ICT Complete Course For Beginners. Episode 2

Summary

In this episode, T2 SMC Trader delves deep into the intricacies of swing high and swing low concepts within ICT trading, emphasizing the significance of identifying pyramid-shaped candle patterns. Understanding these structures are critical for marking market shifts and liquidity levels, as non-pyramid formations can often lead to misconceptions in identifying true market swings. T2 provides practical examples to distinguish valid swing highs or lows, explaining why these patterns make a meaningful impact in interpreting market movement efficiently. The guidance aims to help viewers effectively leverage these patterns within their trading strategies.

Highlights

• Understanding swing high and low is crucial for using ICT Concepts effectively. 📊
• Swing highs require a middle candle higher than its neighbors – aiming for a pyramid shape for validity. 🗻
• For swing lows, it's all about the middle candle being lower; again, pyramids rule! 🏔️
• Charts often show sideways patterns which may confuse as swings; recognizing true pyramids is key. 🔍
• A proper swing offers space between high and low runs, forming the pyramid look. 🏔️
• Getting these concepts right sets a strong foundation for advanced trading strategies. 🛠️

Key Takeaways

• Feedback is essential for the creator to enhance video quality. Drop your thoughts in the comments! 💬
• Swing highs and lows are made up of three candles where the middle one should be distinct – think of a pyramid shape! 🏔️
• Understanding these swings helps in marking crucial market structures and liquidity levels for better trading decisions. 🚀
• Not all highs and lows are 'swing' points; there should be a notable pyramid shape or space to qualify them as such. 🔍
• Follow along with actual chart examples for practical understanding of swing highs and lows. 📈
• Learning these foundational concepts is crucial for the subsequent, more advanced, episodes! 📚

Overview

Episode 2 dives into the essential aspects of understanding swing highs and lows—key components in ICT trading strategies. Our host meticulously focuses on the concept of pyramid-shaped candle formations, reinforcing why this structure is preferred for identifying true market swings. Throughout the video, various examples are provided to emphasize the pattern’s importance and help traders better recognize significant market moves.

Within the trading realm, swing highs and lows serve as vital indicators of market structure shifts and liquidity levels. Our guide discusses the importance of accurately spotting these formations, as mistaking regular highs and lows for swings could mislead one's trading approach. The session aims to highlight how these patterns ideally create space between market highs and lows, resembling a pyramid shape for validation.

A hands-on chart walkthrough aids our understanding, where each candle's positioning is scrutinized to determine its status as a swing high or low. The emphasis is on ensuring that swing points reflect a clean pyramid formation, underscoring their necessity in framing successful trading strategies. This foundational knowledge is pivotal for progressing to more advanced topics in future episodes.

Chapters

• 00:00 - 00:30: Introduction and Feedback Request In the introduction of the second episode, the host emphasizes the importance of viewer feedback. By engaging with the video, viewers can offer insights on improvements regarding video quality and presentation style. The host encourages viewers to leave comments, suggests liking the video, and invites new viewers to subscribe to their channel, aiming to create better content through audience interaction and support.
• 00:30 - 01:00: Importance of Swing High and Swing Low The chapter discusses the significance of 'Swing High' and 'Swing Low' in ICT concepts. It emphasizes the importance of paying attention to these elements as they can often be overlooked, leading to complications in understanding ICT. The speaker hopes the chapter will clarify all aspects related to 'Swing High' and 'Swing Low' for the readers.
• 01:00 - 01:30: Explanation of Swing High and Swing Low The chapter 'Explanation of Swing High and Swing Low' provides an understanding of what constitutes a swing high and swing low in chart patterns. The speaker admits to not having great drawing skills but emphasizes the importance of using charts for illustration. According to ICT (presumably Inner Circle Trader), a swing high consists of at least three candles, with the middle candle being higher than the candles on either side. Similarly, a swing low also comprises three candles, where the middle candle is lower than the candles flanking it. The detailed explanation focuses on identifying these patterns for technical analysis and trading.
• 01:30 - 02:00: Three Candle Formation for Swing High/Low This chapter explains the 'Three Candle Formation' used to identify swing highs and lows in trading. It emphasizes that the middle candle in a swing high or low should be comparatively stronger or weaker than its neighboring candles. For swing highs, the middle candle should exceed both its neighboring candles, while for swing lows, its wick being lower is sufficient. The focus is on identifying key turning points in the market using this formation.
• 02:00 - 02:30: Swing High/Lows as Market Indicators The chapter discusses the use of swing highs and lows as market indicators. It explains the importance of the middle candle being lower (for swing lows) or higher (for swing highs) than the adjacent candles. The text refers to a chart visualization to provide a clearer understanding of identifying swing highs and lows.
• 02:30 - 03:00: Importance of Space in Swing High/Low In this chapter, the concept of a swing high in trading is highlighted. The chapter explains that a swing high is identified when a specific candle (in the context of candlestick charts used in trading) is higher than both the candle to its left and the candle to its right. The chapter provides examples to illustrate this definition, with the speaker affirming several times that based on this criterion, certain candles can indeed be considered swing highs. There is also an acknowledgment of a personal insight or understanding related to swing highs that the speaker is about to share, although it is noted that this understanding is subjective.
• 03:00 - 03:30: Demonstration of Incorrect Swing Highs/Lows In this chapter, the focus is on understanding what constitutes a correct swing high pattern. The speaker emphasizes that for a swing high to be valid, it isn't sufficient for just the middle candle to be higher than the candles on its left and right. Instead, it must visually resemble a pyramid structure. This means that a three-candle formation is inadequate to establish a proper swing high, implying a need for more than just a simple comparison of candle heights.
• 03:30 - 04:00: Marking Swing High/Low for Market Structure The chapter 'Marking Swing High/Low for Market Structure' discusses how to interpret candlestick patterns to understand market structure. It highlights identifying bullish and sideways candles and recognizing when a bearish candle appears. The chapter also illustrates how a candle failing to close above a previous high influences market interpretation.
• 04:00 - 04:30: Conclusion and Viewer Interaction The chapter discusses the concept of 'swing high' in the context of market analysis or chart patterns. It explains that there is no space between the high and low points in certain conditions, using an example for clarity. The example involves comparing candlestick patterns on a chart, where certain candles are higher than others, creating a formation that resembles a pyramid. The significance of the space in between highs is also highlighted.

