Does ICT Work on Crypto? Unveiling the Surprising Truth!

Summary

This video script discusses the application of ICT Concepts in crypto trading, emphasizing the importance of using higher time frames to filter noise and improve trading outcomes. The speaker, a professional trader, shares insights on leveraging weekly and daily charts for bias, the significance of market structure shifts, and the power of three pattern for accumulation, manipulation, and distribution. The script also highlights the role of patience and the impact of correlations with stock markets on crypto trends, advocating for a passive income approach to trading.

Takeaways

• 😀 The speaker emphasizes the effectiveness of using ICT (In The Chat) Concepts for crypto trading, despite not personally trading crypto.
• 📈 The importance of applying ICT Concepts correctly to avoid wasted time, stress, and lost trades is highlighted.
• 👨‍🏫 The speaker, a professional prop trader with three years of experience, shares insights and tools for successfully applying ICT to crypto trading.
• 🕰 The focus is on using higher time frames for crypto trading due to its volatility, with a preference for weekly, daily, 4-hour, 1-hour, and 15-minute charts.
• 📊 The speaker advises against using lower than 15-minute (M15) charts for crypto to avoid noise and market chatter.
• 📉 The strategy involves identifying market structure shifts and premium pricing to build bias and confidence in trades.
• 🔄 The significance of recognizing correlations between the stock market and crypto market is discussed to inform trading bias.
• 📌 The use of SMT (Smart Money Tracker) divergence on higher time frames like daily for Bitcoin and Ethereum is recommended to spot manipulation.
• 📝 The speaker outlines a step-by-step approach to identifying bias, entry points, and executing trades using higher time frame charts.
• 💡 The concept of 'Power of Three' (accumulation, manipulation, distribution) is introduced as a key model for executing trades effectively.
• 🚫 A reminder that patience is crucial in swing trading, as trades can take days or weeks to play out, contrasting with the need for constant attention in day trading.

Q & A

What is the main topic discussed in the video script?

The main topic discussed in the video script is the application of ICT (In The Chat) Concepts to crypto trading, including strategies for using time frames, correlations, and entry models to successfully trade in the crypto market.

Why does the speaker suggest not to trade on lower time frames like the one-minute chart in crypto?

The speaker suggests avoiding lower time frames like the one-minute chart in crypto due to the high level of noise and volatility, which can lead to more stress, wasted time, and lost trades.

What are the preferred time frames for the speaker when trading crypto?

The speaker's preferred time frames for trading crypto are the weekly, daily, 4-hour, 1-hour, and 15-minute (M15) charts, avoiding anything lower than M15.

How does the speaker use the weekly chart in their trading strategy?

The speaker uses the weekly chart to look for displacement and to determine the range they are operating within, which helps in identifying the market structure and potential trading opportunities.

What role do correlations play in the speaker's crypto trading strategy?

Correlations play a significant role as the speaker suggests paying attention to the stock market's direction because it often influences the crypto market. This helps in building bias and confidence within trades.

What is the 'Power of Three' accumulation manipulation distribution model mentioned in the script?

The 'Power of Three' accumulation manipulation distribution model refers to a trading setup where there is a clear accumulation phase, a manipulation event (often triggered by news), and then a distribution or expansion phase, which can indicate potential entry points for trades.

Why is patience important in the speaker's trading strategy?

Patience is important because the speaker's strategy involves swing trading, which means holding trades for days or weeks. Waiting for the right entry points and letting trades play out over time is crucial for achieving the desired risk-reward ratio.

What does the speaker mean by 'if you can't see the liquidity, then you are the liquidity'?

This statement implies that if a trader cannot identify the points of liquidity or market structure shifts, they may end up being the ones providing liquidity by entering trades at less optimal points, potentially leading to losses.

How does the speaker use the daily chart in their trading strategy?

The speaker uses the daily chart to refine entry points and to confirm biases built from the weekly chart. It helps in identifying market structure shifts and potential areas for taking liquidity.

What is the significance of 'stop hunting' mentioned in the script?

Stop hunting refers to a situation where the market appears to move in a particular direction just enough to trigger stop-loss orders before reversing, causing traders to exit their positions at unfavorable times. The speaker's strategy aims to avoid such situations by using higher time frames and proper bias identification.

How does the speaker approach risk-reward ratio in their trades?

