ICT Complete Course For Beginners. Episode 3

Summary

In this episode, the T2 SMC Trader provides an insightful exploration into the movement of market prices and the concept of liquidity in ICT trading. The speaker explains how markets move between different price levels by targeting retail traders' liquidation points, known as liquidity. By discussing the concept of buy side and sell side liquidity, the speaker aims to help beginners understand how to identify and target these zones effectively. The video also emphasizes the importance of marking double tops and bottoms as significant liquidity levels.

Highlights

• The video begins by questioning why market prices move and then aims to clarify this by discussing market liquidity. 🤔
• The speaker introduces concepts like buy side and sell side liquidity and how they attract market movements. 📊
• Understanding the behavior of retail traders helps identify potential targets for liquidity. 🎯
• By examining double bottoms and tops, beginners can grasp liquidity marking for better trading insights. ✅
• ICT traders focus on taking advantage of retail traders' liquidity points. 🎯

Key Takeaways

• Liquidity is essential for understanding market movements. 📈
• Buy side and sell side liquidity depict market targets. 🎯
• Marking double tops and bottoms can reveal potential market directions. 🔄
• Retail traders' liquidity points often become targets for ICT traders. 🎯
• Trusting strong resistance or support zones can be misleading. 🚫

Overview

Have you ever wondered why markets move the way they do? Episode 3 of the ICT Complete Course for Beginners unravels the mystery behind market price movements, focusing on the power of liquidity. Hosted by the knowledgeable T2 SMC Trader, this episode takes a deep dive into how price actions are influenced by liquidity levels, resulting from retail traders' decisions.

In this engaging session, you'll delve into the concepts of buy side and sell side liquidity, learning how these zones become focal points for the market's upward or downward movements. By leveraging these insights, ICT traders position themselves strategically against traditional retail tactics. The video argues that liquidity isn't just about immediate gains but about understanding the game's broader picture.

Marking significant liquidity levels, such as double tops and bottoms, provides insight into where the market might head next. This episode equips beginners with the know-how to spot these patterns and the wisdom to look beyond apparent resistance and support zones. By tuning into this course, you embark on a journey to transform your trading approach, aligning it with seasoned professionals' strategies.

