About this video

• Video Title: One Trading Setup For Life | with examples | ICT Trading Concepts
• Channel: The AZ Trader
• Speakers: (None specified in the transcript)
• Duration: 00:11:52

Overview

This video explains a specific trading setup based on ICT (Inner Circle Trader) concepts, focusing on a high-win-rate scalp strategy. It details the conditions for entry, including identifying liquidity, power of three, market structure shifts, and fair value gaps within specific trading sessions (London and New York). The video provides visual and real chart examples for both bearish and bullish scenarios.

Key takeaways

• Trading Sessions: The strategy primarily focuses on the London and New York trading sessions.
• Setup Conditions: A successful setup requires identifying buy/sell liquidity, observing a "power of three" pattern (liquidity grab), a market structure shift, and entry at a fair value gap.
• Bearish Example: A bearish setup involves consolidation in the Asian session, manipulation in the London session to take out higher timeframe bearish PD (Premium/Discount) Array liquidity, followed by a market structure shift and entry at a fair value gap, targeting lower lows.
• Bullish Example: A bullish setup involves creating a range in the Asian session, tapping into a higher timeframe bullish PD Array, followed by a market structure shift and entry at a fair value gap, targeting higher highs.
• Session-Based Entry: The core model involves consolidating in the Asian session, manipulation during the London session, a market structure shift, and then entering at a fair value gap.

Mastering the One Trading Setup For Life: A Comprehensive Guide

This course will guide you through a powerful trading setup, leveraging ICT concepts for high-win-rate scalping. We will break down the strategy step-by-step, supported by technical explanations and real-world chart examples.

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Module 1: Understanding the Core Concepts

1.1 Trading Sessions and Kill Zones:

• Focus: London and New York sessions.
• Concept: These sessions offer the most volatility and liquidity, crucial for executing our strategy. Understanding their opening times is key.

1.2 Liquidity:

• Concept: Liquidity refers to areas where there is a high concentration of pending orders (buy stops above highs, sell stops below lows). These are targets for market makers.
• Importance: Identifying liquidity is the first step in anticipating market moves.

1.3 Power of Three:

• Concept: This refers to a three-phase process:
  1. Accumulation: Price consolidates, building orders.
  2. Manipulation (Stop Hunt): A false move to sweep liquidity above/below the consolidation range.
  3. Distribution/Mark-up: The true intended move begins.
• Application: We look for this pattern to confirm manipulation before entering trades.

1.4 Market Structure Shift (MSS):

• Concept: A change in the pattern of higher highs and higher lows (uptrend) or lower highs and lower lows (downtrend). An MSS occurs when price breaks a previous swing high in a downtrend or a swing low in an uptrend.
• Significance: It signals a potential reversal or continuation in the direction of the shift.

1.5 Premium and Discount Arrays (PD Arrays):

• Concept:
  • Premium: Areas where price is considered expensive (often the upper portion of a trading range or Fibonacci extension). Shorting from premium is preferred.
  • Discount: Areas where price is considered cheap (often the lower portion of a trading range or Fibonacci extension). Buying from discount is preferred.
• Application: We look for entries at PD Arrays that align with our bias.

1.6 Fair Value Gap (FVG):

• Concept: A three-candlestick pattern where the first candle's wick does not overlap with the third candle's wick. This creates an imbalance in price.
• Entry Trigger: FVGs often act as areas where price may return to before continuing its move. They provide precise entry points.

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Module 2: The Bearish Setup

Objective: To profit from a downward price movement.

2.1 Pre-conditions:

1. Asian Session Range: Price consolidates, creating a defined range (high and low) during the Asian trading session.
2. Higher Timeframe Bias: Identify a bearish PD Array (e.g., a fair value gap or an order block in a premium zone) on a higher timeframe (e.g., 1-hour chart).

2.2 Execution Steps:

1. London Session Manipulation: Wait for the London session to open. Price should manipulate by moving upwards, taking out the Asian session's high (buy-side liquidity). This is often a "stop hunt."
2. Tap on Bearish PD Array: The manipulated price should then tap into the pre-identified higher timeframe bearish PD Array (e.g., a premium fair value gap or an order block).
3. Market Structure Shift (Lower Timeframe): On a lower timeframe (e.g., 5-minute or 1-minute chart), look for a clear Market Structure Shift. This means breaking a recent swing low after the upward manipulation.
4. Entry at Fair Value Gap: Enter a short (sell) position when price retraces into a newly formed Fair Value Gap (FVG) created during the MSS, or at an up-close candle within the PD Array.
5. Stop Loss: Place the stop loss above the high formed during the London session manipulation (the swing high).
6. Targets:
   • Primary Target: The low of the Asian range (sell-side liquidity).
   • Secondary Target: Any significant swing low below the Asian range low.
   • Partial Take Profit: Consider taking partial profits at the Asian range low.