The speaker emphasizes looking for trades with a risk-reward ratio of at least 2:1, which helps in managing losses and increasing the win rate, especially when using higher time frames to filter out market noise.

Outlines

00:00

📈 Crypto Trading with ICT Concepts

The speaker, a professional trader from a prop firm, addresses skepticism about trading crypto using ICT (In The Crosshairs) Concepts, despite not personally trading crypto. They emphasize the importance of applying these concepts correctly to avoid wasted time and stress. The focus is on using higher time frames due to crypto's volatility, with a preference for weekly, daily, 4-hour, 1-hour, and 15-minute charts. The speaker contrasts their practical experience with theoretical gurus and aims to teach viewers how to apply ICT Concepts effectively to avoid common pitfalls like getting stopped out due to improper time frame usage.

05:00

💼 Balancing Crypto with Traditional Markets

The speaker discusses the importance of time management and focusing on efficient markets like indices for active income, while using crypto for passive income. They highlight the similarities between trading on different time frames across various markets and stress the importance of understanding price action as fractal. The speaker also emphasizes the significance of market correlations, particularly between the stock market and crypto, and how these can influence trading decisions. They advise on using market conditions and news events, such as fear, uncertainty, and doubt (FUD), to identify potential manipulation and trading opportunities.

10:02

🔄 Correlation Breaks and Trading Strategies

This paragraph delves into the significance of recognizing when two usually correlated assets, like Bitcoin and Ethereum, show a break in their typical movement patterns. The speaker uses an example of Bitcoin making a lower low while Ethereum does not, suggesting potential market manipulation. They advise traders to look for such discrepancies as opportunities to identify high-value trades. The speaker also discusses the importance of SMT divergence on higher time frames for increased win rates and avoiding stop hunts, urging traders to incorporate this often-overlooked aspect into their strategies.

15:03

🚀 Execution and Bias in Trading

The speaker outlines the importance of identifying market bias and using entry models effectively. They discuss the concept of 'power of three' in trading, which involves accumulation, manipulation, and distribution phases, using GRT as an example. The speaker shares their personal trading experiences, emphasizing the value of patience and waiting for the right entry signals. They also highlight the importance of risk-reward ratios, aiming for trades with more than 2:1 potential returns, and provide a step-by-step guide on how to identify and execute trades based on the daily chart, reinforcing the idea of passive income generation through strategic trading.

📊 High Time Frames and Passive Income

In the final paragraph, the speaker reiterates the advantages of using higher time frames for trading, which reduces noise and improves the win rate. They provide a detailed example of a trade using the daily chart, explaining the process of identifying a market structure shift, waiting for the right entry point, and executing the trade with a clear risk-reward strategy. The speaker also addresses common misconceptions about the necessity of constant chart monitoring and encourages traders to consider passive income strategies through swing trading in crypto, concluding with a reminder of the importance of liquidity recognition in trading.

Keywords

💡Crypto Trading

Crypto trading refers to the buying and selling of cryptocurrencies like Bitcoin and Ethereum. In the video, the speaker emphasizes the use of ICT (Informed Circle Trading) concepts for trading cryptocurrencies, stating that it can be profitable if done correctly, and contrasts this with day trading in indices.

💡ICT Concepts

ICT Concepts are strategies used by traders to make informed decisions in the market. The speaker in the video suggests that these concepts can be applied to crypto trading for better outcomes, but cautions that improper application can lead to wasted time and lost trades.

💡Time Frames

Time frames are the intervals over which trading data is analyzed, such as one minute, hourly, daily, or weekly. The speaker advocates for using higher time frames in crypto trading due to its volatility, as opposed to lower time frames like one minute, which can be too noisy.

💡Bias

Bias in trading refers to a trader's inclination towards a particular market direction. The video discusses building bias through market analysis, which helps in making more confident trades and avoiding analysis paralysis.

💡Entry

Entry in trading is the point at which a position is opened. The speaker explains how to find an entry using higher time frames and the concept of bias, which is crucial for executing trades successfully in crypto trading.

💡Liquidity

Liquidity in the context of trading refers to the ease with which assets can be bought or sold without affecting the price. The video script mentions 'taking liquidity' as a point of interest for potential trades, indicating a shift in market structure.

💡Displacement

Displacement in trading is a term used to describe a significant price movement that breaks from a defined range. The speaker uses displacement to identify shifts in market structure and to determine the direction of trades.

