Pips of GLORY - Smart Money Trading

[MCAWally]

Bless you Sweet Pips, I was hoping someone would start a thread on this.

Has anyone worked on the "Index" idea from ICT yet, I tried GDPUSD, EURUSD and AUDUSD as there're the 3 main pairs I think but I'm not quit sure how to make use of this.

Wally

[wrtm_19]

Hi SweetPip,

After reading ICT's recent blog entries, it seems like it's starting to make better sense of pivots, key levels, and the price divergence.

Also for what I understand, when this conditions occur, time of the day doesn't really matter, I mean not only the first 4 hours of the EST day, but also other sessions are valid.

It's good to feel like you're getting it.

Hope to hear from you soon.

[Sweet Pip]

Hi SweetPip,

After reading ICT's recent blog entries, it seems like it's starting to make better sense of pivots, key levels, and the price divergence.

Also for what I understand, when this conditions occur, time of the day doesn't really matter, I mean not only the first 4 hours of the EST day, but also other sessions are valid.

It's good to feel like you're getting it.

Hope to hear from you soon.

I guess I was too fixated on it going down...lol...and I missed the up flow perspective & opportunity. Then I realized, I didn't/don't really get how to tell what the market flows & directions are. If I can't get that part somewhat consistent, the rest won't matter.

Soooo, I googled around a bit and found this really excellent site Market Flow � Invest FX that's explained it using fractals and I think it will really help me with that.

As I went thru that site I was very pleasantly surprised to find that it basically covered almost all of the tools we are using here, and emphasized the need for the convergence of confluencing factors.

[xXTrizzleXx]

The fractals explanation helped immensely, and has now provided me with an additional 'confluence tool' to add to my arsenal.

I was not only intrigued by its simplicity, but also the ability to designate buy zones and sell zones, which when combined with pivot points may prove to be quite powerful.

Great read, and great site!

Cheers,
xXTrizzleXx

[Sweet Pip]

I wasn't able to get a pre-post in about this trade, but here is a during and almost end of it post...lol.

Since studying that website I posted a link for, this is my first official trade using the method of confluence of S&R, pivots & fibs for this journal.

The top yellow line is a prior recent fractal point on the H1...resistance. I set a pending order to trigger a retest at 1.5295 after it bounced down from it, and it did. Also at that level was the fib 127.2% line of a swing from the H1 1.5041 swing low fractal to a fractal swing high of 1.5239. The entry was also just above R1 pivot and at the figure 1.53.

Target was set to 1.5255 which is just above the 100% and round number, and a trailing stop has locked in some profit past breakeven.



I've now configured my screen to show the daily, H4 & H1 charts to the right side of my main chart which will either show the 5m or 15m. This will make it easier to monitor the flows of the higher timeframes as well as any patterns that develope.

Target hit at 1.5255 for +40 pips

[Sweet Pip]

What is "flows of the higher timeframes"?

It's best explained here.

Market Flow « Invest FX

Market flow is a concept to determine what direction price is going. What I want to happen is for the direction on those timeframes to be in sync.

[Sweet Pip]

I think I missed it...lol

I checked the SMT (Smart Money Tool) which is divergences in the price correlation of GPDUSD & EURUSD. It shows a LL & HL which indicates price may go up.



So going to the charts, I see the flow in the higher timeframes is up...the last fractals to be broken are circled in each timeframe, and price is above them all.

I have retest of 1.5250 area, which is just above the open price, which is just above the Center Pivot, and a fib level of 78.6%...a few confluences.



I had my pending long order set at 1.5250, but it didn't quite reach it...as usual

Part of the problem is that on screen the (Bid) price looked like it reached 1.5250, but the Ask price hadn't. So I moved it up, but price seems to have left the station...for now.

Anyways, that's how I understand to analyze everything.

[wrtm_19]

Hi SweetPip,

By taking a look at tonight's cable, I want to know if my perception of market flow is correct.

The higher timeframes show bearish market flow (1day/4hr).

One hour chart looks like has a bullish market flow. Am I seeing right?

Thanks!

[Sweet Pip]

Hi SweetPip,

By taking a look at tonight's cable, I want to know if my perception of market flow is correct.

The higher timeframes show bearish market flow (1day/4hr).

One hour chart looks like has a bullish market flow. Am I seeing right?

Thanks!

Yep, I've been focusing on that quite a bit myself tonight...lol.

For the daily, I'm going with a bullish flow...the last swing low fractal I have is 1.4796 and hasn't been broken or replaced. Prior to that, there was a swing high fractal at 1.5112 that did get broken when price rose up from 1.4796 and has continued to make higher highs up to 1.5318 .

The H4 & H1 I feel have a bearish flow. On the H4, the last swing point to get broken was a swing low of 1.5220. The last swing highs have not been broken, but have been replaced with lower highs, and the last swing low is a lower low. Basically the same with H1 but just by a couple of pips breaking the last fractal low.



I'm trying to write an indicator so I don't take so long to work it out on each timeframe

[wrtm_19]

Yep, I've been focusing on that quite a bit myself tonight...lol.

For the daily, I'm going with a bullish flow...the last swing low fractal I have is 1.4796 and hasn't been broken or replaced. Prior to that, there was a swing high fractal at 1.5112 that did get broken when price rose up from 1.4796 and has continued to make higher highs up to 1.5318 .

The H4 & H1 I feel have a bearish flow. On the H4, the last swing point to get broken was a swing low of 1.5220. The last swing highs have not been broken, but have been replaced with lower highs, and the last swing low is a lower low. Basically the same with H1 but just by a couple of pips breaking the last fractal low.



I'm trying to write an indicator so I don't take so long to work it out on each timeframe

Well I think I need to re consider my fractals, since I have the opposite of you; long term bearish, short term bullish, lol.

Anyway the thing is I had plenty of confluences at the central pivot, which was never reached, although re-tests were made a little higher up and SMT was pointing good.

Euro made the textbook set up for tonight in my opinion.

I'm still trying to descipher what ICT has posted the last few days. It makes more sense to me once I see it applied on a chart real time.

That site invest-fx has really good information, it's a shame it's no longer active.

Ok it's been a week of catching up after the loooong weekend and let's see how this week's set ups allow us improve the money machine skills

Read you later.