2.3 Example Walkthrough (Bearish): (Referencing timestamps from the video for specific examples, e.g., 1:37 - 2:03, 2:14 - 3:22)

• Observation: Price consolidates in the Asian session (0:42).
• Higher Timeframe: A 1-hour chart shows a bearish fair value gap in a premium area (2:26).
• London Open: Price moves up, taking the Asian high (stop hunt) (2:40).
• PD Array Hit: Price hits the 1-hour bearish fair value gap (2:47).
• MSS: On the 5-minute chart, price breaks a recent low (2:55).
• Entry: An entry is taken at a 5-minute fair value gap (2:59).
• Stop Loss: Placed above the range high.
• Target: The Asian low is hit (3:15).

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Module 3: The Bullish Setup

Objective: To profit from an upward price movement.

3.1 Pre-conditions:

1. Asian Session Range: Price consolidates, creating a defined range (high and low) during the Asian trading session.
2. Higher Timeframe Bias: Identify a bullish PD Array (e.g., a fair value gap or an order block in a discount zone) on a higher timeframe (e.g., 1-hour chart).

3.2 Execution Steps:

1. London Session Manipulation: Wait for the London session to open. Price should manipulate by moving downwards, taking out the Asian session's low (sell-side liquidity).
2. Tap on Bullish PD Array: The manipulated price should then tap into the pre-identified higher timeframe bullish PD Array (e.g., a discount fair value gap or an order block).
3. Market Structure Shift (Lower Timeframe): On a lower timeframe (e.g., 5-minute or 1-minute chart), look for a clear Market Structure Shift. This means breaking a recent high after the downward manipulation.
4. Entry at Fair Value Gap: Enter a long (buy) position when price retraces into a newly formed Fair Value Gap (FVG) created during the MSS, or at a down-close candle within the PD Array.
5. Stop Loss: Place the stop loss below the low formed during the London session manipulation (the swing low).
6. Targets:
   • Primary Target: The high of the Asian range (buy-side liquidity).
   • Secondary Target: Any significant swing high above the Asian range high.
   • Partial Take Profit: Consider taking partial profits at the Asian range high.

3.3 Example Walkthrough (Bullish): (Referencing timestamps from the video for specific examples, e.g., 1:07 - 1:32, 6:18 - 7:07)

• Observation: Price consolidates in the Asian session (6:18).
• Higher Timeframe: A 1-hour chart shows a bullish fair value gap in a discount area (6:18).
• London Open: Price moves down, taking the Asian low (stop hunt) (6:12).
• PD Array Hit: Price hits the 1-hour bullish fair value gap (6:24).
• MSS: On the 5-minute chart, price breaks a recent high (6:34).
• Entry: An entry is taken at a down-close candle (acting as an entry point) (6:38).
• Stop Loss: Placed below the range low.
• Target: The Asian high is hit (6:47).

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Module 4: Handling Variations and Edge Cases

4.1 No Target Met Before New York Session:

• If the primary target (e.g., Asian range low/high) is not reached before the New York session opens, the setup may need re-evaluation or a new entry might be sought.
• Look for a stop hunt or a re-tap of a bullish/bearish PD Array within the New York session, followed by an MSS and FVG entry. (See 1:22, 7:21)

4.2 No Trade Days:

• It's crucial to recognize when the conditions for the setup are not met. If liquidity isn't taken, or there's no clear PD Array or MSS, it's better to sit out. (See 7:21 - 7:32)

4.3 Multiple Entries/Targets:

• The strategy allows for scaling into positions or taking multiple targets, especially when aligning with higher timeframe objectives. (See 8:56, 9:17)

4.4 Risk Management:

• Always use appropriate stop losses.
• Consider the risk-reward ratio before entering. If the reward isn't significantly higher than the risk, the trade might not be worthwhile, especially if it's a riskier setup without strong HTF PD confirmation. (See 8:26, 10:42)

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Module 5: Practice and Refinement

• Backtesting: Regularly review past charts to identify instances of this setup, both successful and unsuccessful.
• Journaling: Keep a trading journal to record your trades, the reasoning behind them, and the outcome. This helps in identifying patterns and improving your execution.
• Patience: Waiting for all conditions to align is critical. Don't force trades.

By thoroughly understanding these concepts and practicing with the provided examples, you can begin to implement this powerful trading setup into your own strategy.