Complete Trading Rules Extraction Icc Trading Strategy
Complete Trading Rules Extraction Icc Trading Strategy
TABLE OF CONTENTS
1. Core Strategy: ICC (Indication, Correction, Continuation)
2. Market Structure Fundamentals
3. Timeframe Correlation Rules
4. Entry & Exit Rules
5. Stop Loss Placement
6. Swing High/Low Identification
7. Chart Markup Guidelines
8. Trading Sessions & Volume
9. Risk Management & Psychology
10. What NOT To Do
This is a 3-step price action strategy that identifies trend direction, waits for pullbacks, and executes
on the continuation.
Rules:
- ✅ Indication ONLY happens when breaking swing highs/lows
- ✅ Always creates a new high or new low
- ✅ Mark on 1-hour or 4-hour timeframe ONLY
- ✅ Shows direction price wants to move
- ❌ NEVER trade the indication/breakout itself
- ❌ Wait for second confirmation (continuation)
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Quote: “Indications can only come from price breaking a swing high or swing low. That’s it. If it’s not
breaking either one, it’s not an indication.”
2. CORRECTION
Definition: The pullback after indication, grabbing liquidity from FOMO/breakout traders
Rules:
- ✅ Happens after indication
- ✅ Grabs liquidity from breakout traders
- ✅ Monitor on 15-minute timeframe (scale down from 1H/4H)
- ✅ Correction grabs FOMO traders, revenge traders, greedy traders
- ✅ Price normally does NOT go all the way back to previous level
- ❌ Do NOT trade during correction phase
- ❌ Avoid the “opening the Coke bottle” explosion
Purpose:
- Liquidity grab - market taking money from poor positions
- Shake out weak hands before real move
- “Market sees there’s money to grab, then comes back”
Quote: “Corrections happen after price makes a new high or new low. The market is taking in all the
FOMO traders, the greedy traders.”
3. CONTINUATION
Definition: When price breaks back above/below the indication level a SECOND TIME
Rules:
- ✅ THIS IS YOUR ENTRY ZONE
- ✅ Use 5-minute or 15-minute timeframe for entries
- ✅ Enter when price breaks back above (buy) or below (sell) the indication level
- ✅ Look for market structure alignment (lower highs for sells, higher lows for buys)
- ✅ Entry should be where indication level was broken originally
- ✅ More conservative: Wait for price to break the level again before entering
- ✅ Target the previous swing high (for buys) or swing low (for sells)
Quote: “The continuation is after the correction is over, you’re waiting for price to flip the trend and
take it back up. This is your entry model.”
Rules:
- ✅ Each high must be higher than previous high
- ✅ Each low must be higher than previous low
- ✅ Price respects support levels (doesn’t break them)
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Quote: “If price is on an uptrend, it should not break its structure unless it’s reversing.”
DOWNTREND
Components:
- Lower Highs (LH)
- Lower Lows (LL)
Rules:
- ✅ Each high must be lower than previous high
- ✅ Each low must be lower than previous low
- ✅ Price respects resistance levels (doesn’t break them)
- ✅ If trending, price will NOT break resistance unless reversing
- ❌ If resistance breaks = trend changing or consolidating
CONSOLIDATION
Definition: Price breaking structure both ways, no clear direction
Rules:
- ❌ DO NOT TRADE consolidation
- ❌ Price breaking rules = stay away
- ✅ Wait for clear indication above/below consolidation range
- ✅ Consolidation = “shaking up the Coke bottle” - accumulating money before breakout
Quote: “Consolidation is when a high and a low is being broken back and forth. It has no rules. You
don’t want to put yourself around something breaking the rules.”
Identification Rules
• ✅ Mark on 1-hour or 4-hour timeframe (primary)
• ✅ Use body closes not just wicks for key levels
• ✅ Look for dramatic change in direction (visual cue)
• ✅ “Previous push” - where did this momentum come from?
• ❌ Don’t mark every small fluctuation
• ❌ Don’t zoom in too much - keep higher timeframe perspective
Visual Cues:
- Price hits a level and sharply reverses
- Clear pivot point visible on chart
- Multiple rejections at same level
- Strong volume/momentum change
Quote: “Swing highs and swing lows is a visual cue. You can visually see it. Price comes up to a
certain highest point and then goes completely opposite direction.”
