ICT Day Trading and Scalping Insights

Welcome back folks. This is lesson two of the May 2017 ICT mentorship, ICT Amplified Day Trading and Scalping. This teaching is going to be teaching filling the numbers. Okay, when we talk about filling the numbers, what we're talking about is the likelihood or the tendency for IPTA to fill specifically. four numbers per day. Now the daily range will seek to fill or trade to four specific levels each trading day. These two levels that first come to mind is the previous day's high and low. As a day trader, you're going to work with the previous day's highs and lows and the last three days high and low, whichever the highest is in that regard for swing points. based on a daily chart. Those reference points are going to be like your bread and butter. You're going to go to these specific levels because it's going to give you a great deal of context, as you'll learn later in these months'teachings. But the previous day's high and low, we always look for one of those levels to be traded to. It doesn't have to happen because the daily range could be smaller than will be required to get to the previous day's high or low. But generally, we're looking for a retest or trade through. previous day's highs and lows as a day trader. And for one of the tools that's most used by retail traders and still large funds, they will use what we understand as historically the floor traders pivot numbers. Now, I don't use them a great deal in my trading except for this. I look for the central pivot point. And these are zero GMT pivots. We look for the movement above the central pivot in the form of M3, which is the midpoint or 50% of the distance between the central pivot point and R1. R1 or resistance level for staged orders. M4, which is the midpoint or 50% of the distance between R1 and R2 pivot point. R2, which is the resistance level for staged orders. M5, midpoint, or 50% of the distance between R2 and R3, and R3, which is the resistance level for staged orders. Now, you're probably asking yourself, what are staged orders, Michael? What is this? Because traders most likely will be using pivot points collectively, and funds use them as well, IPTA will invariably trade to them and through them. Most of the time, folks that use pivot points aren't really using them accurately. And they don't always work either. But there's a tendency for IPTA to want to trade to them because there's going to be staged orders there. Staged means there are buyers and sellers at those levels because most people don't know how to use them. So what would be otherwise viewed as a good buy point below the central pivot point at like S1 and S2, that actually might be a really good area to sell short. Once the daily ranges start to expand down and it trades back up to that S1 or S2. That could be a continuation sell. But if you look at the general consensus across the board in retail perspective, they think anything below the central pivot point is a good buy. So that's why we talk about it in terms of staged orders. We don't care whether they're buying or selling. We just know that IFTTT is going to go there to facilitate trade and go through that market for fund liquidity, not retail broker traders, not the little guys in the mom-and-pop brokerage firms on the big bank level. They'll trade through these levels to fill those numbers. And obviously, below the central pivot, we look for M2, which is the midpoint or 50% of the distance between central pivot and S1. S1 is the first support level for staged orders. Then M1, which is the midpoint or 50% of the distance between S1 and S2 pivot points. S2, which is support level for staged orders. M0. which is the midpoint or 50% of the distance between S2 and S3, and finally S3, which is the support level for staged orders. Now you're probably, you know, if you've never heard of a pivot point or if you've never seen these before, this is probably very confusing for you. And it's not that big of a deal. It's a simple little indicator that I'm going to share with you on the forum. So at the time of this teaching, when you're done watching it, all you have to do is go back to the forum under the resources tab underneath the PDF file link that's not... active until all the lessons are done you're going to see a link there where you can download dmt4 Indicator. While it's not important that we understand how to trade pivot points like the retail crowd, it's important to understand what these levels are and how we are going to interpret them in terms of filling the numbers. Using the order flow direction and PD array matrix for specific bias. we can use these numbers to help determine what numbers we'll be filling for that particular day. The trade entry point that you use for your trades, you look for the numbers that will fill from that price point. If you're going long from your long entry, you look above your entry point for the sequential four levels above. If you're selling short, you look below your entry point for the sequential four levels below. That means if we're looking to go short. and we happen to be entering near the R2 level, we could look for M4, R1, M3, central pivot, four levels below us. That would be an example of looking for the numbers to fill using the pivots. On large range days, more than four levels can be filled or traded to. The tendency to move at least to four levels is a general rule of thumb. Ideally, the majority of your trade position will be taken off after four levels are filled. Always leave a portion on for the potential for a large range day if time permits it. So if we're looking at a position where we're long in intraday, say we've gone long from London, and we've already seen four pivots. traded to on the upside. The bulk of your position, I'd say about 75 to 80 percent of your trade should have been taken off in terms of profit and leave a small portion 25 to 30 percent remaining to see if you get a much larger range day because New York could see a much wilder condition where it continues and you may have already seen four levels traded to just inside of the London session. Using the order flow direction and PDR matrix for specific bias, utilizing the central bank dealer's range, when you are shorting the market, selling above the central bank dealer's range, you count the low of the central bank dealer's range itself as a level, or