ICT Mentorship Core Content - Month 05 - Using IPDA Data Ranges

About this video

• Video Title: ICT Mentorship Core Content - Month 05 - Using IPDA Data Ranges
• Channel: The Inner Circle Trader
• Speakers: Michael J. Coleman (implied by context of ICT teachings)
• Duration: 02:02:38

Overview

This video explains the concept and application of IPDA (Interbank Price Delivery Algorithm) data ranges in trading, focusing on how to use historical price data to identify potential future price movements and liquidity pools. The speaker emphasizes the importance of higher time frame analysis and how to interpret specific time-based price ranges (20, 40, and 60 days) to anticipate market behavior, particularly the influence of "smart money" and institutional trading.

Key takeaways

• IPDA Data Ranges: The core concept involves looking back 20, 40, and 60 days from a significant price point (like a market structure shift) to identify areas of potential liquidity (buy stops above highs, sell stops below lows) and anticipate future price targets.
• Futures vs. Forex: While the examples use futures contracts (like the Australian Dollar March contract), the principles are applicable to forex trading, with futures offering valuable insights like volume data that forex lacks.
• The Importance of Patience: A key theme is the necessity of patience in waiting for price to reach identified levels and for setups to unfold, contrasting this with the common retail trader's impatience and desire for immediate results.
• The Role of Algorithms: The speaker posits that market movements are largely driven by algorithms that seek liquidity, and understanding these data ranges helps traders align with institutional order flow.
• Open Interest as a Key Indicator: For commodities, open interest is highlighted as a crucial, often misunderstood, indicator that can reveal smart money's positioning and intentions, particularly in relation to price consolidations and trends.
• Quarterly Shifts: The video suggests that significant market structure shifts often occur every three to four months, and identifying these quarterly cycles using data ranges can provide directional bias.
• Focus on Higher Time Frames: The instruction is to focus on daily, weekly, and monthly charts to gain a solid understanding of market direction and institutional intent, rather than getting lost in lower time frame noise.
• Practical Application: Viewers are encouraged to apply these concepts to their own charts across various asset classes to reinforce learning and develop their analytical skills.