opposite directions.
• 😀 **DXY and Currency Influence**: If DXY breaks key levels, it could signal a bullish trend for the US Dollar, influencing foreign currencies and indices.
• 😀 **Liquidity Pools and Fair Value Gaps**: These are critical areas for determining market direction. Use them to guide your trading decisions and adjust your bias.
• 😀 **Market Maker Models**: Pay attention to price action within market maker models, such as reaccumulation or distribution patterns, for signs of potential reversals or continuation.

Q & A

What is the primary focus of the weekly prep process discussed in the video?

The primary focus of the weekly prep process involves reviewing the news, bonds and yields, currencies, and indices. The process is used to analyze market conditions and adjust risk strategies accordingly, especially during the start of the year when caution is needed.

Why is there a cautious approach during the first week of January 2026?

The cautious approach during the first week of January 2026 is due to a combination of factors: it's the beginning of the year, seasonality trends suggest sideways movement in major indices, and there is a red folder news event that could affect market volatility.

What role does seasonality play in market analysis, especially for January?

Seasonality plays a significant role in market analysis by highlighting potential trends or behaviors typical for certain months. In January, both NASDAQ and S&P show sideways movement, which often signals a period of consolidation rather than strong directional trends.

How does the correlation between yields and the DXY (US Dollar Index) affect other assets?

Yields have a positive correlation with the DXY, meaning as yields rise, the DXY tends to go higher. This relationship impacts other assets inversely, such as foreign currencies and indices, which may decrease when yields and the DXY rise.

What is meant by 'power three' in relation to news events and market analysis?

'Power three' refers to understanding the impact of three key factors: the timing of news events, how these events relate to historical weekly profiles, and how they can influence market movement. These can provide a framework for anticipating market behavior in relation to news events.

What risk management strategy is being advised for the start of the year?

The recommended risk management strategy is to reduce exposure and trade with half risk during January, as the market is typically more volatile and unpredictable at the start of the year. The strategy emphasizes being selective and conservative until February.

What is the significance of 'three PDAs above or below' in the analysis?

The 'three PDAs' rule is a strategy to determine market direction. If three price delivery areas (PDAs) are violated in the direction opposite to your trade bias, it signals a shift in the market and suggests that the previous narrative or trade direction should be reconsidered.

How does the analysis view the DXY's behavior in the context of the broader market?

The DXY's movement is pivotal in the analysis. A strong DXY (indicating a rise in the US Dollar) could lead to a sell-off in indices and foreign currencies, while a reversal or violation of key levels in the DXY might signal a potential shift to a bullish outlook for the market.

What are the potential impacts of the inversion of a fair value gap in the bond market?

An inversion of a fair value gap in the bond market could signal a reversal in the bond price trend. If this inversion holds, it could push bond prices lower, while supporting the notion that yields will continue to rise, which could have broader implications for the US Dollar and other markets.

What specific behavior of the indices is being watched for in this analysis?

The behavior being closely monitored is the respect for key support and resistance levels, such as the 50% retracement of key ranges and the presence of multiple fair value gaps. The focus is on whether these levels hold or break, as that will determine the direction for the indices in the short term.