that's level one of four to fill. In other words, once we determine what the central bank dealer's range is, whatever its lowest line or the range, it creates the... base of that consolidation or range, whatever that lowest figure is, whether you're using the Wix low or the lowest close or open for the bodies, whichever that is, that represents the first of four. So you would count that as one. So you'd be ideally shorting above that low. So when price trades down in your favor, when you're short, when you cross over the central bank dealer's range low, that counts as one of four. We expect the market to trade down to four central bank dealers range lows. And let's look at the chart and see an example. And everything we're selling here, you would just reverse for buying. So going short here, this would be level one because you're selling short above the central bank dealers range low. So when price trades down through it, that's counting level number one, level two. Level three and finally level four. So there's an example of IPTA filling the numbers on the basis of the central bank dealer's range. So now look what we've done here. I've given you a means of looking for how the daily range is fulfilled using pivot points. Now with the central bank dealer's range, which is unique to me, no one else does this, but everyone knows about pivot points. But central bank dealer's range, we look for that same phenomenon. We're looking to sell short above the central bank dealer's range low and using the central bank dealer's range low as your level one. And you count down each new standard deviation of the central bank dealer's range projected lower. Every time you cross the low end of that new range projection or standard deviation, that's counted as one new level. And you look for four of those to fill. Reversing this. you'd be buying below the central bank dealer's range low. And once we get to the central bank dealer's range high, that would be counted as level one. And you would continue to do the standard deviations of the central bank dealer's range, projecting it higher, higher, higher, stacking it on top of each other. And once you get through four of the central bank dealer's range highs, that's your level four count, or the numbers being filled on the basis of the central bank dealer's range. So IPTA will look to fill four pivots intraday. It'll look to fill four central bank dealer's range projections or standard deviations. Either or can be used. Now, I already know what you're thinking, but trust me, I'll answer that question. I already know what you're thinking. Trust me. We'll get to it at the end of this teaching. Using the order flow direction and PDA rate matrix for specific bias. Utilizing the Asian range. When you're buying the market, buying below the Asian range, you count the high of the Asian range as level one of four to fill. Expect the market to trade up four Asian range highs. See chart to the left. And everything I'm showing you here, you're going to reverse for shorting. You see the market making a low here after midnight candles opening. Trade's lower. Age and range high fill. Number one, level. Number two, level. Number three, level. And number four. And again, as I mentioned earlier in the beginning of this, teaching. Four is just a general rule of thumb. It can always go one more level or more. Continuing with our theory of filling the numbers, using the order flow, direction, and PD array matrix for specific bias. Utilizing the flout. Oh, we haven't talked about that yet, have we? Utilizing the flout when you are shorting the market, shorting above the flout's equilibrium, or 50% of the range that creates the flout, you count the equilibrium of the flout range to the high of the range of the flout as one standard deviation. The equilibrium of the flout range to the low of its range is counted as one standard deviation. Now, I probably confused you, but watch. It's very easy to understand. The total flout range is projected on the basis of 50% of its complete range. And the range is determined between 3 p.m. New York and midnight in New York. So whatever that range is, the highest high and the lowest low, or the highest body, open or close, and the lowest body, open or close, however way you want to do the range, you're going to do both of them now because we always have to factor in the potential error by looking at retail data feeds. But by using both of them, we're going to get a pretty good idea. But we take that total range, its entire range from 3 p.m. to midnight New York time, whatever that range is. Find out what the middle of it is or equilibrium or basically find the mean threshold of that total range. What you end up with is two new ranges. But one of those ranges equates to one of the numbers that would be used for flout. You expect the market to trade down four flout ranges in the form of a low. So once you project the flout down one, one new low. its range divided in half that constitutes level one of four numbers to fill for the day and Let's see the chart to the left and you'll see what I'm referring to But we're gonna come back to flout again in this month because I'm gonna teach everything I know about it But everything I'm showing you here you just reverse for buying so we have the flout range determined here between the two blue lines and The shaded boxes are a little bit past the the time window, but I'm doing the the first uppermost gray box and in the second box below it, the light blue box, that is the entire flout range. What I did there is I divided it in half so it creates two flout ranges. Price needs to be selling short if you're going to be bearish. You have to sell short above the equilibrium of the flout total range or in the uppermost portion of that flout range or the gray box here as it indicates it. arrow. Price trades down to level one, which is the new flout range low, or basically the lower half of the total flout range. That's level one. If we were bullish and we were buying below the equilibrium of the total flout range between 3 p.m. and 12 a.m. New York, we would be buying below equilibrium and using the high of the flout range as level one, or the first of four numbers to fill for the day. And you just keep projecting. half of the flout's total range as a new number to fill. Okay, so you're not projecting the entire flout range. You're