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Strength Hierarchy:
1. Daily > 4-Hour > 1-Hour > 30-Min > 15-Min > 5-Min
Rules:
- ✅ 4-hour levels are stronger than 1-hour
- ✅ 1-hour levels are stronger than 15-min
- ✅ Always default to higher timeframe if conflict
- ✅ Higher timeframe will always take back control eventually
- ✅ Use 4H/Daily for long-term swing trades
- ✅ Use 1H for day trading that can turn into swings
Quote: “The higher time frame is always going to take back control and it’s going to be way
stronger.”
Step-by-Step Correlation
Step 1: Mark Up (1H or 4H)
• Identify swing highs and swing lows
• Determine trend direction
• Mark indication levels
• Identify no-trade zones
Correlation Rules
RULE 1: Everything must align
- ✅ If 4H is bearish, 1H should turn bearish, then 15-min should turn bearish
- ✅ Each timeframe must confirm the direction
- ❌ Don’t trade if timeframes contradict
Quote: “Everything has to correlate with each other. If you’re using a one-hour time frame, everything
under the one-hour has to correlate with that one-hour time frame.”
Entry Location:
- Conservative: Enter when price breaks below support after lower high forms
- Aggressive: Enter as price comes back under indication level during session volume
- Best: Above indication level + New York/London session volume
Quote: “Under this level, I was looking for price to go bearish. All I’m doing is waiting for that
correction to happen, looking at it on the 15-minute time frame, scaling in.”
Entry Location:
- Conservative: Enter when price breaks above resistance after higher low forms
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- Aggressive: Enter as price comes back above indication level during session volume
- Best: Above indication level + New York/London session volume
Why: This is where sellers (for buys) or buyers (for sells) originally were
Example:
- Sell indication broke swing low at 100
- Correction happened
- Entry at continuation under 100
- Target: Previous swing low that was broken (where indication came from)
Soft TPs: Don’t set hard limit orders at exact level - use alerts and monitor price action
Quote: “Your TP is going to be that one hour level because this is where everything started in the first
place. Target here because that is where that low was made.”
Exit Rules
Mandatory Exit Conditions
1. ❌ Stop loss hit
2. ❌ Market structure breaks (trend reversal)
3. ❌ Price breaks through previous support (buys) or resistance (sells)
4. ✅ Primary target reached
5. ✅ Lower timeframe shows opposite trend forming
When to exit:
- ❌ 15-min timeframe forms opposite structure
- ❌ Price makes lower high (if long) or higher low (if short)
- ❌ Break of 1H support/resistance
- ❌ Consolidation forms
Quote: “I try to take a trade on one day and then be able to hold for the week. You’ll make more
money that way. You won’t be having these consistent losses because you’re taking 30 trades a day.”
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Method:
1. Take partial profit at primary target (e.g., 50% position)
2. Move stop loss to breakeven
3. Let remainder run for trend continuation
4. Trail stop using lower timeframe structure
For Sells:
- ✅ Place stop loss ABOVE the lower high
- ✅ If multiple lower highs, use most recent one
- ✅ Give room for wicks - use body closes
- ❌ Don’t place too tight - price needs breathing room (especially Nasdaq)
For Buys:
- ✅ Place stop loss BELOW the higher low
- ✅ If multiple higher lows, use most recent one
- ✅ Give room for wicks - use body closes
- ❌ Don’t place too tight - price needs breathing room
❌ Moving Stop: Moving stop loss away from entry after placing trade
- Problem: Violates risk management, emotional trading
- Solution: Set and forget stop loss
Quote: “Your stop loss should be at a level where if it hits your stop loss, your trend, your trade is in‐
validated.”
