Transcript for:
Trading Strategy and Confirmations

all right this is the class recording for the 4th of June here I will be going over my trading strategy and confirmations and without further Ado let's get cooking here so all right like I said today's class topic is confirmation on trades right I trade obviously um ICT a lot and I use a bit of retail concepts for my early days that I use as a foundational piece and a core piece to my training as well um yeah there's three models I follow right a market structure shift model MSS model continuation Tri model an inversion model invalidation in Balance entry these two right here this first and third one happen to be very similar they're kind of the same model in one but I'm a little more versatile now because some days we don't get an FEG entry some days we get um inversion entry which was what the case was today um and um you know um you say I'm well spoken I am not well spoken I speed too fast sometimes um but not continuation TR model um if you guys don't know you guys have known this you can watch strategy video strategy video goes over these two this third one right here I've just added recently it's the same thing as this the only difference is I'm looking for a different type of Entry which is what I'll go over um and yeah class is recordered right yeah it is um yeah so the first model we have here it's it's a classic one of ours we've been using this for over a year I think almost two years maybe I'm not sure exactly but it's called an MSS model here this is what a lot of ICT Traders used right the main components liquidity grab major higher low directional change in speed of price sell to buy buy to sell retrace it fair value Gap order block confirmation respective inbalance we retraced entry strong candle displacement off the imbalance heading into the direction of the MSS so the three examples that I'm going to use today are just buy buy models so you could always Inver it just use it in a allocation I'm using bu models for today's instance because we are trading all-time highs so I just want to use you know um current data and you know take Taking I'm using trades that we most likely will take from here on out being that we're trading all-time highs until we reverse back down um but with the MSS model here like like the first pointed out or the first thing pointed out is a liquidity grab liquidity is single handly the most important thing when it comes to Market and directional movement if you always want to always if you always want to predict price you have to base off liquidity liquidity is where you see price trade into certain areas of price to fill voids right there's voids in the market there buy stops sell stops there's just liquidity there's you know orders ready to be filled through price that's what liquidity is and um what you do as a Trader is you try to predict where that goes I like to predict and anticipate liquidity just gives you an idea of where price could go we've done that multiple times if you follow commentary thoroughly I mentioned draw and liquidity draw and liquidity is what um I tend to usually think price could go to um but with the liquidity grab pretty much what I'm looking for is I'm looking for a certain big extensive or big massive high or low to be taken whether it's an overnight session um Asia right um Asia lows London lows Asia highs Asia or London highs it it doesn't really matter for me it's just as long as the lower highs nice and extensive whether it's being overnight highs and lows or higher time frame um external low or high that's what's important to me right um and so once we do that that's the first step into an MSS you want to see price trade back down in terms of a buy model which you then want to see structur develop and build and you want to see directional change in movement so what I mean by directional change in speed of price is when you see the slow get taken out here you want to see price shift off the low right you want to see price shift off the low that we create and you want to see price have directional movement through the low that we create so you see this low here initially we buy back up then eventually come back down to your first second leg this second leg here just only gives me more confirmation being that we develop more and more structure the more and more we base off a low and the more we slowly start to turn around and you start seeing buyers pick up here set of Sellers and you you stop seeing the selling occur that's a good indication that price potentially could shift and for this instance right here right second low here comes down retest that low but then we see a strong displac displacement move here right through buyers that's what I mean by here directional change and speed of price you want to see price stop making these lower highs and eventually turn around and start making these higher lows which is what we start doing here right so we do that um in terms of an entry point it is a fair value Gap right fair value Gap is my bread and butter I don't really use order blocks that much much maybe occasionally but you know this this could be exampled as a fair value Gap or an order block it doesn't really matter both work very well very well I'm just very used to fair value apps um but in terms of what I want to see price do retrace right retrace giving us entry this retracement only allows us for a retest which only gives more confirmation right because whenever you guys see retest retests only give you one of two things invalidation of potential move to come or validation of potential move to come so when we see a retracement after breaking these lower highs once we've got our Direction change once we've got our liquidity grab this retracement here into this fair value Gap gives you confirmation of potential movement to the upside right because if we come back down here and we see price trade through this fair value Gap here that's a very