All language subtitles for Lesson 06 BBbuys EN

Welcome back folks to the lesson,
six of the may, 2017 ICT mentorship.

I think the amplify day trading
and scalping, this teaching

is bread and butter bison.

Okay.

Bread and butter by setups daily
opportunities and scalping.

Now, what you're gonna be focusing on
is consistent small price movements

that can be harvested not every day, but
just about every day now in by programs.

If they will perform one
of two price engine models.

The first is accumulate
sell-side liquidity by repricing.

Under an old low sell stops will
be triggered inducing counterparty

sellers to pair long entries with
price will seek a higher short-term

premium array to offset positions.

So offset accumulation is
the first price engine model.

The second is re cumulate fair value
in retracements lower at discount.

Week-long holders will be
squeezed in the retracement lower.

So, whereas anyone that's already long
when you see the retracement intraday,

many traders are usually using way too
tight of a stop-loss and there'll be

squeezed out and they'll be providing
short-term self held liquidity to

pair up orders with, and price will
seek to expand higher to a short-term

premium array to offset position.

Alright, engineering cell side
liquidity offset accumulation.

It will reprice the market below
in old, low to promote sell stops.

That will be residing there
for current long holders.

Now this is in essence, engineer's
sellers at a deep discount.

The open float, which is the
existing orders that are actually

in the marketplace above and
below the current market price.

The open flow below that old low may
also have cell stops for breakout

systems that wish to sell on weakness.

This model is called offset accumulate.

It's primary purpose is to offset
current long holders or induce

more sellers at discount pricing.

The model is seen frequently
in bullish market conditions.

And while higher timeframe, institutional
order flow is suggesting higher prices.

Typically offset accumulation models
unfold quickly, and you must learn to

anticipate them at key lows, intraday.

Alright, providing banks.

Entry points or pricing
with re accumulation.

If they will reprice the market lower to
a fair value price array to provide smart

money discount pricing for long entries,
the market will be bullish from an

institutional perspective and many times
unfolds after a recent sell stop rate.

The retracement lower in price will
place pain on current long holders

and tends to induce selling thus
providing Southside liquidity to

pair smart money long history.

This model was called green accumulation.

It's primary purpose is to re accumulate
new long entries and, or induce

more sellers at discount pricing.

The model is seen frequently
in bullish market conditions.

And while higher timeframe, institutional
order flow is suggesting higher prices.

Typically re accumulation models on full
quickly, and you must learn to anticipate

them at key discount or raise in.

Okay, realistic objectives.

The trade duration.

When we look for scalps are going to be
typically one to two hours or less many

times, a lot less, but usually about
two hours is the maximum pips portrayed.

Usually going to see a low end of 15 pips
to 30 pips on average timing, the market

we're going to be using the five minutes.

Now the frequency of setups per
week, you get as many as 15 or more.

Yes.

15 or more per day, you get
about two to three setups.

Typically per session, you
generally get about one per session.

That means.

One in London, one in New York, one
in London close, and one in Asia,

it doesn't mean you get one every
single session for every single pair.

It just means if you look across a handful
of pairs, get a basket of four or five,

you can watch and see that there's a
scalp usually setting up in one of these

sessions in one of those pairs or another.

And there's going to be more
volatility in one pair over them.

So if you look at, for instance,
the majors across the dollar, if

you look at all those majors paired
with a dollar, if you look at.

Major it London, obviously
London SU volatile.

You'll get something there obviously,
but New York, the same thing, but

usually London clothes and Asia both
will have, uh, something crop up in

either one of those major, uh, crosses
with a dollar, but not all of them.

Just one of them.

No, your risk to reward typically is
going to be one to one, which isn't hot,

but sometimes you can get a little bit
better than that, but generally if you're

thinking scalping think one-to-one, and
that's about all you're going to get

ideal risk per trade is a half percent
to 1% and 1% may be a little high,

but as you start to get better at it,
you can start seeing more setups, you

know, obviously in graduates at a 1%,
but I wouldn't do anything more than.

Now, this is the offset
accumulation model.

Basically it's a stop run on cell stops,
the buy profile for offset accumulation.

So in other words, it's engineering
cell side liquidity knocking out

south stops to take it higher.

And for re accumulation using
fair value or re accumulation by

profile for the price engine model.

