ICT Forex - Market Maker Primer Course - Secrets To Swing Trading

Daniel · March 28, 2024, 4:41pm

Notes

In this lesson, Michael introduces a swing model that combines moving averages with the Optimal Trade Entry technique.
This swing model is applicable to all markets and all asset classes.
To determine the trend, the model uses 10-period and 20-period exponential moving averages calculated on closing prices. We use them on daily and hourly charts.
We are in bullish conditions if the market leaves the consolidation by breaking the swing high and the moving average with a period of 10 gets above the moving average with a period of 20 (bullish crossover).
We are in bearish conditions if the market leaves the consolidation by breaking the swing low and the moving average with a period of 10 gets below the moving average with a period of 20 (bearish crossover).
After identifying a bullish or bearish condition on the daily chart, we switch to the hourly chart and look for the Optimal Trade Entry setups.
If we are bullish, the 10-period moving average on the hourly chart must be above the 20-period moving average at the time of entry.
If we are bearish, the 10-period moving average on the hourly chart must be below the 20-period moving average at the time of entry.
Michael recommends taking partial profits and holding some portion for extended periods.
Moving averages provide a structured approach to identifying market conditions. While not perfect, this method aligns with some long-term strategies used by large funds.
Swing trades last several days to weeks.