Chapters

• 00:00 - 00:30: Introduction to Market Movements and Liquidity The chapter introduces the concept of market movements and liquidity, exploring why prices fluctuate in the market. It aims to clarify the reasons behind price changes and market dynamics, providing a foundational understanding for readers.
• 00:30 - 01:00: Subscription Call to Action The chapter titled 'Subscription Call to Action' begins with the speaker expressing gratitude to viewers for considering subscribing to their channel, as they are close to reaching 10,000 subscribers. The speaker emphasizes the importance of every new subscriber and encourages viewers to also leave a like on the video. The latter part of the transcript mentions a shift in focus to a topic on ICT Concepts related to retail traders' liquidity, where the speaker plans to illustrate the concept with drawings and real chart examples.
• 01:00 - 01:30: Understanding Retail Traders and Liquidity The chapter 'Understanding Retail Traders and Liquidity' delves into the mindset and behaviors of retail traders, particularly how they interpret market movements and make trading decisions. The discussion focuses on how retail traders view 'swing highs' or tops in the market. When the price moves near these points and creates relatively equal highs, retail traders often perceive these areas as resistance zones. They tend to believe that these zones will hold and the market is likely to fall from there. This insight into retail traders' perspectives is crucial for understanding market liquidity and dynamics.
• 01:30 - 02:00: Retail Traders' Beliefs and Liquidity Zones The chapter explores the mindset and strategies used by retail traders, particularly focusing on the concept of liquidity zones. It describes how traders identify resistance zones, and the typical actions they take, such as placing sell orders, setting targets, and placing stop-loss orders above resistance zones. These techniques illustrate their approach to managing risk and seizing trading opportunities based on perceived market patterns.
• 02:00 - 02:30: Buy Limit, Stop Loss, and Liquidity Concepts The chapter titled 'Buy Limit, Stop Loss, and Liquidity Concepts' discusses several key trading concepts used by retail traders. It explains the notions of 'buy limit' and 'buy stop,' identifying how a 'buy stop' is perceived as 'buy side liquidity.' The chapter also illustrates how the market reacts to swing lows and highs, explaining how traders recognize patterns such as a 'double bottom'—a formation considered to be a robust support zone. Furthermore, the discussion includes that this pattern doesn’t necessarily have to consist of just two bottoms; it can extend to three bottoms or more.
• 02:30 - 03:00: Sell Side Liquidity and Support Zones The chapter discusses the concept of support zones in market trading. The more bottoms a market creates, the stronger the support zone becomes, which increases the likelihood of the market going higher. Traders are advised to look for patterns like double or triple bottoms as indicators of a support zone. Once identified, traders can set a buy limit at the zone, place a stop loss below it, and determine a target level for potential profit.
• 03:00 - 03:30: Market Reaction to Liquidity Zones The chapter "Market Reaction to Liquidity Zones" explains the concepts of buy side liquidity and sell side liquidity, which are crucial for traders. Buy side liquidity refers to the aggregation of buy stop orders, while sell side liquidity pertains to sell stop orders. The chapter highlights how retail traders typically place these orders around support zones. Understanding these liquidity zones helps in anticipating market reactions and making informed trading decisions.
• 03:30 - 04:00: How ICT Traders Target Retail Stops In this chapter, the concept of 'ICT Traders targeting retail stops' is discussed. It explains the marking of double and triple tops or bottoms as indicators of liquidity points. Specifically, the lowest points are marked as 'cide liquidity,' while the highest points are labeled as 'Buell liquidity,' according to ICT Concepts. The strategy involves targeting these points to understand market movements, especially when the market moves slightly higher.
• 04:00 - 04:30: Liquidity Examples and Marking Zones In this chapter, the focus is on understanding the concepts of liquidity and marking zones in trading. It explains how traders target resistance zones as liquidity points and use these areas to plan their sell strategies. The chapter provides insights into identifying potential entry points for selling trades when such resistance zones are detected.
• 04:30 - 05:00: Real Examples on Charts The chapter titled 'Real Examples on Charts' discusses a specific trading strategy. It begins with an explanation on setting a logical stop-loss level when entering a trade, emphasizing its importance over the entry model itself, which will be covered more comprehensively in a mentorship series. The focus here is on understanding how to identify and target the stop-loss point in the chart, hinting at the strategic placement of stop-loss orders to capture market liquidity. The section briefly touches on the concept of buy-side and sell-side dynamics, instructing the reader not to be confused by these terms at this stage of learning.
• 05:00 - 05:30: Identifying and Marking Liquidity Zones The chapter discusses the concept of liquidity zones in financial markets and focuses on identifying and marking these zones using specific examples. It highlights the importance of double bottoms and not double tops as key indicators. The chapter describes strategies for framing selling and buying opportunities based on market reactions, particularly when prices move higher or fall slightly after reaching these liquidity zones. This involves targeting specific areas for entry opportunities in the market.
• 05:30 - 06:00: Advanced Examples of Liquidity Marking The chapter discusses strategies used by ICT Traders to target retail traders' stop-loss positions. It explains how entry opportunities are identified by aiming for areas where retail traders have placed their stops, thereby using their buy stop as the target. The focus is on exploiting the stops of retail traders to gain an advantage in trading.
• 06:00 - 06:30: Summary and Conclusion This chapter discusses the complexity of liquidity in financial markets, emphasizing the myriad of levels such as previous day highs/lows, swing highs/lows, and session highs/lows that can confuse traders. The advice given is to avoid overcomplicating analysis with too many indicators and instead focus on simpler patterns such as double tops or triple tops, which are easier to identify and can provide clearer signals for trading decisions.