💡Swing Trading

Swing trading is a trading strategy that holds positions for several days to weeks, aiming to capture price swings. The video contrasts this with day trading, suggesting that crypto is better suited for swing trades due to its volatility and the speaker's preference for indices for intraday moves.

💡Correlations

Correlations in trading refer to the relationships between different markets or assets. The speaker emphasizes the importance of paying attention to the stock market's direction when trading crypto, as it can influence the bias and potential trades.

💡FUD

FUD stands for Fear, Uncertainty, and Doubt, and it is a psychological tactic used to manipulate market sentiment. The video script describes how FUD news can create opportunities for smart money traders who can identify manipulation and trade accordingly.

💡Power of Three

The 'Power of Three' is a trading pattern that involves accumulation, manipulation, and distribution phases. The speaker uses this pattern to identify high-value setups in crypto trades, providing examples from the script where this pattern led to successful trades.

💡Fair Value Gap

A fair value gap is a price level that traders believe represents a fair or reasonable price for an asset. In the script, the speaker mentions using fair value gaps as entry points for trades, especially when combined with other market analysis.

💡Passive Income

Passive income is money earned with little to no effort after the initial setup. The video script discusses how swing trading in crypto can provide passive income, as trades can run in the background and compound over time without constant monitoring.

Highlights

The speaker asserts that one can trade ICT Concepts using crypto, despite not trading crypto themselves, by applying the concepts correctly to avoid wasted time, stress, and lost trades.

Emphasizes the importance of using the strategy completely together and following it precisely for it to work effectively.

The speaker shares their experience of trading, distinguishing themselves from social media gurus who only provide daily breakdowns without practical trading experience.

Advises against using ICT Concepts for trading on the one-minute timeframe due to high volatility and recommends higher timeframes for crypto trading.

Presents a personal preference for trading on weekly, daily, 4-hour, 1-hour, and 15-minute timeframes for crypto, avoiding anything lower than M15.

Explains the use of weekly charts for identifying displacement and the range the market is operating within, illustrated with Bitcoin as an example.

Details the use of daily charts to refine levels and watch for market structure shifts, which helps in building a trading bias.

Introduces the concept of using 4-hour, 15-minute, and 1-hour charts for entries, confirming daily pois after building bias on higher timeframes.

Discusses the benefits of swing trading crypto over day trading, focusing on passive income generation and efficient market focus.

Advocates for trading in the indices market for intraday moves due to its cleaner market conditions compared to crypto day trading.

Stresses the importance of considering stock market correlations with the crypto market for building trading bias and avoiding analysis paralysis.

Warns about the impact of FUD (fear, uncertainty, and doubt) news on the market and the importance of identifying manipulation for trading opportunities.

Introduces the use of SMT divergence on higher timeframes like daily charts for Bitcoin and Ethereum to identify trading opportunities.

Explains the execution of trades using the power of three model (accumulation, manipulation, distribution) with examples from past trades.

Shares personal trade examples using the power of three model, emphasizing patience and the importance of waiting for the right entry.

Concludes with the importance of trading with a bias, using higher timeframes for better risk-reward setups, and the value of passive income from swing trading.

Encourages traders to try passive swing trades on crypto for potential benefits, and reminds viewers of the importance of identifying liquidity to avoid being it.

