THE TRADING FLOOR

Inner Circle Trader ICT

Instructor: Arty
 ELEMENTS TO A TRADE SET UP

Price either does 1 of 4 things

● Expansion - Judas Swing

● Retracement - New York Session
● Reversal - London Session
● Consolidations - Tokyo Session

The reasons why price does this and

targets to shoot for

● Order blocks
● Fair value gaps
● Liquidity voids
● Liquidity pool
● Stop runs
● Equilibrium
 EXPANSION

Expansion is when price moves quickly from

a level of equilibrium

When price leaves a level quickly this

indicated a willingness on the part of the
market makers to reveal their intended
repricing model

Look for the order blocks the market makers

leave at or near the equilibrium
 RETRACEMENT

Retracement is when price moves back

inside the recently created price range.

When price returns inside the price range it

indicated a willingness on the part of the
market maker to reprice to levels not
efficiently traded for fair value

Look for fair value gaps and liquidity voids as

areas of interest for retracements
 REVERSAL

Reversal is when price moves the opposite

direction then it was previously moving.

When price reverses direction it indicated

the market makers have ran a level of stops
and a significant move should unfold in the
new direction.

Look for liquidity pools just above an old

price high or just below an old price low.
 CONSOLIDATION

Consolidation is when price moves inside a

clear trading range and shows no willingness
to move significantly higher or lower

When price consolidated it indicates the

market makers are allowing orders to build
on both sides of the market. Expect
expansion in the near future

Look for the impulse swing in price away

from the equilibrium price level that is found
exactly in the halfway point of the
consolidation range
EXPLANATION
INSTITUTIONAL ORDER FLOW
Monthly Chart EUR/USD
 TOP DOWN ANALYSIS

Create Daily Price Action Logs with Price Charts

● Daily chart - 12 months no less 9 months view

● 4 Hour Chart - 3 months view
● 1 Hour Chart - 3 weeks view
● 15 Minute Chart - 3-4 days view

● Note where price shows a quick movement from level

● Note recent highs and lows that haven't been re-tested
● Note areas on chart where price left clean high and low
● Note what days weekly highs and lows form
● Note the daily high and daily low every trading day
(locate killzone)
 IMPULSIVE PRICE SWINGS

Impulse price swings - Sharp price

movements during New York and
London Sessions.

Retraction - When price moves

opposite to essentially a fake out then
impulses again in the overall trend
continuation.
EQUILIBRIUM VS DISCOUNT
EQUILIBRIUM VS PREMIUM
 PD ARRAY

Premium

1) Old Highs and Lows

2) Rejection Block
3) Bearish/ Bullish Order Blocks
4) Fair Value Gaps
5) Liquidity Void
6) Breaker Block
7) Volume Imbalance

Discount
 FAIR VALUATION
FAIR VALUE GAP LIQUIDITY VOID
 FAIR VALUATION

Volume Imbalance

A volume imbalance occurs when there

is a clear gap between a candle closing
price and the open price of the next
candle. These gaps are usually not
covered by wicks and leave an open
range where a volume spike has left an
imbalance in the price.
 LIQUIDITY RUNS

High Resistance Low Resistance

 ORDER BLOCKS
Bullish Orderblock:

Definition - The Lowest Candle or Price Bar with

a Down Close that has the most range between
Open to Close and is near a "Support" level.

Validation: When the High of the Lowest Down

Close Candle or Price Bar is traded through by
a later formed Candle or Price Bar.

Entry Techniques: When Price trades Higher

away from the Bullish Orderblock and then
Returns to the Bullish Orderblock Candle or
Price Bar High - This is Bullish.

Defining Risk: The Low of the Bullish Orderblock

is the location of a relatively safe Stop Loss
placement.