Example:
- Account: $10,000
- Risk: 2% = $200
- Entry: 100
- Stop Loss: 98
- Risk per unit: $2
- Position Size: $200 / $2 = 100 units
Key Principles:
- ✅ Risk 1-5% per trade (depending on account size and experience)
- ✅ Aim for 1:3 or 1:4 risk-to-reward minimum
- ✅ Calculate position size BEFORE entering
- ❌ Never risk money you can’t afford to lose
- ❌ Don’t increase position size mid-trade
Process:
1. Start on 1-hour or 4-hour chart
2. Scan for obvious pivot points
3. Look for where price “stepped on the gas” or “hit the brakes”
4. Mark levels where price made sharp reversals
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Key Indicators:
- Price shoots up/down rapidly, then reverses sharply
- Multiple rejections at same level
- Large candle bodies followed by reversal
- Clear “V” or inverted “V” shape formation
Characteristics:
- ✅ Sellers sitting at this level
- ✅ Price rejected multiple times
- ✅ Created downward momentum
- ✅ Visible on 1H/4H chart
How to Mark:
- Use body close, not just wick (for precision)
- Look for where price “stopped” and reversed
- Don’t mark every small high - only significant ones
Quote: “This is our highest point. Like smoking weed, right? You smoke weed and you’re like, ‘Yo, this
is the highest I can get.’ Same with price - this is the highest you think price can get.”
Characteristics:
- ✅ Buyers sitting at this level
- ✅ Price supported multiple times
- ✅ Created upward momentum
- ✅ Visible on 1H/4H chart
How to Mark:
- Use body close, not just wick (for precision)
- Look for where price “bounced” and reversed
- Don’t mark every small low - only significant ones
Common Mistakes
❌ Over-marking: Marking every tiny fluctuation
- Solution: Zoom out, only mark major pivots
Practical Example
Looking at current price:
1. Scan back 3-4 days on 1H chart
2. Identify highest point - mark as swing high
3. Identify lowest point - mark as swing low
4. These are your key levels
5. Wait for break above high or below low (indication)
Quote: “Only need one to three sessions. Three sessions. This is all we need. To be honest, sometimes
you don’t even need that many.”
What to Mark
Essential Markings:
- ✅ Swing highs (resistance)
- ✅ Swing lows (support)
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Optional Markings:
- Lower highs (in downtrend)
- Higher lows (in uptrend)
- Previous push levels (where momentum came from)
Don’t Mark:
- ❌ Every candle high/low
- ❌ Minor fluctuations
- ❌ Arbitrary round numbers
- ❌ Levels from weeks/months ago
Keep it Simple:
“Your chart should have gray boxes, maybe circles, maybe arrows and a line. That’s pretty much it.”
Sessions Indicator:
- Mark London and New York sessions
- Helps identify when volume comes in
- “Junior FX Addict” sessions indicator (2.2k users)
- Shows when to expect movement
Quote: “Indicators: turn on sessions. Gold trades in London and New York. Turn on your sessions so
you know when volume is coming.”
Characteristics:
- 🔥 Highest volume for USD pairs, Nasdaq, Gold, Indices
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What to Trade:
- Gold
- Nasdaq (NAS100)
- US30 (Dow Jones)
- SPX 500
- USD pairs
Strategy:
- ✅ Enter trades during 9:30 AM - 12:00 PM EST
- ✅ This is when indication continuation happens
- ✅ Volume drives price in intended direction
- ❌ Avoid trading after 4:00 PM EST (low volume)
Quote: “New York session for me starts at 9:30. That is when the bell opens. This is when the New
York Stock Exchange is opening.”
London Session
Time: 3:00 AM - 12:00 PM EST
Characteristics:
- Strong volume for European pairs
- Can see indications form
- Good for GBP, EUR pairs
- Gold has movement
What to Trade:
- GBPUSD
- EURUSD
- Gold
- Some crypto (Bitcoin, Solana)
Strategy:
- ✅ Can catch early momentum
- ✅ Good for swing positions
- ✅ Watch for indications during London
- ✅ Often see corrections during London before NY continuation
Asian Session
Time: 7:00 PM - 4:00 AM EST
Characteristics:
- ⚠️ Low volume - avoid trading
- Consolidation often forms
- Price movement is choppy
- “Out of session” - fake volume
Strategy:
- ❌ Generally avoid trading
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Quote: “This whole time it’s out of session, that’s what price did. Price ended up finishing off and
became bullish. So now the one-hour is aligning with the four-hour.”
