I entered short at 1.3350. My thinking was that this is the institutional level so, it can be a reversal point.I did not waited for the re-test of the resistance.
So, my objective at first was to wait for a retest of the level then entered the in the OTE blue box. It went faster then I tough. The candle wicks at the lower left corner re-test the level.
T/P objective 20 pips at 1.3330.
Now, as the trade went on, the 1.3333 level flash up as a key support. I closed my trade locking 17 pip profit for the asian session.
For some reason, I did not trust the 1.3333 level.
So, sideline for now !!
Feel free to comment.
Would you have trusted the 1.3333 Level?
Would you have waited for a re-test of the 1.3350 Level prior to short?
According to the Asian Session Video the KillZone should be 4h long, not 2h like the others, if I remember right. There was a bounce of the Resistancelevel it gapped through last opening and which it tested several times this week. But anyway this was a large fast moving bull candle to the 78.6% retracement. This time I didnât take it at the 62% because it was a deeper retracement in the Vid. Entry at 1.3372 and Close at 1.3328. Did change the objective of 50 pips, where the 62% retracement of NY Session rests, because my CPP came in at 1.3328, good chance to trade up again if I get a bounce there. Iâll post a screenshot in 15h or somethin, as I donât have time now
I left a portion running at BE, USDCAD and USDJPY trading at support and EURUSD + GPBUSD at resistance. Could trade even further down today. Canât watch it so I didnât set any orders for todays LO.
Hi!
I took a trade right now,on cable,short.
Reasons for trade:
-LC
-MF down
-bearish divergence,fiber ,made a higher daily high,cable failed to make higher high.
-found an OTE at 1.5400,which is PDL as wellâŚ
-SL at 1.5425, Tp at 1.5350
Trade still runningâŚ
I purchased the LC system a week ago, and spent this week trying to apply it. Today I sold GBP once the 5 day ADR was exceeded at 1.5590. The price kept going up, and I decided to move my stop up, thinking that there must be resistance around 1.57. I sold twice the lots of the original transaction (doubled down) at 1.5634 thinking that the price had to come down as London prepared to close. I had to leave to pick up my child at Kindergarten and decided to buy out at 1.5609, as Iâd ensured a small profit. Although I risked more than I should have (and left money on the table), my decision making was based on my assessment of resistance - itâs a start. I think I would have been better of getting a better conceptual understanding of what happens to price when London closes, and focusing more on S/R, rather than a step by step process.
I downloaded the new version of Dealbook, and it seems that the pivot functionality is much improved, which Iâm thinking will be helpful.
from what I can tell on the charts without seeing exactly when you made the initial trade, you may have been about an hour early. One important factor you left out is time. The LC is all about TIME and PRICE. If you are trading solely from ADR and perceived S/R lines, you will get burned on many trades. If you also factor in time, your trades will become much more profitable. The LC is from 11-1300 EST. Hope this helps.
Hi Lazydogs. Youâre totally right. I had limited time this morning and tried to force the trade. I think I was trying too hard to be right, rather than focusing on identifying a correct opportunity to trade. This is a weakness (one of many) that I am determined to correct.
I can see what you were tryingâŚa bounce off the figure at 1.5600 with the NY Open as the high of the day. MR2 Daily (NY Pivots) lay on the figure, OTE for a move down on the 4H chart, and my weekly CPP wasnât too far away at 1.5580. Having said that I couldnât identify any solid resistance on the figure, and if anything price was probably seeking out the resistance highs set at the start of Jan on the Daily. As others have mentioned, the entry for LC was too early even for a 3 hour kill zone (which I have used successfully in the past).
I would be interested in hearing why you âdoubled downâ on the second entry. Did you believe it had a greater chance of coming down just because it was closer to London Close? Each trade is a unique event which is in no way connected to a prior trade - The market does not know that you got stopped out on your first entry and does not care. If you had determined how much you were willing to risk in the market on the first trade, then this shouldnât be any different for a second entry. Once you start changing risk like that, you are not using probability to your advantage. Just my humble opinion, and maybe the people who you bought the system from have greater insight.
I am very appreciative for any comments / critique that I receive. My goal is to learn to think like a forex trader. I truly enjoy this study. I believe that my first trade was a mistake as I did not try to analyze resistance at a high enough time period and was over anxious in general. I doubled down for the second trade after looking a little more closely and seeing that price had not really closed above 1.57 the last couple of weeks. That combined with my assumption that as it got closer to the London close, price was likely to retrace a bit for all the buyers closing their positions. My first trade was at just before 10 am est, and London is closed by 1pm. Do you recommend setting a kill zone from 1030 to 1:30. I appreciate any advice.
