About this video

• Video Title: ICC Livestream | 3 Things Every ICC Needs to Know
• Channel: Wick Sauce Ro
• Speakers: (Not explicitly stated in the transcript, but seems to be one primary speaker and one interlocutor)
• Duration: 1:24:32

Overview

This video explains the core concepts of Internal vs. External Market Structure (ICC) for trading. The speaker breaks down how to identify and utilize these structures, emphasizing the importance of higher highs and higher lows (or lower highs and lower lows) as external market drivers. The video also touches on distinguishing between internal and external levels, proper charting techniques, and how lower timeframes lead to higher timeframe price action.

Key takeaways

• Internal vs. External Market Structure: External market structure refers to the overall highs and lows of a trend, while internal structure occurs within the range of these external levels.
• Identifying External Levels: The highest highs and lowest lows of trends are considered external. Internal structure within these trends can sometimes align with external levels but is distinct.
• Timeframe Alignment: While multiple timeframes can be used, the core concept is to understand the direction and structure on higher timeframes and then look for entries on lower timeframes.
• Swing Points and Wicks: Swing points are crucial for identifying valid swing highs and lows. The speaker emphasizes using the actual wick of a candlestick, not just the close, to define these points.
• Avoiding Over-Marking: It's important not to mark out too many insignificant levels, which can clutter the chart and lead to confusion. Focus should be on the key external highs and lows that define trends.
• Lower Timeframes Lead Higher Timeframes: Every higher timeframe trend originates from a lower timeframe, meaning that internal market structure (lower timeframe) ultimately dictates external market structure (higher timeframe).
• Range Trading: The market consists of ranges, and understanding how price interacts with these ranges (breaking out, retracing, fulfilling) is key to profitable trading.
• Market Sentiment: Price action, particularly breaks of key highs or lows, indicates market sentiment (bullish or bearish).

The speaker's key advice regarding marking levels on a chart is to avoid over-marking insignificant levels and not to mark out too many internal market structure levels. The focus should be on identifying and marking the external highs and lows that define the overall trends and ranges. The speaker suggests that marking out too many levels can clutter the chart and lead to confusion.

The speaker explains that internal and external market structure don't always align because external market structure is defined by the highest highs and lowest lows of a trend. In order for the market to reach these external highs and lows, it must first uptrend or downtrend internally within that overall range.

Therefore, while internal movements contribute to reaching the external levels, the internal price action (all the highs and lows that occur within the larger trend) is considered "internal" because it happens within the boundaries set by the ultimate external highs and lows. The speaker uses the analogy of an "uptrend within the range of this high and this low" to illustrate this point.

The speaker explains that a new trend is confirmed and the highest highs (or lowest lows) are considered broken when there is a candle closure above the previous high (for an uptrend) or below the previous low (for a downtrend).

This closure signifies a shift in market sentiment and structure. For an uptrend, this means the market has made a higher high, and if it subsequently creates a higher low, it confirms the start of a new bullish trend. Conversely, for a downtrend, a candle closing below a low creates a lower low, and if followed by a lower high, it confirms a bearish trend.

The speaker emphasizes the importance of these candle closures, stating that a wick above or below a level is not enough; a definitive close is needed to confirm the structural shift.