Just below the 50% of the Orderblock total

range is also considered to be a good location
to raise the Stop Loss after Price runs away
from the Bullish Orderblock to reduce Risk when
applicable.
 REJECTION BLOCK

The area in between

the wick and the
high/low of the candle
after a high/low is
formed.
BREAKER BLOCKS
THE ATM METHOD
 RETAIL DAY TRADING TRAPS

Retail day trading patterns like Bullish/ bearish Flags

As well as head and shoulders patterns are used
occasionally by smart money as traps at major swing
levels to fool retail traders at those levels of liquidity
 THE BIG PICTURE

LINK TO VIDEO
 BEST DAYS TO TRADE

Time of Day Day of the week

● London Session Open ● Sunday - opt out daily range too small
● New York Session Open
● London Close ● Monday - can create a small range typically
● New York Close ● Tuesday - usually a good day to trade
● Asian Session Open
● London Lunch
● Wednesday - generally ideal day to trade
● Thursday - generally ideal day to trade ( can reverse)
● Friday - Typically small range
Defining the daily range:

● Guidelines to follow
 HIGH PROBABILITY DAY TRADING SETUPS

What Makes Daytrades High Probability?

The Highest Importance is placed on the HTF Daily or 4h direction.

● When Daily and or 4h direction is Bullish:

○ Use Previous Day's Low to High for Retracement Entries.
○ Use Previous Day's NY Session Low to High for Retracement Entries
○ Use Previous Day's Low for Sell Stop Raid to accumulation longs.
○ Focusing on the anticipated move from HTF Discount to Premium PD Arrays.

● When Daily and or 4h direction is Bearish:

○ Use Previous Day's High to Low for Retracement Entries.
○ Use Previous Day's NY Session High to Low for Retracement Entries.
○ Use Previous Day's High for Buy Stop Raid to accumulate shorts.
○ Focusing on the anticipated move from HTF Premium to Discount PD Arrays.
 HIGH PROBABILITY DAY TRADING SETUPS

When Do I Look To Buy Daytrades?

● Ideally in seasonally Bullish periods of the year. * Not required.
● When the current Quarter or new Quarter is expected Bullish.
● After the Daily chart has reacted positively on a Discount PD Array.
● When Price has a clear unobstructed path to an opposing Premium Array.
● The Ideal Days of the Week buying Monday, Tuesday and Wednesday.
● Refer to the CBDR and determine if it is less than 40 pips ideally.
● Demand the Asian Range be in a 20 pip range ahead of Frankfurt Open.
● Buying between 2:00 am to 4:00 am NY Time seeking LOD.
● Buy 1-2 STD of CBDR and or Asian Range coupled with Discount PDA.
● Timeframe to execute on 15 or 5 minute chart.
 HIGH PROBABILITY DAY TRADING SETUPS

Where Do I Look To Buy Daytrades?

● Under Asian Range plus 5 pips.
● FVG below a Short Term low from Previous Day's NY Session.
● Bullish Orderblock below a Short Term low either Prev-Day or today.
● If I am very Bullish - 1 STD with ANY Discount PD Array in LO Killzone.
● Inside the Protraction lower post 12:00 am to 2:00 am with PDA.
● Filling of a Liquidity Void that completes under a Short Term low.
● If after rally post 12:00 am - Buy the 1st retrace into 15 or 5 minute +0B.
● 1-2 STD in Asian Range coupled with Discount PD Array.
● If Short Term low is taken out twice with no upside... buy Turtle Soup.
 HIGH PROBABILITY DAY TRADING SETUPS

Placing Stop-losses In Buy Daytrades?