This is what it is.

It's typically the ethical trade.

Alright, consistent small price movements
are going to be specific to kill zones.

All scalping should be done
during ICT kill zones since the

duration and style of trading.

So short-term in nature.

We need the most volatile times of the
trading day to ensure that we get a move.

There are times when using
limit orders and entry may

execute outside of kill zone.

This tends to happen in London lunch.

That means between 5:00 AM, New York
time to 7:00 AM, New York time or post

New York open, basically around 10
o'clock and later in the afternoon.

So it's best to be actively
following the market.

If you're going to be scalping day.

In other words, what am I saying?

Try to do all your scalping
with market orders.

You can get fancy if you want to with
limit orders, but my opinion is if

you're going to be scalping, just
use market orders is get in there.

Use market orders and use
limit orders for your.

I gave you here a little, a little chart
for the major sessions, and you can

see how the overlap with GMT time and
Eastern standard time, the Kilz zones

aren't completely lined up with this.

So you have to use the lesson
that I gave you in earlier months.

We're actually give you the
specifics about what each

kills zone time start and end.

All right.

Up-close days or bullish days, and
we're gonna be revisiting the daily

range here for completeness sake.

When the market is poised to
trade higher, based on higher

timeframe, institutional order flow.

In essence, we expect the open to me
at, or near the low, the daily range.

There can be a small decline
below the opening price.

And you're probably asking
yourself, well, Michael, which

opening price you referring to?

Remember?

We look at both zero GMT open
at Asia's open, and we're

looking at Midland New York.

So higher timeframe,
institutional order flow.

That means that monthly, weekly, daily
four hour, we've done our analysis.

We'd done all of our
directional bias studies.

We looked at the, if the data
ranges, where is the quarterly shift?

Most.

Is it looking to go higher and go lower?

Or we recently trading off
of daily bullish discount.

Rays, are we seeing bullish, shorter
blocks, support pricing bears,

shorter blocks, breaking way.

Are we coming down and filling
in liquidity voids and rallying,

or are we filling in fair gaps?

And then rallying, what that's telling
you is institutional airflow is bullish.

You don't need trend lines or
moving averages to do that.

And you just need to
see what price is doing.

How is it supporting.

Up candles up close candles, being
broken and down closed candles findings.

For every time price comes down to it.

That's institutional order flow.

So if you're looking at it on a higher
timeframe, monthly, weekly, daily,

four hour, and you see those evidences
in price, and you did your PDA rate

matrix and you see where those PDA
rays are, where's the one that you're

most likely, most likely going to fit.

See, facilitate a long entry.

It's the next one?

That price trades to, once you
get in there, obviously you're

gonna be looking for something.

The counterparty too.

So that way it frames your trade.

You have to have an entry point.

You have to have number one, you
have to have a consensus of whether

the market's bullshit bears and
we don't use anything except for

institutional or flow to get that.

That means we're looking at price action
that tell us what's what's occurring

our old highs breaking, but Lowe's not
being broken or are those loads being

broken quickly and in price naps higher
right away, what that's showing you.

The price engine model
was re accumulation.

They took it down to the cell
stops announcement going higher.

These are all fingerprints
are hallmarks of IPTA showing

institutional order flow is bullish

London open post the initial lake higher
intraday then waits for New York open.

Typically you'll see that London
open swing, pretty volatile,

pretty aggressive mood.

One side.

And usually it does about anywhere
between 40 and 60% of the daily range

before we get to 5:00 AM, New York time.

And then there's a small period
between 5:00 AM and 7:00 AM,

which is the London lunch.

And usually you'll get some measure
of retracement or consolidation there.

And then you have the New York open.

So New York open sees a continuation
higher when we're bullish.

And it usually tends to
expand up to 10:00 AM.

New York time.

Usually they'll start to consolidate
their, or create the high of the day.

And we trace a little bit, or it
could be a complete market reversal.

But in this case, what we're looking
for as bullish environments, where

the higher timeframe institutional
or flows bullish, and we expecting a

big range day where we can get some
scalping done, probably should treat up

into the five day average daily range.

Now that's a little
indicator I can give you.

It'll be attached to the forum
where you can download it.

I'm not going to give it to you
until we do the bread and butter self

setups so that we will have a complete
understanding what you gonna do with it.