very bearish indication being that this is a bullish imbalance and we see price trade down through it right but if we do bounce like that you know this occasion it more so not gives you confirmation that will'll at least Target higher shortterm being you know it could be this right here or even further past that um and like I said confirmation respective a balance we traced that's what confirmation is entry strong candle displacement off the imbalance heading into Direction when it comes to confirmation and you guys will see me see me talk about this for the trend model and the inversion model when it comes to confirmation it's the same thing every time right and hear this clear out right so I I mentioned this multiple times but hopefully you guys understand confirmation is just a candle close a strong candle close so this instance we see retracement my confirmation is through this by sequence right here and I'll show you an example shortly but it's simply a if you're buying a if you're looking for a buy model if you're looking for a long you want to see confirmation by respecting the fair value Gap and closing backup over right to give you validation for that respect right once you get that respect in price that gives that's like the cherry on top to this potential long here right and so an example of of an MSS model here um here's a good example so we were trading in the 30-minute fair value Gap last Friday and we saw Price Right trade into this 30-minute fair value Gap we saw a bit of choppiness go on but you saw the slow here develop right um in terms of where we developed the so I believe it was through a higher time frame inbalance I think it was it was either an hourly fair value Gap or hourly internal low so we SWA liquidity here saw price shift off the five right initially had a you know low here came back up and then came back down here again similar to what we did here except through a five minute time frame right initially bought up sold off a bit then get went back up here if you look at here and what price did we came back down and we saw price rebounce off this 30-minute fair value Gap what we did then was then we saw respect through price right we saw respect through price in this 30 minute fair value Gap right we came back down here filled up fully then we saw price flip back up this F right here through this five reference it's always your confirmation right this is always your confirmation being that we closed over right so we saw price fill this fa value Gap that we saw a nice reaction off of it this would be your confirmation in terms of in terms of an MSS model if you guys are still unfamiliar you go to the strategy video I have a whole video dep just talking about this but when it comes to confirmation pure it's always just a Canon close for me giving me at minimum short-term validation that price wants to respect this inbalance um and and and just go off that so we came down here we traced um saw a nice candle close over and this is what confirmation for me is right just a simple candle closer whether it's the 5 minute 1 minute 30 minute hourly whatever it is um what do you wait for that candle you know when you're looking for confirmation in terms of these type of entries you always want a candle close a good candle close in the direction that you want to see the long pan out right so you want to go long off this 30-minute fair value Gap you want some type of confirmation you want some type of buy sequence here that's nice and strong to give you conviction in price delivery respecting this for Value up if that makes sense a bad example is something like this here right so you see this example right here no liquidity grab no change in sentiment and speed of price from bearish to bullish no proper fug retrace and entry so you see price you know for instance form a low here initially and then what you see price do here is come back up here right then retrace see a bit of displacement then come back down what people sometimes tend to do is they view this as a potential MSS because we created our first low now we're sort of creating the second low off this fair value Gap the reason this trade this type of trade here would not work and I feel like sometimes people take is people take cuz they see this second low get formed here and they're like okay this could potentially be an MSS right cuz we took liquidity off the initial move now we're coming back down here for a retest um but this is not the type proper type of Entry um being that a deliver is horrid right if you look at price and what we did we swept this internal High came back down here displaced aggressively into this 5 FG and at one point in time did you get proper confirmation that was deliberate when it comes to confirmation it always has to be deliberate for me if I see a wick if I see Sloppy delivery I do not take right that's why sometimes you see me take a trade versus not take a trade is because I'm always looking for deliberate execution through the respect of the Sur value G right in price and for this instance right here never got that right you saw the candle close over but never got deliberate sharp convincing um displacement here right so when you see pressure like this and you see us trade through a fair value up like this this is never a good confirmation right and in terms of stop stops also in valid whenever you place a stop you always want to place a stop either the invalidation point slightly under of a fair value or you always want to place a stop through um the relative low say this L right here so in terms of stop loss It's always important for you to always base off a good area of interest in price where if you do get stopped out you're like okay you know if if we tag this low if I get stopped out it it makes sense for us to reverse back down here and so yeah here's the example this is not what you want to do this is something something you do want to do right you want to see