● Whatever you use as the initial Stoploss - Do Not Rush moving it.
● If you are Trading the CBDR overlap with PDA - Stop is 30 pips under.
● If you are Trading a Run under the Asian Range - Stop is 40 pips under.
● If you are Trading ANY Sell Stop Raid - 30 pips under the low/entry.
● If you are Trading the 1st retracement into +OB - 10 pips under LOD.
● If you are Trading second return for Sell Stops - 30 pips under the LOD
● If you are Trading any other setup not described above - use 50% ADR of the last 5 days subtracted from the Asian
Range Low.
 HIGH PROBABILITY DAY TRADING SETUPS

Taking Profits In Buy Daytrades

● Always try to take something off in gain at 20-30 pips. Always

● Look to Scale something off every 2 STD of the Asian Range or CBDR.
● Take something off at the Previous Day's High +5 - 15 pips.
● Take something off at 50% of the Price Range you are trading inside 60m.
● Take or have 60-80% off at 5 day ADR projections... Always.
● If trading higher than Previous Trading Week High - take something off.
● If trading higher than Previous Month High - take something.
● In Time Of Day - scale out at 5:00 am NY Time a portion.
● In Time Of Day - scale out at Short Term High prior to 7:00 am NYO
● In Time Of Day - scale out at 10:00 am to 11:00 am NY time in rally.
● Ideally any of the above scenarios coupled with a Premium PD Array.
 HIGH PROBABILITY DAY TRADING SETUPS

Where Do I Look To Short Daytrades?

● Above Asian Range plus 5 pips.
● FVG above a Short Term high from Previous Day's NY Session.
● Bearish Orderblock above a Short Term high either Prev-Day or today.
● If I am very Bearish - 1 STD with ANY Premium PD Array in LO Killzone.
● Inside the Protraction higher post 12:00 am to 2:00 am with PDA.
● Filling of a Liquidity Void that completes above a Short Term high.
● If after drop post 12:00 am - Sell the 1st retrace into 15 or 5 minute -OB.
● 1-2 STD in Asian Range coupled with Premium PD Array.
● If Short Term high is taken out twice with no downside... sell Turtle Soup.
 HIGH PROBABILITY DAY TRADING SETUPS

Taking Profits In Short Daytrades

● Always try to take something off in gain at 20-30 pips. Always.
● Look to Scale something off every 2 STD of the Asian Range or CBDR.
● Take something off at the Previous Day's Low -5 - 15 pips.
● Take something off at 50% of the Price Range you are trading inside 60m.
● Take or have 60-80% off at 5 day ADR projections... Always.
● If trading lower than Previous Trading Week Low - take something off.
● If trading lower than Previous Month Low - take something.
● In Time Of Day - scale out at 5:00 am NY Time a portion.
● In Time Of Day - scale out at Short Term Low prior to 7:00 am NYO.
● In Time Of Day - scale out at 10:00 am to 11:00 am NY time in decline.
● Ideally any of the above scenarios coupled with a Premium PD Array.
 KILL ZONES

London : 02:00-05:00 UTC-4 (New York time)

New York : 07:00-10:00 UTC-4 (New York time)
JUDAS SWING
 SILVER BULLET

London Set Up Time - 03:00-04:00 UTC-4

New York Set Up Time - 10:00-11:00 UTC-4

(UTC-4 is New York Time Zone)

Price essential will create a fair value gap in

this time frame. Then once price returns to
that fair value gap it will reject and move
toward the next available liquidity. Do not
take this set up unless you can get at least
15 pips on forex pair or 10 points on Indices
(bare minimum, preferably more)
 POWER OF THREE
Power of 3 refers to the 3 components that make up price action
Accumulation/Manipulation, Distribution, Range Expansion
When the daily bias is bearish

Confirm london session was bearish

Wait for 07:00 NY time to look for short

Between 07:00-09:00 NY time it will form

After 07:00 NY time wait for retracement

NY session will retrace from the swing low

Ideally select retracement of at least 20 pip lower

If no retracement of 20 pips forms by 09:00 dont trade

If it does form enter on 62% fib level

(expect to retest low of the day and may continue)

OPTIMAL TRADE ENTRY - OTE
 SMART MONEY TECHNIQUE - SMT

AUDUSD
DAILY

USD INDEX
DAILY
HOW TO USE THIS INFORMATION

Lets jump into the charts

and run through some examples
 CONGRATS!

You may need to watch this multiple times

To have these concepts memorized

You only really need to use 1 and stick to it

Let us know you feed back in the general chat on discord