Notes
- In this lecture, Michael explains the importance of journaling and its impact on our trading. He also discusses many of his ICT concepts and shows how he performs top-down analysis involving PD arrays.
- ICT price action analysis is about recognizing Order Blocks, Fair Value Gaps, and other PD arrays across multiple timeframes to understand how the market behaves and where it may move next.
- Annotation and journaling charts help create a strong foundation for understanding market behavior over time. It helps build a deeper understanding of price action and aids in developing the ability to predict price movement.
- Watching others trade or reading books won’t give the same level of insight as actively engaging with the charts.
- If the price is trading through three PD arrays that we thought would support the price in our expected direction, then we are very likely wrong in our estimate.
- The Immediate Rebalance (IRB) is one of the strongest algorithmic signatures. Whenever we see this behavior in the market, it tells us that price is about to move quickly and aggressively in our expected direction.
- A top-down approach to chart analysis is key to successful trading. It is essential to start from the higher time frames to understand market direction and then use the lower time frames to pinpoint specific trade entries.
NQ - Monthly Chart
NQ - Weekly Chart
NQ - Daily Chart
NQ - 4-Hour Chart
NQ - Hourly Chart
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