Day Trading and Scalping Insights

Oct 13, 2024

ICT Mentorship - Day Trading and Scalping Lecture (May 2017)

Introduction

  • Focus on ICT Amplified Day Trading and Scalping.
  • Emphasis on sentiment effect.

Key Concepts

Buying and Selling Probabilities

  • Day Trades: Use Asian range and opening price.
    • Bearish (Short): Look for move above opening price or Asian range high.
    • Bullish (Long): Look to go long below opening price or Asian range low.

Sentiment Shifts

  • Short-term sentiment shift: Less informed traders chase price during initial swing, known as "Judas swing."
  • Focus on daily/4-hour direction based on institutional order flow.
  • Combine with PD array matrix for high probability setups.

Institutional Order Flow

  • Bearish Flow: Look for moves above Asian range high.
    • Smart money sells above Asian range high.
  • Bullish Flow: Look for moves below Asian range low.
    • Smart money buys below Asian range low.

Opening Price

  • Typically zero GMT or midnight NY candle.
  • Incorporate if there's been a consolidation near the opening price.

Market Behavior & Strategy

Buy Conditions

  • IPTA Suggestion: Daily/4-hour discount array must be in play.
    • Price respects or trades down into a discount PD array.
  • Sufficient range in pips between market price and opposing premium array (50-60 pips ideal).
  • Price declines below opening price and Asian range low.
    • Expect sharp rise from 15-minute discount array.

Sentiment Indicators

  • Use 10-period Williams %R on 15-minute timeframe for sentiment.
    • Avoid focusing on overbought/oversold conditions.
    • Look for sentiment confluence with price action.

Example Analysis

  • Thursday’s Weekly Low: Predicted during NY session.
    • Sell stops hit before employment number release.
    • Observation of fair value gaps and price movement.

Sell Conditions

  • IPTA Suggestion: Daily/4-hour premium array in play.
    • Price rallies above opening price and Asian range high.
    • Sharp trade lower expected from 15-minute premium array.

Trading Strategy & Philosophy

  • Not every day will present ideal trading scenarios.
  • Day trading is not for every day; avoid being a "tradeaholic."
  • Persistence and discipline needed to avoid losses and overconfidence.
  • Use rule-based strategies with the Asian range and sentiment.

Conclusion

  • Highest probability trades occur when specific conditions align.
  • The strategy is about patience and discipline.
  • Avoid overtrading to prevent losses.
  • Ending Note: Best of luck and good trading.