actually projecting and doing standard deviations of 50% of the range between 3 p.m. and midnight New York time. You see the respective level two or second number to fill, which is the third flout range low. The fourth low of the flout range is actually number four of the range. And the final fourth is seen with the fourth number in the daily range numbers to be filled. And obviously project it one more time because like everything else we've shown here. Four is just a general rule of thumb. It goes down to a fifth level, actually nailing the very low. And this is a pound-yen chart just for you guys that like to trade those exotic pairs. This stuff works on there as well. And I already know what you're thinking. Michael, which one do I do? Do I use the pivots? Do I use Central Bank Dealers Range? Do I use the Asian Range? Do I use the flout? Well, when it comes to considering which numbers to fill, you have to consider the fact that we never know. You never know for certain before the day begins what IPTA is going to use to fulfill its daily range. I never know that. But I look at London's trading going into New York. By the time we get to New York, you'll get some greater insight. So we get closer to the truth as the trading day completes. The New York session will generally provide the measurements IPTA is presently using. for the engineering of the daily range. So what do I mean by that? Well, we know we have a few different things here at our disposal for determining where price will go for the daily high or low. If we're bullish, we're wanting to see how far IPTA will deliver price on the upside. By itself, these ranges and these projections don't mean anything. They don't mean anything at all. But what we look for is confluences between one or possibly more of the tools that we outlined in this teaching for... measuring these four levels, coupling these with the present trading environment, time of day, direction, and PD array matrix, you will unlock the daily high or low. Now you've seen me do this several times in the mentorship. And before we did the mentorship, I was actually calling daily highs and lows, and I'd get within one or two pips many times right to the pip. How I do that, I don't know that for certain at the London Open. I don't know that. Some of the folks that are in the free... members group okay that follow me has never made it to our mentorship they think that i'm super human and i do this on a daily basis and that's not true obviously you've seen that's not the case but there are certain times when i feel an unction about where the market's going and when i'm showing you how it works real time and giving you examples like we did with the euro this week uh with the 109 30 level i was off by five pips there but nonetheless it went up there with uh with a great deal of ease The level was determined by using these ideas. Now, I don't show you everything on my charts because invariably, like I've shown you here, there's probably a thousand questions already going through your mind about the flout. What was that again? The range? Do we divide this? Do we divide that? What are we projecting? I already know you're going to have a million questions about flout. So just understand that we're going to teach in detail the flout. I'm using it here as a segue going into more teachings about it, but we use flout. Central bank dealers range, Asian range, and pivots for looking to fulfill the daily range or filling the numbers, as it's called. So how do we use all this information? Well, what you do is you determine, number one, where price should be reaching based on the PD array matrix. Remember, we've already determined based on institutional order flow on the daily and four-hour where price is going to go, higher or lower. If price is respecting a premium PD array on the daily or four-hour. We're going to anticipate price rallying up at New York's midnight candle or thereafter. That rally up, that protractionary market state, is the Judas swing. We're using some measure of standard deviation. One of the four has been shown here, either by way of general pivots, central bank dealer's range, Asian range, and now the flout. We use those projections. for a basis of how far price can go down. Now, we don't know how fast price is going to be delivered across the daily range. In other words, London can be 80% of the daily range, and then the rest of the day, this goes quiet. It's been done before. Sometimes London doesn't do much at all, and then finally the move takes place in New York, and all the range is completed from 7 o'clock in the morning to London close. We don't ever know that for certain. What we do is we project these measurements across all four of them. We go through them. This is the work you do throughout the day. You don't have to look at your chart blindly. I'm doing measurements. I'm looking at things. I'm having Cody going back and forth between different charts because I want to see what the measurements are that overlap and converge with, in this case, if we're looking to go short. I'm looking for some measurement of a discount PD array on the daily or four-hour that would line up with time of day and the standard deviations that I would use respectively with either the… Central Bank Dealers Range, Flout, or Asian Range, and or four levels on the pivot points. Eventually, throughout the morning, you're going to come to a conclusion where you can narrow down exactly where price is most likely going to go. The worst case scenario is going to be that you're going to see it go further than you thought. And guess what? That's why you leave a little piece of the position on, because you can be wrong and it could be in your benefit to be so. And when you're bullish, we're looking for some measure of a move lower, obviously, and some measure of standard deviation that we adopt. We go through all of them. We're not just picking our favorite ones, not our, you know, this is an I understand central bank dealers range or I understand the Asian range. I'm going to stick to that. No, you don't want to do that. If you already started thinking yourself, well, this is getting too complicated for me, then you need to dig your heels in and really do the work of following and do this. It doesn't take long, folks, really. I mean if you're following 28 pairs, obviously you're going to want