Notes
- Risk-off scenario: If the US dollar’s value rises, foreign currencies will fall, and all other asset classes are likely to fall as well.
- Risk-on scenario: If the US dollar’s value falls, foreign currencies will rise, and all other asset classes are likely to rise as well.
- The ICT Kill Zones are critical periods in the London and New York sessions where significant price movements often occur.
- Optimal Trade Entry (OTE) is a key strategy for entering a trade during retracements.
- The market is constantly in cycles of consolidation, trending, and reversal. By identifying these phases, we can align our trades with the direction of smart money.
- Michael recommends using a 30-pip stop loss for day trading to avoid unnecessarily getting kicked out of a position.
- Determining order flow (trend) on daily charts by exponential moving averages:
- Bullish bias - If the 9-period EMA is above the 18-period EMA.
- Bearish bias - If the 9-period EMA is below the 18-period EMA.
Resistance Broken Later Turn Support
GBPUSD Trade Example - OTE and Stop Loss
Exponential Moving Averages
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