ICT Complete Course For Beginners. Episode 2 Transcription

• 00:00 - 00:30 hey guys TI is back with episode two by watching this art or drawing you have already understood that what's I'm going to talk in this video but before going to this video make sure that you have leave your feedback to the comment box it will really help me to understand that how I should improve the video quality or the talking everything just give me the feedback so that I can understand what is my fault or I can improve myself and please don't forget to leave a like and if you're new don't forget to subscri to our
• 00:30 - 01:00 channel in this ICT Concepts one of the most important thing is Swing High swing low now lot of the lot of you can easily understand brother why you are making an video because there is some small small thing we actually ignore and we don't give that much attention to understand that this is why this Concepts ICT Concepts is going to make more comp complicated for you I hope after watching this video everything about swing high or swing low will be clear to
• 01:00 - 01:30 all of you please ignore my drawing because I'm not a good drawer so it can be little messy okay but don't worry I will show you the example from the chart so over here according to ICT himself there should be three candle to make a swing High there should be at least three candle to make a swing low where the middle candle will be higher than the left candle and the right candle sting here for the swing low the middle candle will will be the lower will be
• 01:30 - 02:00 the lower candle comparing with its left candle and Its Right candle the body doesn't need to go above this area or the weak do doesn't need to go I mean just weak is enough for making the swing High the weak is more than enough to make the swing low just I hope that you understand this is Swing High This is Swing Low the definition of Swing high is there should be one candle the middle candle should be higher than its left
• 02:00 - 02:30 candle and Its Right candle for same thing for swing low the middle candle should be lower than the left candle and the right candle so I'm not going to spend more time over here instead I will go to the chart to understand you or to make you sure that what is missing you from you to understand the swing high or swing so I'm coming here as you can see there is a candle okay just I'm going to use use this candle which is this candle
• 02:30 - 03:00 here that candle is higher than the left candle and the right candle now is this a swing High yeah of course that is a swing high now can I come another here this candle is higher than the left candle and the right candle is that swing high of course this is the swing High what is new brother okay there is some problem whatever I'm going to say it's just my understanding so you don't need
• 03:00 - 03:30 to focus over here that much but if you really would love to learn from me then Focus give you all of your focus over here for making a swing high it's just not enough for me to see that middle candle is higher than the left candle or and the right candle for me it has to look like a pyramid okay so like this it has to look like a pyramid that means the middle candle and the three candle is not enough for me to make the swing
• 03:30 - 04:00 High what do I mean by that as you can see here that specific candle this candle came here which is higher than that candle and that candle but in this area it's called the sideways candle to me that means all of these candle are bullish there is no swing it is a bullish candle there was suddenly a bare candle here okay then the very next candle open here make a higher high over here then closed there this candle failed to close above that high closed over here so it doesn't look like a
• 04:00 - 04:30 swing High there is no space in between the high and the lows if I give you the example you will understand look at this this area this candle is higher than that candle and that candle see this C this two candle it has made this swing high as well as it has made this swing high like an pyramid you can see here it's look like an pyramid right there is some space SP in between the high and
• 04:30 - 05:00 low this this means Market went higher then it come lower and in between there is an space but look over here do you see any space if you mark from there here and then there there is no space right it's some like something like sideways candle just the week is higher so for me it has to look like some kind of pyramid over here same thing over here if you take a closer look around this area Market came from there until
• 05:00 - 05:30 this area then come here okay so there is an it's look like an pyramid over here in between that high and this low that low there's some space in between that but same thing over here if you can take a look closer look over to that candle this candle is higher than that specific candle and that candle but it's not my swing high so if I would love to mark this like this way it's not my swing high it's just an candle which has an higher high or the week is higher
• 05:30 - 06:00 than the previous and the after after candle week right so it's doesn't look like a swing High to me for me to make the swing High it should look like a pyramid like this if I come over here if you take a closer look here Market came here high and low look in between there's some space yeah this is my swing high but it's it doesn't look like a swing High to me over here that candle it doesn't look like a swing High to me because this two candle three candle
