ICT Breaker & Mitigation Blocks EXPLAINEDToday, we’re diving into two powerful concepts from ICT’s toolkit that can give you an edge in your trading: Breaker Blocks and Mitigation Blocks. There are one of my favourite PD Arrays to trade, especially the Breaker Block. I’m going to explain how I interpret them and how I incorporate them into my trading. Stay tuned all the way to the end because I’m going to drop some gold nuggets along the way"
Ok, so first of all let’s go through what both these PD Arrays look like and what differentiates them, because they are relatively similar and how they are used is practically the same.
On the left we have a Breaker Block and on the right a Mitigation Block. They both are reversal profiles on the timeframe you are seeing them on, and they both break market structure as you can see here. The actual zone to take trade from, or even an entry from, in the instance of this bearish example is the nearest down candle or series of down candles after price makes a lower low. When price pulls back to this area, one could plan or take a trade.
The defining difference is that a Breaker raids liquidity on its respective timeframes by making a higher high or lower low before reversing, whilst a Mitigation Block does not do that. For this reason, a Breaker is always a higher probability PD Array to trade off from. As you should know by now if you are already learning about PD Arrays such as these is that the market moves from one area to liquidity to another. If you don’t even know what liquidity is, stop this video and educate yourself about that first or you will just be doing yourself a disservice.
Alright, so let’s go see some real examples on the chart. Later on I’ll give you a simple mechanical way to trade them, as well as a the discretionary approach which I use. And of course, some tips on how to increase the probability of your setups.
Innercircletrader
"The Bodies Tell The Story.. The Wicks Do The Damage" - ICTIn this video I'm going to go through one of ICT's most famous sayings, which is "The bodies tell the story, and the wicks do the damage". If haven't taken the time to understand what he means, then you are seriously putting yourself at a disadvantage if you are using his concepts. This is one of the most crucial and useful pieces of the ICT puzzle. You often hear him say that the wicks are painting outside of the lines, which he sees as permissable when he is trading his PD Arrays. So without further ado, I'll try my best to provide some insight.
For illustrative purposes I'll use his Market Maker Sell Model. Just to note that this is not a video teaching about his market maker models, so the focus will not be on that or his other concepts. If you don't understand a certain term or concept, please check out ICT's YouTube Channel or the countless other resources online. This video will be predominantly shedding some light on candle bodies and wicks.
I urge you to go into your own charts and do your own study. This will truly be something eye opening if it is the first time you've actually decided to take notice.
- R2F
This Completing Transformed My Trading (RESPECT & DISRESPECT)The idea of RESPECT and DISRESPECT completely transformed my ability to effectively read price action and trade profitably.
ICT teaches about Premium/Discount (PD) Arrays. There is a lot of bickering and debate as to which of these PD Arrays are better.
I'm here to build a case for the idea that they are all equally effective, and are just reference points on a chart to build a trade idea around.
To me, it boils down to: Which levels are being RESPECTED or DISRESPECTED?
That's it for me, that's what made it all click. That is what helped me stop worrying about every little level on the chart.
Once you have a high time frame (HTF) narrative and draw on liquidity (DOL), you know which PD arrays you want to see respected and disrespected. Coming up with your HTF Narrative is also based around what levels are being RESPECTED or DISRESPECTED.
I hope this video can give you an a-ha moment like it did for me.
Top-Down Analysis (The CORRECT Approach!)In this video I go through how to effectively do a top-down analysis, and avoid common mistakes.
This can apply to any type of trading methodology, but here the focus will be on ICT’s liquidity and inefficiency concepts.
This topic is important to traders who are keen on improving their win-rate and catching those higher RR trades. Whilst those things don’t define a successful trader, only consistent profitability and sound risk management do, I believe an effective top-down approach to framing trades is a worthwhile endeavor. Better trade setups give you less stress, more profits, and more freedom of time.
What is a "top-down analysis"?
It is basically doing your analysis on a higher timeframe to get in line with where you or your strategy is showing price is likely moving to, then on a lower timeframe to wait for your trade setup to form, and then either entering on that timeframe or going to an even lower timeframe for an entry signal. For example, if the weekly chart is bearish, and you see a bullish candle on the hourly chart, you may be fooled into trading in the wrong direction. For the highest probability, you need to be in sync with the higher timeframe.
My approach is split into 3 parts:
1. I have my BIAS which is built on the monthly, weekly, and daily timeframe. This helps me determine the direction I want to trade in. If my analysis is bullish, I want to look for longs, and vice versa for shorts.
2. Then I have my NARRATIVE, aka my ‘story’ of how my setup may form on a lower timeframe, usually the 1-4h timeframe. For example, I may be looking for a specific pool of liquidity to be swept at a certain time of the day.
3. Thirdly, I have my CONFIRMATION, which is usually based on the 5-15m timeframe.
I hope you found this video insightful and that it helps enhance your trading.
