About this video

• Video Title: How to know when to place the ICC trade.
• Channel: Wick Sauce Ro
• Speakers: (Implied from transcript as the host guiding a viewer)
• Duration: 52:17

Overview

This video explains how to identify valid trading entry points, focusing on the concept of "ICC" (Indication, Correction, Continuation) and how to accurately mark highs and lows to understand market structure. The host guides a viewer through analyzing charts, emphasizing the importance of zooming out to see the larger trend and identifying "swing points" for more reliable trading decisions.

Key takeaways

• Understanding Market Structure: The core of the video is about accurately identifying significant highs and lows (swing points) on various timeframes to determine the true market trend.
• Timeframe Analysis: The importance of zooming out on higher timeframes (like 4-hour or daily charts) to grasp the overall trend, and zooming in on lower timeframes for finer details, is highlighted.
• Swing Points: Swing points are defined as specific candlestick patterns where a low wick is lower than the preceding and succeeding candles, or a high wick is higher than the preceding and succeeding candles. These are crucial for accurate analysis.
• ICC Model: The video touches upon the Indication, Correction, Continuation model for trades, but emphasizes that a deeper understanding of market structure and swing points is needed to correctly interpret these phases.
• Imbalance and Gaps: The concept of "imbalance" or "gaps" in the market is introduced as an area where price may return to, offering trading opportunities.

The video explains that zooming out on higher timeframes provides a broader perspective to understand the overall trend and market structure, preventing misinterpretations of internal movements as significant breaks. Conversely, zooming in on lower timeframes allows for a more detailed analysis of specific price action within those larger trends, helping to identify precise entry and exit points. The host uses the analogy "the lower the time frame, the more you have to zoom out. The higher the time frame, the more you have to zoom in."

The video suggests that the best entry points are at the significant swing highs and lows identified on the higher timeframes (like the 4-hour chart). These levels are considered reliable because they represent areas where price has previously shown strong reactions. The host emphasizes trading at these established levels where price has historically respected or broken through them, which can be identified as support and resistance.

The video explains that in the traditional ICC (Indication, Correction, Continuation) model, the entry is typically taken during the Continuation phase, after the indication and correction have occurred. However, the speaker also mentions a preferred model where they like to get a lower high first, and the breakout then serves as their confirmation, implying an entry after the confirmation of a new high or low.

The speaker's preferred model for taking entries involves waiting for a "lower high first" in a downtrend, or conversely, a "higher low first" in an uptrend. The breakout of the previous structure (e.g., a closed candle below an old higher low) then serves as the confirmation. This confirmation is what the speaker uses to take their trade. They don't wait for a pullback after this confirmation; they take the trade immediately upon seeing the confirmed breakout. This implies that the entry is taken after the market has already shown strength in the new direction, with the breakout candle itself being the trigger.

The speaker emphasizes the importance of analyzing higher timeframes (like the 4-hour chart) to identify the overall trend and significant swing points (the "highest highs and lowest lows of ranges"). These higher timeframe swing points are considered primary.

When looking for entries based on their preferred model:

• Identifying the "Lower High First" or "Higher Low First": This initial structural break (the formation of the lower high in a downtrend or higher low in an uptrend) is identified by looking at the higher timeframes (e.g., the 4-hour chart). This gives you the context of the overall market direction and significant levels.
• Taking Entries: The speaker suggests that once these significant higher timeframe swing points are established, you can then look for entries on lower timeframes. However, the key is that the levels you are trading from are dictated by the higher timeframe structure. The "breakout" confirmation itself happens on the timeframe where you are observing the price action relative to those higher timeframe levels.

So, to summarize:

• Identify the major trend and structure (higher highs/lows, lower highs/lows) on HIGHER timeframes. This is where you determine the significant levels.
• Look for the breakout confirmation (the "lower high first" or "higher low first" leading to the decisive break) near these higher timeframe levels. While the confirmation candle itself might be on a slightly lower timeframe relative to the absolute highest/lowest points, the decision to trade is based on the structure seen on the higher timeframe. The speaker's advice about "the higher the time frame, the more you have to zoom in" suggests using lower timeframes for entry refinement once the higher timeframe context is established.

