Hello Traders!
I mentioned in the last update of the BTC idea, how I started learning ICT concepts, around a month back. This is the first idea to be published based on those concepts. One must understand that these concepts are vast, and I've only begun it. Everything gets better with more and more practice.
1. Let's begin from 14th April 2023, where DXY market made a new swing low on the daily. We see a massive, fast move up. A 4hr swing high (white highlight) is broken. The market makes a double top (red highlights) and falls.
2. Since, a swing high was broken, we could look for potential moves up from the white 4hr POB (potential order block). This block also coincided with the 70.5% percent Fib level. This Fib was taken from an institutional level of 100.50. I know. Those who don't know ICT concepts find this amusing and, at times, even stupid. But it really does work. I initially was wary of using it but, the more I practice, the more I gain the confidence of doing this. Test it out yourself before you take my words.
3. Market moved up drastically just as was originally expected, grabbing the liquidity from above the double tops and creating a new swing high (neon highlight). ICT stresses on looking at equal lows or highs with suspicion. Every trader knows that the stops of the people who shorted and the orders of people willing to go long on the break of the high rest there, creating liquidity.
4. This new swing high gave us another window of likely opportunity. In my understanding, until a new swing low breaking the old swing low (blue highlight) is made, the market is primarily bullish.
5. More liquidity rests below the equal lows where the market has created the current support upon. It may not necessarily go for that liquidity pool, but it definitely can.
6. The new 4hr POB (fluorescent rectangle) could also hold potential for an up move.
I hope this gave you something new to learn today. If you already know ICT concepts, then that is amazing. I still have a long way to go.
All of this is only for educational purposes. Please take advice from your financial advisor before taking any financial risk.
Do use proper risk management.
Happy Trading!
Profits,
Market's Mechanic.
I mentioned in the last update of the BTC idea, how I started learning ICT concepts, around a month back. This is the first idea to be published based on those concepts. One must understand that these concepts are vast, and I've only begun it. Everything gets better with more and more practice.
1. Let's begin from 14th April 2023, where DXY market made a new swing low on the daily. We see a massive, fast move up. A 4hr swing high (white highlight) is broken. The market makes a double top (red highlights) and falls.
2. Since, a swing high was broken, we could look for potential moves up from the white 4hr POB (potential order block). This block also coincided with the 70.5% percent Fib level. This Fib was taken from an institutional level of 100.50. I know. Those who don't know ICT concepts find this amusing and, at times, even stupid. But it really does work. I initially was wary of using it but, the more I practice, the more I gain the confidence of doing this. Test it out yourself before you take my words.
3. Market moved up drastically just as was originally expected, grabbing the liquidity from above the double tops and creating a new swing high (neon highlight). ICT stresses on looking at equal lows or highs with suspicion. Every trader knows that the stops of the people who shorted and the orders of people willing to go long on the break of the high rest there, creating liquidity.
4. This new swing high gave us another window of likely opportunity. In my understanding, until a new swing low breaking the old swing low (blue highlight) is made, the market is primarily bullish.
5. More liquidity rests below the equal lows where the market has created the current support upon. It may not necessarily go for that liquidity pool, but it definitely can.
6. The new 4hr POB (fluorescent rectangle) could also hold potential for an up move.
I hope this gave you something new to learn today. If you already know ICT concepts, then that is amazing. I still have a long way to go.
All of this is only for educational purposes. Please take advice from your financial advisor before taking any financial risk.
Do use proper risk management.
Happy Trading!
Profits,
Market's Mechanic.
Comment:
DXY has moved exactly as expected. A swing high on the daily also stands broken now. Updating the expected target levels.
Comment:
1st Target hit! Stop trailed to breakeven.
Comment:
2nd Target hit!
Comment:
If you followed this trade only till the second target, you've recieved over 7.5R. And if we talk about the highest point, that was a little over 10R.
Comment:
DXY has tested the Daily bullish OB and we see a strong willingness for going higher in the 1hr tf. Another bullish rally should be expected soon.