to not do this obviously. But we teach in this mentorship that you want to be a specialist. You have one really good pair that you like to trade all the time and a secondary that goes well with it. Maybe it's in concert with it or it trades in close correlation with it. Like I teach to trade with the cable and fiber. I'm not forcing you to be those types of traders, but there's other pairs you can trade that are closely correlated, Kiwi and Aussie for instance. By using these measurements, we can determine how IPTA will fill the numbers on their respective characteristics. Each one has, obviously, a certain measure of overlap. But when it comes to flout, that range between 3 p.m. and midnight, you have to divide it in half. The highest high and the lowest low, you divide that in half and find the equilibrium price point. You end up with two flout ranges there. To go short using flout, you must be entering short above the equilibrium of the total flout range. And then use the flout range low as your first number of 1 of 4 to be filled in for the day. If you're going long using flout, you have to be buying below equilibrium of the flout. Total range between 3 and 12 midnight AM New York time. And then using the flout total range high as level 1 of the first count. And you do that for 4 flout projections. And the projections or standard deviations are... Basically, 50% of the total flout range. You do not use flout's total range. And by doing this, folks, what you'll end up doing is you'll be buying after some measure of protraction below. Obviously, the Asian range low would be ideal, but you'd be looking for those projections to overlap with time of day and a premium PD array. And by doing that, you blend those two things together with time of day. How much time do you have left in a day? Does it have time to get up to these projections? And you keep stacking them on, and you end up getting the daily highs and lows, like I've been shown many instances of over the last few years. But this teaching is exactly how I do it. There's no secret sauce outside of this. There's a couple little things I've got to teach you about for the rest of the teachings of this month. But you'll know everything I do. When it comes to picking the daily highs and lows, because you need that for day trading. You need to know how far that daily range is going to go. If you don't have those things at your disposal, no wonder day trading is hard for everyone because they don't know what they're doing. But we can narrow down to precise entry points and precise exit points and know with a great deal of certainty, once a little bit of the trading range has been posted through London, you get a greater feel for where it's going to reach for. And then you start incorporating things like average daily range, which we'll also incorporate this month. When they overlap also, wow, you got dynamite in a bottle. It's amazing how fast you can get really precise about your entries and exits and have the lines portion of the daily range at your disposal and take down those trophy buck wins. Now, obviously, blending several of these concepts together, you'll get a confluence of. Amazing precision. This week we mentioned how the low was most likely forming on Thursday's New York Open. As price traded down below sell stops that were outlined on our charts and outlined in great detail, in fact, it did that ahead of the news at 8.30. And I mentioned that that was most likely going to be problematic and we were probably making the low of the week. That's actually forming the bullish order block that's being delineated here on the chart. Going into Friday, You see we had market moving into a small consolidation and price dropping down after midnight, which is for GMT on Forex LTD's platform. By looking at price like this, you see it trade back down below the Asian range. Now notice it didn't go below the Asian range much at all. It doesn't have to. Trading to the Asian range low and a discount PD array. Bullish order block. Price moved away from that and was consolidating in the New York session. When we were live with one another, I stated that we would probably see $109.30 as a daily high because there was a fair value gap at that price range. What you didn't see on my other charts was this information here. We had M5 calling for $109.33, and I teach that we want to get out ahead of that. And what's the nearest round number before that? 109.30. It traded to ultimately 109.35. The likelihood of you finding this information across the internet or going into other people's work using pivot points, maybe once in a while you'll get something that overlaps and they'll do all kinds of Fibonacci this and Fibonacci that. And you might get once in a while you get a good trade. The pivots are no magic number. We use them for how far the range will expand. I don't use them so much for entries, but I do use them in the context that's been shown here. When I'm looking for the numbers to fill, I'm looking for four of them, four levels, either by central bank dealer's range, standard deviations, Asian range standard deviations, flout, 50% of that range divided in half. Each one of that makes a new flat range standard deviation. I look for four of those, or I look for four pivots. Again, as I stated at the beginning of this mentorship, it's going to require you to be thinking with the stuff that's being taught at the end or in the meat of it now. So you have to put some work behind it. You just can't simply put these things on your chart, and they just speak to you. There's no download. that takes place just because it's on your chart. You have to think and you have to do a little bit of work and do measurements throughout the day. It's not easy. It requires some work and effort. But when you put the effort in, you get amazing blue ribbon results. And that's what you're looking for. You signed on with this mentorship to see how I do these things. You see me doing them. And now you're seeing how I get to that information. But here's the main thing. If the markets do not move, and have volatility, you cannot get precision because there has to be displacement. Look at that nice move we saw in New York session. It exploded up like that. That's what we need. When price gives us that, then I'll show you this mojo. And until next time, I wish you good luck and good trading.