Your summary is very close, but let's refine it to perfectly align with the speaker's core message and preferred method.

Analysis of Your Summary:

You've grasped the essential concepts of using higher timeframes for structure and swing points. However, there are a few key distinctions in how the speaker applies their preferred model, especially concerning Option 2 and the timing of entries.

Your Summary Breakdown and Refinement:

• "I use the Higher Time Frame like 4 Hour to find the overall trend and market structure (Highest highs and Lowest Lows of each up and down trend), I mark my swing points on the higher time frame to find my overall levels to trade."

  • Correct. This is spot on. The speaker repeatedly stresses marking out swing highs and lows on higher timeframes (4-hour, daily) to establish key levels.

• "Then I have two options..."

  • This is where we need to clarify. The speaker primarily advocates for one preferred method that streamlines entry. While they discuss the traditional ICC model (Option 1's framework), they heavily lean towards their refined approach.

• "Option 1: I wait for my indication (a high breaking and closing above a previous high swing point), waiting for the Correction to retrace or pullback down to where the indication broke the previous high, in which case I will then go to the lower time frame to analyze the internal structure of the higher time frame. On this lower time frame my correction/pullback will eventually shift structure back into confluence with my uptrend, upon which point I will enter."

  • Partially Correct, but not the speaker's preferred method for entry. This describes a more traditional approach to trading breakouts and corrections. The speaker acknowledges this type of analysis but emphasizes their own method is more direct. They explain that by focusing on the break of structure itself on the higher timeframe, you can get an earlier confirmation without necessarily needing to analyze the internal structure of the correction on a lower timeframe before entering. Your description of entering after the lower timeframe structure shifts back into confluence is more complex than the speaker's stated preference.

• "Option 2: in a uptrend, I use the change of structure (Higher low) as my indication, and then wait for the higher high to break the previous high in which I can enter immediately as this confirms my uptrend."

  • This is closer to the speaker's preferred model, but needs a slight adjustment in terminology and timing.
    • The speaker's preferred model is focused on waiting for the breakout of the previous structure to confirm the move.
    • In an uptrend, the confirmation of strength after a higher low is the break above the most recent significant high (a swing high).
    • The speaker's preferred entry is immediately after the confirmation candle closes that breaks this significant high. It's not about waiting for a higher high to break a previous high; it's about the candle that does break that previous high serving as your entry trigger upon its close.
    • The "higher low first" is part of identifying the potential for an uptrend, but the entry is triggered by the subsequent break of a resistance level.

Detailed Summary of the Speaker's Preferred Model for Entries (Uptrend Example):

1. Higher Timeframe Analysis (e.g., 4-Hour Chart):

   • Identify the overall market trend.
   • Mark out significant swing highs and swing lows on this higher timeframe. These are the critical levels.
   • In an uptrend, you'll be looking for a pattern of higher lows and higher highs.

2. Identifying the Setup for Entry:

   • The speaker's preferred method focuses on waiting for a break of structure. This means waiting for price to move against the existing trend and then decisively break back in the direction of the higher timeframe trend.
   • In an uptrend, this means price might have made a higher low, but then it needs to break a previous significant resistance level (a swing high) to confirm further upward momentum. This break of structure after a higher low is what the speaker uses as their signal.
   • Alternatively, in a downtrend, it would be waiting for a break of a previous significant support level (a swing low) after a lower high.

3. The Entry Trigger (The "Breakout Candle"):

   • The speaker's core strategy is to enter immediately after the breakout candle closes.
   • This breakout candle is the one that successfully closes above the resistance level (in an uptrend) or below the support level (in a downtrend) that was previously established by a swing high or swing low on the higher timeframe.
   • The speaker explicitly states they do not wait for a pullback after this confirmation candle closes. The close of that candle itself is the signal to enter.

