You are on page 1of 15

PLEASE READ

WELCOME TO THE NO BS ICT EXPLAINED SERIES.


NOT EVERY SMALL DETAIL INCLUDED; FOCUSED ON WHAT I DEEMED
NECESSARY.
NO HOLY GRAIL OF STRATEGY; TRADING IS SUBJECTIVE, SUCCESS
DEPENDS ON APPLICATION.
EXAMPLES SHOWN HAVE BEEN CHERRY PICKED IN ORDER TO
CLARIFY THE TOPIC.
MORE VIDEOS ON ICT'S TOPICS WILL BE ADDED OVER TIME, BUT NOT
EXCLUSIVELY.
LIKE AND SUBSCRIBE; VIDEOS ARE TIME-CONSUMING TO CREATE.
FUTURE SERIES ON PRICE ACTION AND SMART MONEY CONCEPTS
PLANNED.
THANKS FOR THE SUPPORT, LET'S GET STARTED!
THE NO BS
ICT EXPLAINED SERIES
THE ICT ESSENTIALS
Kill Zones in ICT Teachings: Unveiling High Manipulation Areas
1. Definition of Kill Zones:
Significance: Kill zones derive their name from being hotspots of market manipulation and potential fakeouts. These areas provide
opportunities for substantial trades and high-probability setups, aligning with ICT teachings.
2. Kill Zones in UTC 4 (New York Time Zone):
Identification: There are two primary kill zones, the London kill zone = 02:00-05:00 AM & the New York Kill zone which is 07:00 -
10:00 AM , both aligned with the UTC -5 time zone (adjust to your current time zone), which corresponds to the New York time zone.
3. Purpose of Kill Zones:
Strategic Importance: Kill zones serve as strategic windows where traders are likely to encounter setups aligning with ICT teachings.
The emphasis is on recognizing potential “fakeouts” and manipulating market conditions.
4. Example of Liquidity Sweeps:
Liquidity Manipulation: Illustrative examples show instances of liquidity sweeps within the kill zones. These include tapping into
liquidity above/below zones in London and breaking previous highs/lows in New York, demonstrating market manipulation.
5. Not Daily Occurrences:
Variable Frequency: While such market manipulations do not occur daily, statistical evidence supports their regular occurrence
within the kill zones.
6. Selective Trading Approach:
Time-Efficient Strategy: Traders are advised to focus on a targeted approach, limiting active trading to three hours during the
London and New York sessions. If no suitable setups are identified, refraining from trading is recommended.
7. Geographic Considerations:
Session Alignment: Depending on the trader's geographic location, the focus should be on either the London or New York kill zone.
Europeans concentrate on the London session, while those in the Americas focus on the New York session.
8. Efficiency Over Extensive Monitoring:
Reduced Chart Time: Traders can adopt a more time-efficient approach by dedicating attention to the specified three-hour
windows, minimizing the need for constant monitoring. This approach allows for a less demanding commitment than a full-time
occupation.

By understanding and strategically utilizing kill zones, traders can enhance their ability to identify manipulation, mitigate risks
associated with “fakeouts”, and align their trading activities with the teachings of ICT.
KILL ZONES
Judas Swing Unveiled: Navigating Market Manipulation in Kill Zones
1. Introduction to Judas Swing:
Context: The Judas swing is a phenomenon closely tied to the previously discussed kill zones. These swings often occur within
these designated zones, highlighting strategic market manipulation opportunities.
2. Tokyo Session Trading Range:
Initiation: The Judas swing typically initiates after the conclusion of the Tokyo session, delineated by the Tokyo high and low
within a specific trading range.
3. Price Liquidity Movement:
Post-Tokyo Session: After the Tokyo session concludes, price tends to take out liquidity zones, either above or below the
established range. In the example on the next slide, the breakout occurred above.
4. Identification of Judas Swing:
Critical Point: The Judas swing in the example, is identified as the market breaks below the daily open (marked by a YELLOW
line) following the initial breakout. The entire downward movement from this point is recognized as the Judas Swing.
5. Judas Sheep Analogy:
Symbolic Explanation: The term "Judas Swing" draws an analogy to sheep herding practices. Similar to a lead sheep, the Judas
sheep is positioned strategically to mislead the herd, symbolizing a reversal in market direction.
6. Purpose and Probability:
Market Maker Strategy: Market makers employ the Judas swing tactic to exploit liquidity positions above or below specific
areas. This setup is deemed highly probable for success, offering lucrative opportunities when executed effectively.
7. Occasional Nature and Trading Decisions:
Selective Trading: The Judas swing is not a daily occurrence. Traders are advised to exercise caution and discretion, as its
absence often leads to market consolidation, making it less conducive for trading.
8. Key Trading Parameters:
Optimal Entry Points: Traders are encouraged to focus on entry points 20 to 40 pips below the Tokyo range for long positions,
particularly in scenarios where the overall market sentiment is bullish.

