The way ICT framed the move lower on the 13th was by using the Inversion FVG as Inception of the move and the +OB was the Terminus of the move. But there must be narrative of why that trade should form. In this case, the narrative was that price moved back and forth in the weekly range. Once we leave it it becomes BPR and price will seek Inefficiencies below. On the weekly we had the FVG and on the Daily we have the OB. Once you have that, you can expect the moves to happen during the specific KZ: London open, NY open and London Close. So if you have determined where the weekly candle will expand to, already 80% of your bias problems are solved by itself. Now you have to wait and see if the economic calendar confirms or negates the idea. We are anticipating the medium or high impact news driver to create and present volatility, and in that volatility, we're looking where do the stops rest after that first initial move. Where do stop losses reside? Above old highs or below? Where are those highs and lows? Those news drives are used as smoke screen to justify the sharp price movements.
Here we can see London open KZ. As we already mentioned the High or low of day will happen during London Open. Not on every single day, but when other ingredients match like narrative etc.
As we can see when price got back into the IFVG that we expect to act as Resistance, it spent some time consolidating. Balanced price delivery. Then it took BSL and broke a Low (MSS). How did it break it? Energetically with FVG. Let’s look deeper…
NYKZ from 7:00AM to 10:00AM is typically a continuation of London. The sweet spot as we already mentioned is between 7:00 and 9:00. The setups will for there.
Exactly 8:00AM, in the heart of NYKZ, price returns into the FVG. That FVG is in Premium**. 💎Price also returns into the IFVG, but only to the low end of it. It does NOT NEED to go again to C.E.**
We are going to map out the Daily OB with a yellow rectangle. We want to see it trade down to consequent encroachment and go below it. We want to see that weakness, that heaviness, because we want to see the move protract further lower, which would give momentum to being a long holder of stock index futures and foreign currency.
Notice how -2.5 SD fall just below the Daily OB. But there has to be confluence also with time. Right now this is the London Close KZ. It is from 10:00AM to 12:00AM. There is a buffer we can add to it when there's a big runoff day it can extend into 1:00PM. But if you stick to 10-12 you’ll be fine.
There are multiple ways to enter the trade. You could use the -Breaker or OTE or the 22 FVG model.
But going back to the FIB projections….
Why do we use that price swing to draw FIB projections? 💎**-Because this is a trigger. It's occurring up to a level where we want to see it being respected as Resistance which is the low end of that old weekly IFVG.**
💎During NYKZ continuation setups will form because of the logic that the High of the Day is already in. So we can trust that.
💎PO3 is not limited to the Daily candle. It can be used in any timeframe. And also with True open prices like: 0:00, 8:30, 9:30 and 13:30.
💎If you're bearish and you see the London High form when you're bearish and it's breaking down, and you retrace in New York, chances are you're retracing to have a continuation lower.
