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2022 ICT Mentorship 5

This document provides an overview of intraday order flow and understanding the daily range in index futures. It discusses setting up the daily range using a 15-minute chart to identify key highs and lows. It describes patterns like the 3 drives pattern and anticipating stop hunts. It also covers the three sessions that define the daily range: the morning trend, New York lunch, and the afternoon trend. Signs that the market wants to trend higher and looking for afternoon stop hunts are presented. Finally, it discusses three market profile templates and closing remarks about avoiding overtrading.

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100% found this document useful (24 votes)
12K views50 pages

2022 ICT Mentorship 5

This document provides an overview of intraday order flow and understanding the daily range in index futures. It discusses setting up the daily range using a 15-minute chart to identify key highs and lows. It describes patterns like the 3 drives pattern and anticipating stop hunts. It also covers the three sessions that define the daily range: the morning trend, New York lunch, and the afternoon trend. Signs that the market wants to trend higher and looking for afternoon stop hunts are presented. Finally, it discusses three market profile templates and closing remarks about avoiding overtrading.

Uploaded by

dcratns dcratns
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2022 ICT MENTORSHIP EPISODE 5

I N T R A - D A Y O R D E R F L O W & U N D E R S T A N D I N G T H E D A I L Y R A N G E
B R A V E H E A R T S T U D Y N O T E S

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INTRODUCTION

Welcome!
Disclaimer: None of the contents within this PDF should be considered professional advice. It is merely for entertainment purposes only.

If you have been following me on YouTube lately, you know that I help Traders reach their full
trading potential.

The aim is to be the bridge between who Traders currently are and who they want to become.

With that being said, the concepts mentioned in belong to "The Inner Circle Trader".
https://www.youtube.com/c/InnerCircleTrader

All the infomation within this PDF can be found on The Inner Circle Trader's YouTube Channel.

BRAVEHEART TRADING
Dedicated to Freedom and for Reaching Your Full Trading Potential.
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Intra-day Order Flow &
Understanding the Daily Range.
The Focus will be on the following:
-Setting up the Daily Range
-Setting up the Intra-day Layout
-Daily Profiles
This will be purely focused and unique to Index Futures.
Tools such as Asian Range are completely unique to Forex.

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Whenever studying Index Futures,
be aware of the Expiration Dates.
Delivery Months:
ESH2022 - EMINI S&P 500 March 2022 Contract
ESM2022 - EMINI S&P 500 June 2022 Contract
ESU2022 - EMINI S&P 500 Sept 2022 Contract
ESZ2022 - EMINI S&P 500 Dec. 2022 Contract

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On the week prior to expiration, monitor what Open Interest suggests.
This can be viewed on Barchart.com
You want to select the Contract with largest Open Interest.
You want to be trading the Contract with largest liquidity pool offered.

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The 15 Minute Chart will act as our Bellwether.

bell·weth·er - an indicator or predictor of something.


We are looking for:
-Key Highs and Lows
-Imbalances and FVG's
-Orderblock

The 15 Minute Chart will help "frame" your day.


This is the Daily Range for indices on an Intraday Basis:
08:30 PM - 12:00 PM (UTC-5)
--- New York Lunch---
13:00 PM - 16:30 PM (UTC-5)

New York Lunch is a NO TRADE time period.


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The 15 Minute Chart will help "frame" your day.

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Our Morning Trades is between 08:30 PM to 12:00 PM
We trade after 8:30 because of the release of News Events
Try be positioned in a trade before 11:00 PM for a ride into NY Lunch and Afternoon Session.

Before 8:30, look for potential Highs and Lows for a Stop Hunt.
These swing points must be significant and obvious.
Now our 15 Minute Chart is ready, and we can drop to 5 Minute for Entries.

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The 3 Drives Pattern will help you understand Stop Hunts.
We like to see this pattern form when there is an Old High we marked out on the 15 Minute.

IF we see 3 Drives towards Liquidity Pool, we do not need to see that Liquidity Pool hunted with the 3rd drive.
The market is already running out Short-term Liquidity every time it drives into a new Short-term High.
This is how Smart Money established a new position.

You want to see an Displacement afterwards.


This is what you are looking for and why you are in-front of the chart.
The Displacement should be so obvious similar to how an Elephant would jump into a Children's pool and cause a scene.

When this occurs, you are ready to look for the Fair Value Gap.
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Notice how the Liquidity Pool did
not need to be hunted due to the
3 Drives Pattern...

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Anticipate the Stop Hunt if we do not see the 3 Drives Pattern.
Study how price reacts when it takes out a recent Short-term highs.
If the price is not pressing higher similar to a 3 Drives pattern, anticipate a Stop Hunt.

Then we look for a Displacement that prints a FVG.


Then we place our Entry at the Fair Vale Gap.
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The step-by-step protocol for Morning Trades.
1. Liquidity Pool prior to 8:30
2. Displacement below the Liquidity Pool
3. FVG for an Entry targeting an opposing level.

