I traded well today but wanted to post this picture from the GU for Discussion purposes only, I DO NOT advocate you doing this. This is to merely demonstrate the repeated pattern that ICT is teaching you to use.
So the GU and the EU both feel more today and it may have been hard to find a good entry but they were there. The GU was better structured than EU so we’ll use it as an example.
At London open we had a good OTE entry if you drew your fibs from US close to Asia low. GU tried to retest the high and failed sending the currency further lower and basically setting the tone for US open.
The picture is the GU on the 5 min chart so you can clearly see what I’m going to discuss. My pivots are GMT +2 simply b/c that’s my brokers time and I find they work for me very well.
Today’s US trade possibilities: 5 - and 3 of those are with trend.
First trade A. This is the US open trade around 8 am and my main trade which netted me 50 pips. EU and GU both sliding; during Asia GU made new lows which is not typical for Asia. Bias was short. I drew a fib (purple one) and noted that the bounce off the GU low was at the Daily S1. I drew another fib from the top of that bounce back down (not shown) and was ready to short. PA did not reach OTE entry but instead rejected off the 50% fib for 8 5m candles, this screams to me there isn’t further up action while EU had made a new low and retracted to the 79% fib line at the exact same time after having slide through it’s pivot like a hot knife. Trade short entered.
At (point B) 53337 I have marked a monthly S/R, if you look it provided support back in Jan/Dec and before then too, a strong s/r. This was also the 1.618 ext point from the London move and 21 pips above the S3 pivot. Lots of different reasons why this would be a stopping point. I’m a bit jumpy when watching a trade so I watched it go to the 1.278 ext and start to struggle. I took my pips profit at this point left nothing on but suspected afterwards that it would test that s/r. After I took my profit it melted down almost instantly, the market spanked my emotion :mad:
PA pretty much halted there and Eu similarly stopped moving down as well. So we have correlation. From B-C you could have traded the S/R bounce, but this wasn’t an OTE entry. You had to determine for yourself if you wanted a s/r bounce trade. But notice at the bounce at C it shot right to an OTE entry almost touching the 97% (yellow fib A-B). This was an immediate second opportunity to trade OTE shortly after 9am which is still strike zone. If you missed the first shot you had 4 other chances to enter the OTE A-B trade which was a trend trade.
A counter OTE trade occured on the retest of the monthly s/r rejection. PA didn’t quite make it that far down but notice PA did trend into OTE entry zone (Green fib C-B). Remember one lesson is to buy in the face of a falling bull candle, here’s your chance. A 30 pip SL would have protected you and been well beyond the lows of that S/R. Still a tenuous trade given the short momentum.
Finally we have our 3rd US OTE entry. PA again shot straight up to OTE at point E (White fib drawn from C-D). This one you had to be quick on the draw and have your order placed. Another trend trade and you have a good idea where potential ultimate TP was located (1.53370). As I type this and not shown PA did go back right down to that S/R and bounced.
So we had 3-4 OTE with-major-trend trades available today, one counter OTE and one counter s/r rejection trade.
I took an OTE and I took something else that isn’t an ICT method which was profitable. Out of the with-trend trades which would you have taken and why or why not or did you not see these setups and what did you see instead?
And if you really think its got legs let it run to 162%