• 06:00 - 06:30 they are the sideways candle wherever this candle close this candle open come here went bit lower then went higher it's sideways candle or the consolidation so for making a swing High it has to have some kind of space between That Swing point now same thing over here if I give this example I believe that it's going to be easier for you to understand look over here this candle is higher than that candle and that candle this is a high okay this high is valid as a swing highight now
• 06:30 - 07:00 all I need to look all of this scenario does it look like a pyramid now if you look here from there there and there does it look like a pyramid yes sir it doesn't it absolutely look like a pyramid in between this low to high then market Fall Again there is some space so this is a perfect swing High to be same thing over here look at this this candle is lower than that candle and that candle so it's a low it's this low is
• 07:00 - 07:30 valid for a swing low all I need to see is there any swing or not now look closer over here Market come from there came here make that low then went higher right so this is a swing low because in between this area there's some space it is a perfect swing low but if you ask me is this a swing low because this candle is lower than that candle and that candle right this is that candle which is lower than this and this candle so does it look like a swing low to me no
• 07:30 - 08:00 it's not a swing like swing low to me it's just a low without any kind of Swing point over here same thing here to that specific candle this high is higher than that high and that high is it swing High to me no it's not swing High to me look this is a down close candle this is a down close candle this is a down close candle it is falling this candle came until this area then closed over here so made a high over there it's not a swing high if you look to this low does it
• 08:00 - 08:30 look like a swing low no it is not also look like a swing low to me why because this is all the sideways candle all of these candle are sideways right but if you take a closer look this high it's a swing High because there is a swing or it look like a pyramid over here if you just mark this one why it is important I'll talk about this when I'll talk about this you'll understand why this is so important to me okay so if you look here from there to there and there this is a high which look like pyramid to me
• 08:30 - 09:00 where there is some space in between this area to make that high as a valid swing High it is really important to understand because sometimes we need the swing High to Mark the market structure ship we need the swing High to Mark the liquidity level all of this area the swing high and swing low is important to important to me for example if I would love to Mark the relatively equal highs you will see that this is a swing High over here around this area this is a
• 09:00 - 09:30 swing high and there is a swing high this two swing Point has made relatively equal highs what is relatively equal highs relatively equal lows you just try to understand because I'll cover this thing in my next episode so over here just all you have to understand that what is this important area now same thing over here if you ask me uh for example if I Mark uh what can I Mark like here if you tell me this low and that l they're the
• 09:30 - 10:00 relatively equal loss no I'm not agree with you this is not relatively equal loss because this is not a swing point this is not a swing see it's not a swing it's just sideways candle so it's not a swing point but if you ask me this low what what is where is here this low and that low are the relatively equal lows same thing over here this is not relatively equal lows the reason is this is not a swing point this is this is a swing Point here this is a swing point it's okay but this is not a swing point
• 10:00 - 10:30 so it's not swing point so I'm not interested to look for this is relatively equal low this is clean lows that is different matter I'll cover that as well this is clean lows but not the relatively equal lows I'm it is not enough for me to mark the relatively equal lows same thing over here if I mark this low sorry here this low and that low this is a swing low but it's not a swing low so I'm not interested to mark this as my liquidity level
• 10:30 - 11:00 let's come here to talk about this a bit to understand why it is more important to Mark the swing low and the swing High okay so if I come over here I hope that it's going to be very easier to you to understand the swing high and swing low after this video uh just let me find an exact example I guess I can find it over here okay perfect come over here now around this area to all of this area you
• 11:00 - 11:30 can see this high or that candle high is higher than this candle and that candle you always look for one candle has to be higher than the next candle and the Very previous candle same thing if I take a closer look and Mark this to high what will you see if you mark this to high over here you will see this is the exact high right if this is an exact High even if ites it looks like a pyramid it is