These patterns will sometimes not work.


This is why its important to practice proper Risk Management.

Do not fall victim to Murphy's Law...


Anything that can go wrong... will go wrong.

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The Daily Range is defined by 3 sessions:
1. The Morning Trend
2. The New York Lunch
3. The AM Trend

After the Morning Session is completed, you want to describe what Trend occurred.
Was the Morning Session a Bullish Trend, Bearish Trend or Consolidation?

If it was consolidating, was it a Bullish or Bearish Trend Previously?


The market is most likely going to have a Continuation based on it's previous trend.
Especially when there if remains Clean Highs or Lows...

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Signs that the market wants to Trend Higher:
-Clean Highs are left untapped in the Chart
-Price is printing new Swing Lows without breaking.
Price printing clean highs is going to be a reason for the market to reach up to that area.
Price holding lows without breaking are signs of Accumulation and that Price wants to trade higher.

On the other side of Lunch, look for these indications for


reasons that the market should head up higher.
An Afternoon Trend characteristic is that it accelerates
aggressively coming near to the 14:30 PM Close.

Note & Study:


14:20
14:10
14:00

This is Market-On-Close Orders (MOC)


A market-on-close order is simply a market order that is
scheduled to trade at the close, at the most recent
trading price.

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What your Daily Bias and do you expect Range Expansion?
If your Daily Bias is Bullish, and you expect Range Expansion to the upside...
Trade with that expectation in the Afternoon Session and base it off the framework given in the
Morning Session.

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Afternoon Stop Hunts
After 1:30 PM, Look for Swing Lows and Highs for the Afternoon Session.

Following the same context of the Morning Session Stop Hunt Prior 8:30 AM,
we anticipate a Stop Hunt for this obvious Swing Low/High prior 1:30 PM.

Bonus: Watch for where these Stop Hunts trade into. Most of the time they will trade into a FVG.

After the Stop Hunt occurs, Price will spool due to the Buy Program initiated.

Spooling is when Price keeps getting offered higher, higher and higher.
Watch this occur right after the Stop Hunt...

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IF YOU DO NOT GET THE STOP HUNT, LOOK FOR A DISPLACEMENT INSTEAD.
YOU THEN PAIR THAT DISPLACEMENT WITH A FVG FOR ENTRY.

THESE ARE THE 2 AVAILBLE PATTERNS:

ALWAYS INCLUDE LOGIC FROM THE MORNING SESSION...


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MARKET PROFILE
THERE ARE 3 TEMPLATES
TEMPLATE 1: MORNING TREND, AFTERNOON REVERSAL.
TEMPLATE 2: MORNING TREND, AFTERNOON CONTINUATION FOR A 1:1 MEASURED MOVE
TEMPLATE 3: MORNING CONSOLIDATION, AFTER NOON TREND

QUESTIONS TO ASK YOURSELF PRIOR:


-WHAT DOES THE DAILY CHART SUGGEST?
-WHAT DOES THE 3 DAY LOOKBACK SUGGEST?

THIS WILL GIVE YOU CONTEXT ON EACH OF THE MARKET PROFILE TEMPLATES...

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QUESTIONS TO ASK YOURSELF PRIOR:
-WHAT DOES THE DAILY CHART SUGGEST?
-WHAT DOES THE 3 DAY LOOKBACK SUGGEST?

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CLOSING REMARKS
THERE ARE TIMES IN THE DAY WHERE HIGH PROBABILITY TRADES FROM:
THESE ARE REAL MOVES IN THE MORNING AND THE AFTERNOON.
TRADING ONLY WITHIN THESE HOURS PREVENTS YOU FROM OVER TRADING.

IF YOU HAVE A SUCCESSFUL TRADE IN THE MORNING, DO NOT TRADE THE AFTERNOON.
YOU DO NOT WANT TO GIVE BACK ANY WINNINGS TO THE MARKET PLACE.
ESPECIALLY IF YOU ARE DEVELOPING.
SUGGESTING YOU ARE TRADING LIVE, IF YOU HAVE A SUCCESSFUL TRADE IN THE MORNING, CONTINUE YOUR
PRACTICES IN A DEMO ACCOUNT.

DO NOT FALL VICTIM TO THAT SUGAR HIGH FROM THE WINNING TRADE...

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Find Extra Examples for the following...
STEP BY STEP PROTOCOL
FRAMING OUR DAY EXAMPLES
3 DRIVES PATTERN EXAMPLES
MORNING STOP HUNTS EXAMPLES
AFTERNOON STOP HUNTS EXAMPLES
DAILY RANGE PROFILE EXAMPLES
SIGNS THAT THE MARKET WANT TO TREND HIGHER
SIGNS THAT THE MARKET WANT TO TREND LOWER
DAILY BIAS & RANGE EXPANSION EXAMPLES
THE 2 ENTRY PATTERN EXAMPLES

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