ICT Mentorship Core Content - Month 6 - Classic Swing Trading Approach

ICTShark · March 27, 2024, 7:12pm

Notes

In the case of swing trading, we will analyze the market through a PD array matrix on monthly, weekly, daily, and four-hour charts.
During the analysis process, ask yourself the following questions:
- Which side of the market has most recently shown a displacement?
- Where has the price moved away from?
- Has the price moved aggressively away from the price levels?
- Was there speed involved?
- Was there a large range indicating that there’s been a massive push by smart money?
Trading in the direction of displacement generates highly probable setups.
We use the four-hour chart as an execution time frame for our swing trades.
If we are bearish, the ideal situation is when the market is in a premium area on the monthly, weekly, daily, and four-hour charts.
If we are bullish, the ideal situation is when the market is in a discount area on the monthly, weekly, daily, and four-hour charts.
The easiest and most probable trades occur when these four time frames are aligned.
We look for swing trades when our macro analysis at least partially supports the trade idea.
The expected HTF retracement against our swing position may be a good short-term trading opportunity.
If the market profile is consolidation, then we look to see if the price is aggressively leaving the consolidation. We want to see displacement.
Intermarket analysis is what Michael refers to as institutional market structure.
We look for trades with a minimum risk/reward ratio of 1:3, preferably 1:5.