Cause I'll give you the additional,
uh, instructions about that

in the self set up teaching.

And once the five-year average
daily range has hit, and then we

go into London close time of day.

Usually the price we'll be posting
it's high, and then they'll

start retracing off of that high.

So between 10:00 AM and noon in New
York time, we expect the high, the

daily range to form and at, or above the
five day average daily range projected

high price will normally retrace lower
and close off of the high of the day.

Now normally does it mean every time?

Okay.

Some of the folks in our membership.

Okay.

Take a statement that is not
highly specific and rigorous

about its uh, um, context.

Okay.

It's a normal thing, but
doesn't mean it's a panacea.

Okay.

It's not a be all end.

All.

It's not a absolute price will normally.

Retrace lower and close
off the high of the day.

What am I suppose in there
without actually saying it?

It can go higher.

Sometimes it can go a lot higher.

So just be mindful that while
we understand the daily range is

typically formed like this on highly
explosive up moves 10 o'clock.

Isn't going to stop price 11
o'clock is going to stop price noon.

Isn't gonna stop price one.

O'clock isn't gonna stop rise.

It can rally all that to
bond close at 3:00 PM.

Alright, the London open when we
scalping the London session, there

were some details about that.

Obviously when the higher timeframe
institutional order flow is bullish,

we're going to be anticipating
the London session low of the day.

Formation.

The open ends, your GMT or 12:00 AM in New
York can see a protraction phase lowering.

This can be scout from the open or
just above it prior to the 1:00 AM.

New York time.

Now, what am I saying here?

You can look at price action on a bullish
day, and if you're gonna be scalping,

you're gotta be really nimble about this.

You've gotta know exactly
what you're looking for for

a discount or re no worries.

You gotta really be confident
that your convictions are.

So strong that you think that when price
drops down to create that Judas swing

greeting the low of the day where you're
gonna be getting out at and where the

opening is, if there's a large enough
range there, that can be scalped.

I teach people not to try to do that, but
more appropriate would be to wait for the

Jew to swing and then buy it down there.

Okay.

But.

For scalping, some, some of you guys
are really excited about being nimble in

and out both sides of the marketplace.

Again, I'm not trying to promote
that idea, but I'm just giving

you a complete array of tools and
guidelines that I came up through

the market, using all these things.

But I gravitated away from doing that
this highly specifically looking for

that Judas swing down on days it's
bullish and I expect it to be up close.

I'm trying to nail down that
low, get real close to that low.

The classic London, Judas swing lower can
be scalp, even easier if you're looking at

the midnight candle in New York, uh, that
moved, that drops down from that candle.

That in my opinion is a little bit
easier to scout, even if you're going

to be seeing a higher close on the day.

But Asia's open debt can be a
little bit tricky because you

could have a really tight Asian
range and it doesn't do anything.

The market retraces between 5:00
AM and 7:00 AM New York time.

And this can provide a long scalp entry.

Once a discount array is hit.

Now think about this remote.

There's times when we looked at the price
and after the London kills zone closes.

Okay.

And there's that little
quiet period of time.

Okay.

Were Moroccans generally go quiet
and it's in consolidation and it's

waiting for New York opened around
seven o'clock, six 30 in the morning,

seven o'clock in the morning.

New York time is the New
York session open for ICT.

So what's going on in between that time?

It's it's the London lunch.

Just like in New York, sometimes
traders can work through lunch.

They can say, well, the markets
are really hot right now.

I'll eat lunch when I go home.

So if the markets are really busy, many
times you can get a retracement into

the London lunch that creates an early
entry and it moves before New York open

and that's going to happen sometimes.

And you can get mad and cuss at the screen
all you want, but sometimes you, if you're

really singing very volatile, In London,
or it was quite early in London and in,

towards the four 30 time period, when news
comes out, then it gets really active.

Usually it'll cross over into London,
launching, you'll get maybe a small

little, uh, 15 or 30 minute consolidation,
and then you get the retracement back

into New York and then it runs, but not
always, but it's very, very infrequently.

You'll see set ups that occur.

Where the entry point would be really good
if you trading between 5:00 AM and 7:00

AM, but it's better just to not even trade
that time period, don't even look at it

and think that you have so having you the
expectation, there's a quiet period in the

marketplace between 5:00 AM and 7:00 AM.