Volume Principles
Rule 1: Volume = Movement
- More volume = stronger, more reliable moves
- Low volume = chop, fake outs, consolidation
Quote: “Trading things where it has more movements will normally come down to investments. Are
people investing their money into this?”
Example:
Account: $10,000
Risk: 2% = $200 per trade
Stop loss distance: 100 pips
Position size: $200 / 100 pips = $2 per pip
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Rules:
- ✅ Risk consistent percentage each trade
- ✅ Calculate position size BEFORE entering
- ✅ Never risk more than you can lose
- ❌ Don’t increase risk after losses (revenge trading)
- ❌ Don’t overtrade to “make it back”
Quote: “When you’re trading, or when you’re working a job and you’re trading, some of you guys are
probably making around 60 to 90 dollars a day. That should be your mindset. You only need two solid
trades a week to make your paycheck.”
Proper Approach:
1. Work job/jobs to build capital
2. Save $1,000-$3,000 dedicated to trading
3. Learn while saving (demo trading)
4. Once capital saved + proven on demo = go live
Why:
- Removes emotional pressure
- Allows proper position sizing
- Can absorb losses without devastation
- Clear head for decision making
Quote: “You need at least $2,000 to $3,000. You don’t want to trade your way out of your job that
same week trying to flip $500.”
Psychology Rules
Rule 1: You Are NOT a Genie
• ❌ Don’t predict the market
• ✅ Follow what price shows you
• ✅ React to price action, don’t forecast
Quote: “Stop trying to be this fucking genie, bro. You don’t have a crystal ball. Just follow what price is
doing.”
Example:
- Bad: Enter late with tight stop
- Good: Enter at key level with room for stop
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Quote: “It’s okay to miss out on one trade. You can catch the rest if the higher timeframe is building
that trend.”
Greed:
- Overleveraging position
- Not taking profits at target
- Holding too long
- Solution: Stick to plan, take profits
Revenge Trading:
- Trying to “make back” losses immediately
- Taking random setups to recover
- Increasing position size after loss
- Solution: Step away, follow plan, consistent risk
Fear:
- Not entering valid setups
- Exiting winners too early
- Second-guessing analysis
- Solution: Trust your analysis, follow rules
Quote: “Trading has truly made me build this mindset and eliminate greed and eliminate false hope in
a trade. It made me leave so much behind.”
Why:
- Identifies patterns in your trading
- Shows what works and what doesn’t
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Quote: “I set alerts on TradingView. When I set alerts, the alerts would come up on my watch. I would
pull out my phone. Click buy, set my stop loss, get off my phone. It takes one minute.”
WHAT NOT TO DO
❌ NEVER Trade Consolidation
Why:
- Price breaks rules
- No clear direction
- High risk of whipsaw
- Unpredictable movement
How to Identify:
- Price breaking both swing high AND swing low
- No clear trend
- Equal highs and equal lows
- Choppy, sideways movement
What to Do:
- ✅ Wait on sidelines
- ✅ Set alerts above/below range
- ✅ Only enter when indication breaks out
Quote: “Consolidation, don’t trade it. I’m telling you now, don’t trade it.”
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What to Do:
- ✅ Wait for correction to happen
- ✅ Enter on continuation (second time)
- ✅ Better risk-to-reward
Quote: “Most people will see breakouts and there was some that I profited on, but what I like to focus
on is not what just makes me profitable, what makes me consistent.”
Why:
- Fake volume
- Price manipulation
- Gaps and spikes
- Unreliable price action
Quote: “You really just want to be careful and trade that 9:30, 8 o’clock. Those are the times you
really just kind of want to be in the markets.”
Right:
- ✅ Always mark up on 1H or 4H
- ✅ Use lower timeframes ONLY for entries
- ✅ Structure comes from higher timeframe
Quote: “Do not come on, do not wake up in the morning and mark your charts up on the 15-minute
time frame and the five-minute time frame. No.”
Always:
- ✅ Set stop loss BEFORE entering
- ✅ Place at invalidation point
- ✅ Calculate position size based on stop
- ❌ Never move stop away from entry
Why it fails:
- Not following strategy
- Clouded judgment
- Higher risk
- Often leads to more losses
What to do instead:
- ✅ Step away after loss
- ✅ Review what went wrong
- ✅ Wait for next valid setup
- ✅ Keep consistent risk
Quote: “Revenge trading, FOMO, greed - trading has made me leave so much behind.”