Welcome back folks. This is lesson two of the May 2017 ICT mentorship, ICT Amplified Day Trading and Scalping. This teaching is going to be teaching filling the numbers.

Okay, when we talk about filling the numbers, what we're talking about is the likelihood or the tendency for IPTA to fill specifically. four numbers per day. Now the daily range will seek to fill or trade to four specific levels each trading day. These two levels that first come to mind is the previous day's high and low.

As a day trader, you're going to work with the previous day's highs and lows and the last three days high and low, whichever the highest is in that regard for swing points. based on a daily chart. Those reference points are going to be like your bread and butter. You're going to go to these specific levels because it's going to give you a great deal of context, as you'll learn later in these months'teachings. But the previous day's high and low, we always look for one of those levels to be traded to.

It doesn't have to happen because the daily range could be smaller than will be required to get to the previous day's high or low. But generally, we're looking for a retest or trade through. previous day's highs and lows as a day trader.

And for one of the tools that's most used by retail traders and still large funds, they will use what we understand as historically the floor traders pivot numbers. Now, I don't use them a great deal in my trading except for this. I look for the central pivot point. And these are zero GMT pivots.

We look for the movement above the central pivot in the form of M3, which is the midpoint or 50% of the distance between the central pivot point and R1. R1 or resistance level for staged orders. M4, which is the midpoint or 50% of the distance between R1 and R2 pivot point.

R2, which is the resistance level for staged orders. M5, midpoint, or 50% of the distance between R2 and R3, and R3, which is the resistance level for staged orders. Now, you're probably asking yourself, what are staged orders, Michael?

What is this? Because traders most likely will be using pivot points collectively, and funds use them as well, IPTA will invariably trade to them and through them. Most of the time, folks that use pivot points aren't really using them accurately. And they don't always work either.

But there's a tendency for IPTA to want to trade to them because there's going to be staged orders there. Staged means there are buyers and sellers at those levels because most people don't know how to use them. So what would be otherwise viewed as a good buy point below the central pivot point at like S1 and S2, that actually might be a really good area to sell short. Once the daily ranges start to expand down and it trades back up to that S1 or S2. That could be a continuation sell.

But if you look at the general consensus across the board in retail perspective, they think anything below the central pivot point is a good buy. So that's why we talk about it in terms of staged orders. We don't care whether they're buying or selling.

We just know that IFTTT is going to go there to facilitate trade and go through that market for fund liquidity, not retail broker traders, not the little guys in the mom-and-pop brokerage firms on the big bank level. They'll trade through these levels to fill those numbers. And obviously, below the central pivot, we look for M2, which is the midpoint or 50% of the distance between central pivot and S1.

S1 is the first support level for staged orders. Then M1, which is the midpoint or 50% of the distance between S1 and S2 pivot points. S2, which is support level for staged orders.

M0. which is the midpoint or 50% of the distance between S2 and S3, and finally S3, which is the support level for staged orders. Now you're probably, you know, if you've never heard of a pivot point or if you've never seen these before, this is probably very confusing for you.

And it's not that big of a deal. It's a simple little indicator that I'm going to share with you on the forum. So at the time of this teaching, when you're done watching it, all you have to do is go back to the forum under the resources tab underneath the PDF file link that's not...

active until all the lessons are done you're going to see a link there where you can download dmt4 Indicator. While it's not important that we understand how to trade pivot points like the retail crowd, it's important to understand what these levels are and how we are going to interpret them in terms of filling the numbers. Using the order flow direction and PD array matrix for specific bias. we can use these numbers to help determine what numbers we'll be filling for that particular day.

The trade entry point that you use for your trades, you look for the numbers that will fill from that price point. If you're going long from your long entry, you look above your entry point for the sequential four levels above. If you're selling short, you look below your entry point for the sequential four levels below. That means if we're looking to go short. and we happen to be entering near the R2 level, we could look for M4, R1, M3, central pivot, four levels below us.

That would be an example of looking for the numbers to fill using the pivots. On large range days, more than four levels can be filled or traded to. The tendency to move at least to four levels is a general rule of thumb.

Ideally, the majority of your trade position will be taken off after four levels are filled. Always leave a portion on for the potential for a large range day if time permits it. So if we're looking at a position where we're long in intraday, say we've gone long from London, and we've already seen four pivots.

traded to on the upside. The bulk of your position, I'd say about 75 to 80 percent of your trade should have been taken off in terms of profit and leave a small portion 25 to 30 percent remaining to see if you get a much larger range day because New York could see a much wilder condition where it continues and you may have already seen four levels traded to just inside of the London session. Using the order flow direction and PDR matrix for specific bias, utilizing the central bank dealer's range, when you are shorting the market, selling above the central bank dealer's range, you count the low of the central bank dealer's range itself as a level, or that's level one of four to fill.