Just keep that as a general rule of
thumb, but unless the London session is

quiet in the beginning, and then it gets
really active after three o'clock or four

o'clock, then you'll probably see a little
bit of bleed over in to post 5:00 AM.

New York.

Even after the initial Judas
entry point has passed.

That means, in other words, you missed it.

You couldn't get in when it drop down.

Many of you are too afraid to get in
there because I say you want to be buying

on a Judas to swing down or below the
whipping price and don't chase price.

So some of you are holding fast to that
rule and, but you don't ever do any.

But there's opportunities.

If you use the five minute chart,
you can use a scalping technique

that gets you in sync with it.

Now, the reason why I didn't teach
it to you sooner, because it's

scalping we're in that time period
where we can use these tools.

Now, up until recently, we haven't
even looked at a five minute chart.

You, we were always higher timeframe and
sticking to the rules of each parameter

for each style trading and scalping.

We look at a five minute chart.

Now I'll comment on the
markets with a one minute.

A few times before we closed this
month out, but generally five

minutes when I'm working off of,

okay, this is an example
of a London session scalp.

Okay.

You can see the price trades
back down for a fair value.

Got for a recalculation fills in
the gap in the London open trades.

EDRs hit in London open and it's a 30
PIP scout because a little bit more now,

obviously, but that's all you would be
looking for for a scalp and it's over dog

scalping.

The New York session when London opened,
confirms institutional sponsorship on

the long side and post the daily low, we
expect to see New York open to continue

higher unless a higher timeframe premium
array has been hit, enter date and or ADR.

We look for intraday swings, higher to
determine discount range of raise to

go long at, in the New York kill zone.

Basically think prices got move higher.

Then it starts to retrace
think optimal trade entry long.

Okay.

It's basically what I'm describing there.

So you'd be looking for a discount
array, either a bullshitter block,

a fair value gap or liquidity.

Using the 8:20 AM, New York time
for CME Scoggin mercantile exchange.

That's when the commodity futures contract
start trading open to anticipate the New

York Judas swing to fade targets will be
the five day average daily range high.

And the next higher timeframe
premium array filed on a

four hour or 60 minute baby.

If ADR high is reached prior to 10:00
AM, take 80% off of your position and

leave a small portion on to capture
any range expansion that might feel.

Let me rephrase that again.

If you're long in new.

Okay.

And you have a move that's quietly
moving higher, but it goes up and hits

the average daily range before 10:00 AM.

That means it fulfill its
average daily range early.

Usually London close creates the highly
highly day, but if it does it before 10:00

AM still take 80% of the trade-off, but
leave a small portion on it because you

may end up getting a rather large range
day and sometimes ADR can be doubled.

Okay, so you can see an example
here of the New York opening trade.

Very similar in a way we looked at the
London open price, comes down and fills

in a fair value gap trades into or block,
and that Bluth in line with the CME

open, the price drops down after that.

That's the Judas waiting
for the New York session.

So every session has a
projection of market state.

If you're bullish in New
York, you look at for.

And as you just swim, dropping down
after eight 20, if you're bullish in

London, you're looking for New York,
midnight candle and price trading

lower after that to be a buyer.

And it probably should
expand higher in Asia.

It's your GMT eight o'clock
in the evening in my time.

Right now, if you look at that
session, you want to see a trade down.

Right after, as you're GMT, it doesn't
go down very much that time of day

though, but it can go down just
below a previous late session swing.

Like we talked about in previous
lessons that is the Judas swing at zero

GMT, or Asia's open at London close.

It can happen, but it's the opposite.

You're looking for the range to create a,
for a bullish day what's going to happen.

Is this.

Go up a little bit after
10 o'clock in the morning.

So you'll have a line on your chart
vertically 10 o'clock, New York time, and

the rally that takes place post 10:00 AM.

That's the Judas swing or
projection, any state where it

creates the high of the day.

And then you'll be looking to sell
that if you're going to be a loving,

close trader, which we'll talk about
next Kay, scalping, the London close.

Uh, before I get into this,
I did a teaching, um, ways.

I think it was in 2010, the, uh, train
the London clothes and really good.