Why:
- Low movement
- Wide spreads
- Unpredictable
- Strategies don’t work as well
Trade instead:
- ✅ Gold
- ✅ Nasdaq (NAS100)
- ✅ US30
- ✅ Bitcoin, Solana (crypto)
- ✅ GBPUSD, EURUSD (if must trade forex)
Quote: “The people that really make a lot of money in trading, they don’t trade no fucking AUDNZD.
They’re trading gold, they’re trading Nasdaq, they’re trading US30.”
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❌ NEVER Overtrade
What is it:
- Taking 10+ trades per day
- Trading every tiny movement
- Forcing trades when no setup
- Day trading on 5-min structure
Why it fails:
- Transaction costs add up
- Mental exhaustion
- Not following plan
- Missing quality setups
Proper frequency:
- ✅ 2-3 quality trades per week
- ✅ Hold trades 1-3 days (swing trading)
- ✅ Focus on 1H/4H setups
- ✅ Quality over quantity
Quote: “I only take maybe like six or seven trades, maybe a month. Trades like this, they go on for
two, three days.”
Why:
- Analysis paralysis
- Conflicting signals
- Overthinking
- Not sustainable
Keep it simple:
- ✅ Price action only
- ✅ Support and resistance (swing highs/lows)
- ✅ Market structure
- ✅ ICC strategy
Quote: “Trading is easier than what you think it is. People always make it seem like trading is like this
super hard thing to get into, but honestly, it’s not.”
ICC Setup:
- [ ] Indication happened (new high or new low)
- [ ] Correction occurred (monitored on 15-min)
- [ ] Price showing continuation back through indication level
- [ ] Market structure aligning on lower timeframe
Entry Criteria:
- [ ] Entry on 5-min or 15-min timeframe
- [ ] For sells: Lower highs formed + breaking support
- [ ] For buys: Higher lows formed + breaking resistance
- [ ] Trading during New York or London session
- [ ] Volume present (not out of session)
Risk Management:
- [ ] Stop loss level identified (above lower high OR below higher low)
- [ ] Target level identified (previous swing high/low)
- [ ] Position size calculated
- [ ] Risk = 1-5% of account
- [ ] Risk-to-reward ratio at least 1:3
Execution:
- [ ] All criteria met - ENTER TRADE
- [ ] Set stop loss immediately
- [ ] Set alert at target level
- [ ] Walk away - let trade work
3. EXECUTION PHASE
• Correction finishes
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4. MANAGEMENT PHASE
• Let trade run
• Don’t micromanage
• Take profit at target or when structure breaks
• Journal the trade
• Repeat
5. DISCIPLINE PHASE
• Only 2-3 quality trades per week
• Risk 1-5% per trade
• Follow the process every time
• Don’t revenge trade
• Don’t overtrade
• Keep it simple
“If you successfully watch one through 13, I would definitely say you’re ready to start actually getting
into the markets and trading.”
“You only need two solid trades a week. Two solid trades, not 20, two trades.”
“Trading has truly made me build this mindset and eliminate greed and eliminate false hope.”
“Stop trying to predict the markets. Follow what is working. Follow the trends.”
“The higher the time frame you are, the stronger that trend respects itself.”
“Price action and market structure is basically what I’m teaching you. ICC is just a way to explain it to
people that don’t really understand it.”
“Keep it simple. Don’t let these people fool you into thinking trading is super hard.”
GLOSSARY
ICC - Indication, Correction, Continuation (3-step trading strategy)
Indication - When price breaks a swing high or swing low, creating new high/low
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Continuation - When price breaks back through indication level (ENTRY ZONE)
Swing High - Highest point before price reverses down (resistance, sellers)
Market Structure - The pattern of swing highs and lows forming trends
No-Trade Zone - Area between swing high and swing low before indication
Liquidity Grab - Market taking money from poor positions during correction
Generated from complete transcription of 13-day trading course (504MB audio, 8-10 hours)
Focus: 1H-4H timeframe analysis for swing structure, 5-15min for execution entries
Strategy: Price action trading with ICC methodology