Core Month 02 02 Framing Low Risk Trade Setups - newsqlguru/ict-index GitHub Wiki

ICT Mentorship Core Content - Month 02 - Framing Low Risk Trade Setups

Key Terms

Content

How to frame Low Risk Trade Setups
- What makes a setup worth taking?
Trade Setups on HTF
- Primary function of high odds/probability trade.
- Provides directional bias, Institutional Order Flow and Key S/R levels ideas framing long/short trade.
Large Institutions & Banks analyze markets on Daily, Weekly, Monthly basis.
- Locating Price Levels that align with Institutional Order Flow is key.
HTFs frame setups form slow & provide ample time to plan accordingly.
What can we do to lower risk in the trade?
- HTF has more influence on Price, we focus on HTFs
- Conditions that lend to a trade setup on a HTF can be refined to LTFs
Transpose HTF levels to LTF charts.
- Refine HTF levels to LTF charts allows smaller stops loss placement and risk.
ICT Interbank Insight
- SM Buys under old lows Sells above old highs.
Reduce risk by moving to LTF
- Find OB created after initial liquidity raid.
  - PA trades into HTF OB.
  - PA creates LTF OB.
  - Trades into HTF OB then moves away past LTF OB, this PA confirms and verifies the LTF OB.
  - We can enter the trade with a limit order at the Open/Close of LTF OB candle body.
    - Stop loss is at the High/Low of the OB or next candle.
    - This is much smaller level of risk than the HTF entry.
    - Trade is much closer to Key Level of HTF or Daily OB.
    - Risk is now 17 pips reduced from the HTF entry.
- Move to LTF (5m)
  - Same HTF Key Level.
  - Find LTF OB, this will be smaller and closer to HTF Key Level.
  - Reduce risk to 8 pips
  - Trade entry limit order at Open/Close of LTF OB candle
    - Stop loss at high/low of LTF OB or candles after LTF OB in Swing High/Low.

Notes

Find 10 occurrences in past price action and log them in your trade journal.
Extra credit if found on multiple time frames.