This video explains a trading strategy that the speaker refers to as "the holy grail," combining Institutional Candle Concepts (ICC) with supply and demand principles. The speaker emphasizes the importance of understanding market structure, identifying true market sentiment shifts, and relying on objective truths found in price action (open, high, low, close) rather than subjective rules. The video contrasts different approaches to trading, particularly concerning time frames and market alignments between Forex and Futures, and highlights the speaker's personal journey in discovering this strategy.
The speaker refers to "internal structure" as parts of a larger trend that do not necessarily represent the overall trend's direction. They explain that this internal structure can sometimes be ignored if focusing on the bigger picture of the market's overall trend. For example, within a larger downtrend, smaller uptrends or consolidations would be considered internal structure.
The speaker defines a bullish range as an area where the market is moving upwards, characterized by higher highs and higher lows. Conversely, a bearish range is an area where the market is moving downwards, indicated by lower highs and lower lows. The key differentiator is the direction of price movement and the formation of these price extremes within that range.
The speaker differentiates between subjective and objective truths in trading by stating that objective truths are always valid and universally applicable, like the open, high, low, and close of a candlestick. These truths are inherent to the market data itself. Subjective truths, on the other hand, are created by groups of people who agree on certain rules or interpretations (e.g., "this strategy only works during this session"). These are not always valid and can change, making them less reliable than objective truths. The speaker emphasizes that their "holy grail" strategy is rooted in objective truth.
The speaker defines a Fair Value Gap (FVG) as an area of imbalance in the market. They explain that an FVG is formed between the low of a broken market structure and the high created that led to that break.
However, the speaker notes a crucial distinction in how they draw an FVG: they base it on broken market structure (i.e., the price levels that were breached) rather than solely on the candlesticks themselves. They illustrate that traditional candlestick-based FVG drawing might not always align with this structural approach, and their method focuses on the highs and lows that define the market structure shifts.
The video doesn't provide a step-by-step process for the "holy grail" trading strategy in a sequential, actionable format. Instead, it explains the underlying principles and concepts that constitute this strategy.
Here's a breakdown of the key components discussed, which you would need to synthesize into a trading process:
Understand Market Structure and Trend:
Confirm Trend:
Identify Key Price Levels (Ranges):
Look for Imbalance/Fair Value Gaps (FVGs):
Recognize Order Blocks:
Understand Market Cycles and Corrections:
Focus on Objective Truths:
Find the "Holy Grail" Zone:
Execution (Implied):
The video emphasizes the understanding of these concepts as the path to the "holy grail," rather than a rigid, step-by-step mechanical process. It's about interpreting price action based on these objective truths.
