ICT Mentorship - Lesson 4 (February 2017)

Topic: Swing Trading in Bull Markets

• Focus on high probability swing trade setups.
• Use of PD Array Matrix in accordance with premium or discount spectrum.

Key Concepts

Time Frame Analysis

• Monthly Chart: Identify discount arrays causing price to move higher.
  • Look for displacement off a discernible discount array.
  • Examples include: bullish order block, old low/high, fair value gap, breaker.
• Weekly Chart: Similar analysis as monthly, but on a smaller scale.
• Daily Chart: Look for buying evidence in discount arrays.

Buying Strategy

• When monthly, weekly, and daily are bullish, buy all daily bullish discount arrays.
  • Includes: bullish mitigation block, breaker, liquidity void, fair value gap, order block, rejection block, old low/high.
• When monthly and weekly are bullish, but daily is correcting, buy daily arrays nested in weekly ones.

Avoid Buying Conditions

• If the daily posts a higher high then rejects and breaks down, avoid buying against it (bearish breaker).

Application Example: Silver

• Silver analysis from 2015 to 2016.
• Market behavior historical context: Bullish run expected around $1600 level.
• Monthly chart analysis with notable price movements and breaks in market structure.

Time Frame Interaction

• Weekly Chart: Retracement into monthly levels when monthly charts are bullish.
• Daily Chart: Identify down candles as buying opportunities when aligned with higher time frames.

Practical Application

• Use of horizontal lines to track key levels.
• Highlight order blocks and liquidity voids for potential entry points.

Tools and Techniques

• Use of Fibonacci Expansion in MT4 for defining PD Array Matrix.
• Define premium and discount arrays.
  • Premium: Above equilibrium, avoid new longs.
  • Discount: Below equilibrium, avoid new shorts.

Insights

• Importance of theoretical understanding before practical application.
• Swing trading involves long-term strategies based on higher time frames.
• Use smaller time frames (4-hour) for refined entries and risk management.

Conclusion

• Swing trading requires a rule-based approach, focusing on high probability setups.
• Institutions drive the market movements; align with their levels for successful trades.
• Next lesson will cover sell-side strategies in swing trading.