ICT Mentorship: Module 2 of Month 2

Topic: Framing Low-Risk Trade Setups

Higher Time Frame Charts: Essential for high odds probability trades.
- Provides directional bias, institutional order flow, support, and resistance ideas.
- Large institutions and banks analyze markets on daily, weekly, and monthly bases.
Institutional Order Flow: Understanding this on monthly, weekly, and daily time frames is crucial.
- Higher time frame setups form slowly, allowing ample time to plan.
- Suitable for those who can't day trade due to other life commitments.

Higher time frame has more influence on price.
Conditions on higher time frames can be refined to lower time frames.
- This reduces the overall exposure in terms of pips for stops.
- Allows for smaller stop loss placement, thus lower risk.

Higher Time Frame Level: 7512 relative to the daily chart, indicating a daily bullish order block.
- Old low is broken, price goes down into this level.
- Expectation of buying below old lows due to a higher time frame premise.
Hourly Chart Analysis:
- Low violated down into key support (7512 level).
- Buy stops above specified levels for upper level objectives.
- Framed with a 20-pip stop for a long entry at 7542.

15-Minute Chart:
- Focus on old low, price trades down into 7512 level.
- Bullish order block identified, allowing buy at 7520 with a stop at 7507.
  - Results in a 17-pip stop loss.
5-Minute Chart:
- Zoomed into the 7512 level, identifying another bullish order block.
- Entry at 7515 with a stop at 7507, resulting in less than a 10-pip stop loss.
- Refined risk to 8 pips with first profit of 8 pips above, achieving a 3R reward ratio before hitting the hourly chart buy stops.

Refining risk on lower time frames allows for smaller stop losses and higher reward ratios.
Requires understanding of price action and why it should respond to certain levels.
Can achieve a 3:1 reward to risk ratio by refining entries from higher to lower time frames.