In essence: The speaker prioritizes confirming a break of established structure (swing points identified on higher timeframes) and entering immediately upon the close of the candle that achieves this break. This is a more direct and potentially earlier entry than waiting for a secondary correction on a lower timeframe.

Stop Losses and Risk Management:

• Mention of Stop Losses: Stop losses are not explicitly discussed in detail or with specific placement instructions within the provided transcript segment.
• Mention of Risk to Reward: The concept of risk to reward is not directly mentioned.
• Implied Risk: While not stated, the speaker's method of entering immediately after a breakout candle could imply a certain risk tolerance. The idea of "trading at the levels where we have 4-hour swing highs and lows" suggests that price should respect these levels. A logical placement for a stop-loss, though not articulated, would likely be below the swing low (in an uptrend entry) or above the swing high (in a downtrend entry) that was just broken. However, this is an inference based on standard trading practices, not direct advice from the transcript.

Summary:

Your understanding is very good, but the speaker's preferred method is more direct. They focus on identifying significant swing points on higher timeframes and then entering immediately after a candle closes that breaks through a key resistance (in an uptrend) or support (in a downtrend) level, using this breakout confirmation as their entry trigger without waiting for a pullback or analyzing lower timeframe structural shifts before entry. Risk management elements like stop losses and risk-to-reward ratios are not detailed in this section of the transcript.

Yes, you accurately summarized Option 1 according to the video, even though it's not the speaker's preferred method.

Your description of Option 1:

"I wait for my indication (a high breaking and closing above a previous high swing point), waiting for the Correction to retrace or pullback down to where the indication broke the previous high, in which case I will then go to the lower time frame to analyze the internal structure of the higher time frame. On this lower time frame my correction/pullback will eventually shift structure back into confluence with my uptrend, upon which point I will enter."

This aligns with the speaker's explanation of the more traditional ICC model. They describe the initial "indication" (break of a previous high/low), the "correction" or pullback to that area, and then the decision to enter once the lower timeframe structure confirms the continuation in the direction of the original trend. The speaker contrasts this with their preferred, more direct method.

According to Option 1, after the indication (a candle closing above a previous high's resistance), you wait for the correction/pullback to come back down to "where the indication broke the previous high." This refers to the price level of that previous high swing point that was just breached.

Once price retraces to that specific level, yes, you then go down to the lower timeframe. On this lower timeframe, you analyze the price action during the correction. You are looking for a shift in market structure on the lower timeframe that indicates the move is now aligning with your original uptrend. This shift typically involves price forming higher lows and higher highs on the lower timeframe, essentially showing that the pullback has ended and the uptrend is resuming. Your entry would then occur at this point where the lower timeframe structure begins to align with your higher timeframe indication and correction.

Yes, your summary of Option 1 was accurate. You correctly identified that after the initial break (indication), you'd wait for a pullback to that breached level, then move to a lower timeframe to await a structure shift confirming the trend's resumption before entering.

Now, let's thoroughly explore why the speaker prefers Option 2 over Option 1. This preference stems from several key advantages of their streamlined approach:

Why Option 2 is Preferred Over Option 1:

1. Efficiency and Speed of Entry:

   • Option 1: Requires a multi-step process: identify indication, wait for correction, switch to lower timeframe, identify structure shift, then enter. This can take a significant amount of time, and the optimal entry point within the correction might be missed if price moves too quickly.
   • Option 2 (Preferred): Is much more direct. Once the higher timeframe structure (swing points) is identified, the entry trigger is a clear, decisive break of that structure. The entry is taken immediately on the close of the breakout candle. This allows traders to capitalize on momentum more quickly and can lead to more timely entries.