If you need clarification about the content, or you are still struggling with finding your groove as a trader and need personal guidance or mentorship, feel free to reach out to me via TradingView’s private message or on X (formerly known as Twitter).
Til next time, happy trading.
- R2F
Understanding LIQUIDITYIn this video I try to explain liquidity as it pertains to training in a simple manner.
Liquidity are basically orders in the marketplace. Since trading is a zero-sum game, without liquidity, there is no trading. Simply put, If you wanted to BUY, then you would need someone to SELL to you, and vice versa.
Smart Money has deep pockets and needs a large amount of liquidity to facilitate their positions. They want to be able to get in and our of their trades, as well as to be able to trade with capital that would be worth the reward.
The largest pools of liquidity usually reside above swing highs and lows, and equal highs and lows (double/triple tops and bottoms). Support and Resistance ideologies dominate the market, and besides that, psychologically it makes sense to put stoplosses at such areas rather than at some random area within a range. There are also breakout traders who see price breaking out of an area as a sign of strength (or weakness if bearish) and they set their entries above/below these levels. This is how liquidity is "engineered" in the market and sentiment manipulated. These pools of liquidity can be seen as a magnet, drawing price to these levels, either to grab liquidity before reversing or continuing in its current direction.
- R2F
Scalping Gold using the intraday BIASScalping gold using intraday bias refers to a trading strategy where investors take advantage of short-term price movements in the gold market based on the prevailing intraday bias. Intraday bias refers to the direction in which the price of an asset, in this case, gold, is expected to move within a single trading day. Traders who employ this strategy typically open and close multiple positions throughout the day, aiming to profit from small price fluctuations.
Here's a step-by-step description of how this strategy might work:
### 1. **Understanding Intraday Bias:**
- **Technical Analysis:** Traders use technical analysis tools such as moving averages, support and resistance levels, and various chart patterns to identify short-term trends and potential entry/exit points.
- **Fundamental Analysis:** Consideration of economic indicators, geopolitical events, and market news that could influence gold prices within the day.
### 2. **Setting Up Indicators:**
- **Moving Averages:** Traders often use short-term moving averages (e.g., 5-period and 10-period) to identify quick changes in trend direction.
- **Relative Strength Index (RSI):** Helps identify overbought or oversold conditions, indicating potential reversal points.
### 3. **Identifying the Bias:**
- **Bullish Bias:** If the intraday analysis suggests a bullish bias (gold prices are expected to rise), traders look for buying opportunities.
- **Bearish Bias:** If the bias is bearish (gold prices are expected to fall), traders look for selling opportunities.
### 4. **Setting Entry and Exit Points:**
- **Entry Points:** Traders enter positions when they believe the bias is strong and the price is about to move significantly in the expected direction.
- **Exit Points:** Profit targets are set at small increments, and traders exit positions once these targets are met. Similarly, stop-loss orders are placed to limit potential losses in case the trade goes against the bias.
### 5. **Risk Management:**
- **Position Size:** Traders often risk a small percentage of their trading capital on each trade to manage potential losses.
- **Volatility Consideration:** Gold can be volatile; traders must adjust their position sizes and stop-loss levels accordingly.
### 6. **Continuous Monitoring:**
- **Real-Time Analysis:** Traders need to constantly monitor price movements, news, and any other factors that might affect the intraday bias.
- **Adaptability:** The strategy might need to be adjusted based on real-time market conditions.
### 7. **Closing Positions:**
- **End of the Day:** All positions are closed at the end of the trading day to avoid overnight risks associated with holding positions in a volatile market like gold.
### 8. **Constant Learning and Adaptation:**
- **Review and Analysis:** Traders review their trades, analyzing what worked and what didn’t. This analysis informs future trading decisions.
- **Adapt to Market Changes:** Market conditions can change rapidly. Successful scalpers adapt their strategies to evolving market trends and behaviors.
It's important to note that scalping can be highly demanding and requires a significant amount of time, attention, and discipline. Additionally, transaction costs (like spreads and commissions) can erode profits, making it crucial for traders to have a well-thought-out and tested strategy before engaging in scalping activities.
GBPUSD SELLS REVIEW, SIMPLE TRADE SETUPThis is a quick review on the trade i had on GBPUSD, guys this is the simplest way to trade . Break in Market Structure on the higher time frame , then go to lower time frame to look for entry.
remember to subscribe and share to all traders and aspiring traders you know.
Framing high probability setups using orderblocksEveryone is trading orderblocks these days.. so how do you use orderblocks to frame a high probability setup for yourself?
In this video I will show you exactly what criteria I look for when framing a high probability setup.
When I want to trade right off of an orderblock, there are a few things that I look for.
1. A Swing high or low
2. Imbalance above or below the swing point
3. An orderblock just past the imbalance
These 3 confluences together increase the profitability and probability of my trades and will help you increase your profitability as well.
Best of luck!
Dilpreet