<aside> <img src="/icons/reorder_gray.svg" alt="/icons/reorder_gray.svg" width="40px" /> We will be looking for a setup that will provide 5 handle move. We will follow live price action with him and watch the magic plays out. SMT and DXY will be used.
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We start like this, with the RTH Gap, where Regular Trading Session closed yesterday and old NWOG that we traded into. Today with ICT, we will be using FVG as our entry. All we are looking for is clear indication that the market is likely to reach into some level of BSL or SSL.
Right off the bat, we have to note that we have opened today at 9:30 in a Premium. Premium in the sense that we are higher than where we closed yesterday the Regular Session.
This is the actual gap view on the RTH chart. Its a very significant gap.
✍When it is like that, we like to see further move up, to draw in the public to chase it and then typically it will trade down inside that beige shaded area.
Going in this morning, we have to focus on the potential of just trading back inside that range. We are not making the case that will go all the way down to 3984.50.
We gonna let the market find a short term top and then we gonna look for something to get us inside the beige area. This is our directional bias for the morning from ICT.
If we get this rally on Dollar, then most likely the shaded are on ES will be revisited. We are looking to frame 5 handle setup.
The fear of getting is in a trade, is mostly based on high leverage. If you lower the leverage, that fear will diminish. That’s why we use only 1 contract to remove the fear. Over time when you grow up, you can do the math and put more contracts. Just because the broker offers you high leverage, doesn’t mean you should use it. This will lead to blown accounts and you be constantly fearful in the marketplace. You have to make this really boring for you. No excitement. When that happens you will be able to focus better on price action.
Here we can clearly see that ⬆Dow is weaker.
No we look at this Volume Imbalance and if it can send Dollar to the highs at 103.13. That would mean Risk OFF, and it will be easier for ES to trade lower.
General rule of thumb is to leave out the first 30min. That’s the Opening Range. Now.. if there is a setup and its obvious, you can take it. But generally you want to submit to those 30m. Sometimes there are reports at 9:45 or 10am. Or many times the initial move, right from the opening, is not the one to be placing yourself in front of risk. It can be Judas, a fake move. We allow the market to draw in the gamblers than want to trade in the first couple of minutes 😃and just relax and remind yourself that there is plenty of time to find these 5 handles. You don’t want to rush.