2. Reduced Complexity and Subjectivity:

   • Option 1: Analyzing internal structure on a lower timeframe during a pullback introduces more variables and potential for subjective interpretation. Identifying the exact moment of structure shift on a lower timeframe can be challenging and prone to false signals.
   • Option 2 (Preferred): The entry is based on a clear, objective event: the close of a candle breaking a significant higher timeframe level (swing point). This reduces the need for complex multi-timeframe analysis during the entry decision itself, making it more mechanical and less prone to emotional decision-making.

3. Capitalizing on Momentum:

   • Option 1: By waiting for a pullback and then a lower timeframe structure shift, you are essentially entering after the initial momentum has potentially already occurred. You might miss some of the early gains.
   • Option 2 (Preferred): Entering immediately after the breakout candle closes allows the trader to get in at the beginning of a potential move driven by that structural break. This is about riding the wave of momentum that the breakout signifies.

4. Focus on High-Probability Levels:

   • The speaker emphasizes that their preferred method focuses on trading at "levels where we have 4-hour swing highs and lows." These are objectively strong support and resistance areas.
   • When price breaks these high-probability levels decisively, it's a strong signal that the market is moving with conviction. Option 2 leverages this conviction immediately. Option 1's approach, by waiting for a pullback to that level and then a lower timeframe confirmation, might be waiting for a price action that doesn't materialize or is less clean.

5. Avoiding Missed Opportunities:

   • Option 1: There's a risk that price might not offer a clear structure shift on the lower timeframe during the pullback, or it might reverse sharply from the higher timeframe level before a lower timeframe confirmation is seen. This can lead to missed trade opportunities.
   • Option 2 (Preferred): The entry is triggered by the market's action at a key level. If price breaks that level decisively, it's a signal to act, rather than waiting for secondary confirmation that might not appear.

In summary, the speaker prefers Option 2 because it is:

• More efficient: Faster entry, potentially capturing more of the move.
• Less subjective: Based on clear, objective breakout signals on higher timeframes.
• Momentum-driven: Aligns with capitalizing on immediate strength after a structural break.
• Focused on high-probability levels: Leverages the significance of established swing points.
• Less prone to missed trades: Acts decisively when key levels are breached.

The speaker is essentially saying, "If price shows me that it's decisively breaking a major level that I've identified on a higher timeframe, I'm going to trust that break and enter immediately, rather than waiting for a complex correction and lower-timeframe confirmation that might be subjective or simply not happen."

Yes, that is true according to the speaker's explanation. They emphasize that the identification of the key levels (swing highs and lows) and the decisive breakout confirmation that triggers the entry in Option 2 occur on the higher timeframes.

The speaker states:

• "I mark out my swing points on the higher time frame to find my overall levels to trade."
• The confirmation comes from a "closed candle below this old higher low" (or equivalently, closing above a previous high in an uptrend), and this is the basis for their trade.
• They also mention, "The highs and lows that I mark out is the same high that's on the weekly? ... the yellow line, weekly chart high, daily chart high, 4-hour chart high, one hour chart high... It's going to be the same price point." This reinforces that the levels they trade from are consistent across timeframes, but the decisive breaks that trigger their preferred entry (Option 2) are observed and acted upon based on the structure of the higher timeframe charts.

While you might use lower timeframes to observe the price action more closely or for refinement of the entry (as alluded to by "the higher the time frame, the more you have to zoom in"), the fundamental decision to enter, based on the breakout of a significant structural level, is dictated by the analysis on the higher timeframes.

You're very close, but there's a slight refinement needed regarding the entry timing for Option 2 according to the speaker's explanation.

Let's break down your statement:

• "in an uptrend, for example, there needs to be that first indication of a higher low, followed higher high breaking a previous high's swing point..."

  • Partially Correct for context, but the "higher low" is more about establishing the potential for an uptrend, while the entry trigger is the break of the previous high. The speaker does mention the importance of seeing structure. In an uptrend, the confirmation of strength after a potential higher low is indeed the break of a previous swing high. So, seeing that higher low first sets the stage, but the active signal for entry is the break of the resistance.