proper respect wait for that deliberate strong candle close for confirmation boom there it is like I said this is a 5-minute example we also do the one minute right sometimes we take we I I give you guys a 5 minute setup but we take off a one minute close um so yeah um what this is right here right like I said bad take CU this is not even a fair value Gap here right and this this trade looks silly I know but I just I do have to use this example because there's a lot of Vier people in here maybe a a bit more inexperience but you have to recognize these factors right the main factors being liquidity grab directional you know change in speed of price being convincing and you want to see a proper fair value Gap entry in terms of an MSS model as we go over here we never got this once here right not a proper Refugee you know not no massive liquidity grab here that we came back down here properly validated and we never got thorough and complete respect in price right um and delivery right we saw sharp sell sequence here never got proper validation and yeah so in terms of a TR model here right main Concepts strong directional move after already delivering MSS Trend entering confirmation retrace into fair value Gap SL order block strong displacement the favor of trend you guys see a similarity here right already right you go back to here strong candle displacement rri strong displacement right so you see the similarity already you guys could see my confirmation it's always the same thing always whenever it comes to these three models I always want to see respect in my trades so if I take an or if I take a tra model take here say we already developed the MSS sense say we already made the move but now you want to catch a piece of it and you want to catch the trend what you're doing here is you're waiting for a proper for Value Gap retracement order block retracement and now what you're looking for is proper validation what is proper validation see this five minut right here right whenever you take a five minute or whenever you take a five minute entry right you always want to see a five-minute candle close say you feel extra bullish right say you feel price is extremely bullish um through just delivery or where we took our low where we put in our low or how we Dev how we delivered that MSS you could always do a one minute candle close so for me it's always right respect right strong displacement strong displacement just gives you that confirmation for entry that's what it is always for me you look at the alerts you look at the commentary for me and there's times where I lose right there's times where I give an alert out through a candle clo that looks very nice but it doesn't go our way that's just a part of trading but then there's times you know like we've done about the past month or so where every single trade that we've taken has been Flawless right we have not lost uh because we wait for this confirmation there was a period yesterday if you guys recall all right and I'll go back to it um commentary or excuse me alerts right where I believe it was here prior to our actual take here that ran very well we actually were looking at a potential trade here where we wanted confirmation right we talked about if we don't go proper entry could enter long through the break of the rout of high so to inversion takes speed into that high good move and you can ride and trim along the way to that fair value got fill right so I also said this is why closes are important confirmation confirmation for me in this instance one minute candle Clos right if we see price pick up and speed up into that relative high and we see a one minute candle close over that gives you the indication that what a potential buy sequence will come just like this here right just like with this right here retracement we get that candle close over back up it gives you indication at least shortterm that price still wants to seek higher right you just go back to simple retail Concepts buyers buyers for sellers here if we trade into this you know quote unquote demand Z who reference that as demand um we come down here but we never get confirmation that price truly wants to trade off of it and you just take off the tap of it that's not really you taking off you know proper validation proper confirmation because price still hasn't signaled to you yet that it wants to seek that continuation but when you get that confirmation being that candle close like we talked about whether it's the one or five a good strong candle close um with speed you know um that gives you that confirmation that price wants to see move to the upside at least short term which is why you always see my trades more so than not more so than not always in the money especially recently we always see our trades in the money um and end the green because as soon as we take confirmation we're taking what speed so we're taking as prices is already speeding up meaning that the probability in US seeking validation to upside is right away right because we got that confirmation um so yeah here's a good example this is a I think this is a either CPI or NFP we created a five minute Gap here where we saw price retrace it to it turns into a try model take here this is another five minute example what you would have done here is seeing that we sort of Saw price come back up here or come back down here into this inbalance we saw near the C the midpoint here get tapped into nicely then what we saw price do was we saw price got a you know we saw a nice proper validation close over we saw you know after buying up like this we saw price retrace into this inbalance then this candle right here if you wanted to be extra safe you could have obviously waited for here or used one minute as confirmation um you know this 5 minute candle close closed over this fair value Gap again giving you what confirmation that price most likely wants to rebalance higher um and so for me whenever I do take