In other words, once we determine what the central bank dealer's range is, whatever its lowest line or the range, it creates the... base of that consolidation or range, whatever that lowest figure is, whether you're using the Wix low or the lowest close or open for the bodies, whichever that is, that represents the first of four. So you would count that as one. So you'd be ideally shorting above that low. So when price trades down in your favor, when you're short, when you cross over the central bank dealer's range low, that counts as one of four.

We expect the market to trade down to four central bank dealers range lows. And let's look at the chart and see an example. And everything we're selling here, you would just reverse for buying. So going short here, this would be level one because you're selling short above the central bank dealers range low. So when price trades down through it, that's counting level number one, level two.

Level three and finally level four. So there's an example of IPTA filling the numbers on the basis of the central bank dealer's range. So now look what we've done here. I've given you a means of looking for how the daily range is fulfilled using pivot points. Now with the central bank dealer's range, which is unique to me, no one else does this, but everyone knows about pivot points.

But central bank dealer's range, we look for that same phenomenon. We're looking to sell short above the central bank dealer's range low and using the central bank dealer's range low as your level one. And you count down each new standard deviation of the central bank dealer's range projected lower. Every time you cross the low end of that new range projection or standard deviation, that's counted as one new level.

And you look for four of those to fill. Reversing this. you'd be buying below the central bank dealer's range low.

And once we get to the central bank dealer's range high, that would be counted as level one. And you would continue to do the standard deviations of the central bank dealer's range, projecting it higher, higher, higher, stacking it on top of each other. And once you get through four of the central bank dealer's range highs, that's your level four count, or the numbers being filled on the basis of the central bank dealer's range. So IPTA will look to fill four pivots intraday. It'll look to fill four central bank dealer's range projections or standard deviations.

Either or can be used. Now, I already know what you're thinking, but trust me, I'll answer that question. I already know what you're thinking.

Trust me. We'll get to it at the end of this teaching. Using the order flow direction and PDA rate matrix for specific bias.

Utilizing the Asian range. When you're buying the market, buying below the Asian range, you count the high of the Asian range as level one of four to fill. Expect the market to trade up four Asian range highs. See chart to the left.

And everything I'm showing you here, you're going to reverse for shorting. You see the market making a low here after midnight candles opening. Trade's lower.

Age and range high fill. Number one, level. Number two, level.

Number three, level. And number four. And again, as I mentioned earlier in the beginning of this, teaching.

Four is just a general rule of thumb. It can always go one more level or more. Continuing with our theory of filling the numbers, using the order flow, direction, and PD array matrix for specific bias. Utilizing the flout. Oh, we haven't talked about that yet, have we?

Utilizing the flout when you are shorting the market, shorting above the flout's equilibrium, or 50% of the range that creates the flout, you count the equilibrium of the flout range to the high of the range of the flout as one standard deviation. The equilibrium of the flout range to the low of its range is counted as one standard deviation. Now, I probably confused you, but watch. It's very easy to understand.

The total flout range is projected on the basis of 50% of its complete range. And the range is determined between 3 p.m. New York and midnight in New York.

So whatever that range is, the highest high and the lowest low, or the highest body, open or close, and the lowest body, open or close, however way you want to do the range, you're going to do both of them now because we always have to factor in the potential error by looking at retail data feeds. But by using both of them, we're going to get a pretty good idea. But we take that total range, its entire range from 3 p.m.

to midnight New York time, whatever that range is. Find out what the middle of it is or equilibrium or basically find the mean threshold of that total range. What you end up with is two new ranges.

But one of those ranges equates to one of the numbers that would be used for flout. You expect the market to trade down four flout ranges in the form of a low. So once you project the flout down one, one new low. its range divided in half that constitutes level one of four numbers to fill for the day and Let's see the chart to the left and you'll see what I'm referring to But we're gonna come back to flout again in this month because I'm gonna teach everything I know about it But everything I'm showing you here you just reverse for buying so we have the flout range determined here between the two blue lines and The shaded boxes are a little bit past the the time window, but I'm doing the the first uppermost gray box and in the second box below it, the light blue box, that is the entire flout range.

What I did there is I divided it in half so it creates two flout ranges. Price needs to be selling short if you're going to be bearish. You have to sell short above the equilibrium of the flout total range or in the uppermost portion of that flout range or the gray box here as it indicates it.

arrow. Price trades down to level one, which is the new flout range low, or basically the lower half of the total flout range. That's level one. If we were bullish and we were buying below the equilibrium of the total flout range between 3 p.m. and 12 a.m.

New York, we would be buying below equilibrium and using the high of the flout range as level one, or the first of four numbers to fill for the day. And you just keep projecting. half of the flout's total range as a new number to fill.

Okay, so you're not projecting the entire flout range. You're actually projecting and doing standard deviations of 50% of the range between 3 p.m. and midnight New York time.

