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ICT Charter Price Action Model 3
ICT Charter Price Action Model 3
Here is the trader profile and basic outlook about the model
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The underlying condition that sets up the setup is based on the stage. The
stage for this model is gonna be based on COT Hedging program
Now on the Daily chart we wanna see an obvious daily liquidity pools for price
to be drawn into or to be attacked
Before getting into the model you need to have a thorough knowledge about
following concepts ,
COT data
LQ pools
OTE
Now , This model is all about capitalising the monthly candle move & we are
working inside that range for setups
The DOL for this model is in the form of LQ pools , EQH / EQL on the daily chart
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Now first we need to understand what's commercials doing now , are they
focussed on selling / buying ?
For that , We would be looking at the COT data of the of commercials for last
12 months & mark the highest high & lowest low of they're net position , then
dividing that range into half
Now if the current reading / net position of commercials is above that half
range we would be focussing on the bullish setups & vice versa
Look for obvious DOL in the form of liquidity pools & EQH / EQL to the
direction of our bias which is found from the COT data
Now Look at the IPDA data ranges on the beginning of the recent month with
20,40,60 lookback to understand the premium , discount ranges and PDAʼs to
incorporate that into our entry
Either you can use the respective PDAʼs you found from the IPDA data ranges /
OTE levels for an entry
Entries would be taken on a 4hr chart & you can use the 1 hr chart to trim
your stop loss for better risk reward
Profit taking should be done at the logical levels such as swing highs & lows
with confluence of the Fib levels of 1SD , 2D , 3SD…
t.me/ICT_NoteTaking
Later he was discussing an example of this model which is basically the same
things he mentioned above
Here you can see the Canadian dollar being in bearish territory from the October
which is bullish for the USDCAD
As the COT Data is indicating commercials are net short on Canadian dollar which
is bullish for the USDCAD we are looking for the buy setups here
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Weekly OB mitigation on a weekly tf
He didn't used all tools mentioned on the model for this example so doesn't feels
like its a great example video
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Our focus on this model is to capture 100 300 pips per trade with this model
Preparation It's usually when patience is being applied , & what are you
basically waiting for, what are you doing with your time ?
Trade planning Once you understand the framework that you're looking
at , you are going to trade your plan.
Trade execution Once you have your opportunity & you've prepared &
you've planned the trade framework, then you want to execute on the
trade.
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Trade management Where do I put my stop & when should I take profits ?
Now you don't have to thoroughly follow these trading plan , you can alter this for
yourself with this 5 stages for trading plan but don't make it complicated , make it
short & simple.
1 Preparation :-
Using IPDA Data ranges to find out the dealing range we are gonna work for
the model
If we don't see any IPDA data ranges that work for our top down analysis in the 20
day lookback we go to the 40 day look back & if we don't see anything that's
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notable then we'll look back 60 trading days. 60 trading days is the maximum you
look for
Defining the highest high & lowest low of the lookback period that's going to be
the range you work within for your entries & targets
Looking for the next DOL inside the dealing range we are working at
2 Opportunity discovery :-
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You need to look for a strong seasonal tendency of the respective market
your gonna trade
Once you find a market with strong seasonal tendency look for the COT data
to support the seasonal tendency How to read the COT for this respective
model is discussed on 1st episode of this model ]
Most of our targets should be inside the 20,40 day IPDA lookback , getting
into the 60 day lookback targets is the best case scenario
Now once you find out the probable DOL you would be looking at the PDAʼs
inside the 20 , 40 , 60 days lookback for framing an entry
3 Trade planning :-
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Here the fibs are pulled on the 15 min swing points
For the STDV projection as mentioned on the previous episode you can choose ,
Asian range
CBDR
Flout
choose one as per your convenience
Trade executions :-
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Trade management :-
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Money management :-
Drawdown management :-
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Practice…
Example :-
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So as you an see the commercials are net short on that particular time where
cursor is placed & we are expecting the lower prices on GBPUSD here
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As you can see price eventually traded into that level
Now personally I'm not satisfied with the explanation he given here lot of missing
parts so better load up your chart and backtest yourself
t.me/ICT_NoteTaking