I gave us a lot of the rules I use
for my SMP training, because there

was a lot of trades that you can take
trading spoos, which is S and P futures.

The, uh, when you're trading day trading
the S and P you're, you're really

trading two sessions the morning trend.

Then you wait for a launch to
go sideways or retrace, and then

you have an afternoon trend.

Okay.

Uh, usually.

It's about 10 30 to 11 o'clock
in the morning, New York time.

That's the, the end of the morning
session or the am trend for

the, uh, for the spoos market.

Um, usually traders go to lunch
between 11 o'clock and one o'clock.

And at a little bit after one
o'clock you have a PM trend that

goes into the close at four o'clock.

But the characteristics that you see for
London close for four X is the same thing

that Drake day traders do for S and P.

So it's that time of day, uh, influence
where London traders are trade S

and P they're going through, uh, you
know, they're going home to, so when

the New York and London sessions
have moved in tandem, that means

they've moved in the same direction.

And the five day average daily
range high has been reached,

and it is at least 10:30 AM.

Now this is a little different as a
filter, 10:30 AM in New York time,

expect the retracement off the days.

Again, between 10:30 AM and 1:00 PM.

That's what you're looking for
for that setup for line clothes,

ideally price should exceed the
five day average daily range high.

It should be more than what you expected
to see in the five day average hourly

rates, because then you have a really
Uber bought really stretched out range.

Look for a five minute failure swing
at the high end, a bear's or block the

entrance to basically what you're doing
is you're waiting for it to create a high

you start to back off and it rally one
more time up it until the last up candle.

And it has to occur between 10:30
AM and 1:00 PM going to risk

10 pips above the day's high.

And you're gonna target 20 to 30% of the
total daily range in a retracement lower.

Then I'll show you what that looks like.

What.

Keep in mind, this trade can be very
difficult to see pan out some days

as the range can and could expand far
more than the average daily range.

High remember average daily
range is not a barrier.

It's not a force field.

It's not going to stop price.

All we're doing is getting a calculation
of what's the average expansion

we've seen over the last five days.

Well, if you're looking for a big move
on the upside, wouldn't you really

expect it to go beyond average daily.

And that's the problem we're
trying to buy in a preconceived

idea that the market should go up.

So eventually, you know, if we take
everything off at five day average

daily range highs, when we're bullish,
you leave nothing on the capture.

These double ADR days they can happen.

So with that mind is understand.

Just because we have both New York
and London sessions moving in tandem

one direction doesn't mean that
there's going to be a retracement of

any measure that you can trade short.

That's why I don't trade
London clothes anymore.

I used to do it a lot, but it
just fell out of favor with me.

Cause I just didn't get enough
pips out of it or I'd get

stopped out and you know what?

Just keep on going against me.

So I teach it for completeness sake here
because I've done lessons in the past.

But when we get an S and P it's a
little bit more favorable trade net,

Ideally take one to one risk to reward
targets based on required, stop and

try to get no more than 20 pips.

Okay.

And I mean that don't try to
get 65 pips or don't try to get

a one shot, one kill haul one.

Let me close.

It just doesn't do it.

Um, typically I should have
it in my notes here, but it

should be about 15 to 20 pips.

If you get 20 pips, be
thankful, move to aside.

Okay.

Here's an example of what
a London close looks like.

It comes down in Dillon close time
period, and you would be buying it

on a failure swing and you see here,
it actually went a little bit lower.

And if your stop would have
been just below one or two pips,

you would have get knocked out.

But again, we're using a 10 pips
below the low and looking at the price

on, let me have the price, but the
Fibonacci on this chart here, you can

see that where it says London close.

Objective, that's 30% on the fib 0.30.

You just add that level
and you'll have that.

And point 20 is the lower level.

So in between these two lines,
that's usually where the market

will reach up into on retracements.

And that's a good rule of thumb
for day trading also, because if

you haven't, uh, expectations.

And you know what the average
daily range high is going to be.

You can use that projection from the
daily, low, or low and low and draw

their faith all the up to an anchor
to a day average daily rates high

well before price even gets there.

And you can actually see using this
20 to 30 level on your fib, that's

usually where the clothes is going
to be when the close date or it's

going to close right on the high.

But generally when it trades off
the high it'll it'll trade off the.

And close in between the 20
and 30% levels on your fib.

