ICT Mentorship Episode 10 - Implementing Economic Calendar Events with the Open

Importance of Economic Calendar

• Why use it?
  • Helps in understanding market volatility and making informed trading decisions.
  • Avoid surprising volatility that could adversely affect trades.
• Source:
  • Recommended: forexfactory.com (color-coded for impacts).

Key Concepts and Timings

• Impact Levels: Color-coded
  • Medium Impact: Orange
  • Low Impact: Yellow
  • High Impact: Red (not shown)
• Important Timings:
  • 8:30 AM: Key time when the news embargo lifts.
• Movement Prior to News Releases:
  • Buildup or drop in price before news, followed by the actual move after release.

Daily Chart Analysis

• Charts Used: TradingView continuous charts.
• Concepts Discussed:
  • Power Three: Understanding Power Three is crucial for daily bias.
  • Equilibrium:
    • Above 50% of the range: Premium market.
    • Below 50% of the range: Discount market.
  • Fair Value Gaps: Imbalances that markets tend to rebalance after moves.

Power Three Detailed Breakdown

• Most Requested Topic: Daily bias (Up day or down day)
• Bias Determination: Study price action.
• Structures & Patterns:
  • Identify highs, lows, and equilibrium levels.
  • Monitor imbalances and expect market to rebalance before significant moves.
• Accumulation, Manipulation, Distribution (Power Three):
  • Open: Market starts here, consider this as a significant level.
  • Accumulation: Market rallies (for short trades).
  • Manipulation: Initial push to fake traders.
  • Distribution: Market declines and closes near the low (for short trades).
• Example Patterns: Illustrated through discussing recent NASDAQ movements.
  • Indecisive Candles: Lead to further balance-seeking behavior.

Candlestick Analysis

• Shifts from Old to New Candles: Old open-high-low-close bars to new candlestick formations.
• Reading Price Action: Understanding body and wick behaviors.
• Swing Points: Higher probability shifts and market structures.

Strategy Application

• Finding Fair Value Gaps: Look for gaps to spot favorable trading zones.
• Daily Time-Frames: Consistently apply the Power Three framework.
  • New York Open: Specific techniques for applying knowledge at the open.
  • Trading Windows: Different strategies for various sessions (London, New York).
• Specific Tools Mentioned: TradingView, Camtasia for recording & reviewing sessions.

Risk Management and Discipline

• Handling Volatility: Respecting market volatility to manage risks.
• Discount Brokers: Caution against using brokers with too low margin requirements.
• Practical Tip: Even experienced traders face risks; preparation is key.
• Paper Trading Demonstrations: Show value of practicing discipline.

Final Takeaways

• Backtesting & Simulations: Importance of reviewing historical data for anchoring learnings.
• Long-Term Perspective: A single video or a series of basic tutorials will not make one proficient.
• Continuous Learning: Encouraged to keep practicing and learning for mastery.

Overall Philosophy

• Trading Is Managing Losses: Understanding that losses are part of the process and are skillfully managed.
• Learning Curve: Recognizes the importance of backtesting and gradually building up knowledge.
• Discipline: Following predetermined rules and guidelines for trading success.