📈

High Probability Day Trading Strategies

Oct 13, 2024

Lesson 7: ICT Day Trading Model - High Probability Day Trade Setups

Key Concepts for High Probability Day Trades

  • Higher Time Frame Direction
    • Bullish: Focus on previous day's low to high for retracement entries.
    • Bearish: Focus on previous day's high to low for retracement entries.
  • Important Levels
    • Previous day's high and low.
    • New York session high and low.
    • London session high and low.

Strategies for Bullish and Bearish Setups

Bullish Setup

  • Use higher time frame discount to premium PDA.
  • Enter after retracing to previous day's low or New York session low.
  • Ideal buying days: Monday, Tuesday, and Wednesday.
  • Time to buy: 2 a.m. to 4 a.m. NY time.
  • Use a 15 or 5-minute chart.

Bearish Setup

  • Use higher time frame premium to discount PDA.
  • Enter after retracing to previous day's high or New York session high.
  • Ideal shorting days: Monday, Tuesday, and Wednesday.
  • Time to sell: 2 a.m. to 4 a.m. NY time.
  • Use a 5 or 15-minute chart.

Entry Techniques

  • Bullish Entries

    • Buy under the Asian range plus 5 pips.
    • Fair value gaps below short-term lows.
    • Overlapping with Central Bank dealer's range and discount PDA.

  • Bearish Entries

    • Sell above the Asian range plus 5 pips.
    • Fair value gaps above short-term highs.
    • Overlapping with Central Bank dealer's range and premium PDA.

Stop Loss Placement

  • For Buys

    • Vary based on setup, e.g., 30 pips under entry for central bank range overlap.
    • Adjust based on strategy and market conditions.

  • For Sells

    • Similar principles, e.g., 30 pips above entry for central bank range overlap.

Taking Profits

  • Take off at 20-30 pips initially.
  • Scale off profits at multiple levels, e.g., two standard deviations of Asian range, previous day's high/low.
  • Consider time-specific actions, e.g., before 5 a.m. NY time.

Key Rules and Considerations

  • Only apply relevant strategies and scenarios to your trades.
  • Monitor higher time frame indicators to gauge bullish or bearish bias.
  • Use scenarios like turtle suit or order block retracements for specific conditions.
  • Understand the market's context and adjust strategies accordingly.

Summary

  • The lesson covers a comprehensive set of rules for high probability setups.
  • Focus on developing a consistent approach by understanding and applying these rules in real trades.
  • Critical thinking and adaptation are necessary for successful trading.

This lesson emphasizes understanding market structure and applying precise strategies based on time frame, session highs/lows, and price action. Following these guidelines enhances probability of successful trades.

Full transcript