tread models and they they've been less recently whenever I take them it's off immense conviction right so what I need to see price do a lot is I need to see price already trading to the upside massively for me to like a tread model take that way it shows me that price is completely deliberate and directional in one Boo or in one side um and so when I take these type of Trades here I don't want I don't want to hesitate at all I want to make sure the trade I do take is off good um speed and price and you guys see a constant theme Here speed and price displacement that's always a big thing and so you see this candle close over boom there's your entry and boom you can see as soon as you enter you had zero draw down you saw this trade hit in the money instantly these type of Trades are the best um in terms of stop here massive stop right but this is sort of a bigger time frame reference right to this CPI or excuse me to this whatever it was CPI NP candle this is a bigger time frame reference obviously we're not going to have as wide of a stop as this but this is just a reference of what potentially be if you just take off a higher time frame we are used to smaller time frame this is just example through higher time frame you could have honestly played stops off the midpoint you could have played stops off this relative low regardless this would have panned out regardless of what your stop was um it would have went your way um either way so in terms of a bad example here it is we see price come up here right and we after you know after for a good move more so you want to see price you want to see an entry for a TR model B after a large amount of displacement here you can see in this invalid take there is no proper displacement here right we saw one minute time frame here deliver a few green candles here what we then see price do as we see price retrace into this fair value Gap here this one minute fair value Gap to which we never got confirmation right you look at Price here did we ever one time showcase a buy display back up sometimes and I know a lot of ICT Traders do this some IC Traders what they do is they see a fair value Gap We R Trace into it they take instantly I'm not that type of guy cuz like I said price delivery is a big part of my trading big part of my factor and I feel like it helps you guys too as well when you you know you take stuff away from this um delivery is super important because people ICT Traders are heavily based off draw and liquidity they always talk about draw they never talk about price though price is what gets you to draw price delivery what candles trade how they trade is what dictates if we get to draw or not and so for this right here here you see price come down here tap the C here originally but never get full confirmation we never got a candle close once never showed proper displacement you know and and for this occasion you know there's there's been times where I've you know taken these type of Trades here when I've been a little less experienced with these but waiting for confirmation and and I I've been doing this for such a long time just waiting for that confirmation being that candle close over or that strong displacement help here gives you short-term validation that price wants to at least see continuation of this directional move that we saw here at least this relative High and further on right so you see price come down here C tap lower um but now um like I was saying we never got full confirmation here off this idea which is why I completely invalidated the good thing with the tri model takes that we do have is they're so clear so you either always see them go in the money instantly or you see them hit stop loss instantly that's the good thing about them so you do know if you do hit stop on a trade more so than not you know why you were wrong and in this occasion if you take this type of trade you know the reason you were wrong is because you never got that confirmation being that buy displacement back up so like I said difference example here right you wait for that confirmation here you didn't wait for No confirmation here that's what makes up these models entirely for me and that's what gives me full faith and conviction in the trades that I do take right and for final um our final take is an inversion or final model is an inversion model here main components liquidity grab major higher low directional change in speed of price sell to buy buy to sell strong speed in delivery through through opposite fair value Gap SL order block entry candle close over slash under invalidation point I said under being that if you do take a short it'd be under um or R Trace into inversion wait for candle close in the direction of favor trade idea so you see the adversion here that I do point out if you ever do take off an MSS the difference between an MSS and an inversion is you're taking off here right instead of taking off a retracement you're just taking through a break of a bearish for Value Gap here so what do you see price displac largely through a level like this right or when you see price displace largely like this whether it's here or here you see price create a bearish fair value G right and so what Traders do sometimes they just take off the break here right so they instead of taking here off the retracement they just look for the initial break and they look for the inversion there right you look at the example here right this is this is the inversion that you're taking off so opposite fair value Gap invalidation equals inversion creation boom you see price trade through it as soon as you see that candle close over around here boom you take and you go for higher right some instances this is why I like inversions as well guys is because some instances you don't get an FG entry being that we see price shoot up here but never got that right we never get that proper retracement because price is so bullish right so sometimes price is so bullish