ICT Forex - Market Maker Series Vol. 4 of 5

Summary

In this educational video, the presenter discusses time and price theory in forex trading, using the GBP/USD hourly chart as an example. The focus is on market maker buy models, optimal trade entries, and how to identify buying opportunities during specific days and times of the week. The video also covers the impact of news events like FOMC on trading and emphasizes the importance of understanding market manipulation by central banks.

Takeaways

• 📈 The video script is part of a series teaching time and price theory in forex trading, focusing on GBP/USD.
• 🌟 Emphasis is placed on the importance of applying trading theories to real-time market charts to understand market behavior.
• 📅 The script discusses the significance of daily and weekly trading patterns, particularly the first half of the week for potential buying opportunities.
• 🕒 The role of time in trading is highlighted, with specific attention given to New York midnight time as a reference point for chart analysis.
• 📉 The video explains that in a bullish market, the low of the week typically forms on Monday, Tuesday, or by Wednesday's New York session.
• 📈 The concept of 'optimal trade entry' is introduced as a pattern that repeats and is associated with time of day and specific price levels.
• 🚫 The instructor advises against trading during high volatility news events like FOMC for new traders due to the risk of whipsaw.
• 📊 The script stresses the importance of understanding the relationship between the opening price and buying opportunities below it.
• 📉 It is suggested that Thursday and Friday tend to create the opposite end of the weekly range, cautioning against buying on these days in a bullish expected week.
• 🌐 The influence of the opening price at midnight in New York time is discussed, and how buying below that opening price is ideal for accumulating longs.
• ⏰ The video concludes by emphasizing the importance of time and price in trading, and how they should be used to create a narrative or scenario for trading decisions.

Q & A

What is the main focus of the Inner Circle Trader Market Maker series?

The main focus of the Inner Circle Trader Market Maker series is teaching time and price theory, applying it to live market conditions, and analyzing the GBP/USD currency pair.

Why is it important to watch the series in order?

It is important to watch the series in order because each video builds upon the concepts introduced in the previous ones, and watching them out of sequence could lead to confusion or a lack of understanding of the material.

What is meant by 'market maker buy model' in the context of the script?

The 'market maker buy model' refers to a situation where market makers, or large institutional traders, are accumulating long positions, creating a scenario that is expected to drive the price higher.

Why is it recommended to set the chart to New York local time?

Setting the chart to New York local time is recommended because it aligns the viewer's perspective with the algorithm's, making it easier to follow the teachings and understand market movements.

What is the significance of the daily dividers on the chart?

The daily dividers on the chart are significant because they delineate each day's trading activity, allowing for the analysis of the weekly range delivery and identifying potential trading opportunities.

What is the 'optimal trade entry' mentioned in the script?

The 'optimal trade entry' refers to a specific price pattern that repeats frequently and is considered a high-probability entry point for trades, often associated with time of day and market conditions.

Why are Mondays, Tuesdays, and Wednesdays important for bullish trading?

Mondays, Tuesdays, and Wednesdays are important for bullish trading because there is a 70% chance that the low of the week will form on these days, presenting opportunities to buy at lower prices.

What is the 'kill zone' mentioned in the script?

The 'kill zone' refers to specific time frames during the trading day when significant price movements are expected. For London, it's 2 AM to 5 AM New York time, and for New York, it's 7 AM to 10 AM New York time.

Why should traders avoid buying on Thursday and Friday in a bullish expected week?

Traders should avoid buying on Thursday and Friday in a bullish expected week because these days tend to create the opposite end of the weekly range, potentially leading to lower prices and less favorable trading conditions.

What is the role of the opening price at midnight in New York time?

The opening price at midnight in New York time is significant because it serves as a threshold for determining high-probability buying opportunities, especially when the market is trading below this price.

How does the element of time influence trading decisions according to the script?

The element of time is crucial in trading decisions because it dictates when the market is likely to move in a specific direction. Traders should focus on the first element of time to set up their analysis and expect price movements during certain time windows.