Understanding the dynamics of the Judas swing equips traders with a valuable tool to navigate market manipulation within
kill zones. By discerning the strategic moves employed by market makers, traders can enhance their decision-making and
capitalize on high-probability setups.
EXAMPLE

Price did not reverse in this example


The Silver Bullet Strategy: Unveiling High-Probability Setups
1. Introduction to the Silver Bullet:
Noteworthy Strategy: Among ICT's teachings, the Silver Bullet stands out as a renowned and widely discussed strategy.
2. Setup Times:
London and New York Windows: The Silver Bullet unfolds during two distinct setup times:
London Setup: 3 a.m. to 4 a.m. UTC-4 (New York time zone).
New York Setup: 10 a.m. to 11 a.m. UTC-4 (New York time zone).
3. Trading Windows:
Marked Zones: The trading windows are visually delineated in the example, between white lines, providing clear timeframes for potential
Silver Bullet setups.
4. Occasional Nature:
Not Daily Occurrence: It's emphasized that the Silver Bullet doesn't manifest every day. However, when it does, it tends to be highly effective.
5. Concept Behind the Strategy:
Fair Value Gap: The strategy capitalizes on the concept of a fair value gap. A significant downward (or upward) price movement creates an
imbalance, leaving a gap that price tends to fill.
6. Execution Criteria:
Minimum Gain Requirement: Traders are advised not to engage unless a minimum of 10 to 15 pips for forex pairs (I recommend EUR/USD) or
10 points for indices (I recommend NAS100) can be achieved.
7. Trade Execution:
From Fair Value Gap to Liquidity: Entry points are typically from the fair value gap, targeting the next available liquidity. A clear swing in
price structure sets the stage for potential entry and take-profit points.
8. One-Hour Trading Window:
Efficiency: The strategy is designed to keep the trading window concise, limited to one hour a day, offering efficiency for traders with time
constraints.
9. Naming and Analogy:
The Silver Bullet Analogy: ICT introduces the name "Silver Bullet" with a playful analogy from Werewolf mythology. A sneaky shot with a
silver bullet signifies a deadly and decisive move, akin to the strategy's execution.
10. Naming Tradition:
ICT's Approach: The nomenclature, such as "Silver Bullet," is a product of ICT's teaching style, where memorable names aid in conveying
concepts, particularly when teaching his kids.
EXAMPLE
Unveiling the Power of Three
1. Introduction to the Power of Three:
Key Components: The Power of Three involves three crucial phases in understanding how prices move:
Accumulation/Manipulation, followed by Distribution, and finally, Range Expansion.
2. Example Scenario:
Bearish Bias: Imagine the daily market trend is bearish. Once you confirm that the London Session and 7 a.m. New York Session
are also bearish, it's time to look for short trading opportunities.
3. Timing Matters:
7 a.m. to 9 a.m. Window: Between 7 a.m. and 9 a.m. New York time, some kind of pattern or formation tends to emerge. It's crucial
to observe and wait for a retracement during this time.
4. Optimal Entry Point:
Fibonacci Retracement Level: When the retracement occurs within the marked time window, the optimal entry point is at the
0.62 percent level, determined by a Fibonacci retracement level (commonly rounded to 0.62 by ICT).
5. Simple Explanation with a Bearish Candle:
Bearish Movement Expectation: Assuming you anticipate bearish movement based on the daily bearish bias, imagine a bearish
candle opening, moving down, then coming up – the upward movement represents manipulation.
6. Three Possible Price Actions:
Price Behavior: In simple terms, price tends to do one of three things: move straightforwardly, manipulate (trick) traders either
upward or downward, or do a bit of both.
7. Strategic Short Positioning:
Exploiting Manipulation: If you expect a bearish trend and see manipulation (tricking people upward) during the retracement,
that's a strategic entry point for a short position.
8. Holding the Trade:
Patience Pays Off: By entering during manipulation, you position yourself for potential gains throughout the day as the bearish
trend unfolds.

