About this video

• Video Title: Stop taking bad ICC entries...
• Channel: Wick Sauce Ro
• Speakers: [None explicitly mentioned in transcript]
• Duration: 02:48:31

Overview

This video explains how to correctly execute ICC (likely referring to a trading entry strategy) by focusing on proper trend identification and entry timing. The speaker contrasts two models for market structure shifts, emphasizing the importance of understanding internal and external market structure, identifying valid highs and lows, and avoiding premature entries. The core message is to trade with confirmed trends and enter at the right time, not just the right price.

Key takeaways

• Understanding ICC: The goal of ICC is to enter trades with confirmed trends.
• Trend Confirmation: A confirmed trend is determined by tracking higher highs and higher lows (for uptrends) or lower highs and lower lows (for downtrends).
• Market Structure Shifts: The video contrasts two types of market structure shifts:
  • Shift 1 (Preferred): Starts with a lower high, followed by a break of the previous low. This is considered a stronger and more reliable shift.
  • Shift 2 (Traditional/Sai's Model): Starts with a lower low, followed by a lower high and then a break of the previous low. This is presented as a weaker and more complex shift that can lead to fake-outs.
• Time Frames Don't Matter (When Done Correctly): The speaker argues that proper market structure analysis allows for consistent identification of trends and entries across different time frames. The key is to identify significant highs and lows that lead to breaks of opposite structures.
• Identifying Valid Highs and Lows: A crucial skill is to identify highs and lows that are important because they lead to breaks of structure. Lows that don't lead to a break of a high, and highs that don't lead to a break of a low, are considered less significant ("noise") and can be ignored for proper analysis.
• Avoiding Premature Entries: Many traders enter trades too early because they don't wait for lower time frame confirmations or misinterpret market structure. The video stresses patience and waiting for the trend to confirm.
• Internal vs. External Market Structure: The video touches on the concept of internal market structure (smaller trends within larger ones) and how it should align with external (major) market structure for valid entries.

Here's a step-by-step strategy for using the ICC method as explained in the video:

Phase 1: Trend Identification and Market Structure Analysis

1. Identify Major Market Structure:

   • Determine the significant highs and lows on your chosen chart (the speaker suggests time frames are less critical if analysis is correct, but start with a primary one like 1-hour).
   • Rule: A low is only important if it leads to breaking a previous high. A high is only important if it leads to breaking a previous low.
   • Ignore: Mark out and ignore highs and lows that do not lead to a significant break in the opposite direction of the trend. These are considered "noise."

2. Determine the Trend:

   • Uptrend: Characterized by a series of higher lows and higher highs.
   • Downtrend: Characterized by a series of lower highs and lower lows.

Phase 2: Recognizing Market Structure Shifts for ICC Entries

1. Identify Shift Type 1 (Preferred/Stronger):

   • Sequence: The market makes a higher low, then a lower high, and then breaks the previous higher low.
   • Entry Signal: The break of the previous higher low (with a confirmed candle close below it) is your primary entry signal for a short position. This is the "breakout" confirmation.

2. Identify Shift Type 2 (Traditional/Weaker):

   • Sequence: The market makes a lower low first, then a lower high, and then breaks the previous lower low.
   • Consideration: This shift is considered weaker and can lead to more fake-outs. Entries here require more careful confirmation, potentially involving lower time frame alignment.

Phase 3: Entry Execution and Refinement

1. Wait for Confirmation:

   • For Shift Type 1: Enter your short position as soon as a candle closes below the confirmed higher low that was broken.
   • For Shift Type 2: This shift requires more layered analysis. You need to ensure that the lower time frame trend also aligns with the higher time frame bias before entering.

2. Use Aligned Time Frames (If Needed):

   • If your primary analysis is on a higher time frame (e.g., 1-hour), drop down to an aligned lower time frame (e.g., 5-minute) to confirm the trend and find a more precise entry.
   • Crucial: Ensure the lower time frame trend supports the direction indicated by the higher time frame structure shift. Do not take a sell if the lower time frame is still making higher highs and higher lows.

3. Avoid Premature Entries:

   • Do not enter a trade based solely on a potential break or a partial structure shift. Wait for the confirmed candle close according to the identified market structure.
   • Focus on when to enter (timing) as much as where (price level).

Key Principles to Remember:

• Patience: Wait for the market structure to confirm your intended trade direction.
• Objectivity: Mark highs and lows at the absolute wicks of the candles, regardless of whether they are bullish or bearish.
• Filtering Noise: Learn to distinguish between significant highs/lows that drive market structure and insignificant ones that don't.
• Risk Management: Precision is crucial, especially for traders with smaller accounts, to avoid large drawdowns from premature or incorrectly timed entries.