You see the respective level two or second number to fill, which is the third flout range low. The fourth low of the flout range is actually number four of the range. And the final fourth is seen with the fourth number in the daily range numbers to be filled.

And obviously project it one more time because like everything else we've shown here. Four is just a general rule of thumb. It goes down to a fifth level, actually nailing the very low. And this is a pound-yen chart just for you guys that like to trade those exotic pairs. This stuff works on there as well.

And I already know what you're thinking. Michael, which one do I do? Do I use the pivots?

Do I use Central Bank Dealers Range? Do I use the Asian Range? Do I use the flout?

Well, when it comes to considering which numbers to fill, you have to consider the fact that we never know. You never know for certain before the day begins what IPTA is going to use to fulfill its daily range. I never know that. But I look at London's trading going into New York.

By the time we get to New York, you'll get some greater insight. So we get closer to the truth as the trading day completes. The New York session will generally provide the measurements IPTA is presently using.

for the engineering of the daily range. So what do I mean by that? Well, we know we have a few different things here at our disposal for determining where price will go for the daily high or low. If we're bullish, we're wanting to see how far IPTA will deliver price on the upside. By itself, these ranges and these projections don't mean anything.

They don't mean anything at all. But what we look for is confluences between one or possibly more of the tools that we outlined in this teaching for... measuring these four levels, coupling these with the present trading environment, time of day, direction, and PD array matrix, you will unlock the daily high or low.

Now you've seen me do this several times in the mentorship. And before we did the mentorship, I was actually calling daily highs and lows, and I'd get within one or two pips many times right to the pip. How I do that, I don't know that for certain at the London Open.

I don't know that. Some of the folks that are in the free... members group okay that follow me has never made it to our mentorship they think that i'm super human and i do this on a daily basis and that's not true obviously you've seen that's not the case but there are certain times when i feel an unction about where the market's going and when i'm showing you how it works real time and giving you examples like we did with the euro this week uh with the 109 30 level i was off by five pips there but nonetheless it went up there with uh with a great deal of ease The level was determined by using these ideas.

Now, I don't show you everything on my charts because invariably, like I've shown you here, there's probably a thousand questions already going through your mind about the flout. What was that again? The range? Do we divide this?

Do we divide that? What are we projecting? I already know you're going to have a million questions about flout. So just understand that we're going to teach in detail the flout.

I'm using it here as a segue going into more teachings about it, but we use flout. Central bank dealers range, Asian range, and pivots for looking to fulfill the daily range or filling the numbers, as it's called. So how do we use all this information? Well, what you do is you determine, number one, where price should be reaching based on the PD array matrix. Remember, we've already determined based on institutional order flow on the daily and four-hour where price is going to go, higher or lower.

If price is respecting a premium PD array on the daily or four-hour. We're going to anticipate price rallying up at New York's midnight candle or thereafter. That rally up, that protractionary market state, is the Judas swing. We're using some measure of standard deviation.

One of the four has been shown here, either by way of general pivots, central bank dealer's range, Asian range, and now the flout. We use those projections. for a basis of how far price can go down.

Now, we don't know how fast price is going to be delivered across the daily range. In other words, London can be 80% of the daily range, and then the rest of the day, this goes quiet. It's been done before. Sometimes London doesn't do much at all, and then finally the move takes place in New York, and all the range is completed from 7 o'clock in the morning to London close. We don't ever know that for certain.

What we do is we project these measurements across all four of them. We go through them. This is the work you do throughout the day.

You don't have to look at your chart blindly. I'm doing measurements. I'm looking at things. I'm having Cody going back and forth between different charts because I want to see what the measurements are that overlap and converge with, in this case, if we're looking to go short.

I'm looking for some measurement of a discount PD array on the daily or four-hour that would line up with time of day and the standard deviations that I would use respectively with either the… Central Bank Dealers Range, Flout, or Asian Range, and or four levels on the pivot points. Eventually, throughout the morning, you're going to come to a conclusion where you can narrow down exactly where price is most likely going to go. The worst case scenario is going to be that you're going to see it go further than you thought.

And guess what? That's why you leave a little piece of the position on, because you can be wrong and it could be in your benefit to be so. And when you're bullish, we're looking for some measure of a move lower, obviously, and some measure of standard deviation that we adopt.

We go through all of them. We're not just picking our favorite ones, not our, you know, this is an I understand central bank dealers range or I understand the Asian range. I'm going to stick to that. No, you don't want to do that. If you already started thinking yourself, well, this is getting too complicated for me, then you need to dig your heels in and really do the work of following and do this.

It doesn't take long, folks, really. I mean if you're following 28 pairs, obviously you're going to want to not do this obviously. But we teach in this mentorship that you want to be a specialist. You have one really good pair that you like to trade all the time and a secondary that goes well with it.