Understanding the Power of Three involves recognizing these phases and strategically entering trades, especially during
manipulation, to align with the overall market trend. It's a simplified approach to navigating market dynamics for the average
trader.
EXAMPLE
Optimal Trade Entry Simplified:
1. Introduction to Optimal Trade Entry (OTE):
Key Tool: OTE is based on Fibonacci retracement levels, a tool commonly used in trading. These specific levels (0.62, 0.705, 0.79, -0.62,
-0.27, -1) are the ones recommended by ICT.
2. Fibonacci Retracement Tool Settings:
Setup in TradingView: To replicate ICT's tool, set the Fibonacci retracement levels as mentioned: 0.62, 0.705, 0.79, -0.62, -0.27, -1.
3. Understanding OTE in Price Movement:
Example Scenario: Consider a price movement where it aggressively goes down to an area with significant liquidity. This liquidity sweep
is a crucial concept.
4. Optimal Trade Entry Area:
Key Levels: OTE is the area between 62% and 79%, with 70.5% being the precise OTE. This area is considered prime for entering trades.
5. Market Rebalancing and Impulse Movements:
Market Dynamics: After a liquidity sweep, price retraces to OTE for market rebalancing. The market tends to seek equilibrium at this
level before initiating another impulsive move.
6. Discount Zone Concept:
Halfway Point: The halfway point in the OTE range is viewed as the discount zone. It signifies a potential discount in price, especially
when anticipating bullish movement after a liquidity sweep & Vice Versa for a Bearish movement.
7. Practical Application of OTE:
Day Trading Success: In a simplified approach, focusing solely on OTE levels can make you a successful day trader, particularly when
expecting bullish movement.
8. Wait for Opportunities:
Missed Entries: If you miss a trade at a specific OTE, be patient for the next setup. Consistently aiming for entries within the OTE
parameter enhances your trading strategy.
9. OTE as a Fib Level:
Basic Understanding: While OTE involves Fibonacci levels, there are additional concepts like fair value gaps, breaker blocks, and order
blocks associated with it. However, at its core, OTE is about finding optimal entry points.

In essence, Optimal Trade Entry is a fib level strategy that, when consistently applied, can contribute to successful day trading.
Understanding the dynamics of market rebalancing and utilizing the discount zone concept within the OTE range enhances its
effectiveness.
EXAMPLE
Smart Money Technique (SMT) Simplified:
1. Introduction to Smart Money Technique (SMT):
Purpose: SMT is a technique used by ICT to identify market trends and potential trade setups by comparing the movement of specific currency pairs with the
U.S. Dollar Index (Dixie).
2. Understanding Inverse Correlation:
Example Pair: Consider the Euro, US Dollar pair (EUR/USD) on the daily timeframe and the U.S. Dollar Index (Dixie) next to it. Recognize that certain currency
pairs, like EUR/USD, often move inversely to the U.S. Dollar Index.
3. Anti-Indicator Approach:
ICT's Philosophy: ICT avoids traditional indicators and instead focuses on correlations and divergences to spot trading opportunities.
4. Observing Bearish Momentum:
Dixie Analysis: Analyze the U.S. Dollar Index's daily chart. Notice lower highs and lower lows, indicating bearish momentum in the U.S. dollar.
5. Correlation with Currency Pair:
EUR/USD Comparison: Simultaneously, observe EUR/USD. In a perfectly inverse correlation, EUR/USD should have formed a lower low when Dixie made a
lower low. However, it didn't follow the expected pattern.
6. Identifying Divergence:
Divergence Sign: Spot the divergence between Dixie's bearish momentum and EUR/USD's failure to create a lower low. This divergence is a crucial signal for
potential trade setups.
7. Trading Opportunity at Divergence:
Execution: Any of the daily candlesticks during this divergence period could have presented an opportunity for a significant long position in EUR/USD.
8. Application of Smart Money Technique:
Definition: SMT, in essence, involves using divergences between specific currency pairs and the U.S. Dollar Index to identify potential smart money
movements.
9. Utilizing Divergences for Trade Setups:
Strategy: When comparing a Forex pair to the U.S. Dollar Index, spotting divergences provides insights into potential trade setups. The divergence indicates a
deviation from the expected inverse correlation.
10. Key Takeaway:
SMT Concept: The smart money technique is essentially about recognizing these divergences as opportunities to enter well-informed and potentially
profitable trades.

In summary, the Smart Money Technique involves observing the relationship between specific currency pairs, like EUR/USD, and the U.S. Dollar Index.
Divergences from expected inverse correlations serve as signals for potential trade setups, allowing traders to capitalize on smart money movements.
EXAMPLE
foreseersfx@protonmail.com

THANK YOU !
Matthew 6:33 : "But seek first the kingdom of God and
his righteousness, and all these things will be provided
for you."

You might also like