Lesson 8: Integrating Day Trades with Higher Time Frame Trade Entries

Overview

• Final lesson of April 2017's content for ICT Day Trading Model
• Focus on integrating day trade entries with higher time frame setups using Power 3

Key Concepts

Power 3

• Refers to the open, rally/decline, and close of a daily candle
• For bullish days: Open near low, rally up, close near high
• For bearish days: Open near high, decline, close near low

Day Trading and Higher Time Frame Integration

• Use day trading entries to position in longer-term trades
• Avoids needing the London Kill Zone
• Two essential times for entry: Zero GMT and Midnight New York time

Entry Timing and Strategy

• Zero GMT Opening: Use as a reference for daily candle start
• Midnight New York: Used if trading during London session
• Directional Bias: Based on PD array matrix (premium or discount levels)

Trading Strategy

Bullish Scenario

• Look for price moving away from a discount array
• Entry at zero GMT or slightly below if participating in London session
• Use 5-day average daily range as a stop loss

Bearish Scenario

• Watch for price moving from a premium array
• Entry at zero GMT or slightly above if participating in London session
• Use 5-day average daily range as a stop loss

Practical Application

• Daily Bias: Set based on PD arrays, institutional order flow, and daily/quarterly trends
• Stop Loss Strategy: Based on 5-day average daily range
• Trade Management: Use higher time frame objectives for profit targets

Homework

• Find and analyze three examples: one successful buy, one successful sell, and one failure
• Post examples in the forum with details of the pair, movement, and outcome

Additional Points

• Strategy allows trading while being unavailable during the London session
• Useful for integrating day trades into higher time frame strategies
• Emphasis on understanding daily range and PD arrays for effective trading

Conclusion

• Encouraged to practice identifying setups and understanding the concepts through homework
• Look forward to sharing insights on the forum and applying learning in future trading