Transcripts

I'd CT himself doesn't even trade crypto

so you may be wondering should I even

waste my time trading crypto using ICT

Concepts if he doesn't trade it himself

coming from a professional prop firm

Trader who has been trading live and

giving signals for almost three years I

will tell you with confidence that yes

you can trade ICT Concepts using crypto

however if you don't apply the concepts

correctly it's going to lead to a lot of

wasted time a lot of stress and a lot of

lost trades so I want you to pay

attention very closely to every part of

this strategy you have to use it

completely together and follow it to a t

or it's not going to work the way that

it worked for me so enough at Chit Chat

let's go ahead and hop into this video

where I'm going to give you all the

information and tools you need to

successfully apply ICT Concepts to

crypto trading there you go grabbing

dydx here 124 look at the date 124. all

the stuff I'm teaching you guys it's

stuff that I've actually done unlike a

lot of these YouTube or you know Twitter

Instagram gurus who are just looking and

they're doing daily breakdowns and

they're they're going back and just

looking at hindsight right you know

those people don't even know what the

they're talking about if you

haven't done it then you shouldn't teach

it all right so you probably keep

getting stopped out in crypto because

you're trying to use ICT Concepts trying

to trade the one minute and we're gonna

get rid of all that today so let's go

ahead and jump right into it so really

the main focus is we're going to go over

today are going to be what time frames

we use when we're trading crypto using

ICT Concepts the correlations we use to

get our bias and build confidence within

our trades that way we're not you know

looking at 30 different charts and we're

not wondering is it bull is a bear and

kind of getting that analysis paralysis

and then finally which is your guy's

favorite of course we're going to go

over um how to build that bias and how

to find an entry so for those of you who

are getting stop hunted in crypto using

ICT Concepts this part's going to help

you tremendously and it is so simple so

pay close attention let's talk a little

about time frames since crypto is

volatile I like to stick to the higher

time frames more so than other asset

classes like stocks or Forex where I'm

primarily day trading so that's rule

number one and you know a lot of people

say what is the higher time frames and

I'm not saying you have to just trade a

monthly weekly or daily my preferred

time frames are the weekly The Daily 4

Hour one hour and m15. I never really go

lower than an M15 for crypto anymore

before I started trading indices

primarily I did start trading with

crypto and I used to trade the five

minute but there's so much banter and so

much noise and that's why I switched

over to indices but I still love to

trade crypto using ICT Concepts so this

is how I use these time frames so for

the weekly chart I'm mainly looking for

displacement and what kind of range

we're in so for example when we're

looking at Bitcoin and everybody's been

shocked by this massive run it was

actually really easy to see so we have

our external range here because this is

where we took out a new high it's our

all-time high and we didn't really close

a candle with displacement under this

until right here in this area and you

can see that we're not going to call

this Miner pullback a range so this is

the range we're operating with him so

once we see a shift in Market structure

just like we look up for in the one

minute we're going to look for premium

pricing or we're going to look for above

as low hanging fruit right so we have a

very clear pattern we've got a breaker

block right here balanced price range

just below I mean it was free as day we

called this out in the Discord we

actually had Longs from this area right

here just so you guys know that I'm not

one of these other gurus we actually

traded this in the Discord you can see

the date 11 27 which was right there if

you see in this candle right here now we

didn't Target the entire range but we

still got a very good trade out of it so

again with the weekly I'm just looking

for displacement and what range we're in

because if we're in discount of a

bullish range and we get a shift I'm

looking for buy-side liquidity and

premium pricing and that can help me

build my bias now for how I use the

daily I just use this to refine levels

and watch for really the same thing just

what kind of range we are in relative to

the weekly and where is the displacement

going so after we had this original

displacement up right we come down take

liquidity into this breaker block which

is found on the weekly chart and that

balanced price range and you could have

confirmed that we are coming out of that

breaker block right here so any day

after this you would have had a bullish

bias into buy side liquidity and still

remaining having a bullish bias until we

see displacement down on the daily chart

now believe it or not that's really all

you need to trade I know a lot of people

are saying oh how do you get good risk

reward and I'm going to show you guys

some examples later in the video so make

sure to pay attention till the end but

we don't even have to go farther than

that when we're swing trading just like

whenever we're day trading if we use a

maybe a one hour and a 15 minute and a

five minute on the higher time frames

when we're swing trading we can just use

a weekly a daily maybe a four hour so to

get into the four hour the M15 and the

uh one hour chart I use these just for

entries so what we're going to be

looking for is kind of confirming our

daily pois after we've built our bias in

the weekly and daily charts and this is

going to be not even necessary a lot of

the time because this strategy I'm just

looking for 2R or better because it's a

passive strategy I'm not necessarily

trying to minimalize and maximize every

