ICT Daily Profile - New York Manipulation

Summary

In this video, the trader discusses the dynamics of daily profiles, focusing on the London and New York sessions. Using examples from trading charts, they explain how to recognize manipulation patterns in price action, with particular attention to the New York session's role in driving price movements. The video demonstrates how to identify key levels, interpret consolidation or failure swings, and time entries based on session-specific behaviors. It also emphasizes the importance of fair value gaps, previous day highs, and using strategies like the 'Power 3' model for effective trading.

Takeaways

• 😀 Daily profiles in trading are closely tied to the understanding of kill zones and market sessions, especially London and New York.
• 😀 A New York manipulation daily profile typically involves an open-high-low-close (OHLC) or open-low-high-close pattern, influenced by London’s behavior.
• 😀 A bullish New York manipulation sees London fail to reach key higher time-frame levels, and New York then manipulates the range to push price higher.
• 😀 Conversely, a bearish New York manipulation occurs when London fails to reach key levels and New York manipulates the range to drive price lower.
• 😀 Trading examples, such as those in TradingView, help illustrate how price manipulations occur during these sessions and how to react accordingly.
• 😀 On a 15-minute time frame, if London consolidates rather than making a significant move, it can suggest a range manipulation in the New York session.
• 😀 When trading New York manipulations, key times to watch are 8:30 or 9:30 AM, when manipulation is more likely to occur.
• 😀 Understanding premium and discount zones within a range helps refine entry points, especially when marking the mean threshold of an order block.
• 😀 Using previous day's high and low as target levels in conjunction with order flow can help set realistic expectations for trade outcomes.
• 😀 The Power of Three, involving accumulation, manipulation, and distribution, is a key concept for understanding how the market moves during these sessions.

Q & A

What is the main topic of the video script?

The main topic of the video script is an explanation of daily profiles, with a focus on New York and London manipulation strategies in trading. The video also covers the concepts of kill zones, sessions, and how price action behaves during these periods.

What is the importance of understanding kill zones and sessions in daily profiles?

Understanding kill zones and sessions is crucial for interpreting price action in daily profiles. These are specific times in the trading day when key movements and manipulations are likely to occur, and recognizing them helps traders anticipate price action more effectively.

What does a New York manipulation daily profile typically look like?

A New York manipulation daily profile typically consists of an open-high-low-close or open-low-high-close pattern. It involves London either consolidating or failing to reach a higher time frame key level, followed by New York manipulating the range and shifting the market's direction.

How does the London session impact New York manipulation?

During the London session, price typically consolidates or fails to reach higher time frame levels. This sets up the range that New York will manipulate, leading to a change in delivery and price movement in the direction of the new trend.

What is a typical trade setup when using the New York manipulation strategy?

A typical trade setup involves observing the consolidation or failure during London, then waiting for a manipulation in the New York session. This manipulation usually results in a change in the state of delivery, which can then be used as a trigger for entering a trade.

How does the manipulation pattern differ between bullish and bearish profiles?

In a bullish New York manipulation, London consolidates or fails to reach a higher time frame level, followed by New York manipulating the range and moving higher. In a bearish manipulation, London similarly consolidates or fails to reach a key level, but New York manipulates the range to continue lower.

What is the significance of closing above or below previous day highs in the context of trading?

Closing above previous day highs indicates potential continuation to the upside, while closing below previous day lows suggests potential continuation to the downside. These closures are used as key indicators for framing entries and setting targets.

What role does the fair value gap play in the trading strategy?

The fair value gap is a crucial element in identifying entry points. When price moves into a fair value gap, it indicates potential for a price retracement or continuation, providing an opportunity to enter a trade with a favorable risk-to-reward ratio.

Why is it important to drop to lower time frames, such as the 5-minute chart, when trading these strategies?

Dropping to lower time frames like the 5-minute chart helps refine the entry point and confirm price action patterns. It allows traders to pinpoint the exact moment when the state of delivery changes, improving the precision of their trades.

What is the 'Power of 3' in the context of these trading strategies?

The 'Power of 3' refers to a market structure where there is accumulation, manipulation, and then distribution. This three-phase process is often used to identify potential turning points and to frame trades, as it suggests a shift in market direction.