I can see I made lots of mistakes, which I view as a good thing, because it gives me things to focus on correcting. Perhaps with all of the amazing information provided by ICT, and all of you on this forum, I would be better served spending my time studying daily, four hour and one hour charts to get a feel for price, rather than buying a system which can be a distraction from what I need to be learning at my experience level. In my defense, the system looked cool:-) I hope to continue to get good constructive feedback as I post trades.
I definitely think starting on the higher TFs will aid your understanding and make you a better trader in the long term. Rather than saying âIt is London Close now, letâs see if I can catch a tradeâ it might be more prudent to say âit is at that longer term resistance or support level I have been waiting for and it has extended itself past the ADR, AND it just so happens to be London Closeâ. I believe this is what ICT means when he says âlet the trades come to youâ.
I am not sure about est, but my kill zone is set up from GMT 14:00 to GMT 17:00. We are currently in British Summer Time so that kill zone would mean looking for trades between 3pm and 6pm local London time. London Close would be at 5pm, and in my experience most of the good trades set up between 4pm and 5pm local time. I have caught trades between 3pm and 4pm in the past on Cable and Fiber, but wonât trade before 3pm. Here is an example of an early KZ trade:
One exception to my rule is for JPY crosses. I find they can set up earlier than the other pairs.
Everybody makes mistakes for their first bucket load of trades. That is natural. What will determine your learning curve is whether you continue to make the same mistakes. By analyzing this trade, and hopefully having taken a screen shot in addition to your notes, you have shown that you are serious about the process of learning this business. I wish you every success in your future trades.
Regards
Spot the mistakeâŚthat isnât MR2! It was however MS3.
Aliâs got it. The core of this method is the support/resistance levels you see on your higher timeframes. If you arenât keying off something that you see on a 1H chart, or preferably 4H/Daily/Weekly, you are doing yourself a disservice. When you are watching those 15M/5M âtriggerâ timeframes, you want to already have the S/R marked and simply be watching for confluences and further confirmations of the markets intent to respect that S/R level.
ICT had a great example of this on his most recent PTC vid. He was on the daily charts first thing, and marked off that level on Cable which overlapped a whole bunch of Daily highs/lows on the left side of the chart. Then when he zoomed in, he had his bearings and his trading ideas were based on the flows away from and towards that significant level.
Anyways, thatâs how ICT does it, thatâs how I do it, and if any of the new thread-goers can wrap their minds around the concept of true top-down analysis, I think theyâll see the results they were expecting all along
I really appreciate the great comments Iâve received, they are very helpful. This site and this thread have been a wealth of information. The methods you reference are how I want to learn to approach my trading as well. The conceptual approach of top down analysis starting with higher time frame s/r makes sense to me. The first couple of months I think I was trying to run in twenty different directions at once because there are so many different aspects of fx trading. I felt enthusiastic, but was overwhelmed. I think Iâve learned that I donât want a mechanical system. I want a thought process, and to get myself thinking and analyzing the way currency traders (you folks) do. I believe I will get it eventually, because I really enjoy all of the time I get to spend learning and studying.
This thread with the videos, and the comments, etc has been the best learning resource that Iâve found - sincere thanks.
ICT has always encouraged us to look at the higher TFs, but what made me sit up and really change the way I analyze the market was when he said he spends 45 minutes a day looking at Weekly down to H4. My previous routine would be to spent maybe 15 mins on these charts, and 30 mins or more looking for entries on M15. Most of these were London Close scalps, and while I have had success, I have spent far too much time in front of the charts searching for what little gains I have made. Consider the following:
June - 15 trades (all LC scalps), approx 60 hours in front of the charts, Profit +7.91%
September - 6 trades (mixture of Kill Zones, but focusing on higher TF S&R), no more than 20 hours in front of the charts, Profit +12.01%
Ya, Iâm very glad I started looking to the higher TFs and taking trades off them. The majority of my trades are OTEs within OTEs from the higher TFs. Iâve noticed a higher success rate and a higher reward:risk ratio. Congrats Ali, youâre doing very well especially for only taking LC trades
Is there anyone on this thread who feels they are done with the âlearning phaseâ, and is ready to take on a live account?
You may have noticed that ICT will start with a specific account size, and then build the account up rapidly through consistent compounded gains. There is a powerful psychological edge inherent in this strategy, and I would enjoy discussing it with traders who are new to this type of account building.
So if you feel confident trading with these tools, and have a chunk of cash you want to see doubled, tripled, quadrupled, etc⌠letâs talk
