The Secret To ICT Daily Bias: A Mechanical Approach

Summary

In episode six of 'Living Off Charts,' the focus is on understanding high time frame bias through the lens of previous market behavior. The speaker emphasizes the importance of quarterly shifts and seasonal tendencies in market profiling, explaining how to analyze past quarters to predict future price actions. Key concepts like market profiles (consolidation, expansion, reversal, retracement) and specific trading strategies are highlighted. The episode aims to provide a mechanical approach to trading, using price action and liquidity levels for effective decision-making. Viewers are encouraged to join the Discord group for live trading insights.

Takeaways

• 😀 Episode 6 focuses on high time frame bias, emphasizing the importance of understanding quarterly analysis for trading.
• 📅 Market profiles change at key times, particularly at the beginning of a new quarter, impacting price action predictions.
• 📈 Key market profiles to recognize include consolidation, expansion, reversal, and retracement, which help in understanding market behavior.
• 💡 The analysis is driven by historical market profiling, blending time and price to predict future movements effectively.
• 🔍 Traders should focus on premium and discount levels, only shorting at premiums and longing at discounts to enhance trade effectiveness.
• 🗓️ The opening price of the quarter serves as a significant reference point for making informed trading decisions.
• 💵 Utilizing charts, particularly DXY and bond markets, aids in identifying key levels and fair value gaps (FVGs) for potential trades.
• 🚨 Smart Money Traps (SMT) provide strong confirmation signals for validating trades and anticipating price movements.
• ⚙️ A mechanical approach to trading, using quarterly data and market profiles, is essential for accurately predicting price behavior.
• 🤝 Engaging with the Discord community can offer valuable insights, including live trading discussions and strategies.

Q & A

What is the main focus of Episode 6 of the Living Off Charts private mentorship?

The main focus is on high time frame bias and how to apply the concepts from the previous five episodes to analyze price action for the next quarter.

Why is it important to watch the previous five episodes before this one?

The topics covered in the earlier episodes are foundational for understanding the advanced concepts discussed in this episode, making it essential to watch them first.

What are the key components in analyzing high time frame charts?

Key components include quarterly shifts, seasonal tendencies, opening prices, market profiles, premium and discount levels, and liquidity.

What are the four market profiles mentioned in the video?

The four market profiles are consolidation, expansion, reversal, and retracement.

At what times do market profiles change?

Market profiles change at key times, such as the beginning of a new quarter, and this change is not random but follows a specific pattern based on previous market behavior.

How do previous quarters' market profiles influence the current quarter's price action?

Previous quarters' market profiles help to predict the upcoming quarter's market profile by examining what occurred in those segments of time.

What role does a fair value gap (FVG) play in trading strategies?

A fair value gap acts as a key level for traders to identify areas of potential price action, as it indicates where price may return to before making significant movements.

What is the significance of an SMT (Smart Money Technique) in trading?

An SMT provides confirmation that smart money is either accumulating or distributing positions, which is crucial for validating trading ideas and determining market direction.

What is the protocol for determining liquidity pools when trading in a new quarter?

The protocol involves counting back 20, 40, and 60 days from the new quarter to identify potential liquidity pools, which can be targeted for trades.

How does the speaker validate the bearish market profile for the upcoming quarter?

The speaker validates the bearish market profile by analyzing previous quarters' market behavior, identifying key levels, and observing patterns such as fair value gaps and liquidity runs.