position because I'm day trading in the

NASDAQ and in the s p so again I just

want to reinforce that my strategy is to

swing trade crypto and then focus on

indices for intraday moves now this

helps me a lot not only with my win rate

but with my time management because

crypto day trading you know if day

trading is active income to me it's not

passive so I need to focus on where the

most efficient markets are and in my

opinion that is no question the indices

Market or the index Futures Market which

is the s p the NASDAQ and us-30 so I'm

not going to sit here and watch crypto

for hours on end whenever I have a much

cleaner Market to trade but I still want

to get some money out of the market

right because crypto moves really

expansively and we can still use these

same Concepts that we're using on the

lower time frames of indices on the

higher time frames for example if you're

looking at this right here like let's

just look at that Weekly chart and let's

just imagine that this is a one minute

chart of the s p in the morning and this

is where a lot of people kind of

overthink things and say oh well that's

that's different it's a weekly chart

it's not different price is fractal you

know when we look at Price action we

have to look at it objectively and you

know eliminate this right here eliminate

that Weekly chart and just think of it

as price so if we're on a one minute

here looking at the s p in the morning

or anything you'd day trade this is a

clear long right you have a break or

fair value Gap balanced price range you

could long right here and Target up here

or even Target Premium right it would

look something like this so you would

have probably got tagged in there could

have put a stop under the fair value Gap

unicorn model and then Target the first

liquidity in a premium and you can see

that that's using a weekly chart alone

right on top of that we've taken out

liquidity right here and you can hop

over to monthly to find extra

confluences like this fair value Gap we

traded into but you guys can see you

don't necessarily need to go down into

the lower time frames in order to make

money but here's where most people mess

up so people will get into these trades

and then they want to you know cut them

too early because you know let's say if

you get a one minute trade and that's

going to take maybe a couple hours well

that could be hundreds of candles so if

you're getting a weekly trade just using

the weekly chart that might take you a

lot of weeks but again it's passive

income it's not something you're having

to do every day and it's just kind of

going on in the background so I highly

recommend that you look at things from

my perspective of making money rather

than just trying to minimalize eyes and

maximize and get 100 R and and all this

because that's not paying your

bills right what's paying your bills is

actively and passively generating income

from each of your businesses right so in

trading we're going to look at our

investments and our passive income as

our swing trading or our investments

right buying shares of stocks or buying

equity and you need you don't need to go

down to a five in one minute to do that

this next part of the strategy is one of

the least talked about aspects of

trading SMC or ICT on crypto and

increase my win rate tremendously and it

saved me from getting stopped out so

many times next I want to talk about

correlations so when we're trading in

the crypto Market we have to pay

attention to the stock market whether or

not you're just a Forex Trader or you're

an indices Trader it doesn't matter if

you don't even want to look at the S P

500 now again I highly recommend that

you look into it because my favorite

Market to trade but if you don't you

still have to pay attention because if

stocks are bull crypto is bull and vice

versa if stocks are bare crypto is going

to be bare now I'm not saying that if we

have a bullish five minute Candle on the

es we're gonna have a massive bullish

500 a candle on bitcoin that's not what

I'm saying what I am saying is you need

to pay attention to this because of bias

and as you guys know if you've been

trading ICT for any amount of time

you're bias and what kind of Trades

you're looking for is going to determine

the amount of success you have it

doesn't it's not entry models pattern

recognition and looking at charts that's

the easy part so once you understand

what to look for based on your bias

using correlations that is whenever

you're going to be able to really fine

tune your strategy and start taking more

high value setups and pass on the low

value setup so if you're looking to

short crypto and the s p is bullish

you'll probably want to rethink that and

maybe you'll see something that you

didn't see before another thing that you

need to pay attention for is all the fud

news so fud is fear and uncertainty and

doubt so for example let's look at

Bitcoin chart and right here in this

candle so what happened that week that

was the FTX crash so you see every Media

Company all social media has all these

posts about cryptos going to zero this

and that yada yada that's whenever

you're looking to be bullish right if

we're trading smart money the idol is to

identify manipulation so what more

classic manipulation than a massive push

down based off of news into a bullish

point of interest and then we get a

market structure shift I mean it's free

money as long as you're able to look at

it objectively and not get sucked into

the emotional waves that the media wants

to push on you now this last part is the

kicker so pay attention closely here if

you're not using this in your trading

and you're trading crypto you are

messing up smt Divergence on bitcoin and

ethereum and you don't want to look for

this on anything lower than the time

frames we've talked about the higher

time frame the better of course as

always so let's take a look here at

Bitcoin and we'll take a look at

