the range yesterday was 3035 to 3270, then pause and pullback to around 3246. Almost no correction to speak of, powerful trend. Not likely that past level at 33 or divergence would make this momentum stop on a dime, so location by ote and prior SR and SMT are important, but also look at force of the move. Ranges, length of bars and retracements, these are useful to estimate what is going to happen, or more likely to happen at a level in front of the move.
Your completely correct about the 1.33 level being a strong resistance. In hind sight now you can see that on the daily time frame the market structure, the simple upward and downward highs and lows are showing that there have been no breaks downwards yet. So you could expect that 1.33 level to be broken upwards by this move upwards because the price structure did not break downwards.
So short term structure has not broken downwards so that daily range high could be broken.
I think itās in one of the videos on the front page where he talks about resistance turning into support when market structure has broken upwards.
If you zoom into the daily moves marked above on the 4H or 1H charts youāll see when price structure broke upwards then cam back down bouncing off of previous resistances as support. Then the big move happened.
On a side note, I cannot personally trade off of simple OTEās at support and resistances with a divergence. I think some people can but I canāt without structure changes showing me that one of those levels is having an effect.
Thank you very much for explaining that to me guys Iāve not been trading live for very long, so itās quite hard for me to gauge how powerful a move is, since I havenāt really seen that many big price moves!
So, if I look at marketstructure for the Fiber, I would definitely say that itās bullish! If we do see a retracement, it could maybe trade back down to around 1.3130, which would be an OTE point to get long again, looking at the 4 hour timeframe. For that to be valid, we would be looking for SMT divergence with the Cable at that price level, and what else, before we took the tradeā¦?
Or would you guys just be looking for a smaller OTE on an intraday level, to ride the trend after the weekend?
Have I got anything right hereā¦? :22:
Something like that sounds about right. Throw what day of the week it happens into the mix and if its the start of the day and youāll be basically doing everything taught in these videos.
Anyway if your new google the book: āLong term secrets for short term tradingā By Larry Williams. Itās basically the source material for ICTās market structure and a bit of the daily and weekly timings. Itās got good explanations of market structure and how the time of day/week comes into play.
What Iāll be doing next week is looking for the hourly structure to break down then I would sell it aiming for that OTE area if it breaks downwards while still above the 1.33 area that is. Then when it reaches either the 1.33 or the OTE area I would look for breaks on the 4H or 1H to indicate to me that price may be about to head upwards again.
So you wont be looking for longs next week? I mean, the marketstructure right now looks bullish, so why not be looking for longs?
thinking the same way for targets on the way down. 'd like to take a short trade next week around 3400 if we get there, not far and D1 shows nice resistance at the level
I donāt really understand you guys? I mean you guys are probably right! But why are you looking for shorts next weekā¦? Marketstructure seems bullish to me, and price blew right through all previous resistance levels?
Is there a skype chatroom group by any chance?
Hi all I just wanted to highlight a powerful move indication that I noticed after I went short on the Fiber the other day.:56:
The divergence of the yeild on the Bund was huge and started a few days before the big rally in the fiber.
http___www.bloomberg.com_quote_USGG5YR_IND_chart.pdf (78.8 KB)
The thing I have not figured out yet is how to zero in on the timing of the move from this divergence. Any tips on what to look for in price action after the bond yield divergence?
at some point there will be a correction, but we donāt know for sure when is going to happen and how much of it. it can be fib 38, 50, ote or it may just range for a while and keep going up and correct later. however we plan, and if 3130 was a good long entry price, then the getting there could provide a short trade in the meanwhile
Oh okay, I see. So you wont be going short as soon as price hits 1.34, but wait for a bounce and an OTE on a lower timeframe, or what? So that if price just breaks through, you hopefully wont get caught on the wrong side.
I agree. Usually when after a massive buying or selling, the market somehow needs to breathe a little (correction) then possibly hitting a key support (could be 1.3200 -1.3100) before going up again but we donāt know that for sure. You will definitely see some correction after the uptrend this week.
most of the time iāll do as you mentioned,
sometimes, depending on price action, i might go right in at the level for a bounce, entry if first support gives 30 pips or more, take profit on the bounce then re-trade later if ote, flow, structure continue to support the idea. But this is considered a higher risk kind of trade, and does not provide as many pips as the entries with flow and trend
nice trade the other day. congrats for a good one :35:
Okay then but, if you enter at the top like that, expecting a market turn, arenāt you going against marketstructure?
Iām sorry for all the stupid questions, but I always gets beaten up when I expect price to turn! I always enter to early, before price changes anything, and then I enter too late, when price has already turned, and I find myself on the wrong side of the market once againā¦
I would not be 100% short next week. If the 1H charts show me a chance to short though I will take it while price is in the fibbs extension area, while there I would not be looking to buy.
Price can come all the way back down to those lows we were talking about and price structure would still be bullish on the daily. If I bought now I would be buying high relative to the current position of price structure. I would want to buy somewhere bellow the 1.33 level.
I say I would sell next week but thats only if I see structure make some clear signals that there is going to be a retracement.
Be careful not to speak in certainties. Nothing is ever for definite in this game
Youāre right, it is trading against market structure. But usually, the market structure on a really higher timeframe chart like a weekly or monthly chart will only change if something significant happens from a fundamental perspective.
Best advice is - donāt try to pick the top, wait for it to form and then trade short once market structure becomes bearish. Contrary to popular belief, you donāt have to pick tops and bottoms to score massively from a move Ask Shaer about that!
no need to worry, lol, been there done that very same thing a lot!
structure is frame dependent. at the same time on one time frame you may be up, on another down.
some good trades appear when you enter against your current time frame, while observing the structure and a key level on the higher frame chart. this is the āgetting in syncā with the higher frame concept. Obviously the risk exists the level you plan for the getting in sync does not work immediately, and in the trade gets stopped out.
Go for the very clear ote trades with structure, in the killzone, at key levels. these are the best, and present enough challenge on their own
Thank you very much guys! Your replies are helping me out a lot!! I will try to look for some proper ICT trades next week, now that I understand a little better what to look for, and why to look for it!
This is in no way to scale but Iād be looking for something like this to get short:
Price has gone up and reacted to a resistance of some sort. Maybe 1.34 maybe 1.35. If it does I would want to see the reaction break the hourly structure downwards. If it does then I will enter on an OTE of that move that made the break. I would then hold onto it for a day or two.