Core Concept - Monday's Asian Range
"the idea of the Asian range not being utilized on Mondays themselves in other words the Asian range that you would determine on Monday's data in my school of thought we do not consider that and the reason why is the algorithm is actually going to look at Friday's Asian range on Mondays we refer to Friday's Asian range"
"on Mondays we do not refer to Asian range it's not important it's not crucial it's not required to find decision you use the previous Friday"
Why I Don't Like Trading Mondays
"this is one of the reasons why I don't like to trade on Mondays but it doesn't mean I won't trade on Mondays it just means one of the things that has to be in play and it has to fit otherwise I won't trade one a Monday"
"this is why I Don't Like Mondays Mondays tend to create the precursor to the weekly range"
Time Definition
"the Asian range we can classify that as 700 p.m. to midnight New York time"
"Thursday 700 p.m. to midnight Friday Eastern Standard Time"
"we can take the Asian range that's on the previous week's Friday and utilize that to get projections on how far the market can build up into a specific level of resistance but it has to overlap with some other narrative"
Wicks vs Bodies
"I'm using the candles Wicks and tail to illustrate how the classic view of the Asian range is interpreted I do not always use the Wicks and Tails I like to use the bodies of the candles especially if they're very clear and discernible"
ICT Bearish Breaker
"the logic behind this is we want to look at the last down Clos candle prior to this run up that clears all the buy side liquidity if the market trades lower than this low this down closed candle becomes my ICT bearish breaker"
Breaker Sensitivity
"look at the sensitivity right in here notice it does not go just to the bottoms of these candles here and then trade lower it trades inside of this down closed candles range multiple times and then trades lower"
Mitigation Purpose
"when it moves away it comes back up it's trading inside of this to mitigate all of the long that were in here anyone that was long on a smart money level in other words Traders on an Institutional level that were along here that may have been caught off guard they can now mitigate those positions it's not that they're buying it to push it up that's not what takes place here okay that's not what goes on this is repricing and then this is mitigation"
"all of this is the purpose of pairing up liquidity buy side sell side"
Asian Range Projection
"we have all of the Asian ranges stacked on top of one another and you can see it goes right to the top of that high end of the breaker that we used as our initial narrative so we have five Asian range projections on the upside that overlap exactly with a bearish ICT breaker"
Precision Example
"here's one Asian range below it the second Asian range below that and the third Asian range below that okay and this is all calculated on Friday's data now if you carry these levels out into the future you get the high here what's the high on this candle 1.19 06 and 0 pipets well it just happens to be the actual high of the day the Asian range low here for three ranges projected lower we have a range projection of 1.1 18009 pipets and we're off only by a very small degree in the form of 1.18 and three pipets so in this case I'm only off by six pipets"
"this is what I refer to as Swiss time piece precision"
Bias Requirement
"the caveat to that is the Friday's Asian range is only useful if a bias is underway that means are we in a buy program or a sell program"
"buy program is simply we're in a bullish market and it's probably going to keep going higher"
"if we're in a sell program then that means that the Market's moving lower and it's probably going to continue moving lower"
"we would use the Asian range in a bare scenario we would project the Asian range lower to get potential overlapping with a key level"
Discernible Bias
"the algorithm uses is this range on the previous Friday when the bias is discernable in other words if we're bullish on the start of the week Euro should trade higher it doesn't mean it will absolutely do so it just means that we go in looking for things that line up to build evidence to structure a trade around a narrative that we anticipate"
Time vs Price - The Algorithm
"the first Factor that's most important when it comes to algorithmic trading is time there's specific things that happen at specific times and if they don't occur there is no setup doesn't matter what price is doing if the time element is not there and then price overlaps with it those two things have to agree but the first and foremost and most important is the time element"
"the algorithm is going to remember and refer back to the previous week"
Time References from Examples
"the market sees the Euro flash PMI at 330 that's what this level is here okay so the low forms at 330 again back to the calendar at 3:30 we had good numbers coming out 57.9 versus the 56 it's modestly better but nonetheless it's better they pump it up and above Friday's High"
"one standard deviation on the Asian range from Friday's data at 945 this candle right there what is going on there well go back to the calendar at 9:45 the US dollar has 56.7 much more Improvement than what was forecasted at 52 and A2"
Practical Trading Rules
Building a Narrative
"this idea of projecting the Asian range is higher it's a specific measurement the algorithm will reach for if if you were anticipating higher prices on Euro you could have used this scenario here to be a buyer on Friday of last week and using this idea as a Target and you would hold over the weekend if you were inclined to feel that confident about it"
Multiple Components Required
"we have several components here we have Market running up into on Monday to a bearish breaker and all of these Asian range overlapping so the algorithm uses is this range on the previous Friday when the bias is discernable"
Target Zones
"if it traded up to this level here which is the bearish breaker and all of these projected Asian ranges from the previous week that would be a Target or just before it gets to that level or maybe at the low end of the breaker that would be a Target"
Trade Management
"it hits it that's where you would scale out take profits or completely collapse your trade or if you are a contrarian Trader you can look at that as an idea that okay we do have sell side liquidity down here and Monday might happen to be a day where you have a little bit more retracement lower"
Displacement Recognition
"where is there a flurry of excitement right in here okay this is displacement so here's Sunday's data we're going to kind of like blur that out for a moment this is all Friday's trading so Friday's Trading where is the displacement in other words where is the market really trying to show a willingness to go higher"
Bullish Order Block
"your I goes right to this down closed candle prior to this run up because this displacement the algorithm starts to run higher and then it trades back lower into this turning point right here so we have this specific price level here it runs higher creates an imbalance it comes down rebalances that and trades right back into this bullish order block"
Optimal Trade Entry
"we have optimal trade entry here in the New York session"
"between getting in here on optimal trade entry with a bullish order block and getting out at the low into this range here on Monday today's trading that's a pretty decent price run for a short-term trade"
Contrarian Trading
"if you are a contrarian Trader and you know that Mondays tend to be a consolidation retracement that sets up a continuation of a longer term price move we could look at this area here as a short-term contrarian short"
Body Sensitivity
"look at the bodies of the candles here yes you have a small little tail here and a very small little tail on this one but it's going basically back into this candle when we're looking at Price the price is going to refer back to specific levels that are key in reference to specific elements of time"
Study & Review
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