ICT Mentorship Core Content - Month 6 - Keys To Selecting Markets That Will Move Explosively

ICTShark · March 27, 2024, 7:16pm

Notes

We want to see trending market profiles in at least two of the four major asset classes, i.e., interest rate markets, commodities, equities, and currencies. The ideal condition is when they are all trending and do not show conflicting signs.
We always want at least one asset class to trend for every group:
- Group 1 - Stocks and commodities.
- Group 2 - Interest rates and currencies.
We use intermarket analysis to confirm or refute our trading ideas. For example, if we expect a bullish dollar to come, then commodities should fail to make higher highs and start to make lower lows.
We look at the last twelve months of the Commitment of Traders report because hedging is usually done using this period for data.
Commitment of Traders reports:
- Commitment of Traders - Barchart.com
- Commitment of Traders - CFTC
If the COT analysis confirms our business idea, we can move on to investigating open interest.
When open interest declines by at least 15% while commercials rise, it is a bullish confirmation, and we can expect higher prices.
When open interest increases by at least 15% while commercials fall, it is a bearish confirmation, and we can expect lower prices.
Price moves from large ranges to small ranges.
When the market forms an inside candle, there is a high chance that the candle after it or the following candle will expand in the direction of the trend and will have a large range.
If we are bullish, we want to see bearish news. Ideally, the market should be near significant support.
If we are bearish, we want to see bullish news. Ideally, the market should be near significant resistance.
News Sources For Capital Markets
- MarketWatch
- CNBC
According to Michael, the Williams %R indicator is the most reliable for determining whether the price is oversold or overbought. He recommends setting it for a period of 15.