This summary of the video was created by an AI. It might contain some inaccuracies.
00:00:00 – 00:16:23
The video provides a comprehensive guide on becoming a funded trader, emphasizing the importance of strategies rooted in technical analysis over emotional trading. The speaker focuses on identifying high-probability setups using higher time frame biases from weekly, daily, and four-hour charts. Key concepts include understanding market structure, points of interest (POI), fair value gaps, order blocks, breaker blocks, liquidity pools, and volume imbalances.
The video delineates methods for targeting liquidity, stressing the need to confirm biases with lower time frame charts and waiting for price to return to key zones for trade confirmations. The strategy involves trading during specific times known as 'Kill Zone' (8:30-11 AM or 1:30-3 PM EST) and avoiding periods of high-impact news.
The steps to execute trades involve:
– Identifying liquidity pools and ensuring no disruptive news.
– Observing price actions like 'tap, sweep, and shift.'
– Narrowing focus to lower time frames for precise entry points.
Trade management is discussed, with a preference for trades offering at least a 2:1 risk-to-reward ratio. Managing trades involves moving stops to breakeven and partially closing positions at strategic points to secure profits.
Throughout the video, practical examples illustrate finding trade biases, structural breaks, and entry points. The speaker underscores the necessity of discipline, thorough analysis, and adherence to checklists to manage emotions and achieve consistent results.
In summary, the video aims to equip viewers with robust trading strategies and tools essential for securing funding and achieving trading success.
00:00:00
In this part of the video, the speaker outlines the goal of providing viewers with the necessary information and tools to become a funded trader. They acknowledge the common struggle of understanding ICT Concepts and executing high-probability setups. The speaker promises to explain their high-probability setup checklist and trade model, which helped them get funded with $300,000, through a step-by-step approach. The importance of having a strategy over trading based on gut feelings is emphasized to prevent emotional trading and inconsistent results.
The first step discussed is identifying high-probability setups by building higher time frame bias using weekly, daily, and four-hour charts. The speaker highlights the need to look for structure and points of interest (POI) like fair value gaps, order blocks, breaker blocks, liquidity pools, and volume imbalances. They elaborate on viewing price movements in the context of displacement and points of interest within premium or discount ranges of bearish or bullish legs respectively. The segment concludes with a note on how identifying directional bias is crucial though challenging, as it involves understanding market displacement and structure breaks.
00:03:00
In this part of the video, the speaker addresses how to identify and draw on liquidity effectively to avoid missed opportunities and losses. The speaker discusses two methods: targeting low-hanging fruit, which is the closest area of liquidity, and identifying an endpoint, which is the overall target. Examples are provided, explaining how to use impulse structures, premium points of interest, and ranges in different market conditions. This section emphasizes confirming biases using lower time frame charts, looking for liquidity raids and shifts in market structure. The speaker highlights the importance of waiting for price to return to fair value gaps or breaker blocks to confirm trades.
00:06:00
In this segment of the video, the focus is on the strategy of identifying and utilizing liquidity pools for trading. The speaker explains that liquidity builds up under areas of interest, where traders looking to go long on breakouts or getting stopped out of shorts contribute to this liquidity. Once identified, traders should look for a price rush into the point of interest and then zoom into another timeframe for further confirmation and trade entry.
The process involves a detailed execution plan:
1. Waiting for the ‘Kill Zone’ times (8:30-11 AM or 1:30-3 PM EST) to trade NQ or ES.
2. Ensuring there is no ‘red folder’ news on ForexFactory.com during trading times, as it could negatively impact the trade.
3. Watching for a ‘tap, sweep, and shift’ on the H1 or M15 zone as the price reaches into the designated zone.
Once these conditions are met, traders should then move to lower timeframes (5-minute or 1-minute) to identify a sharp push above a short-term high, a break of structure with displacement, and look for entry patterns. Two entry options are presented:
1. Market entry on the displacement candle closure.
2. Entry through a fair value gap or breaker inside the displacement.
The speaker emphasizes the importance of layering these confirmations to build confidence in trade entries and concludes by noting that live examples will be discussed later.
00:09:00
In this part of the video, the speaker discusses trade management strategies, focusing on risk-to-reward ratios, trade execution, and taking profits. They explain two trading options: setting a limit for trades at a break of structure or fair value gap for better risk-to-reward but with the risk of missed trades, and a more opportunistic approach with lower yet feasible risk-to-reward ratios. The speaker prefers the first option, recommending at least a 2:1 risk-to-reward ratio for high-probability setups. They then detail their trade management process, which involves moving stop losses to breakeven when external structure changes and trimming 80% of the trade after low-hanging fruit targets are hit. The speaker concludes with a live example on NQ, demonstrating how to identify trade bias on the daily timeframe, and then drill down to the one-hour timeframe to look for structural breaks and points of interest for short trades.
00:12:00
In this segment of the video, the presenter explains their trading strategy, focusing on a four-hour chart with a “breaker block” and a fair value gap. They describe the importance of waiting for internal liquidity and highlight the need to target the closest liquidity for better risk-reward setups. The presenter also mentions the crucial timeframe for entering trades (8:30 to 11:00 AM New York time) and goes through a specific trade example. They demonstrate different entry options, targeting low-hanging fruit for an initial 3.4 to 1 ratio, and discuss partially closing the trade based on risk management and account funding. Finally, they outline the conditions for holding the trade longer, aiming for a daily draw on liquidity while managing stops to minimize losses.
00:15:00
In this part of the video, the creator emphasizes the importance of good analysis, understanding liquidity, and identifying high-value areas for entering trades. They discuss closing trades and highlight a successful trade example, noting the importance of taking profits at the right times. The creator shares their high-probability trade checklist, which helped them get funded. They advise traders to be disciplined, wait for their ideal setups, maintain a checklist, and conduct thorough due diligence before entering trades to manage emotions effectively. The segment concludes with a call to like, subscribe, and suggest video topics.