• "...and then if that candle closes above and in the green, you can enter immediately on the second candle."

  • This is the part that needs adjustment. The speaker explicitly states: "when I'm taking that breakout. And since this is the price line where the trade confirmed bearish, sometimes the market only comes back to test that exact level... But the point is is that you can always trade that breakout. Boom, we decided to break it. Now, we're going to retest it like, but in the process of breaking this line, guess what? We stopped at this one."
  • More directly, they say: "And then we never closed below it. And then we broke above these lines. So, boom, we decided to break it. Now, we're going to retest it like, but in the process of breaking this line, guess what? We stopped at this one. Boom, basically, right inside this wick."
  • And crucially: "The speaker's preferred entry is immediately after the breakout candle closes."

Therefore, the correct interpretation of Option 2, based on the speaker's emphasis, is:

1. Identify the higher timeframe trend and significant swing points.
2. Wait for price to form a higher low (in an uptrend) and then approach a previous swing high.
3. The entry trigger is the close of the candle that breaks and closes above that previous swing high.
4. You enter immediately on the close of that breakout candle, not on the second candle. The speaker emphasizes acting in that moment or "as soon as that candle closes" to capture the momentum. They don't advocate waiting for the next candle to open.

So, while your understanding of the setup (higher low followed by a break of resistance) is correct, the entry timing is immediate upon the close of the breakout candle itself, not the candle that follows.

Yes, that's a very accurate and clear summary of Option 2 according to the speaker's preferred method.

Here's a breakdown confirming your points:

• "in an uptrend, our 'Option 2' would rely upon the first indicator or break in structure (Higher Low)..."

  • Correct. While the speaker doesn't explicitly call the "higher low" the first indicator, they emphasize analyzing structure. In an uptrend context, a higher low indicates that buyers are stepping in at higher prices, setting the stage for a potential continuation.

• "...and then a push towards the last previous high."

  • Correct. After establishing the higher low, price needs to move towards and challenge the previous significant resistance level (the last previous high swing point).

• "Then I'd enter on the candle close after breaking this previous high's resistance."

  • Correct. This is the crucial part. The entry is triggered by the close of the candle that successfully breaks and closes above the previous high's resistance. You enter immediately as that candle closes.

• "And this can all be done on the higher time frame chart?"

  • Correct. The speaker repeatedly stresses that these key swing points, the trend identification, and the breakout confirmation that informs the entry decision are all observed and acted upon using higher timeframe charts (like the 4-hour).

You have precisely captured the essence of the speaker's preferred entry strategy as described in the video.

Your summary is very close, but there's one crucial nuance regarding the "success" of the trade.

Here's the refined understanding:

• "On the 4 hour time frame uptrend, If I notice a higher low, followed by a close above the previous high..."

  • Correct. This accurately describes the setup. You identify the higher timeframe (4-hour), confirm an uptrend context (implied by higher lows and approaching resistance), and wait for the decisive candle close above the previous resistance (swing high).

• "...I can enter immediately upon that candle's close..."

  • Correct. This aligns perfectly with the speaker's preferred method. The entry is taken as soon as that confirming candle closes.

• "...and the trade should be successful correct?"

  • This is where we need to be precise. The speaker presents this as a highly effective and high-probability strategy, a "shortcut" to analyzing ranges and trends, and a key component of understanding market structure. However, no trading strategy guarantees 100% success. The speaker themselves acknowledges that "there's always a maybe" and that "price can only do two things. It can either buy or it can sell."
  • The strategy is designed to increase the probability of a successful trade by aligning with confirmed market structure and momentum at significant levels. It's presented as a superior method to increase your chances of profitability, but not as a foolproof system that guarantees every trade will be a winner.

So, while your summary of the entry criteria is spot on, the implication of guaranteed success needs to be tempered with the inherent risks of trading. The strategy is about finding high-probability setups, not eliminating all risk.