This is my first post in BP although I’ve been here for quite some time.
I just found this and the other 2 threads by ICT 3 days ago and the information presented is very amazing. I guess I found out the missing link in my trading thanks to ICT! However, it appears that I’m missing some of the videos so can somebody please send me the link to Michael’s complete work so that I can fully understand all the concepts? Thank you for your time. email address is scanner077 at yahoo dot com
Hey Scanner077 welcome to babypips.com I know I am new to this thread but I hope you feel free to post questions/observations. This is a great community and we love to learn/teach together so that we can all grow as traders. And there is no better place to learn to trade than in ICT’s threads.
Thanks for the warm welcome. Link already in my inbox. I don’t have much live trading experience but hopefully I can contribute something to the group someday.
Thanks Johnny and Shaer for the links and warm welcome. I guess the seeders are down? maybe I’ll just have to wait patiently. I don’t have much live trading experience but I hope I can contribute something to the community someday.
May I ask you to elaborate a bit more on how you utilize ‘‘sell stop’’ and ‘‘buy stop’’ orders in your trading?
Been analysing my recent losses yesterday and big %-age of them is down to entering the market too early (due to not being able to monitor the entire LO session closely) and being stopped even with the correct bias (too tight stop being the other reason :rolleyes:) for the day. So, I was thinking if these types of orders can help me loose less…
Lets imagine the following the scenario: I’m expecting a down day and looking for Judas up to sell into… The opening price (NY midnight) is 1.6110. According to my analysis, good level to sell is 1.6150 (with lots of confluences, etc…); price now is around 6130-35, but is a bit hesitant and seemingly running out of steam, so by the looks of things might not make it up to 6150 before turning and dropping like a stone… Let say, I have to leave charts very soon and not able to monitor it closely for couple of hours… What is best thing to do in terms of Lower Risk-Higher Reward? Do I set sell limit at the predetermined level (6150) and hope to get there somehow; sell on the market and not missing the move but risking more (SL being lower than originally planned) or set a sell stop order and catch it on the way down (sell on weakness) and missing few pips profit? And if I put ‘‘sell stop’’ where would it be: as close to the current price as possible; on the opening price or just below the latest swing low (sell the breakout)?
And while I’ve got your attention (i’m pushing it I know, lol), one more question: on the following image, what you would consider clear overbought signal: area 1, 2, 3 or all of them?
Thank you very much for your time, it is highly appreciated.
I realise im one of the less experienced people here (compared to most), but i also had this same problem - sometimes im not around to monitor the majority of a session etc. If i could throw my 2 cents in…
Personally, when i was going through this, i remembered back to one video where ICT talked about only acting on moves that have been [I]anticipated[/I] before hand, rather than [I]reacting[/I] to the market. In this instance, imo anyway, you should set your sell at 1.6150, and if it misses it, then so be it. Because 1.6150 area is where you anticipate the price to go, if you see ‘price stalling’ before that, that is you reacting to the market…
Many times i had a sell/buy in place, and as price would come 1-5 pips away, my nerves would get on edge wondering if it will get triggered, price seems to stall, and i would panic, close my limit order and open the position manually, only to see price carry on pushing in my direction, meaning my initial order would have got filled - and then some!
So for me personally, even if it means i take less trades because i miss a lot of moves, i like the idea of only trading on anticipated moves, rather than reacting to the market…
But nonetheless, ill be watching for Michael’s reply too
I’ll think in detail on your idea when get more time (as I have visual memory, I need to ‘‘see’’ things, so I’m making little drawings…), but at first glance it seams you risking more (with wider stop on lower entry and lesser stop on the second) than planned (entry at 6150, SL: 6180)?.. I’ll have a look at it…
I was thinking for something along these lines too, but havent completely worked it out yet… Was thinking: ‘‘what if I ‘‘corner’’ the current price (6135), by placing the sell limit as planed at 6150 and TP at 6130 where my sell stop would be?’’ Normal risk and SL on both orders, as they overlap (cancel?) each other, there wont be extra risk exposure or my thinking is wrong?
however, looking forward to what Michael has to say on this, and I’m glad I’m not the only one with similar thoughts
ICT also says, that 5-15 pips is normal tolerance, so it is not exactly necessary for price to touch the figure for us to say:’‘it bounced off of the figure’’
plus, I dont know how cool you are with watching the price come to 6144 and then drop 150 pips leaving you on the station, but I’m feeling as sick as when got stopped out…
I’m not going to sit here and lie and say i wouldn’t feel a thing if i missed a 150 pip drop lol! It would obviously hit me, but at the same time, i think you would have to be content with knowing your analysis was correct, and go by ‘it is much better to sitting on the sidelines wishing you were in a trade, than being in a trade and wishing you were on the sidelines’
You could miss 10 big moves, but you have to remember the market is not going anywhere… There will always be an opportunity to bag some pips another day…
true, but seen the above scenario too many times to be content with ‘‘knowing your analysis was correct’’, this doesnt fill my pocket in the end of the day… :33:
yeah, I just realized same thing, if I’m indeed wrong on the daily direction and price retraces down first before shooting up, I’ll get blown with 4% loss, so will have to split the risk between the 2 orders… :34: :56:
Why not open a position at the current price, use the same SL as you would of if you have opened at 1.6150, an adjust your position size accordingly to a suitable risk level…
Seems like the most viable option to ensure you catch the move… i think? lol
Have you noticed the Price Action this week and the levels on both the Cable and Fiber?
Have you reviewed last Sunday’s Market Review?
Have you reviewed the Livestream video posted earlier this week?
You might take some time to review those and take notes on the action and levels those two videos detail… then reflect on the actual Price Action after the recordings.
You might be pleasantly surprised at what you find… see you in the next Market Review video tomorrow afternoon.
PS: Part 1 of our Trading Plan Development posts tomorrow night 9pm my time.
Well, im not trying to start a full blown discussion on this as i realize it’ll draw Michael’s thread away from its main purpose, but i noticed my last post regarding some psychological aspects of trading received a few likes, and thought if people found it interesting, i’d share something else.
If you guys have the time, i’m posting at the bottom of this a youtube link to a program by the psychologist and entertainer Derren Brown (not sure how many of you guys will be familiar with him if your based outside the UK). Anyway, its about a 45 minute show, and if anybody was interested in my last post, it’ll be a good watch as it shows the power of anchoring in psychology.
I think psychological aspects and how we act and feel when trading can play a huge part in how successful we can become when learning how to trade, this clip is just simply to show how powerful anchoring can be in affecting our actions and emotions…
Again, apologies for the off topic post, but hope you guys enjoy as much i enjoyed watching…
I have a question on SMT divergence. I have seen ICT’s videos on the same subject. I am missing something here and therefore asking this question.
How do we know that a divergence is bearish or bullish? In the picture I have Fiber, Cable and USDX, 5 minute charts of May 05, Friday. The grey colored highlighted is NYO. In this example Fiber made a higher high and Cable did not and the Usdx made a lower low. How does that indicate that it’s bearish divergence?
Another data point is that Fiber hit the previous day’s high and then slides down.
Hi SanJ
That’s interesting that you’ve mentioned anchoring, I’ve just read a paper on Behavioural Finance (ignoring the rubbish about EMT) which discusses how price makes us anchored to it and then we expect it to do something, example being ‘It’s too expensive and couldn’t possibly go higher’ we’ve all thought that and tried to sell the top that never formed.
