Lesson 7: May 2017 ICT Mentorship - Amplified Day Trading and Scalping

Key Concepts Overview

• Focus on consistent small price movements for sell programs, offset distribution, and redistribution.
• IPTA models are used to accumulate buy-side liquidity and reprice above old highs.

Sell Program and Models

• Offset Distribution
  • Market repriced above an old high to promote buy stops for current short holders.
  • Engineers buyers at premium prices and offsets short holders.
  • Common in bearish markets and requires anticipation at key highs intraday.
• Redistribution
  • Market repriced higher to allow smart money short entries.
  • Induces buying to provide liquidity for shorts.
  • Seen in bearish conditions and is quick to unfold at premium arrays.

Bread and Butter Sell Setups

• Similar to buy setups but reversed.
• Important during "Kill Zones" (London and New York Open).
• Down close days: anticipate open at or near the high of daily range.

Daily Range Trading

• London Open
  • Scalping opportunities between 5 a.m. and 7 a.m. New York time.
  • Expect initial leg lower, followed by a possible rally.
• New York Open
  • Continuation of trend unless a higher timeframe discount array is hit.
  • Aim for intraday swings lower at premium range arrays.
• London Close
  • Retracement expected between 10:30 a.m. and 1 p.m. New York time.
  • Price should exceed 5-day average daily range for this trade.
• Asian Open
  • Short at zero GMT opening price, aiming for 15-20 pips lower expansion.

Five-Day Average Daily Range (ADR)

• ADR serves as a guideline, not an absolute range.
• Adjust trades 15 pips before expected ADR to account for data variance.
• High impact news can lead to ADR being exceeded.

Scalping Strategies

• Micro setups based on five-minute charts.
• Use higher timeframes for context.
• Scalping can complement other trading strategies like swing trading.

Trading Tips

• Blend higher timeframe PD arrays with lower timeframe moves for optimal entry and exit.
• Focus on efficient exits rather than perfect entries.
• Use scalping for hedging or to complement larger position trades.

Final Thoughts

• Scalping requires understanding of both market conditions and volatility.
• Next lesson will detail daily routine for scalping and intraday trading.
• Upcoming topics include commodities, stocks, index, and bond trading.

Good luck and good trading!