If you add them, I don't keep them there.

I just know what 2030 looks like.

Oh, my, my range is because I've been
doing it so long, but for a crutch

while you're doing it and you learning,
it's a good idea to have it on your,

uh, your Fibonacci that we can use it.

K trading, the Asian
or scalping, the Asian.

When the market is bullish, we can
enter long at, or just under the

zero GMT opening price and expect
an expansion of 15 to 20 pips.

And as I said, 15 to 20
higher as the agent ranges.

Asian sessions can
traditionally be very narrow.

And while this trade has proven
profitable in the past, nothing is

repeating in terms of promised gain.

So what was done in the past is
not indicative of the future.

So like London close trades, we
are looking at the lowest volatile

periods of the daily range for me.

So while I'm talking about it here
for completeness sake and set way,

I'm teaching you a well-versed
perspective on how daily ranges are

formed and how IPTA engineers to daily
ranges using time of day, and the

characteristics that go along with them.

Asia's opening and London clothes are
the two smallest, tiny little windows

of opportunity, and it doesn't pay out
enough in my opinion, to take on the risk.

But if you just want to do observations
and study and you want to do some

crunching of the numbers cab at me,
but just trust me if you're looking

for more bang for your buck and your
study time and seeing movement in

price, you won't be focusing on the
New York and the London session.

I always aim for 15 and 20 pips
in the session, as the range can

be limited on the basis that it
will be the Asian range formation.

Remember typically we're looking
for a really tight, narrow

range on the Asian range.

So if we're looking to be a bullish buyer
of the day and you're trying to day trade,

and we think it's going to go higher.

Yeah.

You can scout that.

But what you're asking, actually
trying to do is demand that the

Asian range pays you when you really
hope that it's going to be a small.

So it's, there's a
confliction between the rules.

So while you may sometimes get
lucky and you get the expansion in

the Asian range and it gets like a
30 PIP or 35 PIP, uh, Asian range,

you might get something out of it.

My question to you is why
you're worried about it.

Then you're probably asking,
well, why am I including it then?

Because I'm going to get
questions about trade in Asia.

I'm going to get questions about,
well, what about loving clothes?

You used to do a teaching about that.

Yeah.

How many times have you
seen me train in London?

You don't see it in a lot.

You don't see me doing it unless
it's a reversal time of day.

If it's going to be reversal market
profile, then I'm all over London clothes.

Same with Asia.

If I think it's going to be trading
down to a level, that would be a high

timeframe, uh, discount array, but
it didn't quite get down there in New

York and it's just hovering above it.

I would look for Asia's opening
to facilitate that entry.

And then that would be the low of
the day then, and start rallying up.

Take full exits on scalps
in this time of day.

In other words, don't leave portions
on and again, it's not optimal

to expect a second leg and price.

Avoid greed.

And if you are fortunate to
get 20 pips be content in exit

Asia, is this a weird animal?

And it's usually very quiet.

So again, my more, our understanding
about AmTrust today is.

We're forming the initial high
and low the day during this time.

So again, you're really having to be
nimble and I know what's going to happen.

You're going to get in here and start
monkeying around with this trade

and you're gonna see it shoot up.

And it's got 27 pips.

You didn't put a lemon odor in it, but
you all Alma automatically it shoots

out 27 pips and you're in profit.

What do you, think's going to happen?

You're going to start thinking,
wow, this is the low of day.

Um, I'm gonna, I'm going
to hold this thing.

And in various.

It won't be, it'll be a Judas Twain
later on after midnight though, lower.

And it stops you out.

And then what has it freaked you out?

And you get mad and you miss the actual
mood he should've been looking for all

along did means you to swing, dropping
down to be a buyer will net bullish day.

So I've given you some rules.

I've given you some context about
how I look at scalps, how the

price engine models deliver price.

Offset accumulation and the re
accumulation models that take place for

buying bank traders will look for these
opportunities to pair up their orders.

And that's how we can do
the same thing on scalping.

Even if we think that the market's
going to be quiet, many times you

can get 15, 20 pips in a day, a
couple of times a week, and that's

all that's necessary to do well.

Remember we talked that
25 to 30 pips a week.

Doubles your money.

And we can actually start
doing that with scalping.

And until next lesson,
I wish you good luck.