[U][B]Week 1: PDH,PDL, PWH, PWL Support & Resistance[/B][/U]
[U]Here is the exercise as described by ICT:[/U]
This exercise is not about making money or worrying about timing before major news releases. The tasks are:
Note the daily highs & lows of one pair (PDH’s & PDL’s).
Note the previous week’s high & low for the same pair (PWH’s & PWL’s).
Demo trade areas of support & resistance at either of the levels determined above.
Short resistance at weekly and daily highs, buy support at weekly and daily lows.
Do not be concerned with the trend.
Do not be concerned with direction.
Do not care about it resulting in a profit or loss.
Use a 20 pip stop and 20 pip profit target.
[U]S&R Levels (PDH & PDL)[/U]
Use Midnight New York time to determine new trading days.
Open a 60 minute chart and find the highest high traded the previous day.
The highest high would be a resistance level (if the new trading day opens under this level)… Support if the new trading day is trading above this level.
The lowest low in the hourly chart would be your support level. Resistance if the new trading day is trading below this level.
[U][B]Week 2,3&4: Daily & 4HR Swing Highs and Lows[/B][/U] Week 2 .The focus was on fresh daily & 4 hour swing highs and lows. They were “fresh” in the sense that they were the most recent swing highs and lows that had formed on the daily and 4 hour chart and many resting stop and limit orders would be resting above and below these swing highs and swing lows. Many good examples were posted and we have saw some good reactions and tradable swings off of our levels, some calling the weekly high or low, others provide a short term tradable bounce. These levels are the levels where you anticipate your setups to unfold and trading around these levels puts the odds in your favour.
This exercise was the very first exercise I recall doing when I first stumbled upon “What Every New…” thread. It’s a good way for a beginner to see price reacting to basic S/R levels on demo/paper trading. Glad to see this exercise resurrected.
Yes, if price trades down to PDL, then you buy with a 20 pip stop and a 20 pip target.
If price trades up to PDH then you sell with a 20 pip stop and a 20 pip target.
If you can do GBPUSD everday next week?
I’m also in! I should have done this a month or so ago when I started looking at all of this ICT stuff. It will be good to do it as a group so that we can compare together. Also, thanks shaunfx for starting this. Now I need to figure out how to post charts.
The more the merrier. I use Jing for screenshots, I then share the screenshot on screencast.com and then I insert the link. They have a brief video and tutorial that will get you up and running pretty quickly.
Would be fun!