ICT Complete Course For Beginners. Episode 3 Transcription

• 00:00 - 00:30 hello guys sometimes you can ask yourself why this price move from one place to another place what do I mean by that you can see this is the price on my right here why Market come to this price and then why from there to there in that price why Market move from one place to another place don't worry in this video I'm going to make it clear to all of so that you can understand why and how this Market actually move before going to
• 00:30 - 01:00 this video I would really appreciate you if you subscribe to our Channel we are very near to 10K subscriber so if you subscribe to our Channel and make it one step further I'll will really appreciate that I will be really grateful to all of you and please don't forget to leave a like this ICT Concepts is based on retail Traders liquidity now what is that liquidity I'll go for the drawing and then I'll come here to this real chart to give you the example
• 01:00 - 01:30 for the retail Trader if you see this is a swing high this is a top okay this is just a top then when price just do some things here and move some bit then come back again very near to this STP make another high they see they see that this is relatively equal highs or the resistance Zone okay this is their resistance they start to believe that this zone is going to hold the market and it is going to fall so
• 01:30 - 02:00 here one top two top this is double top according to themsel this is their resistance zone so what they do they actually put a order here I'm just going to show you like this way they put a sell order there Target somewhere and put their stop loss this is their stop loss above that zone this stop loss is actually buy stop so they took sell put their buy stop there and buy limit here so this is
• 02:00 - 02:30 called buy limit buy stop and the entry retail traders buy stop is our buy side liquidity so we called that buy side liquidity same here when there is a swing low and then Market went a bit higher then come back again very near to this swing low they start to see this is double bottom which is a very strong support zone now it doesn't need to be take two bottom it can be three bottom
• 02:30 - 03:00 it can be four bottom it can be five bottom the more bottom it will create the more strong support Zone it will be and then Market will go higher okay so they see this is a support Zone double bottom triple bottom whatever it is at least I need double bottom double top when they see this they put a buy limit here stop loss below the zone and Target somewhere
• 03:00 - 03:30 else so this is their Buy sell limit is here and there is their sell stop so retail Trader sell stop is we call it sell side liquidity okay this is our sside liquidity and Retail traders buy stock is our buy side liquidity so I believe that now this buy side liquidity and sell side liquidity is clear to you wherever I see the support zone or
• 03:30 - 04:00 double bottom triple bottom whatever it is I Mark the lowest bottom Mark that relatively equal loss as my cide liquidity wherever I see double top triple top four top whatever it is I Mark that high or relatively equal highs as my Buell liquidity according to ICT Concepts where they took the buy here we actually Target this that means when Market go go a bit higher okay A bit
• 04:00 - 04:30 higher they maybe they target another resistance Zone okay so they see this is their support sorry resistance here they have targeted this as their liquidity or this is the the the retail Traders limit or you know the area they're going to close that trade so what we actually do when we saw this we immediately start to look for an selling opportunity for that area if there is an opport opportunity to take entry then we
• 04:30 - 05:00 take the entry over there and we target this cide liquidity by putting our stop loss in a logical level no need to worry about the model our entry model we will talk about everything in this mentorship series but right now try to understand the limit or sorry the target how we target their stop- loss okay this is their stop- loss we are going to Target that stop loss now here is buy side and sell side don't get confused just forget about this and just think this is just
• 05:00 - 05:30 the double bottom okay no there is no double top just think you have the double bottom so when you will see the price will go bit higher then we will start to frame a sell opportunity over there and we'll Target this area this will be our entry opportunity same here where they are going to take or frame the Sal setup there we are going to frame our buy setup when Market will react from this area will fall a bit
• 05:30 - 06:00 lower then we will start to look for our entry opportunity okay so here this area will be our entry opportunity and we will Target their stop loss their uh buy stop that will be our Target okay so here this will be our Target so we ICT Traders actually go toward the retail Traders stops retail Trader stops is our Target wherever we see retail Traders stops we target that
• 06:00 - 06:30 liquidity now there could be lot of uh liquidity for example previous day high previous day low normal swing High swing low then previous week high previous week low session High session low lot of the things okay this will make you very confused so don't look at that it is too simple to mark double top or triple top
• 06:30 - 07:00 double bottom triple bottom four bottom it's too easy and you will be easily you'll be able to mark them don't worry I'll show you from the chart as well so that it will be absolutely clear to you why what I'm talking about here you just focus how I'm going to mark my liquidity level okay so this is sell side this is buy side liquidity and if you are still confused please watch this part one more time it will be absolutely clear to you why and how we Mark ourselves side liquidity level and why and what I we
• 07:00 - 07:30 actually do we target that liquidity how we Mark and why we Mark the buy set liquidity and how we actually Target that buy set liquidity as our Target or that that going to be give us the entry Opportunity by believing that retail Traders resistance Zone which is not going to be broken we are going to believe that this is going to be broken okay so where they start to believe it is a very strong Zone and it's not going to be broken Market is going to react