ethereum during this time so let's go to

ethusdt and we'll go to the Daily on

both charts it's a little clearer so

let's go back to this area so notice

right here I want you to pay attention

to the dates this is November 22nd this

is November 9th so if we go over here

November 9th November 22nd so what do we

have going on right here

we have a run on stops and Bitcoin

making a lower low and then right here

we have a higher low on ethereum so what

does that tell us well that tells us

that there's a break in correlation

because these assets are likely to move

together so if one is making a lower low

and we have other reasons to believe we

may be bullish and the other chart is

not making a lower low then we can look

at this as manipulation so whenever

we're looking at Bitcoin after what

happened there and let's look at

ethereum ethereum has ran pretty

massively right we see this pretty big

run but when we look at Bitcoin it's a

much bigger run so that leads me to

always look for the coin that had the

lower low and this is inverse if we have

a higher high it's the same thing you

know if we make a higher high on one and

don't make a higher higher on the other

it's the exact same thing we don't want

to look for only trading

um bullish setups obviously I get a lot

of questions can I have a bullish

example I have a bearish it's the same

thing we're in a numbers game so it's

going to have an inverse but again trade

the one that did take liquidity because

we we're looking to trade with

manipulation if we're trading smart

money so if we have a liquidity rate

paired with our other analysis that we

talked about earlier whenever you're

using the higher time frames then this

is huge this can give you a lot of

Confluence to enter a trade or look for

a trade entry now for the fun part pay

attention to this because without this

you're not going to be able to execute

and bias that execution is useless let's

talk about bias and entry models again

like I showed you in the examples

earlier we're going to use the weekly

and the daily for our bias we're looking

for a displacement and we're looking for

where we are relative to a range so

again if we're looking at Bitcoin on the

weekly chart and we see that price has

built a bearish range

and we get a market structure shift that

tells us the market is in retracement so

this is a bearish range but we see

displacement up and we see a shift so

that tells us that we're likely to move

towards a premium once you've identified

that you're moving towards a premium and

you're in a bearish Range that gives you

a bullish bias we can look for candles

to draw towards buy side liquidity this

is how you identify drawn liquidity we

can go and refine that on the daily like

we talked about earlier but you need to

be finding your bias before anything

else

again if you haven't figured this out

already we are looking at swing trading

not day trading this means you will be

holding trades for days two weeks now a

lot of you guys have trouble with this

because you're impatient or maybe you

learned just how to day trade but again

the way that I like to look at it is if

I'm on a one minute chart and I have a

trade that took uh maybe two hours to

execute or one hour to execute that's 60

to 120 candles so let's say if I use a

daily chart to execute that could be 60

to 120 days now of course you're not

going to be always in a trade for that

long but the reason I like to use that

analogy is that you are going to be able

to remind yourself this remind yourself

this whenever you are trying to take

profits too early or getting impatient

now here is what I look for most the

time with any higher time frame setup

and that is the power of three

accumulation manipulation distribution

so let's go ahead and look at some

examples of this so here's an example of

a power of three setup on GRT before the

haters start saying oh hindsight here

you go we took this trade look at the

date January 13th look at the day right

here January 13th okay now that I've

subdued the haters let's look at this

trade setup so we have a clear

accumulation where price is just ranging

before we take out liquidity now again

look what happened right here this was

the FTX crash so this goes hand in hand

what we were talking about earlier we

have fun news we have a weekly range

that is bearish right we're looking to

retrace into a premium this area and

that leaves a lot of upside and look

what we have here A's Market structure

shift

so then we look back on the daily and

refine it we have a power of three set

up clear as day accumulation

manipulation based on news

and then we start to expand now how do

we execute on this so I get a lot of

questions on how I like to execute power

of three and I think that everybody that

uses power of three correctly has a

different style the way I like to do it

is when I see a displaced push back into

the range right A lot of times you're

longing into a fair value Gap here and

some people aren't comfortable doing

that but my advice to you is go back

test and get confident in your ability

to spot power of three and pair it with

your higher time frame bias because if

you're looking at the chart in the right

perspective I'm not paying attention to

these imbalances in Fair Value gaps I'm

paying attention to liquidity if I'm

bullish I'm looking at highs I'm not

worried about what's in between myself

and that high because I'm confident in

my direction and you can see this trade

ran 114 percent this trade took a total

of 25 days to play out now a lot of

people probably close that too early

because they're impatient but now while

I'm trading in the markets every day I'm

able to have money just printing for me

and that almost four percent of my

portfolio or a little less after profit

taking I'll say around two to two point

five percent of my portfolio in the

background these gains compound and this

is how you're going to build wealth not