• 11:30 - 12:00 not the swing High even if it looks like a pyramid okay there is some space between this area what I have so far explained right pyramid looks like a pyramid but this is exactly clean highs this low sorry that high should be lower than that previous candle high so middle candle has to be the higher high comparing with its next candle and the its previous candle if it is exact high it's not valid as a swing High even if it it looks like a pyramid keep that in
• 12:00 - 12:30 your mind because I can forget to tell this after after some sometimes so when I saw this this is a perfect example to tell you that even if it looks like a pyramid it's not the swing High because these two candle are the exact candle this candle has to be lower than the middle candle otherwise it's not the swing high it's just relatively equal highs which is not valid for your to mark your swing high or swing low same thing here this candle is lower than
• 12:30 - 13:00 that candle and that candle is this a swing low obviously not why because they looks like sideways candle look there is no pyramid no empty space in between that area if you look here around this area around this area yes this is a swing low so this low and that low both of them are the swing low if I see this two low I can mark them as my liquidity points for or any other point I can use this type of swing low but not this type of sideways
• 13:00 - 13:30 scandle now if I come here around this area around here if you take a closer look around this area this candle high is higher than that high and that high so this is a swing high right so you will see that this is a market structure shift then you will see some kind of f over there you will take the entry over there no it's not valid for shifting Market structure because this is not a swing High same thing here this high is not valid as a swing High though it has a uh lower candle on its left and one on
• 13:30 - 14:00 its right they are the sideways candle or Market is actually falling they have made a bull candle and a higher high it's not valid as a swing high if you ask me over here where do I look like my swing High to where I can find my swing high you can take a closer look over here this looks like a pyramid where there is some empty space in between these two line that buy buy line and that sell line so for getting the high I
• 14:00 - 14:30 need just three candle I don't need five candle but to Mark the swing High I need more candle it can be five candle it can be 10 candle it can be 15 candle I don't care but all I need some candle which is going to make some space in between that buy run and that sell then I will find my swing high or swing low for any kind of use okay so over here when this High has been shifted here with a fair value cap this is called my market structure shift it's not my market structure shift
• 14:30 - 15:00 with that high when it has been shifted or this High has been shifted here it's not my market structure shift or something because I need the swing High to shift the market if you take a closer look to that candle though it's a down close candle which has a higher high but does it look like a swing yes sir it look like to me a swing because when it went higher this is the bull run this is the bare run look in between these two run there is some empty space so it's a swing High to me same thing here if you
• 15:00 - 15:30 take a closer look of this low which does look like a perfect clean swing low to me over here because this two area to that sell run and the buy run there is something some kind of space over here now if you uh compare this low swing low and that swing High you will see that it has made lot of candle to to make that sell run then lot of candle to make the buy run to at the same time to make this empty space in between these two run
• 15:30 - 16:00 right it takes lot of candle here it takes one two three candle for the buy run and just one candle to the sell run still this is my swing High because it has some space in between these two area so when this High has will be shifted over here or if I would love to mark this high for my liquidity level whatever I would love to Mark with that high I can mark it because this is a valid swing high this is a valid swing low this is a valid swing low look at at this okay so there is a space in between
• 16:00 - 16:30 these two run there is a space this is a swing low here this is a swing low because in between this to run there is a space but this candle low is not my swing low then where I can go look at this low this candle low is not my swing low or that candle high is not my swing High because they are the sideways candle so guys I tried to explain the swing high and swing low in this video I know that all of you already know about this but this is I think most important
• 16:30 - 17:00 part to understand the swing high and swing low uh because all of us has some problem to find out a perfect swing High a swing low for our using okay for our ICT Concepts using so always give the priority to the pyramid to mark your swing high or swing low it will help you a lot to understand this Concepts and when I will go step by step this all information is going to help you a lot so thank you guys for watching this video make sure that if
• 17:00 - 17:30 you have watched until this area you write down boom in the comment box at the same time if you have any confusion just let me know so that I can cover uh that your confusion I can clear in my next episode thank you for being over here until the next video take care of yourself take care of your family cheers