• 07:30 - 08:00 from that area it is going to respect that area we are going to believe that no it is not going to be respected it is going to be broken that is why that is our Target so we believe Market will stop them out and then it will go another level so this is how Market actually move from one price level to another price level Market always look for the liquidity where the liquidity is after taking the S side liquidity it will start to look for the buy side
• 08:00 - 08:30 liquidity okay so after taking sto them out all of them when they will get stopped out it will look for the buy side liquidity same thing here after stopping them out whoever put their buy stop over there after stopping them out from that price level to Market come to this sside liquidity level this is how this Market actually move from one one price level to another price level now we'll go to the chart and we will see the real example okay so here I'm just going to mark this area just
• 08:30 - 09:00 small area you can see this is a high that is a high they are relatively equal highs okay and you can see it's a very strong support resistance zone so retail Trader are seeing this is a very strong Zone it's not just a line it's a Zone okay so you can randomly mark this zone or can you can put it a bit lower so maybe until like this way okay this is their strong Zone see here how beautifully it is reacting here so what
• 09:00 - 09:30 they are going to do they're going to mark this is a resistance Zone and they're going to enter to that leg okay so here they're going to enter here and they're going to put their stop loss Above This Zone and they're going to Target maybe another another area where they are going to believe that market will fall I don't know where is it I'm just showing you the example uh how to Mark the buy liquidity level and sell sell liquidity level okay so this is the way I mark this area as my buy side
• 09:30 - 10:00 liquidity here same thing I would love to show you the cell site uh opportunity or cell site how to mark that cell side here look at this low and that low here this low has been reacting from this low this swing low okay so I'm going to Mark here a line and going to mark it as a sell side liquidity so here this is a sell side liquidity and this is not a line always remember this is not a line Mark a Zone over there if you don't want
• 10:00 - 10:30 to Mark The Zone don't no need to mark that zone right now just just focus on the low or double bottom double top just focus over there this low and that low very near to each other see this low and that low is very near to each other so this is their Zone where they are believing that it's not going to be broken okay so they seeing this is a very strong Zone they're not going it's not going to be broken so what they're going to do they're taking their buy there going to put the stop CL below this area and going to Target maybe this
• 10:30 - 11:00 buy liid or that resistance Zone that is their area to look for the uh Target what we actually do when Market went a little bit higher we see some setup over there we are going to take the sell over there okay so we are going to bleep that market is going to fall and stop them out first and this is how they got stopped when they start to bleep this is not going to be broken we are going to believe that that's going to be broken for sure that is going to be broken for sure
• 11:00 - 11:30 let me show you little more example so that you can easily Mark the buy side liquidity and the sell side liquidity so I will go in another time frame here you can see it's 15 minute chart so I'm going to go in 1 hour chart so in 1 hour chart if you take a closer look maybe in in another area Okay so over here uh just come where I can come yeah let's come over here around this area look at this low and that low what what do you see over there this low which is a swing
• 11:30 - 12:00 low Market very Market came here to make another support Zone double bottom what is this this is their support zone so it's not going to be broken they're going to take the buy over there and then look at that where the market is coming for this Market is coming for this zone right this is their support Zone Market is coming for to stop them out this is how you can mark the S side liquidity same if you would love to Mark
• 12:00 - 12:30 the buy side liquidity you can see this high and that high they're the relatively equal highs over there here this is that relatively equal highs or that high is a relatively equal highs if you can see like this way this is a very strong resistance zone or double top which is a very strong resistance Zone okay so people actually took the sell over there when it came back again to this zone or this area they took the sell over there they started to believe that this zone is not going to be broken
• 12:30 - 13:00 so they maybe put their stop loss a bit higher and they have targeted this area or this support Zone as their target what happened Market went fall a bit lower and then started to go higher toward that buy liquid okay so I'm going to remove this Zone instead of that I'd love to mark that buy liquidity I will go much more precised way in my next videos so that it is going to be absolutely clear to all of you right now by this video You Are just going to you
• 13:00 - 13:30 are just learning how to Mark the liquidity s side liquidity buy side liquidity how to mark them so if you can understand how to mark them in in short or in next video next video series this whole B liquidity how many types buy side or sside liquidity can we Mark and how we should use those liquidity there's lot of different types of buy side and saleside liquidity I'll talk about them in next videos or the series okay where they are going to look for
• 13:30 - 14:00 sell we are trying to look for buy maybe here maybe around this area and we are going to Target that strong resistance Zone as our Target and we are going to get our profit over there so guys I hope that it's a bit clear to all of you to understand how to Mark buy side liquidity and sells side liquidity the easiest way is to Mark relatively equal highs or relatively equal loss below the relatively equal loss retail Trader put their buy uh sorry their buy stop sorry sell stop that is our
• 14:00 - 14:30 sell side liquidity above the relatively equal highs they put their buy stop that is our buy side liquidity and there they believe that this buy stop is not going to be stopped uh is not going to be taken or the sell sell stop are not going to be taken we believe that they are going to be taken this is how we trade this ICD concepts by marking the liquidity level and we predict the market move or Market you know Market move from one price level to another
• 14:30 - 15:00 price level depending on that liquidity so until the next video cheers guys