just trying to you know Massacre funded

challenges 24 7. you have to have money

coming in from different Avenues so

again here's a really good setup of

power three the way that I would execute

again is just as soon as we get a

displacement push back into the original

range I like putting my stops below the

lowest point here but you could also put

them a little closer I didn't hear

because we had equal lows to me that's

just against my rules to put stops like

that but that is how I like to execute

base with the power of three now you

want to be looking for trades that are

more than two to one risk reward and

most the time you're gonna be able to

get that with a daily chart power three

especially on crypto so now let's look

at another model that I like to use in

the daily now this is just a stop run

and it also you can look at it as a

power of three but um it's not as clear

what my ideology behind this is whenever

I look at the weekly chart here price

failed to displace under this level

right so if we have a high here then we

create structure and we fail to displace

this buy side liquidity is targeted it's

that simple it's a weak high and we have

equal high so even more of a reason to

look up so then we scale into the daily

to get a better refined view we see our

Market structure shift after we take

liquidity this indicates that the market

makers or smart money is buying up these

stops price comes up we have a balanced

price range tap into it and then expand

right what do we get here this is where

we get another Market structure shift

now we could have entered the trade down

here but I didn't see a clear enough

entry we didn't come to a fair value Gap

so I waited and look how long I waited

11 days I don't know 15 days all the way

to 21 days of waiting and this is where

patience comes in play you have a

breaker that formed before I run into

this balance price range expansion into

the fair value Gap right here

and that's where we got our entry I

didn't use anything except the daily

chart we got 3.421 now this trade was

very explosive it only took seven days

oh yeah and again for the haters who are

gonna say oh it's hindsight he didn't

take this trade there you go grabbing

dydx here 124. look at the date 124. all

this stuff I'm teaching you guys it's

stuff that I've actually done unlike a

lot of these YouTube or you know Twitter

Instagram gurus who are just looking and

they're doing daily breakdowns and

they're they're going back and just

looking at hindsight you know those

people don't even know what the

they're talking about if you haven't

done it then you shouldn't teach it so

we left Runners here the runners hit 135

but it was a very small part of the

position again it's just paying us

passively this is free equity in a high

value crypto I like dydx so I'll be able

to hold this forever the little Runner I

have it's free money and I've profited

around three percent of my portfolio on

this trade because we trimmed once so

again it's not that hard to get good

risk rewards so just what we went over

I've showed you guys how in a matter of

less less than a couple months I was

able to net almost 10 percent of my

passive portfolio just using a weekly

and a daily chart that's huge I mean

this is money going on in the background

you shouldn't be sleeping on strategies

like this now again we want to make sure

that everything is above two to one risk

to reward and that way it helps us

whenever we take losses I will say that

you should be able to get a higher win

rate on these because you're using

higher time frames it takes out a lot of

the noise so again just to put that into

words though as we took liquidity on

dydx there was a point of Interest we

tapped swept and shifted and then that

gives us our framework to look for an

entry we'll take another look at it so

we had liquidity taken a shift point of

Interest we tapped it shifted and then

we swept liquidity again into the range

into the fair value Gap and that's where

our entry was so again if you want to

screenshot this and have this for your

trading plan this is putting it into

words that second model and you should

use this for the power three as well the

rules here in conclusion I want to

remind you guys that into season 4X are

better for intraday trading and crypto

is better for swings

um the higher time frames are king and

they drown out all the noise so you

don't have to watch the five minute to

make money this is a common myth that a

lot of ICT Traders think because they're

newer to trading and they see ICT

trading low time frames and they see

Traders like me trading low time frames

but that's not the only way to do it the

beautiful thing about price action

trading is price is fractal and candles

are candles you don't look at them in

relativity to what amount of time took

up the candle unless you're using bias

and you're looking at the next time

frame up to kind of you know govern the

way you look at the lower time frames

the higher time frames are the King High

Card rules and passive income is a

beautiful thing audio Traders are

completely burning yourselves out just

watching the one minute and the five

minute only and just you know spending

eight hours a day on charts taking

losses ruining your psychology not

making money so just try it try trading

some passive swing trades on crypto if

it doesn't work you know maybe it's just

not for you but for me it's helped me

out a ton and it helps me bring in some

money on the side this video is helpful

for you guys please like And subscribe

it helps me out a ton and it helps

Channel grow which is going to help me

put out the highest quality content for

you guys and as always I appreciate you

all a ton I'm looking forward to the

next video dropping later this week I'm

going to be talking about some prop

firms so make sure to turn my post

alerts on and always remember if you

can't see the liquidity then you are the

liquidity thanks guys see you next time