<aside> <img src="/icons/reorder_gray.svg" alt="/icons/reorder_gray.svg" width="40px" /> BPR / NFP protocol / MMXM / Macro / HTF vs LTF Imbalances / Mohawks / 3 PD arrays / IFVG + BPR / STDV’s / Price continuum / Inversion PD arrays / How to disqualify OBs / SMT sauce / How to read PD arrays / Shark analogy / Trading Interest rate differentials /
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We can see in the clip how ICT adds more as price touches the C.E. He goes long as price is inside the IFVG with the anticipation that it will reach for the low end of the D.V.I When price goes there, he takes the majority of the position off, SL is trailed and he takes partials from the quadrant levels.
Am Session Long Draw On Liquidity - Daily Volume Imbalance IFVG Entry - Pyramided Scaling Partials at D.V.I. Quadrants Levels. Music Credit: Alphabet Pony - New York Nights
Why did ICT took this trade on a Monday? -Well, its the first week of the month and we have NFP. On weeks like this we do our trading Monday, Tuesday and Wednesday till 11am.
When price doesn’t come back to touch what it would be an IFVG, these are signatures that the market is really strong and it’s in a hurry. In this example it was in a hurry for the Daily Volume Imbalance. This gives you the confidence that you are not chasing price and you can enter even after it has move a little bit.
Regular Monday protocol: It is better to not participate in any trades. Pay the premium price of missing a move, but allowing price to give you more insight for Tue/Wed/Thu/Fri. But when its NFP week we absolutely want to participate in the marketplace. Because professionals don’t trade Thu/Fri so they have to make their money early in the week. There will be a lot of volatility on those Monday. Right out of the gate there will be a lot of excitement. They will try to build a sentiment that later in the week will be attacked at 8:30 NFP event.
The market is going to for liquidity above/below on a time-based delivery. It will wait for a specific time of day where there will be a macro.
The markets are going to predetermined levels it is delivered and scripted by TIME. Just like your TV guide. How fast will it reach the levels, how long will it spend there before going the other direction. These are all important factors. Not every single time price goes up that is MMSM.
Below old Lows/EQL/REL there will be Sellside Liquidity (Sell stops). Above old Highs/EQH/REH there will be Buyside Liquidity (Buy stops).
Between those 2 price points there will be Inefficiencies in price. Anything above price is Premium array. It doesn’t mean that price will go up there and stop and not reach for Buyside. Anything below price is Discount PD array. It doesn’t mean that price can’t go through it and reach for Sellside.
Always allow a wick to do a mohawk. When you are about to place Stop loss around PD array, allow some space for a mohawk.
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TGIF is not every single week. If the market is reaching for a target on the Daily/Weekly in can still close very heavy and close to the low and not have much of a retracement at all. But if we get to targets that are Intermediate term/HTF than TGIF can absolutely occur as much as 40%. You still need understanding what price has done to warrant that possible retracement. If price is really bearish you won’t be expecting a retracement, it will continue to go lower and close around the lows or make a new lower low.
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Macro doesn’t give you direction. A macro is when the algorithm will start doing specific short order of scripts. It will do something to do something else.
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