to the point where it doesn't feel like it needs to rebalance off this five minute so it just goes right away so what you could do to offset that is you could take an inversion model being waited for a candle close um that invalidates a bearish fair value Gap right when you see whenever you you want to go long off an inversion and you see a bearish fair value get validated that's a signal that price is bullish being that we took away bearish Confluence right it's as simple as that so a good example of it was a trade idea that we took um that I alerted which is very nice um this was a liquidity grab here off low right we saw price come down here take off overnight low through London and Asia then we saw price shift here with speed right like I said most important thing speed and price speed and price speed and price um we saw speed pick up here that what we saw price do through this candle right here was we saw price have a candle close over this inversion right here this bearish fair value Gap here which turned inversion saw a nice candle close over boom right away your entry is there trade's already in the money confirmation candle close over boom you see targets get hit right away so you see the liquidity grab right an inversion model for me specifically typically more so than not always has the same factors as an MSS model it's the exact same thing the entry is just different we see the candle close over right and we see price immediately go in the money off the trade right like I said with speed it's super important being that speed just gives you that validation that's why you see my trades again like I said earlier always more so than not go in the money instantly or hit stop loss instantly because it's always based off speed and when you time speed correctly and you you time price correctly that's the most important thing right so it's just continuous practice you know if you're watching this and it's a little confusing still it's just continuous practice that's all it is cuz with this confirmation it's pretty easy to follow but it's also important to get all the other you know factors involved this class is M mainly just going over confirmation and mainly just going over the type of entries that I do have um you know and and you still have to puzzle in all the different pieces but yeah this is a good example here this this is a trade where I I love man I mean this was probably one of my most favorite trades in a while because we saw price really deliver nicely off this one here come down here take liquidity sharp to slic and back up boom inversion model instantly off that one R for Val Gap took higher and saw a nice move so um in terms of invalidation or an invalid inversion take here right there's no liquidity grab no fluid speed directional movement off inversion right here's your example we're still creating lower highs here price has an inversion that we do create but sometimes Traders what they like to do is they see that first inversion they take instantly you have to recognize that there is no fluid conviction in the inverse the different between this trade and this trade in terms of delivery is you see price be very deliberate and very fluid in terms of the move off low you see price get swept off low boom higher close over and seek further extension with this trade right here we created low which you know we honestly don't even take off anything right we don't take off any major liquidity created just a short-term low that we see price just initially trade back up nicely but this right here right just gives you the indication that price potentially wants to seek a move back down what when it comes to inversions you always want to see a nice candle close over right good good trading into that inversion creation and a good candle close over just giving you the idea behind speed and price being sided for buyers here in this instance in terms of here never got that saw you know a wick over um you know whether you to confirmation off here or here never good indication because this is a short-term low that we ever took off Mass liquidity never buildt any type of structure if you wanted to wait for extra Confluence um or even right away right never got that speed in delivery and then eventually ended up seeing stop loss get hit right so short-term bounce no liquidity taken in sight no fluid conviction so those are the two main components in terms of inversion like I said confirmation is always just a candle close in the direction that you want to see price favored so um yeah this the last slide basically said understand yet confirmation equals strong candle close for short-term Confluence in the trade I only enter off one minute or five minute candle closes for confirmation important right so for example if I post a 30- minute chart potential trade I am most likely always looking for a 5 minute or one minute candle close if I post a one minute chart trade idea I am looking for a one minute candle close from here on out I will be more detailed in confirmation but I will not spoon feed you taking partial responsibility and alerts forces you the need to know what I'm trading provent signal Bots and more learning so like I said hopefully this helps a little bit here but the main component with confirmation is just candle closes and directional movement and the favor that you want to see price or you want to see the trade pan out so like I said even if it's shortterm even if it's a one minute time frame close um it gives you that shortterm Confluence and conviction that price just wants to validate your trade even more um and so yeah the reason like I said the reason I referenced the one minute and five minute for confirmation candle closes is because we are short-term Traders we leverage hard so waiting for a higher time frame close off and inversion is kind of tough since we leverage so much so for me a one minute close is good enough for me to take more so than not so