Day Trading New York Continuation Or Reversal - ICT Concepts

Summary

In this video, the speaker explains the New York Reversal and Continuation trading strategies. The video covers key concepts like fair value gaps, order blocks, liquidity sweeps, and market manipulation, focusing on how these elements can guide trading decisions. Using real market examples, the speaker demonstrates how to identify entry points in both reversal and continuation setups, with a detailed breakdown of price action during the London and New York sessions. The content is designed to help traders frame high-probability trades and effectively manage risk with clear, actionable strategies.

Takeaways

• 😀 The video focuses on how to trade the New York Reversal or Continuation strategy in the Forex market, with a strong emphasis on identifying key market setups.
• 😀 The first step in a reversal trade is identifying whether London manipulated above or below the midnight open into a higher timeframe PD array (Price Delivery Region).
• 😀 For a continuation trade, the market must have manipulated below the midnight open into a higher timeframe PD array, and then a reversal pattern is sought.
• 😀 A 4-hour chart is key for determining the general trend and identifying fair value gaps that need to be filled before a trade setup can occur.
• 😀 A failure swing can act as a signal for low resistance liquidity and can help frame a potential reversal or continuation trade.
• 😀 Identifying liquidity sweeps, such as taking out previous highs or lows, helps confirm whether the market is ready for a reversal or continuation.
• 😀 A key part of identifying a high-probability order block is finding it in conjunction with a fair value gap, which indicates the market is in a premium or discount zone.
• 😀 Multiple opportunities to enter the market often appear on different timeframes (15-minute, 5-minute) as long as the key levels and setups align with the strategy.
• 😀 Order blocks and fair value gaps are important for defining high-probability trade entries, with specific risk management techniques like setting stops just below key levels.
• 😀 In a New York continuation trade, the market should show signs of displacement after taking out a low or high, forming a clear order block and fair value gap for entry.

Q & A

What is the primary topic of the video?

The video focuses on how to trade New York reversal and continuation patterns in the market.

What is the first concept explained in the video?

The video starts by explaining the reversal trade, particularly in relation to how London manipulates the market above or below the midnight open, leading to a higher time frame price delivery (PDR).

How do you identify a reversal setup in the market?

A reversal setup is identified by observing how London moves the price above or below the midnight open into a higher time frame PDR. The 4-hour chart is used to confirm a fair value gap (FVG), and the 15-minute chart helps refine the entry.

What role does the 4-hour chart play in identifying a trade opportunity?

The 4-hour chart helps identify the fair value gap (FVG), which is essential for spotting potential reversal points. If the 4-hour chart is not clear, it’s advised not to trade.

How is the midnight open used in this strategy?

The midnight open is used as a key reference point. It is marked on the chart to help identify where the market has accumulated liquidity and to understand the manipulation patterns that follow.

What is meant by 'failure swing' and how does it affect trading decisions?

A failure swing refers to a situation where price fails to move beyond a key high or low, indicating low resistance liquidity. It is used to predict where price may reverse or continue.

Why is the concept of 'liquidity sweep' important?

Liquidity sweep refers to the market taking out key highs or lows to collect orders before making a significant move. Identifying these sweeps is crucial for understanding the direction of the market and making informed trade entries.

What is an order block, and how is it relevant to this trading strategy?

An order block is a price level where institutional buyers or sellers have placed significant orders. It serves as a high-probability entry point for trades, as the market tends to react when it revisits these levels.

How does the 15-minute chart complement the 4-hour chart in trade planning?

The 15-minute chart is used for refining entries once a fair value gap or order block is identified on the 4-hour chart. It helps pinpoint more precise entry and exit points for a trade.

What is the role of 'stop hunts' in the strategy described?

A stop hunt occurs when the market targets stop-loss orders, typically at key highs or lows. Traders look for these events to indicate where price will reverse, providing high-quality entry points for trades.