Maybe it's in concert with it or it trades in close correlation with it. Like I teach to trade with the cable and fiber. I'm not forcing you to be those types of traders, but there's other pairs you can trade that are closely correlated, Kiwi and Aussie for instance. By using these measurements, we can determine how IPTA will fill the numbers on their respective characteristics.

Each one has, obviously, a certain measure of overlap. But when it comes to flout, that range between 3 p.m. and midnight, you have to divide it in half.

The highest high and the lowest low, you divide that in half and find the equilibrium price point. You end up with two flout ranges there. To go short using flout, you must be entering short above the equilibrium of the total flout range. And then use the flout range low as your first number of 1 of 4 to be filled in for the day. If you're going long using flout, you have to be buying below equilibrium of the flout.

Total range between 3 and 12 midnight AM New York time. And then using the flout total range high as level 1 of the first count. And you do that for 4 flout projections. And the projections or standard deviations are... Basically, 50% of the total flout range.

You do not use flout's total range. And by doing this, folks, what you'll end up doing is you'll be buying after some measure of protraction below. Obviously, the Asian range low would be ideal, but you'd be looking for those projections to overlap with time of day and a premium PD array.

And by doing that, you blend those two things together with time of day. How much time do you have left in a day? Does it have time to get up to these projections?

And you keep stacking them on, and you end up getting the daily highs and lows, like I've been shown many instances of over the last few years. But this teaching is exactly how I do it. There's no secret sauce outside of this.

There's a couple little things I've got to teach you about for the rest of the teachings of this month. But you'll know everything I do. When it comes to picking the daily highs and lows, because you need that for day trading. You need to know how far that daily range is going to go.

If you don't have those things at your disposal, no wonder day trading is hard for everyone because they don't know what they're doing. But we can narrow down to precise entry points and precise exit points and know with a great deal of certainty, once a little bit of the trading range has been posted through London, you get a greater feel for where it's going to reach for. And then you start incorporating things like average daily range, which we'll also incorporate this month.

When they overlap also, wow, you got dynamite in a bottle. It's amazing how fast you can get really precise about your entries and exits and have the lines portion of the daily range at your disposal and take down those trophy buck wins. Now, obviously, blending several of these concepts together, you'll get a confluence of. Amazing precision.

This week we mentioned how the low was most likely forming on Thursday's New York Open. As price traded down below sell stops that were outlined on our charts and outlined in great detail, in fact, it did that ahead of the news at 8.30. And I mentioned that that was most likely going to be problematic and we were probably making the low of the week. That's actually forming the bullish order block that's being delineated here on the chart. Going into Friday, You see we had market moving into a small consolidation and price dropping down after midnight, which is for GMT on Forex LTD's platform.

By looking at price like this, you see it trade back down below the Asian range. Now notice it didn't go below the Asian range much at all. It doesn't have to. Trading to the Asian range low and a discount PD array.

Bullish order block. Price moved away from that and was consolidating in the New York session. When we were live with one another, I stated that we would probably see $109.30 as a daily high because there was a fair value gap at that price range.

What you didn't see on my other charts was this information here. We had M5 calling for $109.33, and I teach that we want to get out ahead of that. And what's the nearest round number before that?

109.30. It traded to ultimately 109.35. The likelihood of you finding this information across the internet or going into other people's work using pivot points, maybe once in a while you'll get something that overlaps and they'll do all kinds of Fibonacci this and Fibonacci that. And you might get once in a while you get a good trade.

The pivots are no magic number. We use them for how far the range will expand. I don't use them so much for entries, but I do use them in the context that's been shown here. When I'm looking for the numbers to fill, I'm looking for four of them, four levels, either by central bank dealer's range, standard deviations, Asian range standard deviations, flout, 50% of that range divided in half. Each one of that makes a new flat range standard deviation.

I look for four of those, or I look for four pivots. Again, as I stated at the beginning of this mentorship, it's going to require you to be thinking with the stuff that's being taught at the end or in the meat of it now. So you have to put some work behind it. You just can't simply put these things on your chart, and they just speak to you.

There's no download. that takes place just because it's on your chart. You have to think and you have to do a little bit of work and do measurements throughout the day. It's not easy. It requires some work and effort.

But when you put the effort in, you get amazing blue ribbon results. And that's what you're looking for. You signed on with this mentorship to see how I do these things.

You see me doing them. And now you're seeing how I get to that information. But here's the main thing.

If the markets do not move, and have volatility, you cannot get precision because there has to be displacement. Look at that nice move we saw in New York session. It exploded up like that.

That's what we need. When price gives us that, then I'll show you this mojo. And until next time, I wish you good luck and good trading.

Transcript for:ICT Day Trading and Scalping Insights

Transcript for:
ICT Day Trading and Scalping Insights